{"id":1022,"date":"2013-07-31T14:40:53","date_gmt":"2013-07-31T18:40:53","guid":{"rendered":"http:\/\/www.riverbendadvisors.com\/blog\/?p=1022"},"modified":"2013-08-07T09:57:33","modified_gmt":"2013-08-07T13:57:33","slug":"does-it-cost-less-to-run-an-electric-vehicle","status":"publish","type":"post","link":"https:\/\/www.riverbendadvisors.com\/blog\/2013\/07\/does-it-cost-less-to-run-an-electric-vehicle\/","title":{"rendered":"Does it cost less to run an electric vehicle?"},"content":{"rendered":"<p>Anyone considering the purchase of an all-electric vehicle is faced with a number of questions, but one in particular is unfortunately much harder to answer than it should be &#8211; <b>the comparative cost of running an electric versus a gas vehicle<\/b>. <\/p>\n<p>People are used to thinking in miles per gallon, but that no longer works.  It is one of the reasons that <b>the EPA has introduced new mileage stickers for all vehicles &#8211; gas, hybrid and electric<\/b>.  But a welter of numbers and new terms that are meant to help comparability &#8211; MPGe, kWh\/100 miles, eGallon &#8211; seem only to add to the confusion.  <\/p>\n<p><b class=\"c\">Let&#8217;s get one misconception out of the way first, though &#8211; the idea that it doesn&#8217;t make sense to buy an electric car unless it &#8220;pays for itself&#8221; through the lower cost of fuel.<\/b> We don&#8217;t apply that requirement to most of the decisions we make when buying a car. We may make many choices that add cost when we buy a vehicle &#8211; manufacturer (Lexus or Toyota), configuration and size (SUV, cross-over or minivan), model (300 or 500 class, XLE or GLE) and a myriad of optional features. But no one seriously expects to make up those differences through operational savings. You have many reasons for buying a specific vehicle. So you can certainly choose to buy an electric car without calculating how much you will save in fuel costs.<\/p>\n<p>That said, <b>it will cost less to run an electric car than a similar gas-powered car<\/b>, so it is reasonable to want to estimate those savings and account for them when making the purchase decision. How can we calculate, or at least estimate, the difference?  <\/p>\n<p><b>Here&#8217;s a ballpark estimate &#8211; <b class=\"c\">$1,000<\/b> per year<\/b>. There are a lot of assumptions and averages built into that estimate.  That&#8217;s why &#8220;your mileage may vary&#8221; has entered the language as a all-purpose way to say &#8220;it depends&#8221;, so let&#8217;s take a deeper look. <\/p>\n<p>The key variables for all vehicles are the cost of the fuel, how far the car can go per unit of fuel and how many miles you drive. Let&#8217;s start with a gas-powered car that gets 25 mpg, assume that gas is $3.49 per gallon and that you drive 12,000 miles per year:<\/p>\n<img src='https:\/\/s0.wp.com\/latex.php?latex=%5Cfrac+%7B%5Cchar36+3.49+%5Ctext%7B+per+gal%7D%7D+%7B25+%5Ctext%7B+mpg%7D%7D+%3D+%5Cfrac+%7B%5Cchar36+0.1396%7D%7B%5Ctext%7Bmile%7D%7D+%5Ctimes+12%2C000+%5Ctext%7B+miles%7D+%3D+%5Cchar36+1675.20+%5Ctext%7B+per+year%7D&#038;bg=ffffff&#038;fg=000000&#038;s=2' alt='\\frac {\\char36 3.49 \\text{ per gal}} {25 \\text{ mpg}} = \\frac {\\char36 0.1396}{\\text{mile}} \\times 12,000 \\text{ miles} = \\char36 1675.20 \\text{ per year}' title='\\frac {\\char36 3.49 \\text{ per gal}} {25 \\text{ mpg}} = \\frac {\\char36 0.1396}{\\text{mile}} \\times 12,000 \\text{ miles} = \\char36 1675.20 \\text{ per year}' class='latex' \/>\n<p>The calculation for an electric car is similar, but you need different numbers. Electricity is measured in kilowatt hours. In Massachusetts, electricity costs about $0.16 per kilowatt hour (kWh). The unfamiliar number is how far an electric car goes per &#8220;unit of fuel&#8221;, or miles\/kWh. That information is on the new EPA mileage sticker, <b> but it&#8217;s not the large MPGe number<\/b>. It&#8217;s hidden in the smaller number next to MPGe, and listed as kWh per 100 miles. A typical number for the current generation of electric cars is 34 kWh per 100 miles. 34 kWh for 100 miles is the same as .34 kWH for 1 mile. Since the units are reversed (kWh\/m instead of miles\/kWh, this time we multiply the numbers:<\/p>\n<img src='https:\/\/s0.wp.com\/latex.php?latex=%5Cfrac+%7B%5Cchar36+0.16%7D%7B%5Ctext%7BkWh%7D%7D+%5Ctimes+%5Cfrac+%7B0.34+%5Ctext%7B+kWh%7D%7D+%7B%5Ctext%7Bmile%7D%7D+%3D+%5Cfrac+%7B%5Cchar36+0.0544%7D+%7B%5Ctext%7Bmile%7D%7D+%5Ctimes+12%2C000+%5Ctext%7B+miles%7D+%3D+%5Cchar36+652.80+%5Ctext%7B+per+year%7D+&#038;bg=ffffff&#038;fg=000000&#038;s=2' alt='\\frac {\\char36 0.16}{\\text{kWh}} \\times \\frac {0.34 \\text{ kWh}} {\\text{mile}} = \\frac {\\char36 0.0544} {\\text{mile}} \\times 12,000 \\text{ miles} = \\char36 652.80 \\text{ per year} ' title='\\frac {\\char36 0.16}{\\text{kWh}} \\times \\frac {0.34 \\text{ kWh}} {\\text{mile}} = \\frac {\\char36 0.0544} {\\text{mile}} \\times 12,000 \\text{ miles} = \\char36 652.80 \\text{ per year} ' class='latex' \/>\n<p><b class=\"c\">The difference &#8211; $1,022 &#8211; is the estimated yearly savings from driving an electric vehicle with these assumptions.<\/b><\/p>\n<p>With a bit of rearrangement and substitution, these calculations offer some additional insights:<\/p>\n<ul>\n<li>Changes in the price of gas have a bigger impact than changes in the price of electricity.  A 1 cent increase in the cost of electricity &#8211; 6.25% &#8211; would add <b>$41<\/b> to the yearly cost.  A similar magnitude increase in gas prices &#8211; 22 cents &#8211; would add <b>$106<\/b>.<\/li>\n<li>The more miles driven per year, the greater the savings from an electric vehicle.  You can use the difference in the intermediate figure &#8211; 8.52 cents per mile &#8211; to estimate the cost difference based on your own yearly mileage.  The more of those miles that are local, the greater the savings.<\/li>\n<li>To get the same level of yearly savings without buying an electric vehicle, you&#8217;d need to buy a car that got <b>64 mpg<\/b>.<\/li>\n<li><b>Gas would have to fall to $1.36 per gallon<\/b> to completely wipe out the fuel savings of an electric vehicle.<\/li>\n<\/ul>\n<h3>What about that MPGe number?<\/h3>\n<p><a href=\"http:\/\/www.riverbendadvisors.com\/blog\/wp-content\/uploads\/2013\/07\/electriclabel.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-1045\" alt=\"electriclabel\" src=\"http:\/\/www.riverbendadvisors.com\/blog\/wp-content\/uploads\/2013\/07\/electriclabel-300x193.jpg\" width=\"300\" height=\"193\" srcset=\"https:\/\/www.riverbendadvisors.com\/blog\/wp-content\/uploads\/2013\/07\/electriclabel-300x193.jpg 300w, https:\/\/www.riverbendadvisors.com\/blog\/wp-content\/uploads\/2013\/07\/electriclabel.jpg 700w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>MPGe (miles per gallon equivalent) was created to provide a direct, apples-to-apples comparison between gasoline-powered vehicles and vehicles powered by other fuels. It estimates <b>the total energy used<\/b> by different fuels to travel a given distance under given conditions. To maintain consistency with the old, familiar MPG, the EPA normalized the calculations to the energy in a gallon of gas (as measured in BTUs, British Thermal Units). A car with a gas engine that gets 25 MPGe uses four times as much energy as an electric car that gets 100 MPGe.<\/p>\n<p>Measured as energy used, MPGe is a valid and appropriate comparison. <b>It just can&#8217;t be used to compare cost, as MPG could<\/b>.<\/p>\n<h3>What about Greenhouse Gas (GHG) Emissions?<\/h3>\n<p>That&#8217;s another story altogether. The new mileage sticker does provide some information, but it doesn&#8217;t tell the whole story. The sticker provides a relative scale (1-10) for greenhouse gas rating, and a number for tailpipe emissions, measured in grams CO<sub>2<\/sub>\/mile.<\/p>\n<p>For an all-electric vehicle like the Nissan Leaf, the tailpipe emissions are obviously zero. A gas\/electric vehicle like the Chevy Volt emits about 80 g\/m.  A hybrid Prius c emits about 180 g\/m.  Mid-size gas vehicles like the Honda Accord, the Nissan Altima, the Toyota RAV4 and even the Lexus ES350 emit about 350 g\/m.  A Ford F150 pickup truck emits 520 g\/m. So far, so good. <\/p>\n<p><b>But tailpipe emissions don&#8217;t tell the whole story<\/b>. There are upstream emissions that have to be considered. Greenhouse gases are emitted in the production and distribution of gasoline. Those add <b>roughly 25%<\/b> to the figures above for gasoline vehicles. For an all-electric vehicle, there are GHG emissions associated with the production of the electricity it uses.  That will differ significantly in different parts of the country, so there&#8217;s no way to include that on a mileage sticker.  However, the EPA provides a <a href=\"http:\/\/www.fueleconomy.gov\/feg\/Find.do?action=bt2\">handy calculator to estimate the GHG emissions <\/a> associated with the production of electricity needed to power a plug-in hybrid or electric car where you live.<\/p>\n<p>Continuing our Nissan Leaf example, running a Nissan Leaf in Massachusetts would generate 120 g\/m of CO<sub>2<\/sub>. The US Average is 190 g\/m, so an electric vehicle in Massachusetts produces fewer greenhouse gases than one in Tampa, FL (180 g\/m) or Dayton, OH (230 g\/m). But even in those parts of the country with &#8220;dirty&#8221; electricity, an all-electric vehicle will still account for much lower levels of CO<sub>2<\/sub> emissions than an equivalent gas-powered car.<\/p>\n<p>Adding upstream emissions to tailpipe emissions, here are total estimated CO<sub>2<\/sub> emissions for a group of representative vehicles:<\/p>\n<table style=\"border-color: #000000; border-width: 1px;\" border=\"1\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td>Nissan Leaf<\/td>\n<td>120 g\/m<\/td>\n<\/tr>\n<tr>\n<td>Chevy Volt<\/td>\n<td>200 g\/m<\/td>\n<\/tr>\n<tr>\n<td>Toyota Prius c<\/td>\n<td>222 g\/m<\/td>\n<\/tr>\n<tr>\n<td>Honda Accord (4 cyl)<\/td>\n<td>378 g\/m<\/td>\n<\/tr>\n<tr>\n<td>Honda Accord (6 cyl)<\/td>\n<td>443 g\/m<\/td>\n<\/tr>\n<tr>\n<td>Nissan Altima (6 cyl)<\/td>\n<td>443 g\/m<\/td>\n<\/tr>\n<tr>\n<td>Toyota RAV4<\/td>\n<td>443 g\/m<\/td>\n<\/tr>\n<tr>\n<td>Lexus ES350<\/td>\n<td>462 g\/m<\/td>\n<\/tr>\n<tr>\n<td>Ford F150<\/td>\n<td>652 g\/m<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Want to find out more? All the information about emissions, and much more, is available at the <a href=\"http:\/\/www.fueleconomy.gov\/feg\/findacar.shtml\"><b>Find &amp; Compare Cars<\/b><\/a> page of the Department of Energy&#8217;s <a href=\"http:\/\/www.fueleconomy.gov\"><b>Fuel Economy<\/b><\/a> web site.<\/p>\n<p>One final caveat. It should also be noted that the tailpipe emissions for gasoline-powered vehicles are <u>calculated<\/u>, not measured. In Europe, which has vehicle emissions standards in addition to mileage standards, vehicle emissions have to be <u>measured<\/u>. Europe&#8217;s current standard for emissions is 209 g\/m<sup id=\"_ref-HR_0\" class=\"reference\"><a href=\"#_note-HR\" title=\"\">[1]<\/a><\/sup>, and the estimated European <u>fleet average<\/u> is currently <b class=\"c\">212<\/b> g\/m. <b>The estimated emissions of the average <u>new vehicle<\/u> sold in the US is <span class=\"c\">500<\/span> g\/m, so we have quite a way to go.<\/b><\/p>\n<h3>Other Resources to learn more<\/h3>\n<p><b>The EPA&#8217;s new mileage labels<\/b><\/p>\n<ul>\n<li>for <a href=\"http:\/\/www.epa.gov\/carlabel\/gaslabel.htm\">for gasoline-powered cars<\/a><\/li>\n<li>for <a href=\"http:\/\/www.epa.gov\/otaq\/carlabel\/phevlabel.htm\">plug-in hybrid cars<\/a><\/li>\n<li>for <a href=\"http:\/\/www.epa.gov\/carlabel\/electriclabel.htm\">electric cars<\/a><\/li>\n<\/ul>\n<h4 style=\"margin-top: 3em\">Notes:<\/h4>\n<ol class=\"references\">\n<li id=\"_note-HR\" ><a href=\"#_ref-HR_0\" title=\"\">&uarr; <\/a> <span class=\"references\">European standards are of course expressed in grams\/kilometer, not grams\/mile.  I have made the conversion for comparability with US standards.<\/span>\n <\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Anyone considering the purchase of an all-electric vehicle is faced with a number of questions, but one in particular is unfortunately much harder to answer than it should be &#8211; the comparative cost of running an electric versus a gas<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"class_list":["post-1022","post","type-post","status-publish","format-standard","hentry","category-transportation","","tg-column-two"],"_links":{"self":[{"href":"https:\/\/www.riverbendadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.riverbendadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.riverbendadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.riverbendadvisors.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.riverbendadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1022"}],"version-history":[{"count":42,"href":"https:\/\/www.riverbendadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1022\/revisions"}],"predecessor-version":[{"id":1071,"href":"https:\/\/www.riverbendadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1022\/revisions\/1071"}],"wp:attachment":[{"href":"https:\/\/www.riverbendadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.riverbendadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.riverbendadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}