Assessing the economic and environmental impacts of battery leasing and selling models for electric vehicle fleets: A study on customer and company implications
2023 (English)In: Journal of Cleaner Production, ISSN 0959-6526, E-ISSN 1879-1786, Vol. 422, article id 138356Article in journal (Refereed) Published
Abstract [en]
Battery electric vehicles (BEVs) powered by renewable energy hold promise for significantly decarbonizing land-based transport. However, the environmental impacts of BEVs remain a critical concern. This paper investigates the circular business model (CBM) of leasing batteries for BEVs and compares its economic and environmental impacts with the linear model of selling and buying batteries. A comprehensive approach combining a battery fleet model, net present value (NPV) analysis, and cradle-to-grave life cycle assessment (LCA) is employed. By considering diverse driving profiles instead of the single “average” profile used in previous studies, the battery fleet model provides a more accurate representation of reality. The findings reveal that while leasing batteries can be as profitable as selling them, companies that lease may require higher revenues and tax contributions to obtain a comparable NPV. To generate additional income, companies may need to charge fees that do not always benefit customers. Notably, battery purchasing remains the most cost-effective option for users driving over 10,000 km/year. The LCA results indicate that the environmental benefits of leasing batteries over selling them are marginal. Leasing offers advantages such as user flexibility, and it encourages battery repair, repurposing, and recycling; however, there is insufficient evidence to support the cost-effectiveness of leasing or significant environmental improvements over traditional buying and selling models. The findings may be relevant for other business models targeting a substantial user base in the BEV domain, such as battery-as-a-service (BaaS) programs and battery swapping. © 2023 The Authors
Place, publisher, year, edition, pages
Elsevier, 2023. Vol. 422, article id 138356
Keywords [en]
Batteries, Circular business models, Circularity, Electric vehicles, LCA, Leasing, Cost effectiveness, Economic analysis, Economic and social effects, Environmental impact, Fleet operations, Sales, Secondary batteries, Battery, Battery leasings, Battery-electric vehicles, Business models, Circular business model, Leasing batteries, Life cycle assessment, Vehicle fleets, Life cycle
National Category
Other Environmental Engineering Business Administration
Identifiers
URN: urn:nbn:se:bth-25357DOI: 10.1016/j.jclepro.2023.138356ISI: 001075946800001Scopus ID: 2-s2.0-85168994293OAI: oai:DiVA.org:bth-25357DiVA, id: diva2:1795347
2023-09-082023-09-082023-10-26Bibliographically approved