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Comparing total cost of ownership of battery electric vehicles and internal combustion engine vehicles

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  • Liu, Zhe
  • Song, Juhyun
  • Kubal, Joseph
  • Susarla, Naresh
  • Knehr, Kevin W.
  • Islam, Ehsan
  • Nelson, Paul
  • Ahmed, Shabbir

Abstract

The technological advance of electrochemical energy storage and the electric powertrain has led to rapid growth in the deployment of electric vehicles. The high cost and the added weight of the batteries have limited the size (energy storage capacity) and, therefore, the driving range of these vehicles. However, consumers are steadily purchasing these vehicles because of the fast acceleration, quiet ride, and high energy efficiency. The higher pack-to-wheel efficiency and the lower energy cost per mile, as well as the lower expense for maintenance and repair, translate to operating savings over conventional vehicles. This paper compares battery electric vehicles with internal combustion engine vehicles based on the total cost of ownership. It is seen that the higher initial cost of electric vehicles can be recovered in as little as 5 years. This is especially true for electric vehicles with shorter driving ranges. Specifically, a vehicle with an electric driving range under 200 miles may achieve cost parity with an equivalent internal combustion engine vehicle in 8 years or less.

Suggested Citation

  • Liu, Zhe & Song, Juhyun & Kubal, Joseph & Susarla, Naresh & Knehr, Kevin W. & Islam, Ehsan & Nelson, Paul & Ahmed, Shabbir, 2021. "Comparing total cost of ownership of battery electric vehicles and internal combustion engine vehicles," Energy Policy, Elsevier, vol. 158(C).
    • Handle: RePEc:eee:enepol:v:158:y:2021:i:c:s0301421521004341
    DOI: 10.1016/j.enpol.2021.112564
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    4. Burra, Lavan T. & Sommer, Stephan & Vance, Colin, 2023. "Free-Ridership in Subsidies for Company- and Private Electric Vehicles," Ruhr Economic Papers 1015, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Iogansen, Xiatian & Wang, Kailai & Bunch, David & Matson, Grant & Circella, Giovanni, 2023. "Deciphering the factors associated with adoption of alternative fuel vehicles in California: An investigation of latent attitudes, socio-demographics, and neighborhood effects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 168(C).
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    7. Malima, Gabriel Clement & Moyo, Francis, 2023. "Are electric vehicles economically viable in sub-Saharan Africa? The total cost of ownership of internal combustion engine and electric vehicles in Tanzania," Transport Policy, Elsevier, vol. 141(C), pages 14-26.
    8. Gábor Horváth & Attila Bai & Sándor Szegedi & István Lázár & Csongor Máthé & László Huzsvai & Máté Zakar & Zoltán Gabnai & Tamás Tóth, 2023. "A Comprehensive Review of the Distinctive Tendencies of the Diffusion of E-Mobility in Central Europe," Energies, MDPI, vol. 16(14), pages 1-29, July.
    9. Hampton, Harrison & Foley, Aoife M. & Del Rio, Dylan Furszyfer & Sovacool, Benjamin, 2022. "Developing future retail electricity markets with a customer-centric focus," Energy Policy, Elsevier, vol. 168(C).
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    11. Kondev, Bozhil & Dixon, James & Zhou, Zhaoqi & Sabyrbekov, Rahat & Sultanaliev, Kanat & Hirmer, Stephanie A., 2023. "Putting the foot down: Accelerating EV uptake in Kyrgyzstan," Transport Policy, Elsevier, vol. 131(C), pages 87-96.
    12. Say, Kelvin & Csereklyei, Zsuzsanna & Brown, Felix Gabriel & Wang, Changlong, 2023. "The economics of public transport electrification: A case study from Victoria, Australia," Energy Economics, Elsevier, vol. 120(C).
    13. Indre Siksnelyte-Butkiene & Dalia Streimikiene, 2022. "Sustainable Development of Road Transport in the EU: Multi-Criteria Analysis of Countries’ Achievements," Energies, MDPI, vol. 15(21), pages 1-25, November.
    14. Wang, Yitong & Fan, Ruguo & Du, Kang & Bao, Xuguang, 2023. "Exploring incentives to promote electric vehicles diffusion under subsidy abolition: An evolutionary analysis on multiplex consumer social networks," Energy, Elsevier, vol. 276(C).

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