Electric cars worth less to Israel than to Europe

Amiram Barkat

Prof. Ofira Ayalon: The fuels used for electricity production in France and Denmark are less polluting, so the benefit of electric cars is greater.

Electric cars will be less beneficial to the environment in Israel than in France and Denmark, according to a new study funded by the EU Seventh Framework Progamme for Research and Development and conducted by Haifa University, research institutions in France and Denmark, Renault and Better Place, as part of an investigation of the feasibility of the battery exchange model. According to project leader and Coordinator of Environmental Policy Projects at the Technion Israel Institute of Technology’s S. Neaman Institute Prof. Ofira Ayalon, the researchers’ goal was to establish a “price tag” that would allow for quantification, in dollar terms, of the environmental and health benefits of switching from gasoline and diesel fueled cars to electric cars. “We examined the external costs of vehicle use. The exhaust pipes of cars fueled by gasoline and diesel emit dangerous particles, such as nitrogen oxide and carbon monoxide, which impact global climate change. Climate change has an economic cost too. On the other hand, we also took into account the environmental and health costs caused by the production of electricity at power plants.”

The study found that a transition from gasoline and diesel fueled vehicles to electric vehicles in Israel would effectively save €44.34 for every 10,000 kilometers traveled. The parallel figure in Denmark is €80.64, and in France it is €110.79.

Why is the benefit of electric cars lower in Israel than in France and Denmark?

Prof. Ayalon explains that: “The current mix of electricity production in Israel relies heavily on coal, which is a pollutant fuel. The fuels used for electricity production in France and Denmark are less polluting, therefore, the relative benefit of electric cars is greater there than it is here.”

The gaps between the countries are expected to widen in 2020. At that time, France is expected to produce more than 90% of its electricity from sources that do not emit greenhouse gasses or dangerous particles. Denmark is expected to generate 50% of its electricity from renewable sources (mostly wind), while Israel is expected to lag far behind, with only 10% green energy (mainly solar). As a result, the Israeli economy will save a relatively low sum, €82.4 million a year, if 40% of vehicles are electric in 2020. The Danish economy will save €133 million under similar conditions, and the French economy will save €2 billion annually. If Israel does not succeed in migrating its vehicles from gasoline to electric power sources, greater Tel Aviv area residents will suffer most. “As the city grows larger and more congested, the benefit of using electric vehicles in these areas will grow,” says Prof. Ayalon.

Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2013

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