Cost-efficient transition to clean energy transportation services

Comello, Stephen ; Glenk, Gunther ; Reichelstein, Stefan

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URL:	https://madoc.bib.uni-mannheim.de/57647
URN:	urn:nbn:de:bsz:180-madoc-576477
Dokumenttyp:	Arbeitspapier
Erscheinungsjahr:	2020
Ort der Veröffentlichung:	Mannheim
Auflage:	Version November 2020
Sprache der Veröffentlichung:	Englisch
Einrichtung:	Fakultät für Betriebswirtschaftslehre > Stiftungsprofessur für ABWL (Reichelstein 2018-)
Lizenz:	Creative Commons Namensnennung 4.0 International (CC BY 4.0)
Fachgebiet:	330 Wirtschaft
Freie Schlagwörter (Englisch):	clean energy vehicles , transportation services , life-cycle cost , fleet optimization
Abstract:	Comprehensive global decarbonization will require that transportation services cease to rely on fossil fuels. Here we develop a generic life-cycle cost model to address two closely related questions central to the emergence of sustainable transportation: (i) the utilization rates (hours of operation) that rank-order alternative drivetrains in terms of their cost, and (ii) the cost-efficient share of clean energy drivetrains in a vehicle fleet of competing drivetrains. Calibrating our model framework in the context of urban transit buses, we examine how the comparison between diesel and battery-electric buses varies with the specifics of the duty cycle (route). We find that even for less favorable duty cycles, battery-electric buses will entail lower life-cycle costs once utilization rates exceed 20% of the annual hours. Yet, the current economics of that particular application still calls for a one-third share of diesel drivetrains in a cost-efficient fleet.