The social cost of carbon of different automotive powertrains: A comparative case study of Thailand

Abstract

Global carbon dioxide (CO2) emissions have continuously grown over the past decade. In recent years, nations worldwide have encouraged the use of electric vehicles to reduce the use of fossil fuels in the global transportation sector. To encourage people to transition to electric vehicles, the total cost of ownership (TCO) is the main focus of devising appropriate incentives or subsidies. However, most TCOs emphasize the expenses an owner must incur, regardless of the hidden cost that society must pay. Consequently, the social cost of carbon plays a significant role in the assessment of the losses from the point of view of society. This study reveals the social cost over the lifetime of electric vehicles (EVs), compared to an internal combustion engine vehicle (ICEV). In this study, the energy consumption of the considered vehicles was obtained from a real-world driving test. The CO2 emissions from energy consumption and battery production are evaluated. The social cost model was developed based on the CO2 emissions. A sensitivity analysis validates the social cost model via case scenarios by considering assumptions and conditions suitable for Thailand’s context. The social cost model can be applied with the TCO model for government policymakers and manufacturer planners to estimate the appropriate subsidy to incentivize EV buyers and minimize the social costs.

Keywords

• Electric vehicle
• CO2 emission
• Carbon tax
• Real-world driving
• Green house gas
• Thailand