Can Canadian households benefit economically from purchasing battery electric vehicles?

This study uses a 2015 national survey data set to investigate the economic suitability of Canadian households for a battery electric vehicle (BEV) purchase. We compare the total cost of ownership (TCO) for a BEV and an equivalent internal combustion engine vehicle (ICE) of similar vehicle class under a series of incentive and purchase price scenarios. Even with no incentive in place, we find that a considerable share of households (18%) in our national sample are economically suited for a BEV purchase. A bivariate ordered probit model is then used to estimate annual mileage and vehicle ownership period. These variables are the most influential factors on the TCO outcome. According to the results, suburban, multi-vehicle households with children have higher mileages. Education and income have positive impacts on both annual mileage and ownership period, and thus on increasing the economic suitability of BEVs. Results of this study suggest targeted decisions regarding policy and marketing based on consumer conditions as ways to further promote the adoption of BEVs in Canada.