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The development pattern design of Chinese electric vehicles based on the analysis of the critical price of the life cycle cost

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  • He, Yongxiu
  • Zhang, Qi
  • Pang, Yuexia

Abstract

In recent years more and more people have been paying attention to the development of electric vehicles. At the same time, due to the lack of innovation in business models, the promotion of electric vehicles has been relatively slow. The development model of electric vehicles is in urgent need of innovation. Considering the initial investment cost, operating costs, fuel cost and other expenses of electric vehicles, this paper designed a critical price model of alternative fuel vehicles in the whole life cycle from the consumers’ point of view. The results showed that users can use the electric vehicles when the selling price is lower than the critical price. And the rise of oil prices, the reduction of the initial investment of electric vehicles and the imposition of carbon tax will help to improve the critical price and promote the development of electric vehicles. Four kinds of promotion models for the electric vehicle from three angles of risk transfer, risk reduction and risk sharing have been designed. The point of difference between critical price and current electricity price will be the expected per kWh for the promotion of electric vehicles has been put.

Suggested Citation

  • He, Yongxiu & Zhang, Qi & Pang, Yuexia, 2017. "The development pattern design of Chinese electric vehicles based on the analysis of the critical price of the life cycle cost," Energy Policy, Elsevier, vol. 109(C), pages 382-388.
    • Handle: RePEc:eee:enepol:v:109:y:2017:i:c:p:382-388
    DOI: 10.1016/j.enpol.2017.07.015
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    Cited by:

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    2. Nenming Wang & Guwen Tang, 2022. "A Review on Environmental Efficiency Evaluation of New Energy Vehicles Using Life Cycle Analysis," Sustainability, MDPI, vol. 14(6), pages 1-35, March.
    3. Bamidele Victor Ayodele & Siti Indati Mustapa, 2020. "Life Cycle Cost Assessment of Electric Vehicles: A Review and Bibliometric Analysis," Sustainability, MDPI, vol. 12(6), pages 1-17, March.
    4. Nie, Qingyun & Zhang, Lihui & Li, Songrui, 2022. "How can personal carbon trading be applied in electric vehicle subsidies? A Stackelberg game method in private vehicles," Applied Energy, Elsevier, vol. 313(C).
    5. Fan, Jing-Li & Wang, Jia-Xing & Zhang, Xian, 2020. "An innovative subsidy model for promoting the sharing of Electric Vehicles in China: A pricing decisions analysis," Energy, Elsevier, vol. 201(C).
    6. Zhou, Kaile & Cheng, Lexin & Lu, Xinhui & Wen, Lulu, 2020. "Scheduling model of electric vehicles charging considering inconvenience and dynamic electricity prices," Applied Energy, Elsevier, vol. 276(C).
    7. Ye, Rui-Ke & Gao, Zhuang-Fei & Fang, Kai & Liu, Kang-Li & Chen, Jia-Wei, 2021. "Moving from subsidy stimulation to endogenous development: A system dynamics analysis of China's NEVs in the post-subsidy era," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    8. Wang, Yitong & Fan, Ruguo & Du, Kang & Bao, Xuguang, 2023. "Exploring incentives to promote electric vehicles diffusion under subsidy abolition: An evolutionary analysis on multiplex consumer social networks," Energy, Elsevier, vol. 276(C).

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