How Policies Affect the Dissemination of Electric Passenger Cars Worldwide

Abstract

Road transportation is one of the largest emitters of greenhouse gas emissions. The EU set the target to reduce overall transport emissions by 60% by 2050 compared to 1990. Electric mobility is considered a proper means to achieve this goal. Battery electric vehicles (BEVs) are a mature technology. The high investment costs, limited driving range and a charging infrastructure that is not extensive yet are currently the main challenges. This work analyses how policies affect the dissemination of BEVs in selected countries with remarkable market shares of BEVs. The core objective is to investigate how policies affect BEV economics compared to conventional car economics. Financial policies and their effects on BEVs for the major markets of China, the USA and Europe were analysed. To do so, the total cost of ownership (TCO) was calculated for each country. The major conclusions were: (i) The investment cost of a car had the most significant impact on the TCO; (ii) Low TCO as an incentive was not enough to ensure successful BEV dissemination; (iii) Non-monetary incentives such as access to certain zones and the usage of bus lanes for BEVs combined with registration taxes, low electricity prices and high fuel prices were very favourable conditions.