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What is the target battery cost at which Battery Electric Vehicles are socially cost competitive?

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  • David Newbery
  • Goran Strbac

Abstract

Battery electric vehicles (BEVs) could be key to decarbonizing transport, but are heavily subsidized. Most assessments of BEVs use highly taxed road fuel prices and ignore efficient pricing of electricity. We use efficient prices for transport fuels and electricity, to judge what battery costs would make BEVs cost competitive. High mileage, low discount rates and high oil prices could make BEVs cost competitive by 2020, and by 2030 fuel costs are comparable over a wider range. Its contribution lies in careful derivation of efficient prices and the concept of a target battery cost.

Suggested Citation

  • David Newbery & Goran Strbac, 2014. "What is the target battery cost at which Battery Electric Vehicles are socially cost competitive?," Cambridge Working Papers in Economics 1446, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:1446
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    References listed on IDEAS

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    1. Al-Alawi, Baha M. & Bradley, Thomas H., 2013. "Total cost of ownership, payback, and consumer preference modeling of plug-in hybrid electric vehicles," Applied Energy, Elsevier, vol. 103(C), pages 488-506.
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    1. Ruan, Jiageng & Walker, Paul & Zhang, Nong, 2016. "A comparative study energy consumption and costs of battery electric vehicle transmissions," Applied Energy, Elsevier, vol. 165(C), pages 119-134.
    2. Ruan, Jiageng & Walker, Paul D. & Watterson, Peter A. & Zhang, Nong, 2016. "The dynamic performance and economic benefit of a blended braking system in a multi-speed battery electric vehicle," Applied Energy, Elsevier, vol. 183(C), pages 1240-1258.

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