Econ 416A9

Three important concepts

  • To reduce climate change, the Swedish government plans to achieve greenhouse gas neutrality as well as introducing an efficient transport system that involves the use of electric buses to cut on the fuel emissions and noise pollution caused by the existing public transport system that uses diesel. The total cost of ownership of adopting an electric transport system is relatively lower and efficient compared to the use of diesel and other fossil fuels.
  • The estimated cost values for the electric bus is attributed to a variety of factors identified by a sensitivity analysis of the total cost of ownership. TCO varies between different electric buses depending on the charger type and the number of extra batteries and is relatively lower compared to hybrid buses. The cost is higher for coaches with a large number of fast chargers due to the relative value of acquiring these chargers. Hybrid buses have a high total cost of ownership generated by energy cost of fossil fuel.
  • The line distance per year and the operational year are the most significant factors contributing to t

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