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Electric Vehicles Revisited: Costs, Subsidies and Prospects

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  • Philippe Crist

    (OECD)

Abstract

This paper compares the lifetime costs of like internal combustion and battery electric vehicle pairs on the market in France and finds that relative costs of electric vehicles remain elevated for consumers and even more so for society under current conditions and typical use scenarios. It also suggests that in those cases where electric vehicles do already compare favourably to internal combustion engine powered cars, subsidies may be superfluous. In the future, a number of simultaneous changes in battery electric vehicles (BEV) and ICE technology, fiscal regimes and prevailing energy prices might reduce and even eradicate the consumer cost differential in favour of ICEs. Reducing the social cost differential between BEVs and ICEs seems more challenging under most scenarios and, when successful, raises the question of how much should society seek to subsidise BEVs in instances where there begins to be a business case for them...

Suggested Citation

  • Philippe Crist, 2012. "Electric Vehicles Revisited: Costs, Subsidies and Prospects," International Transport Forum Discussion Papers 2012/3, OECD Publishing.
    • Handle: RePEc:oec:itfaab:2012/3-en
    DOI: 10.1787/5k8zvv7h9lq7-en
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    Cited by:

    1. 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.
    2. Donateo, T. & Licci, F. & D’Elia, A. & Colangelo, G. & Laforgia, D. & Ciancarelli, F., 2015. "Evaluation of emissions of CO2 and air pollutants from electric vehicles in Italian cities," Applied Energy, Elsevier, vol. 157(C), pages 675-687.
    3. Proost, Stef & Van Dender, Kurt, 2012. "Energy and environment challenges in the transport sector," Economics of Transportation, Elsevier, vol. 1(1), pages 77-87.
    4. Tovar Reaños, Miguel A. & Sommerfeld, Katrin, 2018. "Fuel for inequality: Distributional effects of environmental reforms on private transport," Resource and Energy Economics, Elsevier, vol. 51(C), pages 28-43.
    5. Maia, Sara Costa & Teicher, Hannah & Meyboom, AnnaLisa, 2015. "Infrastructure as social catalyst: Electric vehicle station planning and deployment," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 53-65.
    6. Morris Brenna & Vittorio Bucci & Maria Carmen Falvo & Federica Foiadelli & Alessandro Ruvio & Giorgio Sulligoi & Andrea Vicenzutti, 2020. "A Review on Energy Efficiency in Three Transportation Sectors: Railways, Electrical Vehicles and Marine," Energies, MDPI, vol. 13(9), pages 1-19, May.
    7. Bruno De Borger & Stef Proost, 2015. "Tax and regulatory policies for European Transport – getting there, but in the slow lane," Working Papers of Department of Economics, Leuven 497597, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    8. Nunes, Pedro & Figueiredo, Raquel & Brito, Miguel C., 2016. "The use of parking lots to solar-charge electric vehicles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 679-693.
    9. 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.
    10. 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.
    11. Nunes, Pedro & Farias, Tiago & Brito, Miguel C., 2015. "Day charging electric vehicles with excess solar electricity for a sustainable energy system," Energy, Elsevier, vol. 80(C), pages 263-274.
    12. Nie, Yu (Marco) & Ghamami, Mehrnaz & Zockaie, Ali & Xiao, Feng, 2016. "Optimization of incentive polices for plug-in electric vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 84(C), pages 103-123.
    13. Bamidele Victor Ayodele & Siti Indati Mustapa, 2020. "Life Cycle Cost Assessment of Electric Vehicles: A Review and Bibliometric Analysis," Sustainability, MDPI, vol. 12(6), pages 1-17, March.
    14. Sylvia Bleker & Christiaan Behrens & Paul Koster & Erik T. Verhoef, 2014. "Market Structure and the Pricing of New Products: A Nested Logit Approach with Asymmetric Firms," Tinbergen Institute Discussion Papers 14-142/VIII, Tinbergen Institute.
    15. Samuel Pelletier & Ola Jabali & Gilbert Laporte, 2016. "50th Anniversary Invited Article—Goods Distribution with Electric Vehicles: Review and Research Perspectives," Transportation Science, INFORMS, vol. 50(1), pages 3-22, February.
    16. Fontaínhas, José & Cunha, Jorge & Ferreira, Paula, 2016. "Is investing in an electric car worthwhile from a consumers' perspective?," Energy, Elsevier, vol. 115(P2), pages 1459-1477.
    17. Nie, Yu (Marco) & Ghamami, Mehrnaz, 2013. "A corridor-centric approach to planning electric vehicle charging infrastructure," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 172-190.
    18. 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.
    19. Yan, Shiyu, 2018. "The economic and environmental impacts of tax incentives for battery electric vehicles in Europe," Energy Policy, Elsevier, vol. 123(C), pages 53-63.

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