Cost-benefit assessment of electric vehicle vs internal combustion engine in Latvia

Transport sector in Latvia have several challenges: energy consumption decrease, produced CO2 emission decrease, air pollution decrease, reduction of the average age of the car in the country, integration of renewable energy source to replace fossil fuel. Electric vehicles have high potential in the future to help achieve directive 2018/2001/EC targets. This study presents a cost-benefit analysis of electric vehicles, as well as an internal combustion engine with diesel and gasoline. The cost-benefit analysis methodology was developed considering car production, purchase, operating and utilization costs. Environmental aspects such as air pollution, climate change and noise were also taken into account.

I. Introduction

The transition from fossil fuels to renewable fuels is taking place at the European and global level. The main objective is to reduce CO₂ emissions, which are one of the main greenhouse gas emissions contributing to climate change and global warming. Energetics is the most important creator of greenhouse gas emissions. In Latvia over the last five years, energy consumption in the transport sector has increased by 16.4 %, in 2018 consumption was 53.9 PJ [1]. This consumption accounts for a third of Latvia's total energy consumption. The main source of energy in the transport sector are oil products, but the share of renewable energy sources is low and was 4.73 % in the 2018 year [1].