DOI: 10.1073/pnas.1104473108. Valuation of plug-in vehicle life-cycle air emissions and oil displacement benefits

Valuation of plug-in vehicle life-cycle air emissions and oil displacement benefits

10.1073/pnas.1104473108

Crossref journal-article

Proceedings of the National Academy of Sciences

Proceedings of the National Academy of Sciences (341)

Abstract

We assess the economic value of life-cycle air emissions and oil consumption from conventional vehicles, hybrid-electric vehicles (HEVs), plug-in hybrid-electric vehicles (PHEVs), and battery electric vehicles in the US. We find that plug-in vehicles may reduce or increase externality costs relative to grid-independent HEVs, depending largely on greenhouse gas and SO2emissions produced during vehicle charging and battery manufacturing. However, even if future marginal damages from emissions of battery and electricity production drop dramatically, the damage reduction potential of plug-in vehicles remains small compared to ownership cost. As such, to offer a socially efficient approach to emissions and oil consumption reduction, lifetime cost of plug-in vehicles must be competitive with HEVs. Current subsidies intended to encourage sales of plug-in vehicles with large capacity battery packs exceed our externality estimates considerably, and taxes that optimally correct for externality damages would not close the gap in ownership cost. In contrast, HEVs and PHEVs with small battery packs reduce externality damages at low (or no) additional cost over their lifetime. Although large battery packs allow vehicles to travel longer distances using electricity instead of gasoline, large packs are more expensive, heavier, and more emissions intensive to produce, with lower utilization factors, greater charging infrastructure requirements, and life-cycle implications that are more sensitive to uncertain, time-sensitive, and location-specific factors. To reduce air emission and oil dependency impacts from passenger vehicles, strategies to promote adoption of HEVs and PHEVs with small battery packs offer more social benefits per dollar spent.

Bibliography

Michalek, J. J., Chester, M., Jaramillo, P., Samaras, C., Shiau, C.-S. N., & Lave, L. B. (2011). Valuation of plug-in vehicle life-cycle air emissions and oil displacement benefits. Proceedings of the National Academy of Sciences, 108(40), 16554â16558.

Authors 6

Jeremy J. Michalek (first)
Mikhail Chester (additional)
Paulina Jaramillo (additional)
Constantine Samaras (additional)
Ching-Shin Norman Shiau (additional)
Lester B. Lave (additional)

References 36 Referenced 213

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The Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Fuel Cycle Model Version 1.8d (Transportation Technology R&D Center, US Dept Energy, Argonne, IL, 2010). / The Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Fuel Cycle Model Version 1.8d (2010)
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P Leiby Estimating the Energy Security Benefits of Reduced US Oil Imports (Oak Ridge Natl Lab, Washington, DC, 2007). / Estimating the Energy Security Benefits of Reduced US Oil Imports by Leiby P (2007)
Brown, H Huntington Estimating US Oil Security Premiums (Resources for the Future, Washington, DC, 2010). / Estimating US Oil Security Premiums by Brown (2010)
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Final Regulatory Impact Analysis, Corporate Average Fuel Economy for MY2012-MY2015 Passenger Cars and Light Trucks (Natl Highway Traffic Safety Admin, US Dept Transportation, Washington, DC, 2010). / Final Regulatory Impact Analysis, Corporate Average Fuel Economy for MY2012-MY2015 Passenger Cars and Light Trucks (2010)
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MA Delucchi, Environmental externalities of motor-vehicle use in the US. J Transp Econ Policy 34, 135–168 (2000). / J Transp Econ Policy / Environmental externalities of motor-vehicle use in the US by Delucchi MA (2000)
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D Lemoine, Valuing plug-in hybrid electric vehicles’ battery capacity using a real options framework. Energ J 31, 113–143 (2010). (10.5547/ISSN0195-6574-EJ-Vol31-No2-5) / Energ J / Valuing plug-in hybrid electric vehicles’ battery capacity using a real options framework by Lemoine D (2010)
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10.1126/science.268.5213.991
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T Cleary, et al. Plug-In Hybrid Electric Vehicle Value Proposition Study (Oak Ridge Natl Lab and Sentech, Oakridge, TN, 2010). / Plug-In Hybrid Electric Vehicle Value Proposition Study by Cleary T (2010)
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DM Kammen, SM Arons, DM Lemoine, H Hummel, Cost-effectiveness of greenhouse gas emissions reductions from plug-in hybrid vehicles. Plug-In Electric Vehicles: What Role for Washington?, ed DB Sandalow (Brookings Inst Press, Washington, DC, 2009). / Plug-In Electric Vehicles: What Role for Washington? by Kammen DM (2009)
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A Elgowainy et al. Well-to-Wheels Analysis of Energy Use and Greenhouse Gas Emissions of Plug-in Hybrid Electric Vehicles (Argonne Natl Lab US Dept Energy Washington DC
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Dates

Type	When
Created	13 years, 11 months ago (Sept. 27, 2011, 2:26 a.m.)
Deposited	2 years, 2 months ago (June 9, 2023, 9:57 p.m.)
Indexed	3 weeks, 5 days ago (Aug. 5, 2025, 8:57 a.m.)
Issued	13 years, 11 months ago (Sept. 26, 2011)
Published	13 years, 11 months ago (Sept. 26, 2011)
Published Online	13 years, 11 months ago (Sept. 26, 2011)
Published Print	13 years, 10 months ago (Oct. 4, 2011)

Funders 0

None

BibTeX

@article{Michalek_2011, title={Valuation of plug-in vehicle life-cycle air emissions and oil displacement benefits}, volume={108}, ISSN={1091-6490}, url={http://dx.doi.org/10.1073/pnas.1104473108}, DOI={10.1073/pnas.1104473108}, number={40}, journal={Proceedings of the National Academy of Sciences}, publisher={Proceedings of the National Academy of Sciences}, author={Michalek, Jeremy J. and Chester, Mikhail and Jaramillo, Paulina and Samaras, Constantine and Shiau, Ching-Shin Norman and Lave, Lester B.}, year={2011}, month=sep, pages={16554–16558} }

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