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A cost benefit analysis of a V2G-capable electric school bus compared to a traditional diesel school bus

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  • Noel, Lance
  • McCormack, Regina

Abstract

Fuel expenses, diesel exhaust health externalities, and climate change are concerns that encourage the use of electric vehicles. Vehicle-to-grid (V2G) policies provide additional economic incentives. This analysis evaluates the costs and benefits associated with the use of electric vehicles and determines the cost effectiveness of using a V2G-capable electric school bus compared to a traditional diesel school bus. Several factors were analyzed, including fuel expense, electricity and battery costs, health externalities, and frequency regulation market price. The V2G-capable electric bus provides the school savings of $6070 per seat in net present value and becomes a net present benefit after five years of operation. Without externalities, the net present benefit would be $5700 per seat. If the entire school district’s fleet switched to V2G-capable electric buses, the net present savings would be upwards of $38 million. A sensitivity analysis was conducted to determine how the factors influenced the costs and benefits. In all cases, purchasing an electric school bus is consistently a net present benefit. Policies could be set into place to incentivize public school adoption of electric buses, encourage more efficient batteries, and develop V2G capabilities.

Suggested Citation

  • Noel, Lance & McCormack, Regina, 2014. "A cost benefit analysis of a V2G-capable electric school bus compared to a traditional diesel school bus," Applied Energy, Elsevier, vol. 126(C), pages 246-255.
    • Handle: RePEc:eee:appene:v:126:y:2014:i:c:p:246-255
    DOI: 10.1016/j.apenergy.2014.04.009
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