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Levelized costs of conventional and battery electric vehicles in china: Beijing experiences

Author

Listed:
  • Han Hao
  • Michael Wang
  • Yan Zhou
  • Hewu Wang
  • Minggao Ouyang

Abstract

Electric vehicles offer the potential to reduce oil consumption, air pollutants, and greenhouse gas (GHG) emissions. To take advantage of electric vehicles and improve its urban environment, Beijing, as one of China’s most polluted cities, launched an electric vehicle promotion program that provided a generous subsidy for consumers who purchased battery electric vehicles (BEVs). In this study, we compare the levelized costs of a conventional vehicle (CV) versus a BEV using real data from the Beijing BEV subsidy program. Levelized cost for this study considers consumer driving patterns and vehicle age. For consumers with average driving profiles—i.e., an average driving distance of around 20 km per trip—the levelized cost of CVs decreases from 1.40 yuan/km for an 8-year vehicle lifetime to 1.04 yuan/km for a 15-year lifetime, while the levelized cost for BEVs decreases from 1.44 yuan/km for an 8-year vehicle lifetime to 1.01 yuan/km for a 15-year lifetime. BEVs are more cost competitive than CVs for consumers with medium and high driving profiles and a 12-year and 15-year lifetime. Under current conditions, the subsidy and tax incentives are necessary to make BEVs cost competitive. However, we project that, even if the subsidy is phased out in 2020, BEVs may become cost competitive with CVs because of the decrease in battery cost. Our study results suggest that the BEV subsidy should reflect changes in battery cost and gasoline prices to help continuing deployment of BEVs. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Han Hao & Michael Wang & Yan Zhou & Hewu Wang & Minggao Ouyang, 2015. "Levelized costs of conventional and battery electric vehicles in china: Beijing experiences," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 20(7), pages 1229-1246, October.
    • Handle: RePEc:spr:masfgc:v:20:y:2015:i:7:p:1229-1246
    DOI: 10.1007/s11027-013-9536-1
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    3. Hao, Xu & Lin, Zhenhong & Wang, Hewu & Ou, Shiqi & Ouyang, Minggao, 2020. "Range cost-effectiveness of plug-in electric vehicle for heterogeneous consumers: An expanded total ownership cost approach," Applied Energy, Elsevier, vol. 275(C).
    4. Han Hao & Feiqi Liu & Zongwei Liu & Fuquan Zhao, 2017. "Measuring Energy Efficiency in China’s Transport Sector," Energies, MDPI, vol. 10(5), pages 1-18, May.
    5. Ranjit R. Desai & Eric Hittinger & Eric Williams, 2022. "Interaction of Consumer Heterogeneity and Technological Progress in the US Electric Vehicle Market," Energies, MDPI, vol. 15(13), pages 1-25, June.
    6. Yijiao Wang & Guoguang Zhou & Ting Li & Xiao Wei, 2019. "Comprehensive Evaluation of the Sustainable Development of Battery Electric Vehicles in China," Sustainability, MDPI, vol. 11(20), pages 1-27, October.
    7. Zicheng Bi & Michael A. Reiner & Gregory A. Keoleian & Yan Zhou & Michael Wang & Zhenhong Lin, 2020. "Wireless charging and shared autonomous battery electric vehicles (W+SABEV): synergies that accelerate sustainable mobility and greenhouse gas emission reduction," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(3), pages 397-411, March.
    8. Diao, Qinghua & Sun, Wei & Yuan, Xinmei & Li, Lili & Zheng, Zhi, 2016. "Life-cycle private-cost-based competitiveness analysis of electric vehicles in China considering the intangible cost of traffic policies," Applied Energy, Elsevier, vol. 178(C), pages 567-578.
    9. Lukas Lanz & Bessie Noll & Tobias S. Schmidt & Bjarne Steffen, 2022. "Comparing the levelized cost of electric vehicle charging options in Europe," Nature Communications, Nature, vol. 13(1), pages 1-13, December.
    10. Dong, Xiaoyang & Zhang, Bin & Wang, Bo & Wang, Zhaohua, 2020. "Urban households’ purchase intentions for pure electric vehicles under subsidy contexts in China: Do cost factors matter?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 183-197.
    11. Li, Bo & Ma, Ziming & Hidalgo-Gonzalez, Patricia & Lathem, Alex & Fedorova, Natalie & He, Gang & Zhong, Haiwang & Chen, Minyou & Kammen, Daniel M., 2021. "Modeling the impact of EVs in the Chinese power system: Pathways for implementing emissions reduction commitments in the power and transportation sectors," Energy Policy, Elsevier, vol. 149(C).

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