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Costs for a battery - electric delivery truck and a diesel - fueled delivery truck are shown in the table below. Assume that both trucks
Costs for a batteryelectric delivery truck and a dieselfueled delivery truck are shown in the table below. Assume that both trucks are driven miles for each of days per year.
a What is the Operating Cost per mile of driving each truck, including only the Energy supply cost and the Maintenance Cost? Put answers in the table.
b Assume that both trucks are used for years and use a discount rate of What is the present value of the Total Cost of Ownership of each truck, including all costs shown in the table? Put answers in the table.
c The relative cost of electric trucks versus diesel trucks depends on many factors. For the set of parameters in parts a and the present value of the total cost of ownership is larger for the electric truck than for the diesel truck. While truck buyers may not be able to control the purchase price, they may vary in terms of their discount rate eg loan rate that is available for truck purchases and some may be able to charge their vehicles at a lower cost by using low nighttime rates for electric vehicle charging. Holding all other variables constant, at what discount rate would the electric truck and diesel truck have equal total cost of ownership?
d Similarly, holding all other variables constant, at what average electricity price would the electric truck and diesel truck have equal total cost of ownership?
e If purchase of the electric truck qualified for a $ rebate, what would be the effective cost of carbon reductions? Express this as $ per metric ton of avoided.
tabletablePurchasePrice $tableEnergyUsetableEnergySupply CosttableMaintenanceCost $miletableGHGemissions COe
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