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Climatic Change

, Volume 151, Issue 2, pp 95–108 | Cite as

Transport electrification: the effect of recent battery cost reduction on future emission scenarios

  • O. Y. Edelenbosch
  • A. F. Hof
  • B. Nykvist
  • B. Girod
  • D. P. van Vuuren
Article

Abstract

Although the rapid fall in the costs of batteries has made electric vehicles (EVs) more affordable and boosted their sales, EVs still account for only a fraction of total car sales. In the last years, the battery costs of electric vehicles have dropped faster than previously estimated in the empirical literature. As a result, future cost projections have been adjusted. The larger than expected reduction in costs also shows the uncertainty of battery cost development, which will affect the success of a transition to low-carbon transport. Integrated assessment models show that reducing greenhouse gas emissions is more challenging in the transport sector than in other sectors. Switching to EVs could significantly reduce passenger road-transport emissions. In this study, we test the sensitivity of the projected sales of EVs to different battery costs and climate policy futures. The model suggests that the effectiveness of policy incentives will strongly depend on the battery floor costs, as EVs only gain significant shares (15% or more) of global car sales within our model framework when battery costs reach 100 $/kWh or less. We therefore conclude that besides the pace of the battery costs decline, which has been rapid in the last years, it is important to understand the lower boundary of battery costs for modelling long-term global energy transitions.

Notes

Funding information

The research leading to these results received funding from the European Union’s Seventh Framework Programme FP7/2007-2013, under grant agreements 308329 (ADVANCE) and 603942 (PATHWAYS).

Supplementary material

10584_2018_2250_MOESM1_ESM.docx (130 kb)
ESM 1 (DOCX 130 kb)

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Copyright information

© Springer Nature B.V. 2018

Authors and Affiliations

  1. 1.PBL Netherlands Environmental Assessment AgencyDen HaagThe Netherlands
  2. 2.Department of Management and EconomicsPolitecnico di MilanoMilanItaly
  3. 3.Copernicus Institute of Sustainable DevelopmentUtrecht UniversityUtrechtThe Netherlands
  4. 4.Stockholm Environment InstituteStockholmSweden
  5. 5.Department of Management Technology, and EconomicsETH ZurichZurichSwitzerland

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