Charging Forward: Evaluating the Total Ownership Costs of EVs Versus ICE Vehicles in Thailand's Commercial Trucking Industry
Article Sidebar
Main Article Content
Abstract
The escalating urgency of global warming has accelerated the shift toward environmental consciousness. To address this, the European Union aims to phase out Internal Combustion Engines (ICE) by 2030 in favor of environmentally pleasant vehicles, like electric trucks. In contrast, Thailand's principal transport network still largely depends on diesel vehicles, exacerbating pollution and financial strain from crude oil imports. This study evaluates the feasibility of transitioning to electric commercial trucks by assessing the Total Ownership Cost (TCO) of fossil fuel (Diesel), CNG, and EV trucks. Crucial factors such as Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) are considered in the context of last-mile delivery. From data collected over six months, from January to June 2023, a total of 423 containers were analyzed from five service providers. The transportation route documented was from the Dry Port (ICD Lat Krabang) to the Laem Chabang Port.
This analysis aims to provide insights into the dynamics of container transportation within this specific route for the given timeframe. The key inquiry is whether the transition from fossil fuels to electricity and its potential effect on commodity prices is financially viable. The results indicate that vehicles powered by natural gas, electricity, and diesel have TCO per kilometer of 15.33, 17.33, and 22.52 baht, respectively. This reflects the inability of service providers to immediately reduce freight charges due to the higher initial purchase cost of electric vehicles compared to the other two types. Considering that exports contributed to approximately 58.6% of Thailand's economy in 2021 (World Bank, 2023), strategic adjustments in supply chain management, backed by national tax policies, are imperative. Such initiatives not only promote green transportation but also drive the country towards achieving its goal of net-zero greenhouse gas emissions.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
ผลงานที่ปรากฎในวารสารฉบับนี้เป็นลิขสิทธิ์เฉพาะส่วนบุคคลของผู้เขียนซึ่งต้องรับผิดชอบต่อผลทาง กฎหมายที่อาจเกิดขึ้นได้และไม่มีผลต่อกองบรรณาธิการReferences
Ahmad, A., Khan, Z. A., Saad Alam, M., & Khateeb, S. (2018). A review of the electric vehicle charging techniques, standards, progression and evolution of EV technologies in Germany. Smart Science, 6(1), 36-53.
Basma, H., Rodríguez, F., Hildermeier, J., & Jahn, A. (2022). Electrifying last-mile delivery: A total cost of ownership comparison of battery-electric and diesel trucks in Europe.
B. Al-Hanahi, I. Ahmad, D. Habibi and M. A. S. Masoum (2021). Charging Infrastructure for Commercial Electric Vehicles: Challenges and Future Works. IEEE Access, vol. 9, pp. 121476-121492.
Bhardwaj, S., & Mostofi, H. (2022). Technical and Business Aspects of Battery Electric Trucks A Systematic Review. Future Transportation, 2(2), 382-401.
Chrisafis A and Vaughan A (2017, Jul 6). France to ban sales of petrol and diesel cars by 2040. The Guardian. https://www.theguardian.com/business/2017/jul/06/france-ban-petrol-diesel-cars-2040-emmanuel-macron-volvo
Contestabile, M., Alajaji, M., & Almubarak, B. (2017). Will current electric vehicle policy lead to cost-effective electrification of passenger car transport?. Energy Policy, 110, 20-30.
Costa, C. M., Barbosa, J. C., Castro, H., Gonçalves, R., & Lanceros-Méndez, S. (2021). Electric vehicles: To what extent are environmentally friendly and cost effective?–Comparative study by European countries. Renewable and Sustainable Energy Reviews, 151, 111548.
Fang, Y., Wei, W., Mei, S., Chen, L., Zhang, X., & Huang, S. (2020). Promoting electric vehicle charging infrastructure considering policy incentives and user preferences: An evolutionary game model in a small-world network. Journal of cleaner production, 258, 120753.
Gong, S., Ardeshiri, A., & Rashidi, T. H. (2020). Impact of government incentives on the market penetration of electric vehicles in Australia. Transportation Research Part D: Transport and Environment, 83, 102353.
Hirst, D., Winnett, J., & Hinson, S. (2020). Electric vehicles and infrastructure. House of Commons. Available online: https://commonslibrary.parliament.uk/research-briefings/cbp-7480/(accessed on 27 October 2020).
IEA (2022), Global EV Outlook 2022, IEA, Paris https://www.iea.org/reports/global-ev-outlook-2022, License: CC BY 4.0
IEA (2023), Global EV Outlook 2023, IEA, Paris https://www.iea.org/reports/global-ev-outlook-2023, License: CC BY 4.0.
Interlake Mecalux. (2023, March 8). Electric trucks. Retrieved from https://www.interlakemecalux.com/blog/electric-trucks
Johnsson, F., Kjärstad, J., & Rootzén, J. (2019). The threat to climate change mitigation posed by the abundance of fossil fuels. Climate Policy, 19(2), 258-274.
Kado, N. Y., Okamoto, R. A., Kuzmicky, P. A., Kobayashi, R., Ayala, A., Gebel, M. E., & Zafonte, L. (2005). Emissions of toxic pollutants from compressed natural gas and low sulfur diesel-fueled heavy-duty transit buses tested over multiple driving cycles. Environmental science & technology, 39(19), 7638-7649.
Khan, U., Yamamoto, T., & Sato, H. (2022). Understanding the discontinuance trend of hydrogen fuel cell vehicles in Japan. International Journal of Hydrogen Energy, 47(75), 31949-31963.
Kottasova, I. (2023). EU was set to ban internal combustion engine cars. Then Germany suddenly changed its mind, CNN, https://edition.cnn.com/2023/03/24/cars/eu-combustion-engine-debate-climate-intl/index. html.
Li, S., Zhu, X., Ma, Y., Zhang, F., & Zhou, H. (2022). The role of government in the market for electric vehicles: Evidence from China. Journal of Policy Analysis and Management, 41(2), 450-485.
Liao, Y. (2022). Intention of consumers to adopt electric vehicle in the post-subsidy era: evidence from China. International Journal of Sustainable Transportation, 16(7), 647-659.
Mahdy, M., Bahaj, A. S., Turner, P., Wise, N., Alghamdi, A. S., & Hamwi, H. (2022). Multi Criteria Decision Analysis to Optimise Siting of Electric Vehicle Charging Points—Case Study Winchester District, UK. Energies, 15(7), 2497.
Martz, A., Plötz, P., & Jochem, P. (2021). Global perspective on CO2 emissions of electric vehicles. Environmental Research Letters, 16(5), 054043.
Nadeau, K. C., Agache, I., Jutel, M., Annesi Maesano, I., Akdis, M., Sampath, V., & Akdis, C. A. (2022). Climate change: A call to action for the united nations. Allergy, 77(4), 1087-1090.
Purtanto, S. S., Okamura, T., Takemura, K., Iwai, M., Matsumoto, A., & Katayama, K. (2023). EV Policies in ASEAN Countries.
Raugei, M., Hutchinson, A., & Morrey, D. (2018). Can electric vehicles significantly reduce our dependence on non-renewable energy? Scenarios of compact vehicles in the UK as a case in point. Journal of Cleaner Production, 201, 1043-1051.
Qiao, Q., Zhao, F., Liu, Z., He, X., & Hao, H. (2019). Life cycle greenhouse gas emissions of Electric Vehicles in China: Combining the vehicle cycle and fuel cycle. Energy, 177, 222-233.
Qiao, Y., & Raufer, R. (2022). Electric truck deployment in Chinese cities: Promotion policies and implications for future policymaking. Wiley Interdisciplinary Reviews: Energy and Environment, 11(4), e433.
Sathiyan, S. P., Pratap, C. B., Stonier, A. A., Peter, G., Sherine, A., Praghash, K., & Ganji, V. (2022). Comprehensive assessment of electric vehicle development, deployment, and policy initiatives to reduce GHG emissions: opportunities and challenges. IEEE Access.
Santos, G., & Davies, H. (2020). Incentives for quick penetration of electric vehicles in five European countries: Perceptions from experts and stakeholders. Transportation Research Part A: Policy and Practice, 137, 326-342.
Seixas, J., Simões, S., Dias, L., Kanudia, A., Fortes, P., & Gargiulo, M. (2015). Assessing the cost-effectiveness of electric vehicles in European countries using integrated modeling. Energy Policy, 80, 165-176.
Siskos, P., Capros, P., & De Vita, A. (2015). CO2 and energy efficiency car standards in the EU in the context of a decarbonisation strategy: A model-based policy assessment. Energy Policy, 84, 22-34.
Strbac, G., Papadaskalopoulos, D., Chrysanthopoulos, N., Estanqueiro, A., Algarvio, H., Lopes, F., & Helisto, N. (2021). Decarbonization of electricity systems in Europe: Market design challenges. IEEE Power and Energy Magazine, 19(1), 53-63.
Suttakul, P., Wongsapai, W., Fongsamootr, T., Mona, Y., & Poolsawat, K. (2022). Total cost of ownership of internal combustion engine and electric vehicles: A real-world comparison for the case of Thailand. Energy Reports, 8, 545-553.
Topal, O., & Nakir, i. (2018). Total Cost of Ownership Based Economic Analysis of Diesel, CNG and Electric Bus Concepts for the Public Transport in Istanbul City. Energies, 11(9), 2369.
Trivedi, S., Prasad, R., Mishra, A., Kalam, A., & Yadav, P. (2020). Current scenario of CNG vehicular pollution and their possible abatement technologies: an overview. Environmental Science and Pollution Research, 27, 39977-40000.
Vijayagopal, R., & Rousseau, A. (2021). Electric truck economic feasibility analysis. World Electric Vehicle Journal, 12(2), 75.
Wang, N., & Tang, G. (2022). A review on environmental efficiency evaluation of new energy vehicles using life cycle analysis. Sustainability, 14(6), 3371.
Wang, W., Fan, S., Wang, Z., Yao, X., & Mu, K. (2023). Optimal Driving Model for Connected and Automated Electric Freight Vehicles in a Wireless Charging Scenario at Signalised Intersections. Applied Sciences, 13(10), 6286.
Williams, B. D. (2022). Targeting Incentives Cost Effectively:“Rebate Essential” Consumers in the New York State Electric Vehicle Rebate Program. In 35th International Electric Vehicle Symposium and Exhibition (EVS35), AVERE, Oslo, Norway.
Woody, M., Craig, M. T., Vaishnav, P. T., Lewis, G. M., & Keoleian, G. A. (2022). Optimizing future cost and emissions of electric delivery vehicles. Journal of Industrial Ecology, 26(3), 1108-1122.
World Bank. (2023). Exports of goods and services (% of GDP) - Thailand. Retrieved June 12, 2023, from https://data.worldbank.org/indicator/NE.EXP.GNFS.ZS?locations=TH
Xue, C., Zhou, H., Wu, Q., Wu, X., & Xu, X. (2021). Impact of incentive policies and other socio-economic factors on electric vehicle market share: A panel data analysis from the 20 countries. Sustainability, 13(5), 2928.
Zhao, B. (2017). Why will dominant alternative transportation fuels be liquid fuels, not electricity or hydrogen?. Energy Policy, 108, 712-714.
Zhou, T., Roorda, M. J., MacLean, H. L., & Luk, J. (2017). Life cycle GHG emissions and lifetime costs of medium-duty diesel and battery electric trucks in Toronto, Canada. Transportation Research Part D: Transport and Environment, 55, 91-98.