The potential of alternative fuel vehicles: A cost-benefit analysis

Abstract

This study investigates the economic validity of the diffusion of fuel cell vehicles (FCVs) and allelectric vehicles (EVs), employing a cost-benefit analysis from the social point of view. This research assumes the amount of NOx and tank-to-wheel CO2 emissions and gasoline use reduction as the benefits and the purchase costs, infrastructure expenses, and maintenance costs of alternative vehicles as the costs of switching internal combustion engine (ICE) vehicles to alternative energy vehicles. In addition, this study conducts a sensitivity analysis considering cost reductions in FCV and EV production and increasing costs for CO2 abatement as well as increasing gasoline prices. In summary, the results show that the diffusion of FCVs is not economically beneficial until 2110, even if the FCV purchase cost decreases to that of an ICE vehicle. EV diffusion might be beneficial by 2060 depending on increases in gasoline prices and CO2 abatement costs.

Climate Policy in Transportation Sector: Role of Carbon Pricing

“…Different from previous studies examining the effects of EVs, this chapter explicitly considers the recharging time of EVs, which is a social loss, similar to congestion. The basic concept of the analysis follows the method of Ito and Managi (2015). In this costbenefit analysis, we assume that all vehicles in Japan are substituted by EVs, that is, that there are no conventional gasoline or diesel vehicles.…”

Biohydrogen production from anaerobic digestion and its potential as renewable energy

“…On the other hand, some cost benefit analysis has produced negative results leaving the concept of hydrogen fueled vehicles not being a feasible option. Ito & Managi [149] investigated the economic validity of diffusion of hydrogen Fuel Cell Vehicles (FCV) and all Electric Vehicle (EV) in Japan. The differences between net present value between benefit and cost were studied to find out the economically feasible option between these two.…”

Education in the Transit

“…Considering there are no longer fast perspectives in the horizon for large-scale replacement of fossil fuels, the rationalization is of great value for the economic balance in transport companies. The cost management works to provide information on opportunities to improve the economic results performance for the companies (Ito and Managi, 2015).…”