Total Cost of Ownership of Electric Vehicles: Global Comparisons and UK Projections
New powertrain technologies, such as hybrid electric vehicles, have a price premium which can often be offset by reduced running costs. Total Cost of Ownership (TCO) calculations combine all expenses incurred from vehicle ownership to evaluate the most cost-effective option: a valuable assessment for private and fleet purchasers alike. Studies to date have not compared TCO across different markets, compared historic costs or undertaken mileage sensitivity assessments. Therefore, this research gives a more comprehensive TCO assessment between conventional, hybrid, plugin hybrid and battery electric vehicles in three industrialized countries – the UK, USA (using California as a case study) and Japan for the years 2000 to 2015 examining the link between TCO and market share. With changes to subsidies and vehicle taxes in the UK, this research examines possible cost evolution of vehicle TCO to 2035 to assess possible impact on market share. The authors conclude that in all countries considered, hybrid vehicle TCO is similar to conventional petrol vehicles. Market share was found to be linked to changing TCO although sensitivity varied across countries. Subsidies result in significantly cheaper plugin electric vehicle TCO in California but concerns exist over significant increases in TCO in the UK when subsidies are removed in 2017, indicating vehicle price premiums could exist past 2035. With increasing market share of low emission vehicles, this research has implications for fleet purchasers, private owners and policymakers alike who are either considering switching to a low carbon alternative or are interested in decarbonising the fleet.
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Supplemental Notes:
- This paper was sponsored by TRB committee ADC70 Standing Committee on Transportation Energy.
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Corporate Authors:
500 Fifth Street, NW
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Authors:
- Palmer, Kate
- Wadud, Zia
- Tate, James E
- Nellthorp, John
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Conference:
- Transportation Research Board 96th Annual Meeting
- Location: Washington DC, United States
- Date: 2017-1-8 to 2017-1-12
- Date: 2017
Language
- English
Media Info
- Media Type: Digital/other
- Features: Figures; References; Tables;
- Pagination: 15p
- Monograph Title: TRB 96th Annual Meeting Compendium of Papers
Subject/Index Terms
- TRT Terms: Alternatives analysis; Automobile ownership; Costs; Electric vehicles; Forecasting; Hybrid vehicles; Life cycle costing; Market share; Subsidies
- Geographic Terms: Japan; United Kingdom; United States
- Subject Areas: Economics; Energy; Highways; Planning and Forecasting; Vehicles and Equipment;
Filing Info
- Accession Number: 01630070
- Record Type: Publication
- Report/Paper Numbers: 17-01882
- Files: PRP, TRIS, TRB, ATRI
- Created Date: Mar 27 2017 9:30AM