2020•IEEE Transactions on Vehicular TechnologyOpen access

Can Charging Infrastructure Used Only by Electric Taxis Be Profitable? A Case Study From Karlsruhe, Germany

Simon Funke, Tobias Burgert

Open full text 13 citations

Abstract

Electric vehicles are a promising instrument for reducing greenhouse gas emissions and other local pollutants, such as nitrogen oxides. Especially the taxi sector is a promising field of application. First, their high driving distances are necessary for electric vehicles to economize against conventional vehicles. Second, taxis are operated predominantly in city centers, where the pressure to reduce local emissions is greatest. However, while the electrification potential of taxi fleets has gained great attention in literature, the question of whether charging infrastructure can be profitable if only used by taxis has not been answered yet. To answer this question, we analyze 161 taxis in Karlsruhe, Germany. We find that a high share of electric taxis would come at lower cost than their diesel counterparts. Thus, a 25-45% share of taxi driving could be electrified, if only the taxi user perspective would be taken into account. However, while ten charging sites would be necessary to do so, only one charging site could be refinanced through exclusive taxi use. Consequently, the electrification potential would fall to about 3%, if only this one profitable charging site was built. Yet, in the future, electric driving will become cheaper. In 2025, already 55% electrification potential would be possible, given that both electric driving and charging infrastructure operation would be profitable. Altogether, while currently taxi charging infrastructure would require public funding or other business models, in the medium to long term, an exclusive use by taxis would be sufficient.

Open-access reader

About this research paper

What this paper is about

Electric vehicles are a promising instrument for reducing greenhouse gas emissions and other local pollutants, such as nitrogen oxides. Especially the taxi sector is a promising field of application. First, their high driving distances are necessary for electric vehicles to economize against conventional vehicles. Second, taxis are operated predominantly in city centers, where the pressure to reduce local emissions is greatest. However, while the electrification potential of taxi fleets has gained great attention in literature, the question of whether charging infrastructure can be profitable if only used by taxis has not been answered yet. To answer this question, we analyze 161 taxis in Karlsruhe, Germany. We find that a high share of electric taxis would come at lower cost than their diesel counterparts. Thus, a 25-45% share of taxi driving could be electrified, if only the taxi user perspective would be taken into account. However, while ten charging sites would be necessary to do so, only one charging site could be refinanced through exclusive taxi use. Consequently, the electrification potential would fall to about 3%, if only this one profitable charging site was built. Yet, in the future, electric driving will become cheaper. In 2025, already 55% electrification potential would be possible, given that both electric driving and charging infrastructure operation would be profitable. Altogether, while currently taxi charging infrastructure would require public funding or other business models, in the medium to long term, an exclusive use by taxis would be sufficient.

Why it matters

OpenAlex reports 13 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Electric vehicles are a promising instrument for reducing greenhouse gas emissions and other local pollutants, such as nitrogen oxides. Especially the taxi sector is a promising field of application. First, their high driving distances are necessary for electric vehicles to economize against conventional vehicles. Second, taxis are operated predominantly in city centers, where the pressure to reduce local emissions is greatest. However, while the electrification potential of taxi fleets has gained great attention in literature, the question of whether charging infrastructure can be profitable if only used by taxis has not been answered yet. To answer this question, we analyze 161 taxis in Karlsruhe, Germany. We find that a high share of electric taxis would come at lower cost than their diesel counterparts. Thus, a 25-45% share of taxi driving could be electrified, if only the taxi user perspective would be taken into account. However, while ten charging sites would be necessary to do so, only one charging site could be refinanced through exclusive taxi use. Consequently, the electrification potential would fall to about 3%, if only this one profitable charging site was built. Yet, in the future, electric driving will become cheaper. In 2025, already 55% electrification potential would be possible, given that both electric driving and charging infrastructure operation would be profitable. Altogether, while currently taxi charging infrastructure would require public funding or other business models, in the medium to long term, an exclusive use by taxis would be sufficient.

Key concepts: Taxis, Electrification, Transport engineering, Greenhouse gas, Engineering, Business, Automotive engineering, Electricity

Related papers

Back to paper searchBrowse research topicsOriginal source
Can Charging Infrastructure Used Only by Electric Taxis Be Profitable? A Case Study From Karlsruhe, Germany — Research Paper | ScholarLens