Is electric car uptake driven by monetary factors? A total cost of ownership comparison between Norway and Italy

Titolo Rivista ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT
Autori/Curatori Mariangela Scorrano, Terje Andreas Mathisen, Marco Giansoldati
Anno di pubblicazione 2020 Fascicolo 2019/2
Lingua Inglese Numero pagine 34 P. 99-132 Dimensione file 350 KB
DOI 10.3280/EFE2019-002005
Il DOI è il codice a barre della proprietà intellettuale: per saperne di più clicca qui

Qui sotto puoi vedere in anteprima la prima pagina di questo articolo.

Se questo articolo ti interessa, lo puoi acquistare (e scaricare in formato pdf) seguendo le facili indicazioni per acquistare il download credit. Acquista Download Credits per scaricare questo Articolo in formato PDF

Anteprima articolo

FrancoAngeli è membro della Publishers International Linking Association, Inc (PILA)associazione indipendente e non profit per facilitare (attraverso i servizi tecnologici implementati da CrossRef.org) l’accesso degli studiosi ai contenuti digitali nelle pubblicazioni professionali e scientifiche

The paper makes use of a recently developed total cost of ownership (TCO) methodology to assess the cost competitiveness of the best-selling battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), diesel and petrol cars in Norway and Italy, two countries at the antipodes for BEV uptake in Europe. The results of the TCO study show that in Norway BEVs are the most competitive amongst the four propulsion systems since they have the lowest average value for the annualized TCO/km, whereas in Italy BEVs are the least cost-competitive. In Norway the government encourages the purchase of BEVs by imposing much lower registration taxes than the very high applied to internal combustion engine vehicles, whilst in Italy BEV uptake is mostly supported by a decrease in the purchase price. The paper also unveils a negative relationship between the volume of each model sales and the corresponding annualized TCO/km, both for the joint database and, separately, for each country. Yet, looking at Norway, we show that the volume of car sales is positively associated with the purely electric propulsion system, but not with the annualized TCO/km, pointing to possible non-monetary motives leading consumers’ choices. The authors provide policy recommendations on fiscal and non-fiscal measures to support BEVs diffusion in countries such as Italy, where BEV uptake is low but with relevant potential.

Keywords:Total cost of ownership, battery electric vehicles, Italy, Norway.

Jel codes:R40, R41, R48.

  1. Abotalebi E., Scott D. M., Ferguson M. R. (2019). Can Canadian households benefit economically from purchasing battery electric vehicles?. Transportation Research Part D: Transport and Environment, 77: 292-302.
  2. Alberini A., Di Cosmo V., Bigano A. (2019). How are fuel efficient cars priced? Evidence from eight EU countries. Energy Policy, 134, 110978.
  3. Alexander M., Davis M. (2013). Total cost of ownership model for current plug-in electric vehicles. Electric Power Research Institute. Palo Alto, CA, available at -- http://www.ehcar.net/library/rapport/rapport079.pdf.
  4. Allcott H., Knittel C. (2019). Are consumers poorly informed about fuel economy? Evidence from two experiments. American Economic Journal: Economic Policy, 11(1), 1-37.
  5. Allcott H., Wozny N. (2014). Gasoline prices, fuel economy, and the energy paradox. Review of Economics and Statistics, 96(5): 779-795.
  6. American Automobile Association Inc. (2019). Electric Vehicle Range Testing in relation to ambient temperature and HVAC use, -- http://www.aaa.com/AAA/common/AAR/files/AAA-Electric-Vehicle-Range-Testing-Report.pdf.
  7. Anderson S. T., Kellogg R., Sallee J. M. (2013). What do consumers believe about future gasoline prices? Journal of Environmental Economics and Management, 66(3): 383-403.
  8. Bickert S., Kampker A., Greger D. (2015). Developments of CO2-emissions and costs for small electric and combustion engine vehicles in Germany. Transportation Research Part D: Transport and Environment, 36: 138-151.
  9. Bjerkan K. Y., Nørbech T. E., Nordtømme M. E. (2016). Incentives for promoting battery electric vehicle (BEV) adoption in Norway. Transportation Research Part D: Transport and Environment, 43: 169-180.
  10. Breetz H. L., Salon D. (2018). Do electric vehicles need subsidies? Ownership costs for conventional, hybrid, and electric vehicles in 14 US cities. Energy Policy, 120: 238-249.
  11. Bubeck S., Tomaschek J., Fahl U. (2016). Perspectives of electric mobility: Total cost of ownership of electric vehicles in Germany. Transport Policy, 50: 63-77.
  12. COWI (2017) Oppdatering av enhetskostnader i nytte-kostnadsanalyser i Statens vegvesen. (In Norwegian: Update of unit costs for cost-benefit analysis in Norwegian Public Roads Administration). Report, October 2017. Oslo.
  13. Danielis R., Giansoldati M., Rotaris L. (2018). A probabilistic total cost of ownership model to evaluate the current and future prospects of electric cars uptake in Italy. Energy Policy, 119: 268-281.
  14. Danielis R., Giansoldati M., Scorrano M. (2017). Consumer-and society-oriented cost of ownership of electric and conventional cars in Italy. Mimeo, available at -- https://pdfs.semanticscholar.org/4e8c/1e657e3ceb036a404c1afa0bc2a7d391d8c9.pdf.
  15. Diao Q., Sun W., Yuan X., Li L., Zheng Z. (2016). Life-cycle private-cost-based competitiveness analysis of electric vehicles in China considering the intangible cost of traffic policies. Applied Energy, 178: 567-578.
  16. Element Energy (2011). Influences on the Low Low Carbon Car Market from 2020–2030.
  17. Report by Element Energy Limited. UK, -- available at http://www.element-energy.co.uk/wordpress/wp-content/uploads/2012/05/Influences-on-the-Low-Carbon-Car-Market
  18. -from-2020-2030-Final-Report-010811_pdf.pdf. Figenbaum E. (2019). Charging Into the Future: Analysis of Fast Charger Usage. TØI Report, (1682/2019), available at -- https://www.toi.no/getfile.php?mmfileid=49751.
  19. Hasan S., Mathisen T. A. (2018). Policy measures and socio economic factors for the widespread electric vehicle adoption – Evidence from Norway, Paper presented at the 2018 European Transport Conference.
  20. IEA (2019). Global EV Outlook 2019. Scaling up the transition to electric mobility. Paris, France.
  21. Letmathe P., Suares M. (2017). A consumer-oriented total cost of ownership model for different vehicle types in Germany. Transportation Research Part D: Transport and Environment, 57: 314-335.
  22. Lévay P. Z., Drossinos Y., Thiel C. (2017). The effect of fiscal incentives on market penetration of electric vehicles: A pairwise comparison of total cost of ownership. Energy Policy, 105: 524-533.
  23. Logtenberg R., Pawley J., Saxifrage B. (2018). Comparing fuel and maintenance costs of electric and gas powered vehicles in Canada. 2 Degrees Institute, available at -- https://www.2degreesinstitute.org/reports/comparing_fuel_and_maintenance_costs_of_electric_and_gas_powered_vehicles_in_canada.pdf.
  24. Lorentzen E., Haugneland P., Bu C., Hauge E. (2017). Charging infrastructure experiences in Norway-the worlds most advanced EV market. In EVS30 Symposium (pp. 9-11), available at -- https://elbil.no/wp-content/uploads/2016/08/EVS30-Charging-infrastrucure-experiencesin-Norway-paper.pdf.
  25. McKinsey A. (2010). Portfolio of power-trains for Europe: A fact-based analysis. McKinsey & Company, Tech. Rep, available at -- https://www.eesi.org/files/europe_vehicles.pdf.
  26. Mersky A. C., Sprei F., Samaras C., Qian Z. S. (2016). Effectiveness of incentives on electric vehicle adoption in Norway. Transportation Research Part D: Transport and Environment, 46: 56-68.
  27. Mitropoulos L. K., Prevedouros P. D., Kopelias P. (2017). Total cost of ownership and externalities of conventional, hybrid and electric vehicle. Transportation research procedia, 24: 267-274.
  28. Norwegian Public Roads Administration (2018). Konsekvensanalyser. Håndbok V712 (In Norwegian: Consequence analysis). Oslo. Oak Ridge National Laboratory (2010). How Consumers Value Fuel Economy: A Literature Review. U.S. Environmental Protection Agency. Washington, DC, March, -- available at https://nepis.epa.gov/Exe/ZyPDF.cgi/P1006V0O.PDF?Dockey=P1006V0O.PDF.
  29. Opplysningsrådet for vegtrafikken (OFV) (2018). Eksempler på beregning av kostnader ved bilhold 2018. (In Norwegian: Calculation examples of cost for car ownership 2018. Oslo.
  30. Palmer K., Tate J. E., Wadud Z., Nellthorp J. (2018). Total cost of ownership and market share for hybrid and electric vehicles in the UK, US and Japan. Applied Energy, 209: 108-119.
  31. Plötz P., Gnann T., Kühn A., Wietschel M. (2013). Markthochlaufszenarien für Elektrofahrzeuge. Fraunhofer-Institut für System und Innovationsforschung ISI, available at https://www.isi.fraunhofer.de/content/dam/isi/dokumente/cce/2014/Fraunhofer-ISI-Markthochlaufszenarien-Elektrofahrzeuge-Langfassung.pdf.
  32. Propfe B., Redelbach M. (2012). Cost analysis of plug-in hybrid electric vehicles including maintenance & repair costs and resale values. In: Proceedings of the EVS26 International Battery, Hybrid and Fuel Cell Electric Vehicle Symposium. German Aerospace Center (DLR), available at -- https://elib.dlr.de/75697/1/EVS26_Propfe_final.pdf.
  33. Propfe B., Redelbach M., Santini D., Friedrich H. (2012). Cost analysis of plug-in hybrid electric vehicles including maintenance & repair costs and resale values. World Electric Vehicle Journal, 5(4): 886-895.
  34. Rusich A., Danielis R. (2015). Total cost of ownership, social lifecycle cost and energy consumption of various automotive technologies in Italy. Research in Transportation Economics, 50: 3-16.
  35. Scorrano M., Danielis R., Giansoldati M. (2019). The cost gap between electric and petrol cars. An estimate via a persona-based deterministic and probabilistic total cost of ownership model. International Journal of Transport Economics, XLVI(3): 93-122. DOI: 10.19272/201906703
  36. Scorrano M., Danielis R., Giansoldati M. (2020a). Dissecting the total cost of ownership of fully electric cars in Italy: the impact of annual distance travelled, home charging and urban driving, Research in Transportation Economics.
  37. Scorrano M., Danielis R., Giansoldati M. (2020b). Mandating the use of the electric taxis: The case of Florence. Transportation Research Part A: Policy and Practice, 132: 402-414.
  38. Sierzchula W., Bakker S., Maat K., Van Wee B. (2014). The influence of financial incentives and other socio-economic factors on electric vehicle adoption. Energy Policy, 68: 183-194.
  39. Transport and the Environment (2019). How vehicle taxes can accelerate electric car sales, Briefing, February. -- https://www.transportenvironment.org/sites/te/files/publications/2019_02_How_vehicle_taxes_can_accelerate_electric_car_final.pdf.
  40. Turrentine T. S., Kurani K. S. (2007). Car buyers and fuel economy? Energy Policy, 35(2): 1213-1223.
  41. UNRAE (2019). Immatricolazioni in Italia di autovetture e fuoristrada. Top ten per alimentazione – novembre -- http://www.unrae.it/files/06%20novembre_Top%2010%20alimentazione_5de51b63ae97e.pdf.
  42. Weldon P., Morrissey P., O’Mahony M. (2018). Long-term cost of ownership comparative analysis between electric vehicles and internal combustion engine vehicles. Sustainable Cities and Society, 39: 578-591.
  43. Wu G., Inderbitzin A., Bening C. (2015). Total cost of ownership of electric vehicles compared to conventional vehicles: A probabilistic analysis and projection across market segments. Energy Policy, 80: 196-214.
  44. Yuksel T., Michalek J. J. (2015). Effects of regional temperature on electric vehicle efficiency, range, and emissions in the United States. Environmental science & technology, 49(6): 3974-3980.
  45. Zhao X., Doering O. C., Tyner W. E. (2015). The economic competitiveness and emissions of battery electric vehicles in China. Applied Energy, 156: 666-675.

  • Drivers’ preferences for electric cars in Italy. Evidence from a country with limited but growing electric car uptake Romeo Danielis, Lucia Rotaris, Marco Giansoldati, Mariangela Scorrano, in Transportation Research Part A: Policy and Practice /2020 pp.79
    DOI: 10.1016/j.tra.2020.04.004

Mariangela Scorrano, Terje Andreas Mathisen, Marco Giansoldati, Is electric car uptake driven by monetary factors? A total cost of ownership comparison between Norway and Italy in "ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT" 2/2019, pp 99-132, DOI: 10.3280/EFE2019-002005