Electric Vehicles in New Zealand: from Passenger to Driver? Dr. Allan Miller, Scott Lemon New Zealand Greenhouse Gas Emissions Greenhouse gas emissions by sector and vehicle type in New Zealand 76 million Tonnes of greenhouse gases emitted by New Zealand in 2012 New Zealand Greenhouse Gas Emissions Greenhouse gas emissions by sector and vehicle type in New Zealand New Zealand Greenhouse Gas Emissions Greenhouse gas emissions by sector and vehicle type in New Zealand 1 Market 2 Policy 3 Environment Market 1.1 New Zealand Vehicle Fleet Passenger car ownership per 1000 people for OECD countries Passenger Cars (per 1000 people) 700 600 500 400 300 200 100 2.6 million 600 Luxembourg Iceland USA Italy New Zealand Australia Finland Austria Slovenia Switzerland Germany Greece Belgium Spain France Norway Netherlands Sweden UK Japan Poland Canada Ireland Czech Republic Estonia Denmark Slovakia Hungary South Korea Israel Mexico Chile Turkey 0 Country Light passenger vehicles registered in New Zealand Passenger cars per 1000 people in New Zealand th 5 Highest rate of passenger car ownership in the OECD 1.2 New Zealand Vehicle Fleet Number of Registered Passenger Vehicles Age distribution of passenger vehicles in the New Zealand fleet 250000 200000 150000 100000 50000 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Vehicle Age (years) 13 years Average age of a light passenger vehicle in New Zealand 1.4 Cost Analysis Cumulative cost of owning a petrol, diesel, hybrid and electric vehicle from 2012 1.4 Cost Analysis Cumulative cost of owning an electric vs. petrol vehicle with off-peak charging Policy and Regulation 3.1 Policy and Regulation Breakdown of measures available to governments for stimulating EV adoption Measures Economic Suasive Sales tax Subsidies Bonus/malus Scrappage Annual tax Fuel taxation Education Standards & guidelines Regulatory Emission targets Vehicle standards Organisational Infrastructure Usage incentives Free parking HOV lane use 3.2.1 Economic Measures – Tax Reduction Global overview of countries implementing tax reduction measures for EVs Australia Austria Belgium Czech Republic Denmark Finland France Germany Greece India Ireland Israel Italy Japan Netherlands Norway Portugal South Korea Spain Sweden Switzerland Turkey United Kingdom United States 3.2.2 Economic Measures - Subsidies Global overview of countries implementing direct subsidy measures for EVs Canada China Finland India Ireland Japan Luxembourg South Korea Spain United Kingdom 3.3 Electric Vehicle Incentives in New Zealand Viable short-term measures for encouraging EV uptake Short-term (2012-2015) Suasive/regulatory measures Increase consumer awareness about importance of fuel economy Tighten fuel economy standards on imported vehicles Mid-term (2015-2020) Long-term (2020-) 3.3 Electric Vehicle Incentives in New Zealand Viable medium-term measures for encouraging EV uptake Short-term (2012-2015) Mid-term (2015-2020) Organisational measures Installation of charging stations Requirement for new homes and car parks to include provision for EVs Long-term (2020-) 3.3 Electric Vehicle Incentives in New Zealand Viable long-term measures for encouraging EV uptake Short-term (2012-2016) Mid-term (2016-2020) Long-term (2020-) Economic measures Scrappage schemes and decreased taxes/vehicle charges Aim to increase fleet turnover rate and speed the transition to a greener transportation system Environment 2.5 tonnes Of CO2e gas emitted by an average passenger vehicle in New Zealand annually Country USA Australia New Zealand China Russia Mexico Israel Estonia Canada South Korea Sweden Germany Chile Finland Greece Luxembourg UK Austria Netherlands Ireland Slovenia Iceland Turkey Czech Republic Switzerland Hungary Poland Slovakia Spain Belgium Denmark Italy Japan India France Portugal Average Passenger Vehicle Emissions (gCO2e/km) 3.1 Light Passenger Vehicle GHG Emissions Amount of GHG emitted by average light passenger vehicles around the world 250 200 150 100 50 0 74% Renewable energy powering the New Zealand grid in 2012 142 grams India Estonia China Australia Israel Poland Greece Czech Republic USA South Korea Ireland UK Turkey Mexico Germany Japan Russia Chile Netherlands Italy Slovenia Hungary Denmark Luxembourg Portugal Spain Finland Slovakia Belgium Canada Austria New Zealand France Sweden Norway Switzerland Iceland Average Grid Emissions (gCO2e/kWh) 3.2 Average Grid GHG Emissions Amount of GHG emitted per unit of residential electricity consumed 1000 900 800 700 600 500 400 300 200 100 0 Country Of CO2e gas emitted per kWh of electricity used by households in New Zealand 3.3 Average Vehicle Emissions Greenhouse gas emissions for electric and average fleet vehicles by country 3.4 New Zealand Greenhouse Gas Emissions Greenhouse gas emissions by sector and vehicle type in New Zealand Conclusion Market New Zealand’s fleet is old, inefficient and in need of change EVs are currently too expensive, and the pay-back period too long despite lower operational costs Policy Tax reductions and price subsidies are widely used worldwide but are too expensive to justify in New Zealand The short-term focus should be on improving fuel economy regulations and educating consumers Environment EVs can achieve considerable GHG emission reductions in a green power system like New Zealand’s Greatest short-term impact of a transition to EVs will be a decrease in local air pollution and a resulting improvement in public health