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

Yutaka Ito, Shunsuke Managi

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

This study investigates the economic validity of the diffusion of fuel cell vehicles (FCVs) and all-electric 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.

Original languageEnglish
Pages (from-to)39-50
Number of pages12
JournalResearch in Transportation Economics
Volume50
DOIs
Publication statusPublished - Aug 1 2015

Fingerprint

Cost benefit analysis
Alternative fuels
cost-benefit analysis
electric vehicle
costs
Fuel cells
Gasoline
Costs
purchase
Electric vehicles
Internal combustion engines
alternative energy
cost reduction
Cost-benefit analysis
Fuel cell
Alternative fuel vehicles
Cost reduction
infrastructure
Sensitivity analysis
Electric vehicle

All Science Journal Classification (ASJC) codes

  • Transportation
  • Economics, Econometrics and Finance (miscellaneous)

Cite this

The potential of alternative fuel vehicles : A cost-benefit analysis. / Ito, Yutaka; Managi, Shunsuke.

In: Research in Transportation Economics, Vol. 50, 01.08.2015, p. 39-50.

Research output: Contribution to journalArticle

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