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Emerging trends and innovations for electric bus adoption—a comparative case study of contracting and financing of 22 cities in the Americas, Asia-Pacific, and Europe

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  • Li, Xiangyi
  • Castellanos, Sebastian
  • Maassen, Anne

Abstract

Electric buses have local environmental benefits, which has incentivized cities to transition their fleets from diesel to electric. However, the adoption of electric bus globally is geographically uneven and limited in scale. One issue is the high upfront cost of electric buses. However, few studies have analyzed the contracting and financing mechanisms that can help accelerate electric bus adoption. As part of the initial information collection process, the paper is based on real-world experiences and evidence, applies a comparative multi-case study to 22 cities in 14 countries. A framework is used for analysis, which includes identifying technical components that require investment, non-reimbursable funds and investment capital applied, and legal arrangements supporting the implementation. Results show that three key elements are seen in electric bus adoption across the globe, despite regional differences. First, both public and private grants, when dedicated to cleaning the fleet, appear as a strong factor underpinning existing clean bus systems. Second, less costly sources of financing, which may come from different stakeholders, can reduce financial risks, and it is where innovation can happen. Third, innovative ways of structuring contractual implementation effectively connect stakeholders and involve third-party players, which leads to shared risks, increased efficiency and improved performance.

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  • Li, Xiangyi & Castellanos, Sebastian & Maassen, Anne, 2018. "Emerging trends and innovations for electric bus adoption—a comparative case study of contracting and financing of 22 cities in the Americas, Asia-Pacific, and Europe," Research in Transportation Economics, Elsevier, vol. 69(C), pages 470-481.
    • Handle: RePEc:eee:retrec:v:69:y:2018:i:c:p:470-481
    DOI: 10.1016/j.retrec.2018.06.016
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    References listed on IDEAS

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    5. Anna Brdulak & Grażyna Chaberek & Jacek Jagodziński, 2020. "Development Forecasts for the Zero-Emission Bus Fleet in Servicing Public Transport in Chosen EU Member Countries," Energies, MDPI, vol. 13(16), pages 1-20, August.
    6. Paulo J. G. Ribeiro & José F. G. Mendes, 2022. "Public Transport Decarbonization via Urban Bus Fleet Replacement in Portugal," Energies, MDPI, vol. 15(12), pages 1-16, June.
    7. Xinkuo Xu & Xiaofeng Lv & Liyan Han, 2019. "Carbon Asset of Electrification: Valuing the Transition from Fossil Fuel-Powered Buses to Battery Electric Buses in Beijing," Sustainability, MDPI, vol. 11(10), pages 1-16, May.
    8. Paulo J. G. Ribeiro & José F. G. Mendes, 2022. "Towards Zero CO 2 Emissions from Public Transport: The Pathway to the Decarbonization of the Portuguese Urban Bus Fleet," Sustainability, MDPI, vol. 14(15), pages 1-15, July.
    9. Manzolli, Jônatas Augusto & Trovão, João Pedro & Antunes, Carlos Henggeler, 2022. "A review of electric bus vehicles research topics – Methods and trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    10. Bermúdez Rodríguez, Tatiana & Ferreira da Cruz, Robson & Galvão Diniz Faria, Lourenço & Marques do Prado Tanure, Tarik & Barassa, Edgar & Rigon, Vagner, 2022. "Oferta de ônibus elétrico no Brasil em um cenário de recuperação econômica de baixo carbono," Documentos de Proyectos 47833, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    11. Ayetor, G.K. & Mbonigaba, Innocent & Sunnu, Albert K. & Nyantekyi-Kwakye, Baafour, 2021. "Impact of replacing ICE bus fleet with electric bus fleet in Africa: A lifetime assessment," Energy, Elsevier, vol. 221(C).
    12. Xinkuo Xu & Liyan Han, 2020. "Operational Lifecycle Carbon Value of Bus Electrification in Macau," Sustainability, MDPI, vol. 12(9), pages 1-18, May.
    13. Hensher, David A., 2021. "The case for negotiated contracts under the transition to a green bus fleet," Transportation Research Part A: Policy and Practice, Elsevier, vol. 154(C), pages 255-269.
    14. Wellik, T.K. & Griffin, J.R. & Kockelman, K.M. & Mohamed, M., 2021. "Utility-transit nexus: Leveraging intelligently charged electrified transit to support a renewable energy grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).

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    More about this item

    Keywords

    Electric bus; Alternative funding mechanism; Urban finance; Grants; Risk mitigation; Contract; Electric vehicle;
    All these keywords.

    JEL classification:

    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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