Economic comparison between conventionally powered and electric cars

Abstract

One of the most serious environmental problems of our time is air pollution, which has a profoundly damaging effect not only on the ecosystem but also on the human body. Increasing air pollution not only increases the risk of respiratory infections, but also increases the risk of asthma, chronic bronchitis and heart disease. In order to reduce these negative effects , the European Environment Agency supports the implementation of measures taken by EU decision-makers to reduce air pollution.  At its meeting in Strasbourg on 14 February 2023, the European Parliament adopted an agreement to clean up the air by requiring all new cars and vans sold in the European Union from 2035 to be electrically powered. When this provision becomes definitive, there will be a gradual expansion of the market for electric vehicles, which already represents a steadily increasing proportion of the total number of cars on the road. This latter fact justifies an examination of the penetration, operational and financial consequences of vehicles with green plates. In the study an economic comparison between the most popular pure electric passenger car in the European Union in 2022, the Tesla Model Y with a green plate, and the Peugeot 208 with a conventional engine has been presented. Four economically developed EU Member States, Hungary, Denmark, Norway and France have been taken for consideration. The financial burden on owners of these car types in the year of purchase and in the following years of use has been investigated.  The calculations are based on the legislation and market prices in 2023. Taking into account the average change in market prices, an increase of 10% per year in the costs shown in the table for both types of car has been calculated.  The analysis shows that, although in the short term, owners of electric cars face much higher costs than their petrol-powered counterparts, in the long term they are an excellent investment in a cleaner vehicle. Conclusions are supported by the fact that the total expenditure on a Peugeot 208 passenger car in 2023 will exceed the total purchase price and maintenance costs of a Tesla Y model in 2023 in Hungary after approximately 10 years, 13 years in Norway, 10 years in Denmark and 12 years in France