Abstract:

This paper analyses how the total cost of ownership (TCO) of electric light commercial vehicles change with the number of kilometers driven, the period of ownership, the residual value of the battery, and different fiscal incentives, as well as a kilometer charging scheme. This paper demonstrates that a kilometer-based charge and reduced fiscal incentives for conventional vans can drastically improve the TCO of electric commercial light duty vehicles. Second life applications for batteries could also have a strong impact on the TCO of electric vans as they could retrieve a better residual value. Finally, the paper shows that the TCO of electric vans can be optimized based on its usage. These are important findings given the ambitious objective of carbon free city logistics by 2030. Electric van adoption is still low, and this study provides an up-to-date analysis to encourage the electrification of light commercial vehicles, a rapidly developing area in city logistics. The article emphasises the gap between ambitious climate goals and limited supporting policies. However, the report demonstrated that policymakers have powerful tools at their disposal to encourage the electrification of city logistics.