Comparative Economic Analysis of Conventional and Plug-in Battery Electric Vehicles in Canada

Conventional vehicles typically use gasoline for their internal combustion engines (ICEs). On the other hand, plug-in battery electric vehicles (PBEVs) use electricity to charge their batteries, and hence they do not need gasoline. With the soaring gasoline prices in Canada and around the world, the interest in electric vehicles from the public and the government has increased. However, given the wide range in prices of PBEVs, the high maintenance cost of conventional vehicles and the volatility in gasoline prices, there is a need for a comparative economic analysis to address the following two main questions: (1) What should be the minimum ownership period of a PBEV to be economical than a conventional vehicle? (2) At what gasoline prices do the PBEVs become more economical than conventional vehicles? The work in this paper addresses these questions to assist customers in making the right decision when they intend to purchase a new vehicle. The results have shown that the longer the ownership period is, the PBEVs become more economical compared to conventional vehicles. The study has shown that the total ownership cost savings may reach up to $88,482 over 15 years.