A new study shows that many electric vehicles cost more to operate than their gasoline powered counterparts.
A new study comparing the total cost of ownership of electric vehicles (EVs) and their gasoline-powered counterparts found that over the long term and considering various factors, some EVs were less costly but others—in particular, larger and longer-range ones—were more expensive.
The study, carried out by researchers affiliated with the University of Michigan Center for Sustainable Systems, aimed to analyze the total cost of ownership (TCO) for gasoline, hybrid, and electric vehicles while considering a broader range of factors than many previous similar studies.
The researchers developed a detailed TCO model encompassing five vehicle classes, three powertrains, and three EV ranges, with the analysis covering 14 cities in the United States and incorporating multiple charging scenarios.
Adjustments were made for local gasoline prices, electricity rate plans, and home charging access, with the TCO model incorporating inputs such as purchase price, financing, taxes, fees, insurance, refueling, and maintenance—as well as the effects of local temperatures and drive cycles on fuel economy.
Overall, the study offers a counterpoint to the cost-of-ownership assessments that EV advocates often reference.
Detailed Findings
The study concluded that small and low-range (roughly 200 miles) EVs are less expensive than gasoline vehicles, but larger, longer-range (400-plus miles) EVs are more costly than their gas-powered counterparts.
Midsize EVs (in roughly the 300-mile range) are also more expensive than gasoline vehicles, although, in certain cities, they can reach cost parity with gasoline vehicles if they get government incentives.
However, the researchers noted that the question of cost parity between EVs and gas-powered vehicles is “best answered on a case-by-case basis, as vehicle costs are ultimately unique to each specific location and each individual user.”
For instance, for a 300-mile-range midsize electric SUV, the total cost of ownership varied by nearly 40 percent, or $52,000, depending on the location.
Home charging was a critical factor, with access to it reducing lifetime ownership costs by about $10,000 and as much as $26,000 in some cases.
By Tom Ozimek
