Costs and carbon: Evaluating the tradeoffs in Taiwan’s shift toward electric vehicles

Abstract

Battery Electric Vehicles (BEVs) are pivotal in advancing sustainable mobility and addressing climate change globally. An increasing number of regions, including Taiwan, are implementing plans to phase out the sale of Internal Combustion Engine Vehicles (ICEVs). In Taiwan, where the transportation sector contributes 13% of fossil carbon emissions, nearly half attributed to passenger vehicles, electrification is key to achieving net-zero emissions. This study provides a comprehensive life cycle assessment (LCA) and total cost of ownership (TCO) analysis of 182 vehicle models, including ICEVs, Hybrid Electric Vehicles (HEVs), and BEVs. Our findings reveal that BEVs reduce total CO₂ emissions by an average of 20% compared to ICEVs, largely due to decreased emissions from electricity generation and reduced fuel consumption. Although BEVs initially present double the purchase costs of ICEVs, their long-term economic competitiveness is enhanced by lower operational and maintenance costs. Nevertheless, the environmental impact of BEVs depends heavily on the decarbonization of the power grid, and the prevalence of expensive imported BEVs challenges their adoption. This study highlights the necessity for specific policies, such as financial incentives, support for domestic BEV production, and accelerated grid decarbonization, to enhance BEV adoption in Taiwan. Such measures, coupled with increased public awareness, are crucial to ensuring Taiwan’s vehicle electrification aligns with its ambitious 2050 net-zero emission goals.