IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i13p5303-d378680.html
   My bibliography  Save this article

Evaluation of Cost Competitiveness of Electric Vehicles in Malaysia Using Life Cycle Cost Analysis Approach

Author

Listed:
  • Siti Indati Mustapa

    (Institute of Energy Policy and Research, Universiti Tenaga Nasional, Jalan IKRAM-UNITEN, Kajang, Selangor 43000, Malaysia)

  • Bamidele Victor Ayodele

    (Institute of Energy Policy and Research, Universiti Tenaga Nasional, Jalan IKRAM-UNITEN, Kajang, Selangor 43000, Malaysia)

  • Waznatol Widad Mohamad Ishak

    (Institute of Energy Policy and Research, Universiti Tenaga Nasional, Jalan IKRAM-UNITEN, Kajang, Selangor 43000, Malaysia)

  • Freida Ozavize Ayodele

    (Department of Accounting and Finance, Faculty of Business, and Management, UCSI University, Kuala Lumpur 56000, Malaysia)

Abstract

The need to mitigate CO 2 emissions from the transportation sector has necessitated the adoption of electric vehicles (EVs) and other forms of alternative vehicles. Despite the global rise of EVs demand as a complementary means of green transportations, the level of adoption in Malaysia is still not encouraging. Therefore, this study aimed to investigate the cost competitiveness of EVs in comparison with Hybrid Electric Vehicles (HEVs) and an Internal Combustion Vehicle (ICV) based on Malaysia scenarios. Using the existing data in Malaysia, life cost analysis (LCC) of two EVs was computed and compared with HEVs and ICVs. The study shows that Nissan leaf and BMW i3s EVs with LCC of $1.75 and $2.5 per km are not cost-competitive based on prevalent data available in Malaysia compared to the HEVs and ICV. Based on the sensitivity analysis, changes in the components of the operating costs significantly influence the accumulated cost of ownership of the EVs whereas the cost of ownership of the HEVs and ICVs did not experience any significant influence. The findings from this study could serve as bases for policymakers to formulate appropriate policies and strategies to improve the competitiveness of EVs in Malaysia.

Suggested Citation

  • Siti Indati Mustapa & Bamidele Victor Ayodele & Waznatol Widad Mohamad Ishak & Freida Ozavize Ayodele, 2020. "Evaluation of Cost Competitiveness of Electric Vehicles in Malaysia Using Life Cycle Cost Analysis Approach," Sustainability, MDPI, vol. 12(13), pages 1-14, June.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:13:p:5303-:d:378680
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/13/5303/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/13/5303/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Abdul Rahim Ridzuan & Aliashim Albani & Abdul Rais Abdul Latiff & Mohamad Idham Md Razak & Mohd Haziq Murshidi, 2020. "The Impact of Energy Consumption based on Fossil Fuel and Hydroelectricity Generation towards Pollution in Malaysia, Indonesia and Thailand," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 215-227.
    2. Shafie, S.M. & Mahlia, T.M.I. & Masjuki, H.H. & Andriyana, A., 2011. "Current energy usage and sustainable energy in Malaysia: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4370-4377.
    3. Wang, Ning & Tang, Linhao & Pan, Huizhong, 2017. "Effectiveness of policy incentives on electric vehicle acceptance in China: A discrete choice analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 210-218.
    4. Hidrue, Michael K. & Parsons, George R. & Kempton, Willett & Gardner, Meryl P., 2011. "Willingness to pay for electric vehicles and their attributes," Resource and Energy Economics, Elsevier, vol. 33(3), pages 686-705, September.
    5. Adnan, Nadia & Nordin, Shahrina Md & Rahman, Imran, 2017. "Adoption of PHEV/EV in Malaysia: A critical review on predicting consumer behaviour," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 849-862.
    6. Mustapa, Siti Indati & Bekhet, Hussain Ali, 2016. "Analysis of CO2 emissions reduction in the Malaysian transportation sector: An optimisation approach," Energy Policy, Elsevier, vol. 89(C), pages 171-183.
    7. Keller, Victor & Lyseng, Benjamin & Wade, Cameron & Scholtysik, Sven & Fowler, McKenzie & Donald, James & Palmer-Wilson, Kevin & Robertson, Bryson & Wild, Peter & Rowe, Andrew, 2019. "Electricity system and emission impact of direct and indirect electrification of heavy-duty transportation," Energy, Elsevier, vol. 172(C), pages 740-751.
    8. Offer, G.J. & Howey, D. & Contestabile, M. & Clague, R. & Brandon, N.P., 2010. "Comparative analysis of battery electric, hydrogen fuel cell and hybrid vehicles in a future sustainable road transport system," Energy Policy, Elsevier, vol. 38(1), pages 24-29, January.
    9. Siavash Khalili & Eetu Rantanen & Dmitrii Bogdanov & Christian Breyer, 2019. "Global Transportation Demand Development with Impacts on the Energy Demand and Greenhouse Gas Emissions in a Climate-Constrained World," Energies, MDPI, vol. 12(20), pages 1-54, October.
    10. Bamidele Victor Ayodele & Siti Indati Mustapa, 2020. "Life Cycle Cost Assessment of Electric Vehicles: A Review and Bibliometric Analysis," Sustainability, MDPI, vol. 12(6), pages 1-17, March.
    11. Ogden, Joan M. & Williams, Robert H. & Larson, Eric D., 2004. "Societal lifecycle costs of cars with alternative fuels/engines," Energy Policy, Elsevier, vol. 32(1), pages 7-27, January.
    12. Adnan, Nadia & Nordin, Shahrina Md & Rahman, Imran & Rasli, Amran Md, 2017. "A new era of sustainable transport: An experimental examination on forecasting adoption behavior of EVs among Malaysian consumer," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 279-295.
    13. Troy R. Hawkins & Bhawna Singh & Guillaume Majeau‐Bettez & Anders Hammer Strømman, 2013. "Comparative Environmental Life Cycle Assessment of Conventional and Electric Vehicles," Journal of Industrial Ecology, Yale University, vol. 17(1), pages 53-64, February.
    14. Du, Huibin & Chen, Zhenni & Peng, Binbin & Southworth, Frank & Ma, Shoufeng & Wang, Yuan, 2019. "What drives CO2 emissions from the transport sector? A linkage analysis," Energy, Elsevier, vol. 175(C), pages 195-204.
    15. Diao, Qinghua & Sun, Wei & Yuan, Xinmei & Li, Lili & Zheng, Zhi, 2016. "Life-cycle private-cost-based competitiveness analysis of electric vehicles in China considering the intangible cost of traffic policies," Applied Energy, Elsevier, vol. 178(C), pages 567-578.
    16. Vergis, Sydney & Chen, Belinda, 2015. "Comparison of plug-in electric vehicle adoption in the United States: A state by state approach," Research in Transportation Economics, Elsevier, vol. 52(C), pages 56-64.
    17. Mytilinou, Varvara & Kolios, Athanasios J., 2019. "Techno-economic optimisation of offshore wind farms based on life cycle cost analysis on the UK," Renewable Energy, Elsevier, vol. 132(C), pages 439-454.
    18. Delucchi, Mark & Lipman, Timothy, 2001. "An Analysis of the Retail and Lifecycle Cost of Battery-Powered Electric Vehicles," Institute of Transportation Studies, Working Paper Series qt50q9060k, Institute of Transportation Studies, UC Davis.
    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. Nenming Wang & Guwen Tang, 2022. "A Review on Environmental Efficiency Evaluation of New Energy Vehicles Using Life Cycle Analysis," Sustainability, MDPI, vol. 14(6), pages 1-35, March.
    2. Seng Boon Lim & Jalaluddin Abdul Malek & Md Farabi Yussoff Md Yussoff & Tan Yigitcanlar, 2021. "Understanding and Acceptance of Smart City Policies: Practitioners’ Perspectives on the Malaysian Smart City Framework," Sustainability, MDPI, vol. 13(17), pages 1-31, August.
    3. Nur Ayeesha Qisteena Muzir & Md. Rayid Hasan Mojumder & Md. Hasanuzzaman & Jeyraj Selvaraj, 2022. "Challenges of Electric Vehicles and Their Prospects in Malaysia: A Comprehensive Review," Sustainability, MDPI, vol. 14(14), pages 1-40, July.

    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. Nenming Wang & Guwen Tang, 2022. "A Review on Environmental Efficiency Evaluation of New Energy Vehicles Using Life Cycle Analysis," Sustainability, MDPI, vol. 14(6), pages 1-35, March.
    2. Fuquan Zhao & Kangda Chen & Han Hao & Zongwei Liu, 2020. "Challenges, Potential and Opportunities for Internal Combustion Engines in China," Sustainability, MDPI, vol. 12(12), pages 1-15, June.
    3. Nilsson, Måns & Nykvist, Björn, 2016. "Governing the electric vehicle transition – Near term interventions to support a green energy economy," Applied Energy, Elsevier, vol. 179(C), pages 1360-1371.
    4. Dong, Xiaoyang & Zhang, Bin & Wang, Bo & Wang, Zhaohua, 2020. "Urban households’ purchase intentions for pure electric vehicles under subsidy contexts in China: Do cost factors matter?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 183-197.
    5. Bamidele Victor Ayodele & Siti Indati Mustapa, 2020. "Life Cycle Cost Assessment of Electric Vehicles: A Review and Bibliometric Analysis," Sustainability, MDPI, vol. 12(6), pages 1-17, March.
    6. Nie, Qingyun & Zhang, Lihui & Li, Songrui, 2022. "How can personal carbon trading be applied in electric vehicle subsidies? A Stackelberg game method in private vehicles," Applied Energy, Elsevier, vol. 313(C).
    7. Wu, Tian & Ma, Lin & Mao, Zhonggen & Ou, Xunmin, 2015. "Setting up charging electric stations within residential communities in current China: Gaming of government agencies and property management companies," Energy Policy, Elsevier, vol. 77(C), pages 216-226.
    8. Almeida Neves, Sónia & Cardoso Marques, António & Alberto Fuinhas, José, 2019. "Technological progress and other factors behind the adoption of electric vehicles: Empirical evidence for EU countries," Research in Transportation Economics, Elsevier, vol. 74(C), pages 28-39.
    9. Onat, Nuri Cihat & Kucukvar, Murat & Tatari, Omer, 2015. "Conventional, hybrid, plug-in hybrid or electric vehicles? State-based comparative carbon and energy footprint analysis in the United States," Applied Energy, Elsevier, vol. 150(C), pages 36-49.
    10. Soto, Jose J. & Macea, Luis F. & Cantillo, Victor, 2023. "Analysing a license plate-based vehicle restriction policy with optional exemption charge: The case in Cali, Colombia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    11. Wang, Ning & Tang, Linhao & Zhang, Wenjian & Guo, Jiahui, 2019. "How to face the challenges caused by the abolishment of subsidies for electric vehicles in China?," Energy, Elsevier, vol. 166(C), pages 359-372.
    12. Oskar Lecuyer & Adrien Vogt-Schilb, 2013. "Assessing and ordering investments in polluting fossil-fueled and zero-carbon capital," CIRED Working Papers hal-00850680, HAL.
    13. Yanhua Liang & Hongjuan Lu, 2022. "Dynamic Evaluation and Regional Differences Analysis of the NEV Industry Development in China," Sustainability, MDPI, vol. 14(21), pages 1-23, October.
    14. Wu, Geng & Inderbitzin, Alessandro & Bening, Catharina, 2015. "Total cost of ownership of electric vehicles compared to conventional vehicles: A probabilistic analysis and projection across market segments," Energy Policy, Elsevier, vol. 80(C), pages 196-214.
    15. Morton, Craig & Anable, Jillian & Yeboah, Godwin & Cottrill, Caitlin, 2018. "The spatial pattern of demand in the early market for electric vehicles: Evidence from the United Kingdom," Journal of Transport Geography, Elsevier, vol. 72(C), pages 119-130.
    16. Bansal, Prateek & Kumar, Rajeev Ranjan & Raj, Alok & Dubey, Subodh & Graham, Daniel J., 2021. "Willingness to pay and attitudinal preferences of Indian consumers for electric vehicles," Energy Economics, Elsevier, vol. 100(C).
    17. Zhang, Junjie & Jia, Rongwen & Yang, Hangjun & Dong, Kangyin, 2022. "Does electric vehicle promotion in the public sector contribute to urban transport carbon emissions reduction?," Transport Policy, Elsevier, vol. 125(C), pages 151-163.
    18. Samuel Pelletier & Ola Jabali & Gilbert Laporte, 2016. "50th Anniversary Invited Article—Goods Distribution with Electric Vehicles: Review and Research Perspectives," Transportation Science, INFORMS, vol. 50(1), pages 3-22, February.
    19. Nie, Qingyun & Zhang, Lihui & Tong, Zihao & Hubacek, Klaus, 2022. "Strategies for applying carbon trading to the new energy vehicle market in China: An improved evolutionary game analysis for the bus industry," Energy, Elsevier, vol. 259(C).
    20. Kim, Ga-Eun & Kim, Ju-Hee & Yoo, Seung-Hoon, 2019. "South Korean consumers’ preferences for eco-friendly gasoline sedans: Results from a choice experiment survey," Transport Policy, Elsevier, vol. 77(C), pages 1-7.

    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:gam:jsusta:v:12:y:2020:i:13:p:5303-:d:378680. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.