IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v73y2019icp45-52.html
   My bibliography  Save this article

Economic appraisal of implementing electric vehicle taxis in Seoul

Author

Listed:
  • Kang, Seong-Cheol
  • Lee, Hoyoung

Abstract

Global commitments for climate change mitigation and sustainable development have given the electric vehicle renewed attention as a critical building block of sustainable transport. However, the diffusion of electric vehicles has been limited so far. In an effort to facilitate scaled-up deployment of electric vehicles, this paper examines the economic feasibility of replacing the current fleet of fossil fuel taxis in Seoul with electric vehicle (EV) taxis by gradually phasing out the former based on their operational lifetime. In the cost-benefit analysis for such a transition, costs of purchasing vehicles and constructing and maintaining charging infrastructure are estimated based on the market prices and characteristics of taxi transport in Seoul. On the benefit side, the avoided environmental costs due to reduced air pollutants and greenhouse gas emissions are calculated. Traffic assignment is incorporated in the calculation process for a better estimation of the avoided costs through more accurate link flows and speeds on the road network. Savings in fuel and maintenance costs are also estimated. The resultant benefit-cost ratio signifies economic viability of the deployment of EV taxis. The results of the study are encouraging and could strengthen the argument for pushing the transition to electric vehicles forward.

Suggested Citation

  • Kang, Seong-Cheol & Lee, Hoyoung, 2019. "Economic appraisal of implementing electric vehicle taxis in Seoul," Research in Transportation Economics, Elsevier, vol. 73(C), pages 45-52.
    • Handle: RePEc:eee:retrec:v:73:y:2019:i:c:p:45-52
    DOI: 10.1016/j.retrec.2018.11.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739885919300617
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.retrec.2018.11.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tommy Carpenter & Andrew Curtis & S. Keshav, 2014. "The return on investment for taxi companies transitioning to electric vehicles," Transportation, Springer, vol. 41(4), pages 785-818, July.
    2. Joonho Ko & Daejin Kim & Daisik Nam & Taekyung Lee, 2017. "Determining locations of charging stations for electric taxis using taxi operation data," Transportation Planning and Technology, Taylor & Francis Journals, vol. 40(4), pages 420-433, May.
    3. Marguerite Frank & Philip Wolfe, 1956. "An algorithm for quadratic programming," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 3(1‐2), pages 95-110, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kinsella, L. & Stefaniec, A. & Foley, A. & Caulfield, B., 2023. "Pathways to decarbonising the transport sector: The impacts of electrifying taxi fleets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 174(C).
    2. Manik Chandra Das & Abanish Pandey & Arun Kumar Mahato & Rajnish Kumar Singh, 2019. "Comparative performance of electric vehicles using evaluation of mixed data," OPSEARCH, Springer;Operational Research Society of India, vol. 56(3), pages 1067-1090, September.
    3. Wilfredo F. Yushimito & Sebastian Moreno & Daniela Miranda, 2023. "The Potential of Battery Electric Taxis in Santiago de Chile," Sustainability, MDPI, vol. 15(11), pages 1-15, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guillaume Sagnol & Edouard Pauwels, 2019. "An unexpected connection between Bayes A-optimal designs and the group lasso," Statistical Papers, Springer, vol. 60(2), pages 565-584, April.
    2. Abdelfettah Laouzai & Rachid Ouafi, 2022. "A prediction model for atmospheric pollution reduction from urban traffic," Environment and Planning B, , vol. 49(2), pages 566-584, February.
    3. Chou, Chang-Chi & Chiang, Wen-Chu & Chen, Albert Y., 2022. "Emergency medical response in mass casualty incidents considering the traffic congestions in proximity on-site and hospital delays," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    4. Francesco Rinaldi & Damiano Zeffiro, 2023. "Avoiding bad steps in Frank-Wolfe variants," Computational Optimization and Applications, Springer, vol. 84(1), pages 225-264, January.
    5. Beck, Yasmine & Ljubić, Ivana & Schmidt, Martin, 2023. "A survey on bilevel optimization under uncertainty," European Journal of Operational Research, Elsevier, vol. 311(2), pages 401-426.
    6. Friesz, Terry L. & Tourreilles, Francisco A. & Han, Anthony Fu-Wha, 1979. "Multi-Criteria Optimization Methods in Transport Project Evaluation: The Case of Rural Roads in Developing Countries," Transportation Research Forum Proceedings 1970s 318817, Transportation Research Forum.
    7. Fabiana R. Oliveira & Orizon P. Ferreira & Gilson N. Silva, 2019. "Newton’s method with feasible inexact projections for solving constrained generalized equations," Computational Optimization and Applications, Springer, vol. 72(1), pages 159-177, January.
    8. Ali Fattahi & Sriram Dasu & Reza Ahmadi, 2019. "Mass Customization and “Forecasting Options’ Penetration Rates Problem”," Operations Research, INFORMS, vol. 67(4), pages 1120-1134, July.
    9. Bo Jiang & Tianyi Lin & Shiqian Ma & Shuzhong Zhang, 2019. "Structured nonconvex and nonsmooth optimization: algorithms and iteration complexity analysis," Computational Optimization and Applications, Springer, vol. 72(1), pages 115-157, January.
    10. James Chok & Geoffrey M. Vasil, 2023. "Convex optimization over a probability simplex," Papers 2305.09046, arXiv.org.
    11. A. de Palma & Y. Nesterov, 2001. "Stationary Dynamic Solutions in Congested Transportation Networks: Summary and Perspectives," THEMA Working Papers 2001-19, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    12. D. J. White, 1993. "A parametric‐based heuristic program for the quadratic assignment problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 40(4), pages 553-568, June.
    13. Michael W. Levin & Melissa Duell & S. Travis Waller, 2020. "Arrival Time Reliability in Strategic User Equilibrium," Networks and Spatial Economics, Springer, vol. 20(3), pages 803-831, September.
    14. Yong Xia & Zi Xu, 2010. "An efficient Lagrangian smoothing heuristic for Max-Cut," Indian Journal of Pure and Applied Mathematics, Springer, vol. 41(5), pages 683-700, October.
    15. Arezou Rahimi & Luis A. Vale-Silva & Maria Fälth Savitski & Jovan Tanevski & Julio Saez-Rodriguez, 2024. "DOT: a flexible multi-objective optimization framework for transferring features across single-cell and spatial omics," Nature Communications, Nature, vol. 15(1), pages 1-15, December.
    16. P. B. Assunção & O. P. Ferreira & L. F. Prudente, 2021. "Conditional gradient method for multiobjective optimization," Computational Optimization and Applications, Springer, vol. 78(3), pages 741-768, April.
    17. Ya-Feng Liu & Xin Liu & Shiqian Ma, 2019. "On the Nonergodic Convergence Rate of an Inexact Augmented Lagrangian Framework for Composite Convex Programming," Mathematics of Operations Research, INFORMS, vol. 44(2), pages 632-650, May.
    18. Waddell, Paul & Boeing, Geoff & Gardner, Max & Porter, Emily, 2018. "An Integrated Pipeline Architecture for Modeling Urban Land Use, Travel Demand, and Traffic Assignment," SocArXiv 74zaw, Center for Open Science.
    19. Butyn, Emerson & Karas, Elizabeth W. & de Oliveira, Welington, 2022. "A derivative-free trust-region algorithm with copula-based models for probability maximization problems," European Journal of Operational Research, Elsevier, vol. 298(1), pages 59-75.
    20. A. F. Izmailov & M. V. Solodov, 2024. "On Local Behavior of Newton-Type Methods Near Critical Solutions of Constrained Equations," Journal of Optimization Theory and Applications, Springer, vol. 203(2), pages 1103-1126, November.

    More about this item

    Keywords

    Electric vehicle taxi; Air pollutant; Greenhouse gas; Economic appraisal; Sustainable transport;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:retrec:v:73:y:2019:i:c:p:45-52. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.