Levelized costs of the energy chains of new energy vehicles targeted at carbon neutrality in China

Abstract

The diffusion of new energy vehicles (NEVs), such as battery electric vehicles (BEVs) and fuel cell vehicles (FCVs), is critical to the transportation sector’s deep decarbonization. The cost of energy chains is an important factor in the diffusion of NEVs. Although researchers have addressed the technological learning effect of NEVs and the life cycle emissions associated with the diffusion of NEVs, little work has been conducted to analyze the life cycle costs of different energy chains associated with different NEVs in consideration of technological learning potential. Thus, relevant information on investment remains insufficient to promote the deployment of NEVs. This study proposes a systematic framework that includes various (competing or coordinated) energy chains of NEVs formed with different technologies of power generation and transmission, hydrogen production and transportation, power-to-liquid fuel, and fuel transportation. The levelized costs of three typical carbon-neutral energy chains are investigated using the life cycle cost model and considering the technological learning effect. Results show that the current well-to-pump levelized costs of the energy chains in China for BEVs, FCVs, and internal combustion engine vehicles (ICEVs) are approximately 3.60, 4.31, and 2.21 yuan/GJ, respectively, and the well-to-wheel levelized costs are 4.50, 6.15, and 7.51 yuan/GJ, respectively. These costs primarily include raw material costs, and they vary greatly for BEVs and FCVs from resource and consumer costs. In consideration of the technological learning effect, the energy chains’ well-to-wheel levelized costs are expected to decrease by 24.82% for BEVs, 27.12% for FCVs, and 19.25% for ICEVs by 2060. This work also summarizes policy recommendations on developing energy chains to promote the diffusion of NEVs in China.

Urbanization inequality: evidence from vehicle ownership in Chinese cities

“…The consumption of oil fuels has contributed to energy security and greenhouse gas emissions. In 2018, it is estimated that carbon emissions from China's transportation sector accounted for 9.2% of the total, which means transportation became one of China's three main carbon emissions sectors (Qiu et al 2022;Yu et al 2021). Besides, air pollutants such as NO x (nitrogen oxides), PM 2.5 (particulate matter with a diameter of no more than 2.5 μm), and O 3 (ozone) emitted by fuel vehicles can damage human health and increase premature deaths (Fu et al 2024).…”

Boosting the cost competitiveness of low-carbon ammonia by expanding emission trading system coverage in China

“…where 𝑖 represents the project installation year (from 2018 to 2060); 𝑗 denotes the 30 provinces; 𝑛 signifies the project operation year. 𝐶𝐴𝑃𝐸𝑋 is the capital expenditures of facilities; 𝑂𝑃𝐸𝑋 is the operation expenditures of the project in year n; 𝑉 𝑟 is the salvage value of the project, assumed to be 5% of CAPEX 43 ; 𝑟 is the discount rate, set at 7.5% 44 ; 𝑁 is lifetime of the project, assumed to be 25-year 14 ; 𝑄 𝑛 is ammonia production in nth operation year, calculated based on Equation (2):…”

The Analysis of China's New Energy Vehicle Policies

“…These huge advantages were benefit from the full support from the government [3]. Expanded understanding can be employed to characterize the policies that the government has issued over the past ten years: macro policies, demonstration policies, subsidization policy proposals, preferential taxation policies, technical support policies, industry management policies, and infrastructure policies [4]. This article will review these policies individually and examine the effectiveness of mixed policies through to the study and research of relevant information under seven sorts of policies.…”

“…Macro-policy provide direction to businesses and citizens as a whole. For China, the promotion of electric vehicle-related policies is an important part of achieving carbon neutrality [4]. The world is concerned about the mitigation of global warming through the control of overall carbon emissions and China is committed to achieve carbon emissions peak by 2030 and become carbon neutral by 2060.…”

“…Information policy is to increase market demand by changing consumer preferences through the dissemination and promotion of new technologies, this policy will not sufficiently promote the industry in the short term, but in the long run, it can achieve the same effect as the subsidy policy [9,19]. Some other policies, such as enterprise technical support and enterprise management policies, affect the market from the enterprise side [4]. However, all policies are based on the public's preference for environmental protection, the effectiveness of the above policies will be improved with good environmental protection publicity [19].…”