IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i10p7902-d1144883.html
   My bibliography  Save this article

Emissions and Total Cost of Ownership for Diesel and Battery Electric Freight Pickup and Delivery Trucks in New Zealand: Implications for Transition

Author

Listed:
  • Zichong Lyu

    (Department of Mechanical Engineering, University of Canterbury, Kirkwood Ave., Christchurch 8140, New Zealand)

  • Dirk Pons

    (Department of Mechanical Engineering, University of Canterbury, Kirkwood Ave., Christchurch 8140, New Zealand)

  • Yilei Zhang

    (Department of Mechanical Engineering, University of Canterbury, Kirkwood Ave., Christchurch 8140, New Zealand)

Abstract

Road freight transport contributes to a large portion of greenhouse gas (GHG) emissions. Transitioning diesel to battery electric (BE) trucks is an attractive sustainability solution. To evaluate the BE transition in New Zealand (NZ), this study analysed the life-cycle GHG emissions and total cost of ownership (TCO) of diesel and BE trucks based on real industry data. The freight pickup and delivery (PUD) operations were simulated by a discrete-event simulation (DES) model. Spreadsheet models were constructed for life-cycle assessment (LCA) and TCO for a truck operational lifetime of 10 years (first owner), this being the typical usage of a tier-one freight company in New Zealand (NZ). The whole-of-life emissions from the diesel and BE trucks are 717,641 kg and 62,466 kg CO 2e , respectively. For the use phase (first owner), the emissions are 686,754 kg and 8714 kg CO 2e , respectively; i.e., the BE is 1.27% of the diesel truck. The TCO results are 528,124 NZ dollars (NZD) and 529,573 NZD (as of 2022), respectively. The battery price and road user charge are the most sensitive variables for the BE truck. BE truck transitions are explored for freight companies, customers, and the government. For the purchase of BE trucks, the break-even point is about 9.5 years, and straight-line depreciation increases freight costs by 8.3%. Government subsidy options are evaluated. The cost of emission credits on the emissions trading scheme (ETS) is not expected to drive the transition. An integrated model is created for DES freight logistics, LCA emissions, and TCO costs supported by real industry data. This allows a close examination of the transition economics.

Suggested Citation

  • Zichong Lyu & Dirk Pons & Yilei Zhang, 2023. "Emissions and Total Cost of Ownership for Diesel and Battery Electric Freight Pickup and Delivery Trucks in New Zealand: Implications for Transition," Sustainability, MDPI, vol. 15(10), pages 1-23, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:7902-:d:1144883
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/10/7902/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/10/7902/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Letnik, Tomislav & Farina, Alessandro & Mencinger, Matej & Lupi, Marino & Božičnik, Stane, 2018. "Dynamic management of loading bays for energy efficient urban freight deliveries," Energy, Elsevier, vol. 159(C), pages 916-928.
    2. Zichong Lyu & Dirk Pons & Yilei Zhang & Zuzhen Ji, 2022. "Minimum Viable Model (MVM) Methodology for Integration of Agile Methods into Operational Simulation of Logistics," Logistics, MDPI, vol. 6(2), pages 1-28, June.
    3. Naber, S.K. & de Ree, D.A. & Spliet, R. & van den Heuvel, W., 2015. "Allocating CO2 emission to customers on a distribution route," Omega, Elsevier, vol. 54(C), pages 191-199.
    4. Florian Kellner & Andreas Otto, 2012. "Allocating CO 2 emissions to shipments in road freight transportation," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 22(4), pages 451-479, January.
    5. Mohammed Al-Saadi & Josu Olmos & Andoni Saez-de-Ibarra & Joeri Van Mierlo & Maitane Berecibar, 2022. "Fast Charging Impact on the Lithium-Ion Batteries’ Lifetime and Cost-Effective Battery Sizing in Heavy-Duty Electric Vehicles Applications," Energies, MDPI, vol. 15(4), pages 1-23, February.
    6. Poletti, Stephen & Staffell, Iain, 2021. "Understanding New Zealand’s wind resources as a route to 100% renewable electricity," Renewable Energy, Elsevier, vol. 170(C), pages 449-461.
    7. Schloter, Lukas, 2022. "Empirical analysis of the depreciation of electric vehicles compared to gasoline vehicles," Transport Policy, Elsevier, vol. 126(C), pages 268-279.
    8. Kellner, Florian & Schneiderbauer, Miriam, 2019. "Further insights into the allocation of greenhouse gas emissions to shipments in road freight transportation: The pollution routing game," European Journal of Operational Research, Elsevier, vol. 278(1), pages 296-313.
    9. Thomas Kirschstein & Christian Bierwirth, 2018. "The selective Traveling Salesman Problem with emission allocation rules," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 40(1), pages 97-124, January.
    10. William A. Donaldson, 1965. "The Estimation of the Mean and Variance of a “PERT” Activity Time," Operations Research, INFORMS, vol. 13(3), pages 382-385, June.
    11. Lei Yang & Caixia Hao & Yina Chai, 2018. "Life Cycle Assessment of Commercial Delivery Trucks: Diesel, Plug-In Electric, and Battery-Swap Electric," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    12. Kellner, Florian, 2016. "Allocating greenhouse gas emissions to shipments in road freight transportation: Suggestions for a global carbon accounting standard," Energy Policy, Elsevier, vol. 98(C), pages 565-575.
    13. Björn Nykvist & Måns Nilsson, 2015. "Rapidly falling costs of battery packs for electric vehicles," Nature Climate Change, Nature, vol. 5(4), pages 329-332, April.
    14. Liimatainen, Heikki & van Vliet, Oscar & Aplyn, David, 2019. "The potential of electric trucks – An international commodity-level analysis," Applied Energy, Elsevier, vol. 236(C), pages 804-814.
    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. Levent Özlü & Dilay Çelebi, 2024. "Electrifying Freight: Modeling the Decision-Making Process for Battery Electric Truck Procurement," Sustainability, MDPI, vol. 16(9), pages 1-23, April.

    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. Florian Kellner, 2022. "Generating greenhouse gas cutting incentives when allocating carbon dioxide emissions to shipments in road freight transportation," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(3), pages 833-874, September.
    2. Kellner, Florian & Schneiderbauer, Miriam, 2019. "Further insights into the allocation of greenhouse gas emissions to shipments in road freight transportation: The pollution routing game," European Journal of Operational Research, Elsevier, vol. 278(1), pages 296-313.
    3. Asghari, Mohammad & Mirzapour Al-e-hashem, S. Mohammad J., 2021. "Green vehicle routing problem: A state-of-the-art review," International Journal of Production Economics, Elsevier, vol. 231(C).
    4. Thomas Kirschstein & Arne Heinold & Martin Behnke & Frank Meisel & Christian Bierwirth, 2022. "Eco‐labeling of freight transport services: Design, evaluation, and research directions," Journal of Industrial Ecology, Yale University, vol. 26(3), pages 801-814, June.
    5. Kellner, Florian, 2016. "Allocating greenhouse gas emissions to shipments in road freight transportation: Suggestions for a global carbon accounting standard," Energy Policy, Elsevier, vol. 98(C), pages 565-575.
    6. Heinold, Arne & Meisel, Frank, 2020. "Emission limits and emission allocation schemes in intermodal freight transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    7. Anastasios Gialos & Vasileios Zeimpekis & Michael Madas & Konstantinos Papageorgiou, 2022. "Calculation and Assessment of CO 2e Emissions in Road Freight Transportation: A Greek Case Study," Sustainability, MDPI, vol. 14(17), pages 1-15, August.
    8. Mohammad Asghari & Seyed Mohammad Javad Mirzapour Al-E-Hashem, 2021. "Green vehicle routing problem: A state-of-the-art review," Post-Print hal-03182944, HAL.
    9. Ettore Bompard & Daniele Grosso & Tao Huang & Francesco Profumo & Xianzhang Lei & Duo Li, 2018. "World Decarbonization through Global Electricity Interconnections," Energies, MDPI, vol. 11(7), pages 1-29, July.
    10. Huang, Qisheng & Xu, Yunjian & Courcoubetis, Costas, 2020. "Stackelberg competition between merchant and regulated storage investment in wholesale electricity markets," Applied Energy, Elsevier, vol. 264(C).
    11. Gnann, Till & Stephens, Thomas S. & Lin, Zhenhong & Plötz, Patrick & Liu, Changzheng & Brokate, Jens, 2018. "What drives the market for plug-in electric vehicles? - A review of international PEV market diffusion models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 158-164.
    12. Carsten Helm & Mathias Mier, 2020. "Steering the Energy Transition in a World of Intermittent Electricity Supply: Optimal Subsidies and Taxes for Renewables Storage," ifo Working Paper Series 330, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    13. Tomislav Letnik & Katja Hanžič & Giuseppe Luppino & Matej Mencinger, 2022. "Impact of Logistics Trends on Freight Transport Development in Urban Areas," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
    14. Yashraj Tripathy & Andrew McGordon & Anup Barai, 2020. "Improving Accessible Capacity Tracking at Low Ambient Temperatures for Range Estimation of Battery Electric Vehicles," Energies, MDPI, vol. 13(8), pages 1-18, April.
    15. Maria Taljegard & Lisa Göransson & Mikael Odenberger & Filip Johnsson, 2021. "To Represent Electric Vehicles in Electricity Systems Modelling—Aggregated Vehicle Representation vs. Individual Driving Profiles," Energies, MDPI, vol. 14(3), pages 1-25, January.
    16. De Vivero-Serrano, Gustavo & Bruninx, Kenneth & Delarue, Erik, 2019. "Implications of bid structures on the offering strategies of merchant energy storage systems," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    17. Ito, Nobuyuki & Takeuchi, Kenji & Managi, Shunsuke, 2019. "Do battery-switching systems accelerate the adoption of electric vehicles? A stated preference study," Economic Analysis and Policy, Elsevier, vol. 61(C), pages 85-92.
    18. Harasis, Salman & Khan, Irfan & Massoud, Ahmed, 2024. "Enabling large-scale integration of electric bus fleets in harsh environments: Possibilities, potentials, and challenges," Energy, Elsevier, vol. 300(C).
    19. Ziad Ragab & Ehsan Pashajavid & Sumedha Rajakaruna, 2024. "Optimal Sizing and Economic Analysis of Community Battery Systems Considering Sensitivity and Uncertainty Factors," Energies, MDPI, vol. 17(18), pages 1-20, September.
    20. Tharsis Teoh & Oliver Kunze & Chee-Chong Teo & Yiik Diew Wong, 2018. "Decarbonisation of Urban Freight Transport Using Electric Vehicles and Opportunity Charging," Sustainability, MDPI, vol. 10(9), pages 1-20, September.

    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:gam:jsusta:v:15:y:2023:i:10:p:7902-:d:1144883. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.