TY - JOUR
T1 - Who saves money buying electric vehicles? Heterogeneity in total cost of ownership
AU - Parker, Nathan
AU - Breetz, Hanna L.
AU - Salon, Deborah
AU - Conway, Matthew Wigginton
AU - Williams, Jeffrey
AU - Patterson, Maxx
N1 - Publisher Copyright:
© 2021 Elsevier Ltd
PY - 2021/7
Y1 - 2021/7
N2 - Electric vehicles (EVs) are likely to be a critical technology for mitigating climate change and improving urban air quality. To deliver environmental benefits, however, EVs must be adopted on a large scale. Total Cost of Ownership studies have shown that for the average US consumer, EVs cost more than gasoline-fueled vehicles. We contribute to this literature with a focus on heterogeneity across space and driving habits. Specifically, we estimate 5-year ownership costs for four EVs and four gasoline-fueled vehicles by neighborhood across Los Angeles County. Due to variation in electricity rates, insurance rates, and vehicle miles traveled, the median cost varies across neighborhoods by a factor of between 1.2 and 1.35, depending on the vehicle. Median costs of ownership are usually higher for EVs than for comparable gasoline-fueled cars, but considering the full distribution of vehicle miles traveled suggests that buying an EV saves money for over 17% of households.
AB - Electric vehicles (EVs) are likely to be a critical technology for mitigating climate change and improving urban air quality. To deliver environmental benefits, however, EVs must be adopted on a large scale. Total Cost of Ownership studies have shown that for the average US consumer, EVs cost more than gasoline-fueled vehicles. We contribute to this literature with a focus on heterogeneity across space and driving habits. Specifically, we estimate 5-year ownership costs for four EVs and four gasoline-fueled vehicles by neighborhood across Los Angeles County. Due to variation in electricity rates, insurance rates, and vehicle miles traveled, the median cost varies across neighborhoods by a factor of between 1.2 and 1.35, depending on the vehicle. Median costs of ownership are usually higher for EVs than for comparable gasoline-fueled cars, but considering the full distribution of vehicle miles traveled suggests that buying an EV saves money for over 17% of households.
KW - Battery electric vehicles
KW - Consumer heterogeneity
KW - Cost comparison
KW - Energy transition
KW - Total cost of ownership
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U2 - 10.1016/j.trd.2021.102893
DO - 10.1016/j.trd.2021.102893
M3 - Article
AN - SCOPUS:85110468806
SN - 1361-9209
VL - 96
JO - Transportation Research Part D: Transport and Environment
JF - Transportation Research Part D: Transport and Environment
M1 - 102893
ER -