Russian Journal of Economics and Law (Jun 2023)

Assessment of competitiveness of a Russian electric car as a substantiation of the need to stimulate electric cars market in Russia

  • A. V. Baraboshkina,
  • O. V. Kudryavtseva

DOI
https://doi.org/10.21202/2782-2923.2023.2.269-288
Journal volume & issue
Vol. 17, no. 2
pp. 269 – 288

Abstract

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Objective: to assess the competitiveness of a Russian electric car and an ICE car, taking into account the external costs associated with emissions of the main greenhouse gas – CO2.Methods: the article uses comparative and quantitative methods, the method of analysis and synthesis, the method of estimating the total cost of ownership (TCO), justifies the use of the avoidance cost approach as an optimal approach to assessing the external costs associated with climate change.Results: modern efficient economic development is inextricably linked with the organization of a low-carbon transport system. The green transition to electric vehicles makes it possible to solve the problem of externalities associated with the increased public costs due to greenhouse gas emissions. The paper examines the prospects for the transition to electric cars from the viewpoint of reducing the external costs of cars. The article assesses the current state and key barriers to the development of electric transport production. A comparative assessment of the competitiveness of Russian electric vehicles and ICE cars is given, taking into account the external costs associated with carbon emissions. The comparison was carried out based on an estimate of the total cost of ownership, taking into account the external costs associated with greenhouse gas emissions. As a result of the comparative analysis, it was determined that the total cost of five-year ownership of the Evolute i-Pro car, taking into account support measures, is even lower than that of the Lada Vesta Sport ICE sedan, which is close to it in terms of technical characteristics, by 342.7 thousand rubles. Without subsidies, Evolute i-Pro does not yet achieve parity in the cost of ownership with an ICE car, despite low operating costs, free parking and exemption from paying transport tax. Based on the conducted research, conclusions are made about the measures necessary to increase the gap between the total costs of ownership in ICE cars and electric cars to increase the competitiveness of the latter.Scientific novelty: the author’s approach was used to compare the competitiveness of the new Russian electric car Evolute i-Pro and Lada Vesta Sport ICE car, which, in addition to support measures, includes external costs associated with carbon emissions.Practical significance: the results obtained may be useful to developers of state support measures in assessing the effectiveness of the current subsidy mechanism and making decisions on further stimulating the development of the electric cars market in Russia. The results of the study will also be especially useful to residents of Moscow who are thinking of buying a Russian electric car.

Keywords