A cost analysis of decarbonizing the heavy-duty road transport sector

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A cost analysis of decarbonizing the heavy-duty road transport sector

Parviziomran, Elmira / Bergqvist, Rickard

Abstract We introduce a static cost model that simulates the cost of decarbonizing the heavy-duty road transport sector. This time-variant model aims to refine existing estimations of investment needs under different scenarios. The paper advances sustainability transition’s cost analysis in three ways: 1) providing a novel methodological tool, 2) including the financing cost in the analysis, and 2) testing the cost variance under different charging strategies for battery-electric vehicles and financing interest rates. A plausible scenario is applied to test the model. The paper discusses charging opportunities reliant on charging place, time, power effect, and electricity self-consumption within the charging strategies. Our results highlight the vital contribution of charging strategies to fuel and capital expenses for the system. Moreover, system cost analysis reacts to the change in financing policies, stressing the criticality of sustainable financing in the sustainability transition’s advancement.