A significant 2016 study on driving electric undergoes an important update. We need your help.

By Bob Erdman: Treasurer, Electric Vehicle Association of Greater Washington DC

We all know that electric vehicles (EVs)  provide a number of benefits, not just for their owners, but also for society at large. But what exactly are these benefits, and how are they measured? 

A 2016 white paper, “Quantifying the Societal Benefits of Electric Vehicles,” by Ingrid Malmgren, went a long way to add up all of the advantages of driving electric. Because societal benefits can be used as an input to determine government incentive levels for EVs, this white paper, first published in the “World Electric Vehicle Journal”, has often been cited in other important papers.

This year, Malmgren’s work is undergoing an update, and all EV advocates have been invited to take part by contributing their opinions. We invite you to include yourselves in the process, and we are providing the below chart from the 2016 study, as well as a summary of the report below that, to stimulate your thoughts. What are the benefits of EVs you’ve experienced that you’d like to share?

The 2016 report focused on benefits in seven categories:

Fuel Savings: Malmgren’s study compared a Nissan LEAF to a Honda Civic and found that over a period of 10 years the estimated savings in fuel would be at least $4,130. Using fueleconomy.gov for the 2020 LEAF and Civic, the result is $3,520 over 10 years, while the current Nissan website estimates $4,270 when compared to a gas car averaging 36 miles-per-gallon (MPG). It should also be noted that fuel savings benefit the local economy because the funds are likely to stay local and help with the region’s economic development. 

Maintenance: The study found that, again by comparing a LEAF to a Civic, the maintenance savings estimate was $1,488. Using information from 2020, the California PG&E website  estimates $3,000 in savings when a LEAF is compared to a Nissan Altima. Therefore, the 2016 value may very well rise when the study is updated.

Environment: The 2016 study estimated that the environmental savings would be $866 per EV, which was the more conservative estimate. The less conservative estimate was $4,506 over 10 years. It should be noted that, while the environmental savings benefit society in general, the most significant benefits are experienced by the less well-off, who will be most affected by climate change.

Health:  Malmgren’s study estimated that the savings due to reduced health care costs would be $1,686. This represented the midpoint between two methodologies predicting a high estimate of $1,893, and a low estimate of $1,477, over 10 years. As with environmental impact, health impact reductions accrue at the state level, but have the most significant impact on the population that lives in non-attainment areas where air pollution is above standards.

National Security: Malmgren estimated that the savings due to reduced national security spending would be $3,628. This was the most conservative estimate from the many sources included in the paper. It is important to remember that national security reductions benefit the nation psychologically, as well as monetarily. When renewable resources can be used, there is less need to fight over finite resources in the ground, leading to a more peaceful society.

Economic Development: The study estimated that by retaining funds that otherwise would be funneled out of state for oil or gasoline, the local economy would benefit to the tune of $965 over 10 years. Because the average internal combustion engine (ICE) vehicle is larger than a Honda Civic, this number may now be higher.

Grid Resource: The 2016 study estimated that as vehicle-to-grid becomes a reality, EVs will be used for storage and as a regulation resource for the grid, resulting in an estimated benefit of $4,000 over 10 years. Certainly, grid resource benefits accrue at the state level through reduced electricity costs, and for EV owners through compensation for the use of the EV battery. When the total value is adjusted to remove the benefits that accrue to the owner, as well as the grid resource, the value to society is $6,785. That’s a good number for legislators to keep in mind when considering policies to accelerate the adoption of electric vehicles. If all goes well, we will have a new number by the end of the year.

Don’t hesitate to get involved. Contribute your ideas for the 2020 edition of “Quantifying the Societal Benefits of Electric Vehicles” now.