When it comes to discussions of the value of moving toward transportation fuel efficiency, all too often, the “return on investment” (ROI) calculation devolves down to “how much extra to buy fuel efficiency versus how fast the gasoline savings will pay for the extra cost”. This sort of stove-piped calculation creates a misleading discussion and understanding — at the individual and societal level.
There are many value streams outside gasoline savings for electric vehicle (plug-in-hybrid-electric vehicles (PHEVs, such as the Volt), hybrid-electric vehicles (HEVs, such as the Prius), and electric vehicles (EVs, such as the Leaf)). For example, no one asks what the ROI is for leather seats or that racing stripe on the side of the car. While there are many others, let’s look to four non-direct (but quite tangible) value streams that those selling and those buying EVs might consider in the purchase:
- The Woolsey Effect
- Gas Station Anxiety Relief
- The Sound of Silence
- Breath of Fresh Air
The Woolsey Effect:
James Woolsey, the former Director of the Central Intelligence
Agency and John McCain advisor, famously has (had?) a bumper sticker on his Prius (and then Plug-In Prius): “Bin Laden Hates This Car”.
Consumers buy EVs for many reasons beyond pure financials, including variations of self-identification and ‘statement to the world’ value streams. This can range from from status symbol to decision to be off oil to fulfilling techno-crazy gadget lover needs.
Gas Station Anxiety Relief
In part because of the high quality data providing strong information about fuel requirements but also due to much greater fuel efficiency, PHEV and HEV owners have to go to the gas station less often. This means less time wasted, less time breating fumes, …
Lets say an ‘average’ driver at 12,000 miles per year. With a 50 mpg car with 10 gallon tank, that is 240 gallons / year and thus 24 times to the gas station. (Yes, simplistic on multiple levels, such as refilling at full tank …) A 30 mpg vehicle with a 12 gallon tank would be 400 gallons and thus 33 times to the gas station. Let’s say 15 minutes, on average, the PHEV/HEV driver just saved 2 ¼ hours per year. How much do you value an hour of your time?
The Sound of Silence
Prior to driving the Prius for awhile, I had no idea how enjoyable the ‘sound of silence’ would be while behind the steering wheel. A neighbor waves and, well, I stop and there is zero car noise and we can talk. EV drivers are to listen to birds singing while driving because the gas engine isn’t kicked in. This is a ‘value stream’ that provides a real ROI.
A Breath of Fresh Air
Very simply, being in a garage or standing by an ‘idling’ car with traditional ICE or an EV is quite different. One can drive around a parking garage in an EV (any type) without pumping out fumes into enclosed spaces. How much does not putting pollutants into constrained spaces (that garage next to the kitchen?) matter to purchasers.
These are just four ‘named’ examples when there are a myriad of value streams for individual purchasers and societies from improved fuel efficiency and moves to electrify transportation from reduced oil dependency to reduced health impacts from burning fossil fuels to …
Related posts:
- EVs have lower (LOWER) carbon footprints through their lifecycle
- Plug-In America alternative Chevy Volt advertisement
- A response / dissection of Charles Lane’s deceptive anti-Chevy Volt OPED in Wash Post a few weeks ago highlighting the need for ‘apples-to-apples’ comparisons and laying out some EV value streams (such as the ability to choose one’s electricity supply, grid stability, resale value, ….