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

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  • 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
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    References listed on IDEAS

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    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.
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    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.
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    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).

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