Who saves money buying electric vehicles? Heterogeneity in total cost of ownership

• Published in: Transportation research. Part D, Transport and environment Transport and environment, 2021-07, Vol.96, p.102893, Article 102893
• Main Authors: Parker, Nathan, Breetz, Hanna L., Salon, Deborah, Conway, Matthew Wigginton, Williams, Jeffrey, Patterson, Maxx
• Format: Article
• Language: English
• Subjects: Battery electric vehicles; Consumer heterogeneity; Cost comparison; Energy transition; Total cost of ownership
• ISSN: 1361-9209; 1879-2340
• DOI: 10.1016/j.trd.2021.102893

•Models 5-year costs for 8 electric and gasoline cars by zip code in Los Angeles.•Costs vary spatially by 20–35% due to utility rates, insurance, and driving mileage.•On average, electric cars tend to cost more than gasoline cars in most neighborhoods.•Considering distributions, electric cars may be economical for 17% of LA drivers.•Electric cars are most likely to be economical in outer ring suburbs of LA County. Electric vehicles (EVs) are likely to be a critical technology for mitigating climate change and improving urban air quality. To deliver environmental benefits, however, EVs must be adopted on a large scale. Total Cost of Ownership studies have shown that for the average US consumer, EVs cost more than gasoline-fueled vehicles. We contribute to this literature with a focus on heterogeneity across space and driving habits. Specifically, we estimate 5-year ownership costs for four EVs and four gasoline-fueled vehicles by neighborhood across Los Angeles County. Due to variation in electricity rates, insurance rates, and vehicle miles traveled, the median cost varies across neighborhoods by a factor of between 1.2 and 1.35, depending on the vehicle. Median costs of ownership are usually higher for EVs than for comparable gasoline-fueled cars, but considering the full distribution of vehicle miles traveled suggests that buying an EV saves money for over 17% of households.