IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v132y2020icp402-414.html
   My bibliography  Save this article

Mandating the use of the electric taxis: The case of Florence

Author

Listed:
  • Scorrano, Mariangela
  • Danielis, Romeo
  • Giansoldati, Marco

Abstract

This paper discusses a policy enacted in 2016 by the city of Florence mandating the use of electric vehicles for the taxi service. We interviewed the taxi license owners (carriers), their co-operatives and the city administrators to evaluate the policy implementation, its acceptability and the cost-competitiveness of electric taxis (e-taxis) with respect to their hybrid and diesel alternatives. Using the data collected during the interviews, we estimated the total cost of ownership (TCO) of e-taxis and their conventional counterparts for the models comprising the Florence taxi fleet. We find that e-taxis already represent a valid alternative to the conventional ones not only from an environmental point of view but also from a private economic one. In particular, when the Florence-specific discounted purchase prices are considered and the base case scenario applies, e-taxis are the cheapest choice in terms of TCO and no financial incentives are needed. When the manufacturer suggested retail prices are considered, e-taxis are slightly less cost-competitive than hybrid taxis but more cost-competitive than the diesel ones. Sensitivity analyses are performed to evaluate the impact of the annual distance travelled, Ecobonus purchase subsidy, net revenue loss, annual percentage rate charged to finance the taxi acquisition and insurance premium.

Suggested Citation

  • Scorrano, Mariangela & Danielis, Romeo & Giansoldati, Marco, 2020. "Mandating the use of the electric taxis: The case of Florence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 402-414.
    • Handle: RePEc:eee:transa:v:132:y:2020:i:c:p:402-414
    DOI: 10.1016/j.tra.2019.11.018
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856419304252
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2019.11.018?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. Philippe Crist, 2012. "Electric Vehicles Revisited: Costs, Subsidies and Prospects," International Transport Forum Discussion Papers 2012/3, OECD Publishing.
    2. Yang, Jie & Dong, Jing & Hu, Liang, 2018. "Design government incentive schemes for promoting electric taxis in China," Energy Policy, Elsevier, vol. 115(C), pages 1-11.
    3. Yang, W.H. & Wong, R.C.P. & Szeto, W.Y., 2018. "Modeling the acceptance of taxi owners and drivers to operate premium electric taxis: Policy insights into improving taxi service quality and reducing air pollution," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 581-593.
    4. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    5. Asamer, Johannes & Reinthaler, Martin & Ruthmair, Mario & Straub, Markus & Puchinger, Jakob, 2016. "Optimizing charging station locations for urban taxi providers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 233-246.
    6. Danielis, Romeo & Giansoldati, Marco & Rotaris, Lucia, 2018. "A probabilistic total cost of ownership model to evaluate the current and future prospects of electric cars uptake in Italy," Energy Policy, Elsevier, vol. 119(C), pages 268-281.
    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. Zhou, Min & Long, Piao & Kong, Nan & Zhao, Lindu & Jia, Fu & Campy, Kathryn S., 2021. "Characterizing the motivational mechanism behind taxi driver’s adoption of electric vehicles for living: Insights from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 144(C), pages 134-152.
    2. Hyoung Jun Kim & Su Jung Jee & So Young Sohn, 2021. "Cost–benefit model for multi-generational high-technology products to compare sequential innovation strategy with quality strategy," PLOS ONE, Public Library of Science, vol. 16(4), pages 1-17, April.
    3. Roberto Ruggieri & Marco Ruggeri & Giuliana Vinci & Stefano Poponi, 2021. "Electric Mobility in a Smart City: European Overview," Energies, MDPI, vol. 14(2), pages 1-29, January.
    4. Yecid Alfonso Mu oz Maldonado & C sar Acevedo & Edward Jerez & Carlos Sarmiento & Miguel De La Rosa & Adalberto Ospino, 2021. "Transition of Electric Mobility in Colombia: Technical and Economic Evaluation of Scenarios for the Integration of E-taxis in Bucaramanga," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 461-469.
    5. Mariangela Scorrano & Romeo Danielis & Stefano Pastore & Vanni Lughi & Alessandro Massi Pavan, 2020. "Modeling the Total Cost of Ownership of an Electric Car Using a Residential Photovoltaic Generator and a Battery Storage Unit—An Italian Case Study," Energies, MDPI, vol. 13(10), pages 1-21, May.
    6. Giansoldati, Marco & Monte, Adriana & Scorrano, Mariangela, 2020. "Barriers to the adoption of electric cars: Evidence from an Italian survey," Energy Policy, Elsevier, vol. 146(C).

    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. Yecid Alfonso Mu oz Maldonado & C sar Acevedo & Edward Jerez & Carlos Sarmiento & Miguel De La Rosa & Adalberto Ospino, 2021. "Transition of Electric Mobility in Colombia: Technical and Economic Evaluation of Scenarios for the Integration of E-taxis in Bucaramanga," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 461-469.
    2. Zhou, Min & Long, Piao & Kong, Nan & Zhao, Lindu & Jia, Fu & Campy, Kathryn S., 2021. "Characterizing the motivational mechanism behind taxi driver’s adoption of electric vehicles for living: Insights from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 144(C), pages 134-152.
    3. Luis Oliveira & Arun Ulahannan & Matthew Knight & Stewart Birrell, 2020. "Wireless Charging of Electric Taxis: Understanding the Facilitators and Barriers to Its Introduction," Sustainability, MDPI, vol. 12(21), pages 1-21, October.
    4. van Velzen, Arjan & Annema, Jan Anne & van de Kaa, Geerten & van Wee, Bert, 2019. "Proposing a more comprehensive future total cost of ownership estimation framework for electric vehicles," Energy Policy, Elsevier, vol. 129(C), pages 1034-1046.
    5. Estelle Malavolti, 2016. "Single Till or Dual Till at airports: a Two-Sided Market Analysis," Post-Print hal-01406372, HAL.
    6. Nagler Matthew G., 2007. "Understanding the Internet's Relevance to Media Ownership Policy: A Model of Too Many Choices," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-28, June.
    7. Martin Peitz & Sven Rady & Piers Trepper, 2017. "Experimentation in Two-Sided Markets," Journal of the European Economic Association, European Economic Association, vol. 15(1), pages 128-172.
    8. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(4), pages 541-571.
    9. Chakravorti Sujit, 2003. "Theory of Credit Card Networks: A Survey of the Literature," Review of Network Economics, De Gruyter, vol. 2(2), pages 1-19, June.
    10. Proost, Stef & Van Dender, Kurt, 2012. "Energy and environment challenges in the transport sector," Economics of Transportation, Elsevier, vol. 1(1), pages 77-87.
    11. Lam, W., 2015. "Switching Costs in Two-sided Markets," LIDAM Discussion Papers CORE 2015024, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    12. V. I. Blanutsa, 2022. "Geographic Research of the Platform Economy: Existing and Potential Approaches," Regional Research of Russia, Springer, vol. 12(2), pages 133-142, June.
    13. Andrei Hagiu & Julian Wright, 2015. "Marketplace or Reseller?," Management Science, INFORMS, vol. 61(1), pages 184-203, January.
    14. Wu, WenTing & Chen, XiaoQian & Zvarych, Roman & Huang, WeiLun, 2024. "The Stackelberg duel between Central Bank Digital Currencies and private payment titans in China," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    15. Kind, Hans Jarle & Koethenbuerger, Marko & Schjelderup, Guttorm, 2008. "Efficiency enhancing taxation in two-sided markets," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1531-1539, June.
    16. Waterson, Michael, 2023. "Platforms as arbitrageurs and facilitators of arbitrage- a simple analysis," The Warwick Economics Research Paper Series (TWERPS) 1481, University of Warwick, Department of Economics.
    17. Davide Consoli & Pier Paolo Patrucco, 2011. "Complexity and the Coordination of Technological Knowledge: The Case of Innovation Platforms," Chapters, in: Handbook on the Economic Complexity of Technological Change, chapter 8 Edward Elgar Publishing.
    18. Lapo Filistrucchi & Tobias J. Klein, 2013. "Price Competition in Two-Sided Markets with Heterogeneous Consumers and Network Effects," Working Papers 13-20, NET Institute.
    19. Buechel, Berno & Krähenmann, Philemon, 2022. "Fixed price equilibria on peer‐to‐peer platforms: Lessons from time‐based currencies," Journal of Economic Behavior & Organization, Elsevier, vol. 195(C), pages 335-358.
    20. Jennifer Brown & John Morgan, 2009. "How Much Is a Dollar Worth? Tipping versus Equilibrium Coexistence on Competing Online Auction Sites," Journal of Political Economy, University of Chicago Press, vol. 117(4), pages 668-700, August.

    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:transa:v:132:y:2020:i:c:p:402-414. 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/547/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.