Total cost of ownership (TCO) is a pricing method that seeks to discover the true cost of a specific product or service from a specific provider. EnvEcon (2020) calculates and contrasts the TCO of a range of cars and driving profiles in each policy framework of taxes, grants, and fuel prices to evaluate the prospects for accelerated EV uptake. The case study is applied in an Irish context; however, the methods and analysis are internationally transferable and can be replicated for any vehicle fleet where comparable, reliable data are available.
The methodology offers the capacity to analyse changes in TCO associated with specific policy intervention proposals, including travel patterns, car-segment pricing, taxation, grant policy, fuel costs, and carbon pricing. It is not limited to understanding how changes in certain parameters will influence TCO; it can also demonstrate how policy may design or modify interventions to manage changes and drive accelerated EV uptake rates. For example, the impact of the removal of the existing EV subsidy in a case country can be calculated to test the relevance of the current subsidy scheme for the TCOs of the selected best-selling cars and what would happen if it were removed.
The full internationally peer reviewed methodology is available here.