The effect of fiscal incentives on market penetration of electric vehicles: A pairwise comparison of total cost of ownership

Lévay, Petra Zsuzsa; Drossinos, Yannis; Thiel, Christian

doi:10.1016/j.enpol.2017.02.054

Cited by 269 publications

(124 citation statements)

References 13 publications

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“…Financial incentives appear crucial in market formation, though recent research suggests that EVs will only become more popular when price competitive with ICVs (Lévay, Drossinos, & Thiel, ). As previously indicated, EVs are more expensive than similar ICVs (Section 2.2).…”

Section: Drivers Of Ev Adoption and Market Successmentioning

confidence: 99%

Electric vehicle adoption: An analysis of best practice and pitfalls for policy making from experiences of Europe and the US

2017

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Accelerating the rate of electric vehicle (EV) adoption is an objective of many countries to mitigate and ameliorate negative externalities arising from the use of fossil fuels for personal motorised transportation including: greenhouse gas (GHG) emissions, air pollution and noise, as well as increasing energy security and reducing budget deficits. Within the dynamic field of EVs, this paper highlights strategic directions for policy makers to increase EV uptake. The paper critically reviews measures adopted by some industrialised countries to motivate consumer purchase of EVs rather than conventional internal combustion vehicles (ICVs). A key focus is the role of financial and soft incentives to encourage EV adoption. The analysis reveals that not all incentives are equally effective; an adequate recharger network appears to be a common concerning factor for EV adoption due to customer anxiety and vehicle limitations. Best practice strategies that could foster a faster transition to EV adoption include appropriate legislation, installation and maintenance of an adequate public recharger network, government procurement programs, and investment in information programs to accelerate the transition towards fossil free driving. The paper evidences how implementation of these strategies can affect overall adoption rates.

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Section: Drivers Of Ev Adoption and Market Successmentioning

confidence: 99%

Electric vehicle adoption: An analysis of best practice and pitfalls for policy making from experiences of Europe and the US

2017

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“…Norway has had an extensive incentive programme since the 1990s, implementing the policies considered within our UK and NL scenarios, such as tax exemptions, congestion charging and network provision, as well as further support such as free use of parking, bus lanes, toll roads and ferries. These policies started to have a big impact from 2010 onwards, when the supply of electric vehicle models in the market increased [45,46]. Similar to NL, Norway has very high import/registration taxes meaning the exemption causes a significant attraction to EVs.…”

Section: Discussionmentioning

confidence: 99%

Policy insights and modelling challenges: The case of passenger car powertrain technology transition in the European Union

Harrison

Thiel

2017

Eur. Transp. Res. Rev.

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Purpose We are interested in what policy insights can be transferred from EU countries that have been most successful in introducing EVs to those that are debating policy options.As we use a model to explore this, we are also interested in the application of modelling, seeking to understand if real world policies and results can be replicated in a model and, more generally, the challenges to the use of modelling in policy appraisal. Methods We use the EC-JRC Powertrain Technology Transition Market Agent Model (PTTMAM), a system dynamics model based around the interactions of conceptual market agent groups in the EU. We perform iterative scenario tests to replicate the policies carried out in the Netherlands and the UK in recent years in an attempt to achieve similar results in EV sales. We then transfer the policy scenarios to other EU member states and assess the transferability of the policies. Results Reasonable approximations of the Netherlands and UK EV policies and sales were achieved and implemented in other EU member states. Conclusion We find that the PTTMAM is fit-for-purpose and can replicate successful policies to a certain degree. Policy success is sensitive to country specific conditions, and a system dynamics model like the PTTMAM can help identify which conditions react to which policy stimulus. There are challenges to modelling in policy appraisal, such as the subjectivity of the modeller and flexibility to specific conditions, which must be kept transparent for the model to be a relevant tool for policy making.

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“…However, the important purchase price of electric vehicles can be partially compensated by their low running costs and maintenance costs compared to conventional vehicles. The costs structure of electric vehicles is different from conventional vehicles, therefore the total cost of ownership has often been used to compare these different technologies [9][10][11]. A few total cost of ownership (TCO) analyses have investigated the competitive position of commercial vehicles.…”

Section: Introductionmentioning

confidence: 99%

How to Improve the Total Cost of Ownership of Electric Vehicles: An Analysis of the Light Commercial Vehicle Segment

Lebeau

Macharis

Mierlo

2019

WEVJ

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Cathy.Macharis@vub.be (C.M.); Joeri.Van.Mierlo@vub.be (J.V.M.) 2 Flanders Make, 3001 Heverlee, BelgiumAbstract: This paper analyses how the total cost of ownership (TCO) of electric light commercial vehicles change with the number of kilometers driven, the period of ownership, the residual value of the battery, and different fiscal incentives, as well as a kilometer charging scheme. This paper demonstrates that a kilometer-based charge and reduced fiscal incentives for conventional vans can drastically improve the TCO of electric commercial light duty vehicles. Second life applications for batteries could also have a strong impact on the TCO of electric vans as they could retrieve a better residual value. Finally, the paper shows that the TCO of electric vans can be optimized based on its usage. These are important findings given the ambitious objective of carbon free city logistics by 2030. Adoption of electric vans remains very low and this paper offers an up to date analysis to stimulate the electrification of light commercial vehicles, a segment that is growing fast in city logistics.

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The effect of fiscal incentives on market penetration of electric vehicles: A pairwise comparison of total cost of ownership

Cited by 269 publications

References 13 publications

Electric vehicle adoption: An analysis of best practice and pitfalls for policy making from experiences of Europe and the US

Electric vehicle adoption: An analysis of best practice and pitfalls for policy making from experiences of Europe and the US

Policy insights and modelling challenges: The case of passenger car powertrain technology transition in the European Union

How to Improve the Total Cost of Ownership of Electric Vehicles: An Analysis of the Light Commercial Vehicle Segment

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