Analysing Vehicle Cost Dynamics : How CO 2 Pricing Drives Electrification in Road Transport

Abstract

Globally, logistics activities contribute between 11% and 12% of emissions. In 2021, the EU27 transportation sector emitted 782 MtCO2e, with 21% from heavy goods vehicles. This paper analyses the effects of environmental policies on road freight transport costs. Therefore the BGL cost calculation scheme was used and sharped in order to calculate sustainable total cost of ownership (STCO), which includes compensation cost for CO2 emissions and break even points for Battery electrical vehicles (BEV). It suggests that a price of >= €291 per ton CO2 with toll rates from 2023 or €96 with toll reforms including a CO2 component could justify transitioning to BEVs provided TCO remains below €225,000. The results gain transparency for practitioners and academics to identify break even points in transport cost calculation as well as show policy makers financial effect of environmental measures.