Cost-effectiveness of plug-in hybrid electric vehicle battery capacity and charging infrastructure investment for reducing US gasoline consumption

Federal electric vehicle (EV) policies in the United States currently include vehicle purchase subsidies linked to EV battery capacity and subsidies for installing charging stations. We assess the cost-effectiveness of increased battery capacity vs. nondomestic charging infrastructure installation f...

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Bibliographic Details
Published in:Energy policy 2013-01, Vol.52, p.429-438
Main Authors: Peterson, Scott B., Michalek, Jeremy J.
Format: Article
Language:English
Subjects:
Alternative fuel vehicles
Applied sciences
Batteries
Battery size
Charging infrastructure
Consumption
Cost
Cost analysis
Cost control
Cost effectiveness
Economic data
Electric energy
Electric vehicles
Electronic equipment
Energy
Energy conservation
Energy consumption
Energy economics
Energy policy
energy use and consumption
Exact sciences and technology
Fossil fuels and derived products
Fuel
Gas
gasoline
General, economic and professional studies
Ground, air and sea transportation, marine construction
Infrastructure
Investments
issues and policy
oils
Petrol
Plug-in hybrid electric vehicle
Road transportation and traffic
Saving
Studies
Subsidies
trucks
U.S.A
United States
Vehicles
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Summary:Federal electric vehicle (EV) policies in the United States currently include vehicle purchase subsidies linked to EV battery capacity and subsidies for installing charging stations. We assess the cost-effectiveness of increased battery capacity vs. nondomestic charging infrastructure installation for plug-in hybrid electric vehicles as alternate methods to reduce gasoline consumption for cars, trucks, and SUVs in the US. We find across a wide range of scenarios that the least-cost solution is for more drivers to switch to low-capacity plug-in hybrid electric vehicles (short electric range with gasoline backup for long trips) or gasoline-powered hybrid electric vehicles. If more gasoline savings are needed per vehicle, nondomestic charging infrastructure installation is substantially more expensive than increased battery capacity per gallon saved, and both approaches have higher costs than US oil premium estimates. Cost effectiveness of all subsidies are lower under a binding fuel economy standard. Comparison of results to the structure of current federal subsidies shows that policy is not aligned with fuel savings potential, and we discuss issues and alternatives. ► We compare cost of PHEV batteries vs. charging infrastructure per gallon of gasoline saved. ► The lowest cost solution is to switch more drivers to low-capacity PHEVs and HEVs. ► If more gasoline savings is needed, batteries offer a better value than chargers. ► Extra batteries & chargers are both more costly per gal than oil premium estimates. ► Current subsidies are misaligned with fuel savings. We discuss alternatives.
ISSN:0301-4215
1873-6777
DOI:10.1016/j.enpol.2012.09.059