Lecture

Electric vs Petrol Cars

Description

This lecture compares the total cost of ownership between battery electric (BE) and internal combustion engine (ICE) cars, analyzing one-off costs, recurring costs, and resale values. Different methods are used, including sum of costs, present value of costs, and average annual cost calculations. Sensitivity analysis is performed to test the robustness of the results to changes in discount rates and resale prices. The lecture also covers the concept of annuity calculations and the impact of discounting on annual costs. Practical cost comparisons between specific electric and petrol cars are presented, highlighting the importance of considering all cost factors when choosing between electric and petrol vehicles.

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