1. Do Electric Vehicles Need Subsidies?
A Comparison of Ownership Costs for Conventional, Hybrid, and Electric Vehicles
By Hanna L. Breetz and Deborah Salon
Network Externality and Subsidy Structure in Two-Sided Markets:
Evidence from Electric Vehicle Incentives
By Katalin Springel
Discussed by Joshua Cregger
Transportation, Economics, Energy and the Environment Conference
University of Michigan Energy Institute
October 20, 2017

2. Disclaimer
Statements made during this presentation are opinions of the speaker and do not represent official positions of the U.S. Department of Transportation.

3. Breetz & Salon “Do electric vehicles need subsidies
Breetz & Salon “Do electric vehicles need subsidies? A comparison of ownership costs for conventional, hybrid, and electric vehicles”
Context – Electric Vehicle Sales and Charging Infrastructure in the United States

4. Cumulative U.S. Sales of Plug-in Electric Vehicles
700,000+ plug-in electric vehicles sold since December 2010
BEVs
PHEVs
Source: HybridCars.com Monthly Dashboards

5. Existing EV Charging Infrastructure in the United States
16,388 Locations
44,770 Charging Units
2,724 Level 1
36,141 Level 2
5,905 DCFC
228 additional planned
≈30% in California
Source: DOE Alternative Fuels Data Center 2017

6. Do Electric Vehicles Need Subsidies?
Breetz & Salon “Do electric vehicles need subsidies? A comparison of ownership costs for conventional, hybrid, and electric vehicles”
Do Electric Vehicles Need Subsidies?
A Comparison of Ownership Costs for Conventional, Hybrid, and Electric Vehicles
Hanna L. Breetz and Deborah Salon

7. Overview Questions Summary Contribution
Do electric vehicle owners save money?
Are federal and state incentives necessary for cost competitiveness?
Summary
Calculates five-year total cost of ownership
Compares conventional, hybrid, and electric vehicles
Analyses across 14 U.S. cities
Contribution
Considers spatial variation
Includes policy-related costs
Attempts to use more realistic assumptions

8. Comments The MSRP gap is closing
Toyota Corolla SE MSRP has increased by $3,000+
Toyota Prius MSRP has increased by $3,000-4,000+
Nissan Leaf MSRP has decreased by $
Fuel economy can be broken out for Nissan Leaf
36.6 kWh/100 miles (city )
31.8 kWh/100 miles (highway)
VMT estimates may be low
New vehicles are driven more than old vehicles
Rebound effect from higher fuel economy may lead to more VMT

9. Questions
This paper considered large cities—would results be similar for smaller cities, suburbs, or rural areas?
How do other similar choices stack up (e.g., Chevrolet Cruise and Chevrolet Volt)?
Do we have information on what an appropriate “second choice” vehicle looks like?

10. Network Externality and Subsidy Structure in Two-Sided Markets:
Breetz & Salon “Do electric vehicles need subsidies? A comparison of ownership costs for conventional, hybrid, and electric vehicles”
Network Externality and Subsidy Structure in Two-Sided Markets:
Evidence from Electric Vehicle Incentives
Katalin Springel

11. Overview Question Summary Contribution
How do consumer price subsidies and charging station subsidies affect electric vehicle adoption?
Which of the two options is a more cost effective use of public funds?
Summary
Uses new, large-scale vehicle registry data from Norway
Employs a two-sided market framework
Examines automobile purchasing decisions of consumers and entry decisions of electric vehicle charging stations
Contribution
Informs policymakers of the importance of electric vehicle incentives for both vehicles and charging stations

12. Comments
Comment 1
Comment 2
Comment 3

13. Questions
Question 1
Question 2
Question 3