Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 73: Costs and Benefits of Electric Vehicles - A 2010 Perspective

Fredrik Carlsson () and Olof Johansson-Stenman
Additional contact information
Fredrik Carlsson: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Olof Johansson-Stenman: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG

Abstract: This paper undertakes a social cost-benefit analysis regarding an increase in the number of electric vehicles in the Swedish transport sector by year 2010. Battery cars are generally found to be socially unprofitable, even though their private life-cycle costs and external costs are lower than those of petrol cars. One important reason for this is that electric vehicles are heavily ‘subsidised’ by having, in comparison with taxes on fossil fuel, a very low electricity tax. ‘Hybrid’ cars are more likely to be socially profitable, especially for city-based delivery trucks, which may be both privately and socially profitable without subsidies.

Keywords: electric vehicles

JEL-codes: D61; D62; Q42; R48

29 pages, June 7, 2002

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