Economic and Environmental Prospects for Battery Electric- and Fuel Cell Vehicles: A Review

Due to the pressing environmental problems coming from the transport sector, interest in electric vehicles (EVs) has increased significantly over the last decade. Although different types of EVs are available on the market, the largest contribution to the reduction of environmental problems could be made through zero-emission vehicles, such as battery electric vehicles (BEVs) and fuel cell vehicles (FCVs). Each of these vehicles has some advantages and disadvantages. The problem they share is the high purchase price in comparison to conventional gasoline vehicles. Through the improvement of battery performance, further technological learning and a mix of different direct and indirect supporting policy measures, the competiveness of EVs could be significantly improved. EVs could already contribute to the reduction of emissions today, however the full environmental benefit of BEVs and FCVs is related to the mix of the primary energy sources used for electricity generation and hydrogen production. The increasing use of renewable energy sources in electricity generation makes EVs more environmentally friendly. Since total emissions are also dependent on the embedded emissions of cars, their lifetime as well as their usage (specific vehicle kilometers driven per year) have significant impacts on the total emissions per km driven.