An optimal electric vehicle investment model for consumers using total cost of ownership: A real option approach

Moon, Saedaseul; Lee, Deok-Joo

doi:10.1016/j.apenergy.2019.113494

Cited by 42 publications

(23 citation statements)

References 15 publications

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“…So, it is possible to conclude that the project is financially viable. In accordance with this result, some studies showed the financial viability of e-mobility in public transport [86][87][88][89][90]. For instance, the study of Topal and Nakir [86] proposed the electric bus concept to achieve sustainable and zero-emission goals in Turkey.…”

Section: Application Discussion and Results Estimationmentioning

confidence: 63%

Strong Sustainability in Public Transport Policies: An e-Mobility Bus Fleet Application in Sorrento Peninsula (Italy)

et al. 2020

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Sustainability can be defined as the capacity to satisfy current needs without compromising future generations. Sustainable development clashes with the transport sector because of the latter’s high fossil fuels usage, consumption of natural resources and emission of pollutant and greenhouse gases. Electric mobility seems to be one of the best options to achieve both the sustainability goals and the mobility needs. This paper critically analysed weaknesses, strengths and application fields of electric mobility, proposing a real case application of an e-mobility bus fleet in Sorrento peninsula (Italy). The aim and the originality of this research was to propose a public transport design methodology based on a “strong sustainability” policy and applied to a real case study. To be precise, the renewing of the “old” bus fleet with a diesel plug-in hybrid one charged by a photovoltaic system was proposed, aiming to both improve environmental sustainability and perform an investment return for a private operator in managing the transport service. The proposed case study is particularly suitable because the peculiar morphology of the Sorrento peninsula in Italy does not allow other types of public transport services (e.g., rail, metro). Furthermore, this area, rich in UNESCO sites, has always been an international tourist destination because of the environment and landscape. Estimation results show that the new e-mobility bus service will be able to reduce the greenhouse gases emissions up to the 23%, with a financial payback period of 10 years for a private investor.

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Section: Application Discussion and Results Estimationmentioning

confidence: 63%

Strong Sustainability in Public Transport Policies: An e-Mobility Bus Fleet Application in Sorrento Peninsula (Italy)

et al. 2020

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“…They found that EVs are, at the current fuel price level, already cost-effective in the Korean market. 13 In the past, TCO have been calculated in various studies considering different types of EVs, different countries and regions, as well as different vehicle categories and user types. [14][15][16][17] However, due to the significant reduction of battery prices, and consequently BEV prices over the past years, and continuously changeable policy frameworks in most of the countries, TCO have to be considered in a dynamic framework.…”

Section: A Ajanovic R Haasmentioning

confidence: 99%

“…Moon and Lee have investigated an optimal EV investment model for users based on TCO using empirical data from the Korean automobile market. They found that EVs are, at the current fuel price level, already cost‐effective in the Korean market 13 . In the past, TCO have been calculated in various studies considering different types of EVs, different countries and regions, as well as different vehicle categories and user types 14–17 .…”

Section: Introductionmentioning

confidence: 99%

On the economics and the future prospects of battery electric vehicles

Ajanović

Haas

2020

Greenhouse Gases

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Currently, the electrification of passenger cars is seen as one of the key strategies for heading toward a sustainable transport system. Of special interest are battery electric vehicles (BEVs), which can enable significant emission reductions if electricity used is produced from renewable energy sources. However, mainly due to their high investment costs (retail purchase price) of BEVs, they are currently not economically competitive with conventional fossil-fueled vehicles without different supporting policy measures. This paper analyzes current costs and future prospects for BEVs compared to conventional petrol cars looking at the total costs of ownership. Furthermore, the future prospects are investigated considering technological learning for BEVs, CO 2 taxes for fuels, and various other policy framework conditions such as rebates for the purchase of the BEVs. The major conclusions are as follows: (i) to improve the economics of BEVs, a very important aspect is the introduction of CO 2-based fuel taxes; (ii) regarding economics, the second important aspect is the reduction of the investment costs of the BEVs due to technological learning, especially of the battery; (iii) in addition, the introduction of CO 2-based registration taxes for the purchase of passenger cars makes sense; (iv) subsidies or rebates for the purchase of a BEV maybe a measure successful in the short term and helpful to stimulate technological learning; (v) by far, the highest uncertainty regarding the future prospects of BEVs is how fast technological learning will take place, especially for the battery, and how the future development of batteries will be.

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“…Some studies focused on discussing the total costs of ownership (TCO) of EVs in comparison to traditional vehicles [32][33][34][35][36]. For example, Moon and Lee [36] constructed an EV investment model for consumers by adopting TCO, and the results showed EVs are more cost-effective than traditional vehicles. However, Velzen et al [35] found, through a developed comprehensive EV TCO forecasting framework, that the TCO of EVs are not necessarily lower than those of traditional vehicles.…”

Section: Introductionmentioning

confidence: 99%

Life-Cycle Break-Even Analysis of Electric Carsharing: A Comparative Study in China

Jia

Xue

et al. 2020

Sustainability

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Electric carsharing (ECS) is a potential option to address the problem of unsustainability in the transportation sector. The business-to-consumer model of ECS, which is one of several different electric carsharing models, has gained much popularity in recent years. Generating sufficient revenue to cover costs is a critical factor for ECS companies to maintain healthy development. This study makes an economic analysis, on the basis of life-cycle cost and monetary revenue associated with the operation of ECS, of two Chinese ECS companies: EVCARD and LCCS. Based on data gathered by field investigation, this study aims to determine the break-even moment for each company’s main vehicle models by means of the net present value method. The results show that EVCARD achieved an earlier break-even moment than LCCS. The break-even moment of Chery eQ of EVCARD was the shortest of all the vehicle models, at only 181.3 min. Moreover, a sensitivity analysis was conducted to portray how different cost-related and revenue-related factors influence the break-even moment. Our findings indicate that a wide difference exists in terms of the influence of different factors on the break-even moment. Among these, the manufacturer’s suggested retail price is the most influential variable, followed by the unit rental price. The reaction of the break-even moment to the market price of a charging pile and the non-rental revenue per vehicle—especially the latter—was found to be negligible in the sensitivity analysis.

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An optimal electric vehicle investment model for consumers using total cost of ownership: A real option approach

Cited by 42 publications

References 15 publications

Strong Sustainability in Public Transport Policies: An e-Mobility Bus Fleet Application in Sorrento Peninsula (Italy)

Strong Sustainability in Public Transport Policies: An e-Mobility Bus Fleet Application in Sorrento Peninsula (Italy)

On the economics and the future prospects of battery electric vehicles

Life-Cycle Break-Even Analysis of Electric Carsharing: A Comparative Study in China

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