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1 the transition towards electric vehicles Name Student Number Christiaan Boon Master Thesis Science and Business Management Internship provider University Supervisor Capgemini Consulting Supervisor University Period Capgemini Consulting Utrecht University Drs. Robin Chu MSc. Prof. Dr. Johan Wempe August January 2014

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3 Management Summary In this study, the state of the transition towards electric vehicles in the Netherlands was assessed. It was shown that however electric vehicles are more expensive to buy, the total cost of ownership of an electric vehicle is competitive for 20% of the consumers. This number is expected to increase in the future, since battery prices will decrease, and the cost of gasoline and diesel will increase. This results in a competitive TCO for the average consumer in between 2014 and Secondly, it was found the range of an average EV is 75% less compared to a conventional vehicle. The range however is expected to increase with 80% in 2020, due improved battery technology and decreased battery prices. It is hard to determine the minimal range consumers require, due to a difference in perception between what consumers think they need, and what they actually require. Therefore it is hard to predict at what point consumer will experience the range of an electric vehicle to be sufficient, however the outlook of an increased action radius will certainly contribute to that feeling. The charging infrastructure in the Netherlands seems currently sufficient, with one charger for every two electric vehicles. However, it was found that further increase of this charging network is biggest hurdle to take. The profitability of slow chargers is problematic due to a high level of rules and regulations, a lack of leadership, different point of interest and no consensus among stakeholders. Continuing this current path will withhold further development of the slow charge network, and can have disastrous consequences to the transition as a whole. 1

4 Table of Contents Management Summary... 1 List of Abbreviations... 4 Preface... 5 Chapter 1: Introduction : Sustainable Mobility : Innovation Model : System Innovation : System Change : Current Situation Chapter 2: Research Goals and Methodology Chapter 3: Results and Discussion : Hypothesis 1: Cost is the most important factor for consumers not to adopt towards EV : TCO Analysis : Hypothesis 2: The range of an electric vehicle is currently too short : Hypothesis 3: There is a lack of charging stations in the Netherlands : System Innovation : Fuel Infrastructure : Public Fast Chargers : Private Chargers : OEMs and Vehicle : Future TCO Analysis : Future Battery Development: : Conclusion on OEMs and Vehicle : Social Aspects : Perception : Change in Others Chapter 4: Conclusion and Recommendations References Appendix: : Personal Experience Report

5 2: List and Properties of Vehicles Used in the TCO Analysis : List of Interviewed Stakeholders : Written Interviews (in Dutch)

6 List of Abbreviations (F)EV: (Fully) Electric Vehicle ICE: Internal Combustion Engine TCO: Total Cost of Ownership PHEV: Plug- in Hybrid Electric Vehicle RIVM: Rijksinstituut voor Volksgezondheid en Milieuhygiëne; Governmental institute for Public Health and Environmental Hygiene NSL: Nationaal Samenwerkingsverband Luchtkwaliteit; National Collaboration Air quality GHG: Greenhouse Gasses CO 2 : Carbon Dioxide CBS: Central Bureau for Statistics ANWB: Algemene Nederlandse Wielrijders Bond; General Dutch Drivers Association NIBUD: Nationaal instituut voor Budgetvoorlichting; National Institute for Budget Information IFA: Institute for Automobiles and Economics kw: Kilo Watt (1000 Watt) CP: Charging Point 4G: Four big municipalities in the Netherlands (Amsterdam, Rotterdam, The Hague, Utrecht) OEM: Original Equipment Manufacturer NO x : Combination of Nitrogen Oxides NO and NO 2 KWh: Kilowatt- hour CPO: Charging Point Operator µg: Micro gram; One Millionth of a Gram CNG: Compressed Natural Gas LNG: Liquefied Natural Gas 4

7 Preface This project was conducted as a graduate internship at Capgemini Consulting, for the master program Science and Business Management at Utrecht University. Capgemini Consulting is the consulting brand of Capgemini Group, which is specialized in (ICT) consulting, technology and outsourcing, and has more than employees in over 40 countries. Capgemini Consulting empowers clients to respond faster and successfully to changing market dynamics. Also they design and implement transformation strategies to achieve measurable and sustainable results. Capgemini Consulting has a varied client base with clients form sectors including public and health, financial and telecom, media and utilities. Capgemini Consulting is very interested in the transition to EVs, since they see a market potential is this arising market. Capgemini Consulting can have significant involvement in the transition towards electric vehicles, since they are specialized in changing market dynamics and creating new business models. Also they have clients who are currently involved in this transition as a stakeholder. Hence, Capgemini Consulting has the ability to play a role as organizer and connection between the several different players in the field. This can create consensus among stakeholder clients, which can result in initiative that will increase the speed of adoption. 5

8 Chapter 1: Introduction 1.1: Sustainable Mobility With the world running lower on fossil fuel reserves, increasing commodity prices, and a rising concerns regarding climate change and local air pollution, the demand for measures that can reduce the consumption of fossil fuels is high. The transport sector is responsible for 14% of the worldwide greenhouse gas emission, and is projected to increase to 50% in 2030 (Egbue & Long, 2012) (IEA, 2007). Therefore, reducing the amount of fossil fuel used for transport, by adapting more environmentally friendly types of transportation, could decrease the world green house gas emissions significantly. Local air pollution is a problem in crowded urban areas and among highways in the Netherlands. The RIVM have recently published a map that shows the average particulate matter (Figure 1). This figure shows that in crowded areas, and places next to highways, the concentration of particulate matter is far above 0,5 µg / m 3. Prolonged exposure to high concentrations particulate matter, can decrease life expectancy with 6 months per µg / m 3. 1 To meet requirements regarding pollution lever, set by the NSL (Nationaal Samenwerking Luchtkwaliteit), municipalities have started to ban old vehicles from city centers, 2 however more measurements have to be taken. Figure 1: Map of the Netherlands that show the average particulate matter concentration, indicating relatively high concentrations in big cities as well as next to highways. 1 : en- leefomgeving/hoeschoonisonzelucht/ 2 : autos- verbannen- uit- de- binnenstad/ 6

9 Electric vehicles (EVs) are vehicles that have the potential to reduce the GHG emissions as well as local air pollution. This is basically due to two factors. Electric vehicles are propelled by an electro motor, which is powered via an on board battery. In this process there is no combustion, resulting in no emission of any type during driving. Secondly, an electromotor is much more energy efficient. Taken the energy losses in electricity generation and transport into account, the overall well to wheel efficiency is approximately a factor two better compared to an internal combustion engine (ICE). 3 This results in a CO 2 reduction per km, even with the current mix of fossil fuel based electricity generation. 4 Moreover, if the electricity is generated in a sustainable way, via solar, wind or waterpower, the CO 2 emission per km will decrease to zero. This can result in a significant improvement in local air quality, as well as a 14% decrease of CO 2 emission. 5 Electric vehicles can be roughly divided into two categories, fully electric (FEV) and plug- in hybrid or range extender (PHEV). A fully electric vehicle is completely powered by a battery and electromotor. Plug- in hybrids can be propelled by an electromotor with a relatively small battery, however can also switch to an ICE if the battery runs out of power. This results in ranges that are much bigger than FEV, which is one of the major advantages of PHEVs. A disadvantage is the purchase price, which is due to the double engine pack always higher compared to FEVs. Furthermore, the fuel cost is higher, since PHEVs partially run on gasoline, which is less efficient and therefore more expensive. PHEVs have the potential to reduce fuel consumption and pollution and can be seen as a transition state between conventional and fully electric vehicles. Also they can contribute to the increase of charging infrastructure throughout the country, since they also have to be recharged. However if they are not properly used, they will remain using gasoline as their prime energy source, resulting minor environmental benefits. 1.2: Innovation Model The adoption of technological innovations usually follows a similar cycle. This cycle, first proposed by Rogers, describes the main stages and types of users, when a new technological innovation enters the market (Figure 2) (Rogers, 2003). The group, who adopts very fast to a new innovation, are called innovators. Regardless of the high price, risk, or other uncertainties they will adopt to new products. They are usually young of age, have a close relation to science and have great financial liquidity. The next group is the early adopters, the second group who will adopt to an innovation. This group is similar to the innovators, with a high education level, relatively young, high degree of opinion leadership and high 3 : notes 4 : With 0,46 kg CO 2 per kwh electricity, 0,15 kwh per km, and 10% transportation losses, the CO 2 emission per km equals 76 gram. CO 2 value based on: A4EC- 1AF88FE66560/0/Notitie_EnergieCO2_effecten_elektriciteit_Sept_2012_FINAAL.pdff 5 : 8 Million vehicles, km per year at 200 g CO 2 per km equals 22 Mton CO 2 per year. Yearly CO 2 emission in NL = 160 Mton (2012). Possible reduction of 17%; Source CBS 7

10 financial resources. However, in contrast to the innovators, they make more discrete adoption choices, instead of adopt to almost everything. The early majority is the next group, and will adopt to an innovation after a certain period of time. The late majority will adopt after the average member of society. This group of people approaches innovations with a certain amount of skepticism. The last group in the innovation cycle is the laggards. Typical for this group is a relatively old age, skepticism regarding new innovations and also an aversion to change. The tipping point of a new innovation usually lies around 16% market share, thus after the adoption of the innovators and early adopters. When this point is reached, new market share will be gained very rapidly, mostly resulting into a massive adoption of new innovation (>50% market share). Figure 2: Diffusion of innovation model, firstly proposed by Everett Rogers in : System Innovation Market share of new products and innovations usually follow the same trend as was stated by Rogers. With the transition towards electric vehicles, it might be a little more complicated. The transition towards electric vehicle is not only an innovation of a product, the whole environment, or system around this product has to change also to make this new product successful. This is called system innovation (Geels, 2005). Examples of system innovations in the history are for instance the transition from sailing ships tot steamships in British oceanic transport in the 19 th century. In this transition sealing ships were replaced by steamships, which resulted into new ship management and operating practices, new infrastructure (deeper and bigger ports, coals bunkers etc), bigger shipyards and different maintenance techniques. This indicates that not only the type of ship was changed, the whole system around it needed to change as well. Another example is the transition from horse- drawn carriages to automobiles in passenger transportation in the late 19 th, and early 20 th century (Geels, 2005). The prime change from horse drawn carries to automobiles, resulted into the rise of fuel infrastructure, the construction of stronger and better roads and rules and the development of regulations in traffic. Furthermore, consumers gained a higher feeling of freedom due to the higher speed and range automobiles were able to travel. This shows that due to the change in artifact 8

11 (horse drawn carrier to automobile), the complete system around personal transportation had to change as well. The transition from conventional to electric vehicles can also be seen as a system innovation, and success is therefore dependent on many stakeholders and factors. Clearly, the power train changes from gasoline to electric, but how do all the other relevant stakeholders in the different part of this system need to change. In the model in Figure 3, it is displayed what stakeholders and factors come to play in the system of personal transportation. Manufacturing industry Culture and symbolic meaning (freedom; status) Market and user practices (mobility patterns; driver preferences) Socio technical system for transportation Distribution network Fuel infrastructure Maintenance Politics Road infrastructure Automobile Figure 3: Socio- technical system for transportation, based on Frank Geels Technological Transitions and System Innovations (Geels, 2005). 1.4: System Change When innovation in a system is occurring, the system is changing. There are particular places in a complex system, like the system of personal transportation, where a small shift in one thing can produce changes in everything. Meadows, and expert in the field of system change (Meadows, 1999), has defined these events as leverage points, and called them: the nearly effortless way to cut through or leap over huge obstacle. The amount of leverage a certain event has in the change of a system usually follows similar trends. That means that on the other hand, there are also places or events in systems that hardly change anything. To explain how these leverage point influence the system, a little introduction on thinking in systems is required. The state of the system, as shown in Figure 4, represents whatever is of importance, for instance the amount of water in a bath tub, amount of money in the bank, stand of the 9

12 economy, population of elephants in the forest, etc. The inflow increases the state of the system, and the outflow decreases it. The faucet adds water to the bathtub, and the drain removes some. Newborn elephants increase the population, poaching elephants decreases, etc. The rest of the figure shows information that causes the state of the system to change. For instance, if you are about to take a bath, you will close the drain and open the faucet, with in mind a certain level of water (goal). You will be continuing this until the water level has reached your desired state and thus the discrepancy between goal and perceived state is zero. On the other hand, if you step into the bath tub and the water level is about to flood, you will open the drain for a while, in order to reach a lower water level. These two actions are called negative feedback loops, or correcting loops. These actions are correcting the inflow or outflow of the system and can be used to bring the water level closer towards your goal. Inflows State of the system Outflows Perceived State Discrepancy Goal Figure 4: Simplified display of system change, where the difference between perceived state and the goal will cause the state of the system to change. The bathtub example is very simple until this point, but more things can be taken into account, for instance two faucets, a hot and cold one. This adds another variable to the system, temperature. Furthermore, the hot inflow is connected to a boiler with a certain delay, since the boiler is placed in the basement. Adding these events can make a system more complex, and realistic. The complexity of realistic systems causes that leverage points are usually not intuitive, but usually follow the same trend in order of effectiveness. Meadows have stated 12 different places to intervene a system in increasing order of effectiveness. Constants Parameters and numbers (such as subsidies, taxes and standards) The sizes of buffers and other stabilizing stocks The structure of material stocks and flows The length of delays, relative to the system change The strength of the negative feedback loops The gain about driving positive feedback loops 10

13 The structure of information flows (who does and does not have access to what information) The rules of the system (such as incentives, punishments and constrains) The power to add, change, evolve or self- organize the system structure The goals of the system The mindset or paradigm out of which the system arises The power to transcend paradigms The twelve leverage points that are stated by Meadows indicate significant differences in effectiveness in system change by the particular events. In relation with the transition towards electric vehicles, which is also defined as a system change, this theory shows that a system change is very complex and is dependent on many variables. Further in this study, it will be assessed whether the actions that are currently taken by the system, can be fit into one of the categories of leverage points stated by Meadows. This will give an indication whether proper actions are taken, and if significant system change can be expected on a soon base. 1.5: Current Situation The first fully electric vehicle came on the market in 2009 and until 2012, the yearly sales of these particular electric vehicles have remained somewhere between 500 and 1000 pieces per year (Figure 5). In 2013 however, the number of (PH)EVs have increased significantly (Figure 5). At the end of 2013, 4209 FEV and PHEVs were registered in total. 6 This increase is most likely due to the upcoming change in tax policy by the Dutch government. Electric vehicles, both fully electric and plug- in hybrid, that are registered before 2014, benefit from the 0% tax add- on for lease drivers. In 2014, this tariff will change to 4% for fully electric, and 7% for plug- in hybrids, giving consumers a very big incentive to register an electric vehicle before Compared to the annual sales of (2013), and the total amount of 7.9 million vehicles in total, the market share of EVs still remain low (Figure 6; left). 7 This means that, according to the model of Rogers, the EVs are still in the innovator phase, and far away from the so- called tipping point and point massive adoption (Figure 6; right). 6 : AgentschapNL and content/uploads/2014/01/verkopen jpg 7 : 24%29- l&hd= &hdr=t&stb=g1 11

14 35000 Amount of electric vehicles in the Netherlands in the period Plug- in Hybrid Fully Electric Figure 5: Number of EVs in the period , displaying a significant increase in PHEV sales during Source: AgentschapNL FEV: PHEV: Massive Adoption of EVs Tipping Point Conventional (Gasoline, Diesel, Hybrid): Current market share of EVs Figure 6: Market share of sold electric vehicles in 2013 (left), and the market share of electric vehicles in the diffusion of innovation model of Rogers (right) Electric vehicles are already on the market since 2009, however its market share still remains low. Why do most consumers stick to their conventional cars instead of adopting to an electric vehicle? Often stated drawbacks of fully electric cars are that they are too expensive, have a short action radius and that there is a lack of charging infrastructure (Lelij & Keuchenius, 2013). In the first part of this project, those statements are the defined as three hypotheses, which will be assessed (Figure 7). Subsequently, we will look into the innovation of the system, which will cover the second part of this project. As described earlier, the transition towards electric vehicles can be seen as an innovation of the system, where many stakeholders are involved (Figure 3). It will be analyzed why relevant stakeholders are involved in this transition. Furthermore, we will gather information about their exact role. 12

15 Also we want to know in which part of the system is the most change necessary, how difficult is it to achieve this change, and who are the biggest influence parties (Figure 7). With this information we will estimate whether the system is moving into the right direction. Why do consumers not adopt? H1: Cost is the most important bottleneck for consumers not to adopt H2: The range of electric vehicles is too short H3: There is no sufficient charging infrastructure in the Netherlands How does the system have to adopt in order to make this transition successful? Why are stakeholders involved in this transition, and what is their exact role? Which parts of the system have to change to most? How difficult is it to achieve particular changes? Who has the biggest influence on these changes? Is the system moving into the right direction Figure 7: Overview of the research approach in this project 13

16 Chapter 2: Research Goals and Methodology Fully electric vehicles are available on the market since 2009, however their market share still remain low. 8 Why do consumers stick to their conventional car instead of adopting to a fully electric vehicle. This is the main question we would like to answer in this project. Often stated drawbacks are that FEVs are too expensive, have a range that is too short, or that there is a lack of charging infrastructure. These statements result into the following hypotheses that will be assessed in the first part of this project. Why do most consumers currently not adopt to electric vehicles? Cost is the most important factor for consumers to withhold adoption towards electric vehicles The range of fully electric vehicles is currently too short There is currently no sufficient charging infrastructure in the Netherlands. The analysis of the hypotheses was mainly done by studying primary data sources, including research documents from AgentschapNL, Greenflux, Accenture, and CE Delft. Information regarding TCO analysis was provided by brochures from car manufacturers and the Dutch central bureau for statistics (CBS). After analysis of the primary data and answering the first hypotheses, it was concluded that the transition to electric vehicles is a system innovation (Geels 2005). A model based on the theory of Geels was designed, as a base for the interviews with stakeholders that are relevant in this system. Also, the system change theory of Meadows (1999) was used, to analyze the outcome of the interviews. The main goals of these interviews are: Gain knowledge on why stakeholders participate in this system, and assess their role Which parts of the system have to change the most How difficult is it to achieve such changes; how likely are these changes in the near future? Who has the biggest influence on these changes. A number of 20 semi- structured interviews with stakeholders were conducted in the period October December This type of research method was chosen, because of the high validity that open interviews usually can gather (van Dalen & de Leede, 2000). The drawback of a low reliability was taken for granted since the second part of this research is more exploratory. The interviews were arranged via telephone conversations with the relevant stakeholders and via Mark Schütz and Bas van Oosterhout, co- workers at Capgemini Consulting. Interviews were mostly conducted at the company s location of interest. Two 8 : Total sales of FEVs is 2300, compared to total car sales of , results in a market share of 0,5%. Source: Autoweek 14

17 interviews were conducted at the Capgemini office in Utrecht, and three interviews were done via a telephone call. All interviews were done in Dutch, expect for one, which was done in English. It was tried to arrange interviews with as many different stakeholders as possible, to get a broad and complete view of all the stakeholders opinion and vision. The interviews were of semi- structured nature, where similar questions were asked to all stakeholders, but with enough space for new and unknown facts. A detailed written version of all interviews is available in appendix 3. 15

18 Chapter 3: Results and Discussion 3.1: Hypothesis 1: Cost is the most important factor for consumers not to adopt towards EV 3.1.1: TCO Analysis When consumers buy products or services, cost is always one of the factors that will determine whether the product is bought. Products and goods have a certain price elasticity, which is the ratio between price and demand fluctuations. Basis food products are known to have low price elasticity, whereas more luxury products like cars have higher price elasticity (Pindyck & Rubinfeld, 2009). That means that with a relatively high price, the demand will be lower. Electric vehicles are at the moment more expensive to buy compared to similar conventional cars, what would indicate that the purchase price of the vehicle is the most important factor for consumers not to buy an EV. However, with vehicles it is a little more complicated. Besides the purchase price of the car, consumers spend money on fuel, insurances, maintenance, taxes, and in the end the vehicle is sold with a certain residual value. All those expenses have to be added to get a clear view of the real price of driving a particular vehicle. Such a type of analysis is called a total cost of ownership (TCO) calculation. Table 1: Overview and examples of the four different car types used in the total cost of ownership calculations. Full overview of used cars in Appendix 1. Source: Car Manufacturers, KBB Residual value analysis, IFA Gasoline Diesel Hybrid Fully Electric Example Price range Average purchase price Residual value Average fuel consumption Volkswagen Golf 1.2 TSI 63kW; 85 pk Ford Focus 1.6 TDCi Trend 6- bak 70 kw; 95 pk Toyota Prius 1.8 Hybrid CVT- automatic Nissan Leaf full electric 80 kw; 109 pk % 38% 38% 20% 5,53 L/100km 4,04 L/100km 4,01 L/100km 12,05 kwh/100 km 16

19 In this TCO analyses, four types of propulsion engines were taken into account; gasoline, diesel, hybrid and fully electric, all from the C segment (compact car / small family car). 9 This analysis is based on the ownership of a vehicle, and neglects lease via companies or employers, because lease constructions can vary and are therefore hard to compare. Since prices, as well as fuel consumption vary between the cars within the segment, an average price and fuel consumption of every type of vehicle was calculated based on the most occurring cars per segment (Appendix 1). The results of this calculation will therefore be an average, and can differ for individual cases. The TCO analysis was done based on an ownership of five years, and a mileage of km per year, which is the average of the Dutch consumer. 10 The first point that has to been taken into account is the purchase price and the depreciation of the vehicle. The purchase price was calculated by taking the average of the most occurring cars within the segment in the standard model (Table 1). The depreciation for a conventional gasoline diesel and hybrid vehicle is clear, since people are dealing with these type of vehicles for quite a long time. For fully electric cars however, it is uncertain what the residual value will be, since there is a lot of speculation and uncertainty regarding the capacity of the battery over time. Based on the analysis by KBB, the residual value of conventional cars can be estimated on 38% of the purchase price after fiver year, whereas fully electric vehicles will be worth 20% of their purchase price. 11 The second aspect taken into account is the yearly taxes (dutch: Motorrijtuigenbelasting). The yearly tax level is based on the average weight of the car and the type fuel. For this calculation, a vehicle weight between and kg was assumed. This results in a yearly tax payment of 576 euro for a gasoline, and euro for a diesel car. Due to government stimulations of sustainable and fuel efficient cars, hybrids and electric cars are not obliged to pay yearly taxes at all. Maintenance of the vehicle is the third expense that needs to be considered. The average money spend on maintenance for a conventional car is according to the ANWB and NIBUD in five years ( 38 per month). 12 A study performed by the IFA (Institute for Automobile and Economics), showed that the maintenance of a fully electric car is approximately 35% less. This is mainly due to the lack of moving parts, and the simplicity of an electro motor. 13 The final consideration within this TCO analysis is the fuel cost. Fuel consumption per type of car was calculated by taking the average of the most occurring cars in the segment. Furthermore, the fuel and electricity price level of August was used. 9 : Plug- in Hybrid vehicles were neglected because fuel use is significantly dependent on how the vehicle is used; more fuel or more electricity based kilometers. Also, PHEVs are per definition more expensive compared to FEVs due to their double engine pack as well the less efficient fuel consumption. 10 :http://statline.cbs.nl/statweb/publication/?vw=t&dm=slnl&pa=71107ned&d1=0&d2=a&d3=a&d4=0&d 5=0&D6=a&HD= &HDR=T,G3,G4,G5&STB=G1,G2 11 : and ALG residual value 12 : 13 : car- repair- bill- 35- less- than- combustion- car/ 17

20 Maintenance Fuel Costs Taxes Battery Depreciation 0 Gasoline Diesel Hybrid Electric Figure 8: Total Cost of ownership calculation of four different type of cars; Calculations based on an average segment C car, ownership of 5 years; weight: kg, average mileage of per year, gasoline: 1,76; diesel 1,42 per liter; electricity 0,20 per kwh (august 2013), insurance costs are neglected. Source: Car manufacturers, CBS, ANWB, NIBUD, IFA The results of the TCO analysis show that at an average mileage of km per year, the hybrid is the best choice with a TCO of (Figure 8). This is mainly due to the fact that the car is exempt from taxes, and the relatively low fuel consumption (Note: from January 1 st 2014, rules regarding taxes in The Netherlands will be changed, and will oblige owners of hybrid vehicles to pay yearly taxes as well). Second best is the gasoline car, with a TCO of , due to low purchase price and taxes, but with relatively high variable cost. The fully electric car is third in this calculation, which is caused by the high purchase price, and low residual value. These factors are caused by the 20 kwh battery inside the EV, which cost approximately 8000 euro (400 euro per kwh), and therefore increases the purchase price significantly. Also the battery causes the most uncertainty, resulting in a low residual value. On the other hand, EVs are exempt from taxes (at least until Jan 1 st, 2016), and have very low fuel as well as maintenance cost. The most expensive option in with these conditions is the diesel car, with a TCO of The diesel car is more expensive to buy and has a higher tax level compared to a gasoline car, which makes it at this mileage the most expensive option. In the previous analysis, it was found that at an average mileage of km per year, the hybrid is the cheapest option. The electric vehicle was found to be 1000 more expensive over a period of five years. However, the variable fuel cost of an electric car is low. Due to relative low electricity prices, as well a more energy efficient electro motor, the price per km for an electric vehicle is only 2.4 cents. Compared to gasoline, diesel and hybrid (9,9; 5,9 and 7,2 cents per km respectively), the electric car shows by far the lowest price per kilometer. That means that with a variable amount of kilometers per year, the electric car has to 18

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