IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v50y2015icp3-16.html
   My bibliography  Save this article

Total cost of ownership, social lifecycle cost and energy consumption of various automotive technologies in Italy

Author

Listed:
  • Rusich, Andrea
  • Danielis, Romeo

Abstract

This paper estimates the total cost of ownership, social lifecycle cost and energy consumption of 66 cars with different fuel/powertrains available in Italy in 2013. The aim is to provide the various private and public decision makers with information that could allow them to better understand the current market penetration of the various automotive technologies and to predict the future one. It is found that the car operated by conventional fuels (gasoline, diesel) is currently the least expensive as far as the total costs of ownership are concerned. The bi-fuel liquefied petroleum gas (LPG) and the bi-fuel compressed natural gas (CNG) internal combustion engine vehicles are in the same price range. Both the battery electric vehicles (BEVs) and, especially, the hybrid ICEVs are more expensive. On the contrary, the social lifecycle costs of the BEVs are the lowest, thanks not only to their zero air pollutants' emissions in the use phase but also to their reduced noise emissions. The amount of the social costs relative to the total cost of ownership, estimated using recent European parameters, represents at the most 6% of the total cost. Consequently, even if the external costs were internalized, the alternative fuel vehicles would not become convenient for the final consumer from a monetary point of view. Considering the energy consumption, with the 2011 Italian energy production mix, the BEVs and the diesel hybrid are the most energy efficient cars. Focusing on 7 specific models, and simulating realistic scenarios, it is found that the relative ranking of the BEVs in terms of total costs improves moderately when the traveled distance increases, subsidies are introduced and battery price drops. However, the BEVs become convenient only when the annual distance traveled is at least 20,000 km, a value much higher than the current Italian average and posing serious issues in terms of vehicles' range. Only a joint reduction of the battery price to €240/kWh from initial estimated cost of €412/kWh and the introduction of a subsidy would make the BEVs competitive with the current average Italian annual distance traveled.

Suggested Citation

  • Rusich, Andrea & Danielis, Romeo, 2015. "Total cost of ownership, social lifecycle cost and energy consumption of various automotive technologies in Italy," Research in Transportation Economics, Elsevier, vol. 50(C), pages 3-16.
    • Handle: RePEc:eee:retrec:v:50:y:2015:i:c:p:3-16
    DOI: 10.1016/j.retrec.2015.06.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739885915000219
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.retrec.2015.06.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shen, Wei & Han, Weijian & Chock, David & Chai, Qinhu & Zhang, Aling, 2012. "Well-to-wheels life-cycle analysis of alternative fuels and vehicle technologies in China," Energy Policy, Elsevier, vol. 49(C), pages 296-307.
    2. Torchio, Marco F. & Santarelli, Massimo G., 2010. "Energy, environmental and economic comparison of different powertrain/fuel options using well-to-wheels assessment, energy and external costs – European market analysis," Energy, Elsevier, vol. 35(10), pages 4156-4171.
    3. Graff Zivin, Joshua S. & Kotchen, Matthew J. & Mansur, Erin T., 2014. "Spatial and temporal heterogeneity of marginal emissions: Implications for electric cars and other electricity-shifting policies," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 248-268.
    4. Rusich, Andrea & Danielis, Romeo, 2013. "The private and social monetary costs and the energy consumption of a car. An estimate for seven cars with different vehicle technologies on sale in Italy," Working Papers 1301, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2013.
    5. Al-Alawi, Baha M. & Bradley, Thomas H., 2013. "Total cost of ownership, payback, and consumer preference modeling of plug-in hybrid electric vehicles," Applied Energy, Elsevier, vol. 103(C), pages 488-506.
    6. Mari Svensson, Ann & Møller-Holst, Steffen & Glöckner, Ronny & Maurstad, Ola, 2007. "Well-to-wheel study of passenger vehicles in the Norwegian energy system," Energy, Elsevier, vol. 32(4), pages 437-445.
    7. Lucas, Alexandre & Alexandra Silva, Carla & Costa Neto, Rui, 2012. "Life cycle analysis of energy supply infrastructure for conventional and electric vehicles," Energy Policy, Elsevier, vol. 41(C), pages 537-547.
    8. Gilmore, Elisabeth A. & Lave, Lester B., 2013. "Comparing resale prices and total cost of ownership for gasoline, hybrid and diesel passenger cars and trucks," Transport Policy, Elsevier, vol. 27(C), pages 200-208.
    9. Rusich, Andrea & Danielis, Romeo, 2013. "The private and social monetary costs and the energy consumption of a car. An estimate for seven cars with different vehicle technologies on sale in Italy," Working Papers 13_1, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2013.
    10. Massiani, Jérôme, 2015. "Cost-Benefit Analysis of policies for the development of electric vehicles in Germany: Methods and results," Transport Policy, Elsevier, vol. 38(C), pages 19-26.
    11. J?rome Massiani & Jens Weinmann, 2012. "Estimating electric car?s emissions in Germany: an analysis through a pivotal marginal method and comparison with other methods," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2012(2), pages 131-155.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bruno Dalla Chiara & Francesco Deflorio & Michela Pellicelli & Luca Castello & Marco Eid, 2019. "Perspectives on Electrification for the Automotive Sector: A Critical Review of Average Daily Distances by Light-Duty Vehicles, Required Range, and Economic Outcomes," Sustainability, MDPI, vol. 11(20), pages 1-35, October.
    2. Rotaris, Lucia & Giansoldati, Marco & Scorrano, Mariangela, 2021. "The slow uptake of electric cars in Italy and Slovenia. Evidence from a stated-preference survey and the role of knowledge and environmental awareness," Transportation Research Part A: Policy and Practice, Elsevier, vol. 144(C), pages 1-18.
    3. Mariangela Scorrano & Terje Andreas Mathisen & Marco Giansoldati, 2019. "Is electric car uptake driven by monetary factors? A total cost of ownership comparison between Norway and Italy," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(2), pages 99-132.
    4. Mariangela Scorrano & Romeo Danielis & Stefano Pastore & Vanni Lughi & Alessandro Massi Pavan, 2020. "Modeling the Total Cost of Ownership of an Electric Car Using a Residential Photovoltaic Generator and a Battery Storage Unit—An Italian Case Study," Energies, MDPI, vol. 13(10), pages 1-21, May.
    5. Danielis, Romeo & Giansoldati, Marco & Scorrano, Mariangela, 2019. "Comparing the life-cycle CO2 emissions of the best-selling electric and internal combustion engine cars in Italy," Working Papers 19_1, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    6. Tobias Kuhnimhof & Christine Eisenmann, 2023. "Mobility-on-demand pricing versus private vehicle TCO: how cost structures hinder the dethroning of the car," Transportation, Springer, vol. 50(2), pages 707-731, April.
    7. Saccani, Nicola & Perona, Marco & Bacchetti, Andrea, 2017. "The total cost of ownership of durable consumer goods: A conceptual model and an empirical application," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 1-13.
    8. 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).
    9. Danielis, Romeo & Giansoldati, Marco & Scorrano, Mariangela, 2019. "Consumer- and society-oriented cost of ownership of electric and conventional cars in Italy," Working Papers 19_3, SIET Società Italiana di Economia dei Trasporti e della Logistica.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rusich, Andrea & Danielis, Romeo, 2013. "The private and social monetary costs and the energy consumption of a car. An estimate for seven cars with different vehicle technologies on sale in Italy," Working Papers 1301, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2013.
    2. Rusich, Andrea & Danielis, Romeo, 2013. "The private and social monetary costs and the energy consumption of a car. An estimate for seven cars with different vehicle technologies on sale in Italy," Working Papers 13_1, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2013.
    3. Gilmore, Elisabeth A. & Patwardhan, Anand, 2016. "Passenger vehicles that minimize the costs of ownership and environmental damages in the Indian market," Applied Energy, Elsevier, vol. 184(C), pages 863-872.
    4. Gupta, S. & Patil, V. & Himabindu, M. & Ravikrishna, R.V., 2016. "Life-cycle analysis of energy and greenhouse gas emissions of automotive fuels in India: Part 1 – Tank-to-Wheel analysis," Energy, Elsevier, vol. 96(C), pages 684-698.
    5. Patil, V. & Shastry, V. & Himabindu, M. & Ravikrishna, R.V., 2016. "Life-cycle analysis of energy and greenhouse gas emissions of automotive fuels in India: Part 2 – Well-to-wheels analysis," Energy, Elsevier, vol. 96(C), pages 699-712.
    6. Orsi, Francesco & Muratori, Matteo & Rocco, Matteo & Colombo, Emanuela & Rizzoni, Giorgio, 2016. "A multi-dimensional well-to-wheels analysis of passenger vehicles in different regions: Primary energy consumption, CO2 emissions, and economic cost," Applied Energy, Elsevier, vol. 169(C), pages 197-209.
    7. Carley, Sanya & Zirogiannis, Nikolaos & Siddiki, Saba & Duncan, Denvil & Graham, John D., 2019. "Overcoming the shortcomings of U.S. plug-in electric vehicle policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    8. Palmer, Kate & Tate, James E. & Wadud, Zia & Nellthorp, John, 2018. "Total cost of ownership and market share for hybrid and electric vehicles in the UK, US and Japan," Applied Energy, Elsevier, vol. 209(C), pages 108-119.
    9. Correa, G. & Muñoz, P.M. & Rodriguez, C.R., 2019. "A comparative energy and environmental analysis of a diesel, hybrid, hydrogen and electric urban bus," Energy, Elsevier, vol. 187(C).
    10. Zirogiannis, Nikolaos & Duncan, Denvil & Carley, Sanya & Siddiki, Saba & Graham, John D., 2019. "The effect of CAFE standards on vehicle sales projections: A Total Cost of Ownership approach," Transport Policy, Elsevier, vol. 75(C), pages 70-87.
    11. Khan, Muhammad Imran & Shahrestani, Mehdi & Hayat, Tasawar & Shakoor, Abdul & Vahdati, Maria, 2019. "Life cycle (well-to-wheel) energy and environmental assessment of natural gas as transportation fuel in Pakistan," Applied Energy, Elsevier, vol. 242(C), pages 1738-1752.
    12. Hirte, Georg & Tscharaktschiew, Stefan, 2013. "The optimal subsidy on electric vehicles in German metropolitan areas: A spatial general equilibrium analysis," Energy Economics, Elsevier, vol. 40(C), pages 515-528.
    13. Valeri, Eva & Danielis, Romeo, 2015. "Simulating the market penetration of cars with alternative fuelpowertrain technologies in Italy," Transport Policy, Elsevier, vol. 37(C), pages 44-56.
    14. Ranjit R. Desai & Eric Hittinger & Eric Williams, 2022. "Interaction of Consumer Heterogeneity and Technological Progress in the US Electric Vehicle Market," Energies, MDPI, vol. 15(13), pages 1-25, June.
    15. Bubeck, Steffen & Tomaschek, Jan & Fahl, Ulrich, 2016. "Perspectives of electric mobility: Total cost of ownership of electric vehicles in Germany," Transport Policy, Elsevier, vol. 50(C), pages 63-77.
    16. Rita Garcia & Fausto Freire, 2016. "Marginal Life-Cycle Greenhouse Gas Emissions of Electricity Generation in Portugal and Implications for Electric Vehicles," Resources, MDPI, vol. 5(4), pages 1-15, November.
    17. Correa, G. & Muñoz, P. & Falaguerra, T. & Rodriguez, C.R., 2017. "Performance comparison of conventional, hybrid, hydrogen and electric urban buses using well to wheel analysis," Energy, Elsevier, vol. 141(C), pages 537-549.
    18. Jochem, Patrick & Babrowski, Sonja & Fichtner, Wolf, 2015. "Assessing CO2 emissions of electric vehicles in Germany in 2030," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 68-83.
    19. Breetz, Hanna L. & Salon, Deborah, 2018. "Do electric vehicles need subsidies? Ownership costs for conventional, hybrid, and electric vehicles in 14 U.S. cities," Energy Policy, Elsevier, vol. 120(C), pages 238-249.
    20. 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.

    More about this item

    Keywords

    Total cost of ownership; Social cost; Energy consumption; Car; Electric vehicle;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:retrec:v:50:y:2015:i:c:p:3-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.