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Calculation of Life Cycle Costs in Green Procurement of Passenger Cars from Romania

Author

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  • Ionel Preda

Abstract

The article presents a method of calculating the life cycle costs of green passenger car purchases in Romania. Green purchases are purchases that take into account not only the purchase price but also the costs of maintenance and operation. Research by other authors has shown that sometimes the life cycle cost is more relevant than the purchase price and other times the purchase price is more relevant than the life cycle cost. In order to determine which of the two is more relevant, the life cycle costs were calculated for three representative passenger car models for the Romanian market in 2018 (Ford Fiesta, Hyundai i20 and Opel Corsa), costs that were compared to purchase prices. Also, the main problems found in estimating the life cycle costs were identified.

Suggested Citation

  • Ionel Preda, 2019. "Calculation of Life Cycle Costs in Green Procurement of Passenger Cars from Romania," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 22(74), pages 86-99, December.
  • Handle: RePEc:rej:journl:v:22:y:2019:i:74:p:86-99
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    More about this item

    Keywords

    green procurement; cost-per-life cycle; passenger car; purchase price.;
    All these keywords.

    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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