Total cost of ownership and its potential implications for battery electric vehicle diffusion

Hagman, Jens; Ritzén, Sofia; Stier, Jenny Janhager; Susilo, Yusak O.

doi:10.1016/j.rtbm.2016.01.003

Cited by 220 publications

(126 citation statements)

References 15 publications

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“…Due to factors, such as fuel prices, driving distance, vehicle class, ownership period, consumer preferences, knowledge and other economic costs [22] [23] [24]. A relevant finding related to drivetrains in previous research is the significantly lower operating cost of BEVs compared to ICEV [11] [23]. BEV fuel costs can be up to 90% lower compared to ICEV [11].…”

Section: Vehicle Cost Structure and Total Cost Of Ownershipmentioning

confidence: 99%

“…A relevant finding related to drivetrains in previous research is the significantly lower operating cost of BEVs compared to ICEV [11] [23]. BEV fuel costs can be up to 90% lower compared to ICEV [11]. Fewer moving parts in the drivetrain and regenerative braking decrease service needs in the case of BEV.…”

Section: Vehicle Cost Structure and Total Cost Of Ownershipmentioning

confidence: 99%

“…Exploring costs/affordability in the vehicle choice process is timely and interesting since BEVs and other energy efficiency products have been found to have different cost characteristics compared to incumbent ICEV (e.g. [10] [11]). The compatibility or incompatibility of the current vehicle cost evaluation behavior with the emerging market for BEVs is as of yet not understood.…”

Section: Introductionmentioning

confidence: 99%

“…BEVs in similarity to other energy efficient products tend to have a significantly higher purchasing price compared to incumbent ICEV [11]. The actual cost of a durable good such as a vehicle is rarely equal to its purchasing price; rather it is the sum of the operating costs and depreciation cost during the ownership period.…”

Section: Introductionmentioning

confidence: 99%

“…Energy efficient technologies usually have a higher purchasing price but lower operating costs compared to less energy efficient solutions, in effect requiring potential buyers to compute and compare operating costs in detail, in order to make a fair cost evaluation of different technologies. This is especially true in the vehicle market where numerous ownership costs such as fuel, maintenance and repair, taxes, depreciation and insurance, need to be included [11]. Vehicle TCO thus contains a larger set of costs items compared to other durable goods, e.g.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

The TCO Paradox—A Key Problem in the Diffusion of Energy Efficient Vehicles?

Hagman¹,

Ritzén²,

Stier³

2017

AJIBM

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The aim of this paper is to explore how mainstream vehicle buyers perceive and apply Total Cost of Ownership in their vehicle choice process. All else equal, rational consumers ought to evaluate Total Cost of Ownership in order to acquire the real cost of owning a particular vehicle under consideration, unless bounded rationality is affecting their behavior. The results reveal that vehicle buyers generally are capable of understanding the relative size of individual costs that make up vehicle Total Cost of Ownership but fail to evaluate and apply multiple costs in their vehicle purchase process. Regression analysis exposes that income, educational level, stated importance of Total Cost of Ownership and the number of vehicles in the choice set have a positive association with the degree that consumers conduct an evaluation of vehicle Total Cost of Ownership. Failure to consider Total Cost of Ownership can lead to uneconomic vehicle choices, which is here labeled as the TCO paradox. This could have an especially negative effect on the diffusion of battery electric vehicles, which require a more detailed cost analysis in order to extract its low operating cost structure.

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Section: Vehicle Cost Structure and Total Cost Of Ownershipmentioning

confidence: 99%

Section: Vehicle Cost Structure and Total Cost Of Ownershipmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

The TCO Paradox—A Key Problem in the Diffusion of Energy Efficient Vehicles?

Hagman¹,

Ritzén²,

Stier³

2017

AJIBM

Self Cite

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Vehicle‐to‐Grid Challenges and Potential Benefits for Smart Microgrids

Saeed¹

2021

Active Electrical Distribution Network

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A General Technoeconomic Model for Evaluating Emerging Electrolytic Processes

et al. 2019

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Increasing societal concern about carbon emissions and the concomitant emergence of inexpensive renewable resources provide growing impetus for the electrification of the chemical industry. Despite notable advances in the science and engineering of electrolytic processes, there are comparatively few engineering economic studies that outline the technical specifications needed to approach feasibility. Herein, an open‐source technoeconomic framework is introduced to quantify the economic potential of existing and conceptual electrolytic processes by connecting system price and performance goals with constituent materials property sets. To validate the outputs and demonstrate the versatility of this toolkit, three contemporary electrolyses of varying technology readiness levels are explored. Specifically, the model results are benchmarked against the Department of Energy hydrogen analysis model; the impact of mass transport and catalyst performance on the electrochemical reduction of carbon dioxide is evaluated; and a pathway to low‐cost electrolytic production of phenol from guaiacol is charted. As this model is based on generalized mass balances and electrochemical equations common to a number of electrochemical processes, it serves as an adaptable toolkit for researchers to evaluate new chemistries and reactor configurations.

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Total cost of ownership and its potential implications for battery electric vehicle diffusion

Cited by 220 publications

References 15 publications

The TCO Paradox—A Key Problem in the Diffusion of Energy Efficient Vehicles?

The TCO Paradox—A Key Problem in the Diffusion of Energy Efficient Vehicles?

Vehicle‐to‐Grid Challenges and Potential Benefits for Smart Microgrids

A General Technoeconomic Model for Evaluating Emerging Electrolytic Processes

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