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This article presents experience curves and cost-benefit analyses for electric and plug-in hybrid cars sold in Germany. We find that between 2010 and 2016, the prices and price differentials relative to conventional cars declined at learning rates of 23 ± 2% and 32 ± 2% for electric cars and 6 ± 1% and 37 ± 2% for plug-in hybrids. If trends persist, price beak-even with conventional cars may be reached after another 7 ± 1 million electric cars and 5 ± 1 million plug-in hybrids are produced. The user costs of electric and plug-in hybrid cars relative to their conventional counterparts are declining annually by 14% and 26%. Also the costs for mitigating CO2 and air pollutant emissions through the deployment of electrified cars tend to decline. However, at current levels, NOX and particle emissions are still mitigated at lower costs by state-of-the-art after-treatment systems than through the electrification of powertrains. Overall, the observation of robust technological learning suggests policy makers should focus their support on non-cost market barriers for the electrification of road transport, addressing specifically the availability of recharging infrastructure.
Background: On the way to a more sustainable society, transport needs to be urgently optimized regarding energy consumption and pollution control. While in earlier decades, Europe followed automobile technology leaps initiated in the USA, it has decoupled itself for 20 years by focusing research capacity towards the diesel powertrain. The resulting technology shift has led to some 45 million extra diesel cars in Europe. Its outcome in terms of health and environmental effects will be investigated below.
Results: Expected greenhouse gas savings initiated by the shift to diesel cars have been overestimated. Only about one tenth of overall energy efficiency improvements of passenger cars can be attributed to it. These minor savings are on the other hand overcompensated by a significant increase of supply chain CO2 emissions and extensive black carbon emissions of diesel cars without particulate filter. We conclude that the European diesel car boom did not cool down the atmosphere. Moreover, toxic NO x emissions of diesel cars have been underestimated up to 20-fold in officially announced data. The voluntary agreement signed in 1998 between the European Automobile industry and the European Commission envisaging to reduce CO2 emissions has been identified as elementary for the ensuing European diesel car boom. Four factors have been quantified in order to explain very different dieselization rates across Europe: impact of national car/supplier industry, ecological modernization, fuel tourism and corporatist political governance. By comparing the European diesel strategy to the Japanese petrol-hybrid avenue, it becomes clear that a different road would have both more effectively reduced CO2 emissions and pollutants.
Conclusion: Europe's car fleets have been persistently transformed from being petrol-driven to diesel-driven over the last 20 years. This paper investigates on how this came to be and why Europe took a distinct route as compared to other parts of the world. It also attempts to evaluate the outcome of stated goals of this transformation which was primarily a robust reduction in GHG emissions. We conclude that global warming has been negatively affected, and air pollution has become alarming in many European locations. More progressive development scenarios could have prevented these outcomes.