October21,2021©2021AndersonEconomicGroup,LLC.Permissiontoreproduceinentiretygrantedwithpropercitation.Allotherrightsreserved.AndersonEconomicGroup,LLCEastLansingChicago1555WatertowerPlace,Suite100EastLansing,Michigan48823Telephone:(517)333-6984www.AndersonEconomicGroup.comAndersonEconomicGroupEVTransitionSeries:ReportNo.1Comparison:RealWorldCostofFuelingEVsandICEVehiclesElectricvehiclescanbemoreexpensivetofuelthantheirinternalcombustionenginecounterpartsPatrickL.Anderson,PrincipalandCEOAlstonD’Souza,SeniorAnalystOctober21,20212TableofContentsPurpose....................................................................................................3AMajorTransition,withSignificantRisks.....................................3ComparingtheTrueCostofFuelingEVandICEvehicles.............3OutlineoftheReport.......................................................................5TheAndersonEconomicGroupEVTransitionSeries....................5KeyFindings...........................................................................................61.MultipleCategoriesofCosts.......................................................6Table1:ComparisonofEVandICEFuelingCosts...................72.EVsOftenCostMoretoFuel......................................................8Table2:DirectMonetaryCostsofFuelingEVsandICECars..93.EVFuelingCostsVaryWidely.................................................10Table3:VaryingCostsofEVCommercialChargers...............104.EVsImposeConsiderableTimeBurdens..................................11EstimatingImplicitTimeCosts.....................................................12Table4:ImplicitTimeCostComparison.................................13UnpackingtheCostofEVCharging..................................................14ComparisonWithOtherReportsonEVFuelingCosts.................20ImplicitPricingofTimeCost........................................................20SeparatingDirectMonetaryCostsfromImplicitTimeCosts.......21FuelingCostsNotItemizedinthisReport.....................................21Methodology.........................................................................................22VehicleSegments...........................................................................22DataonDirectMonetaryCostofFueling......................................22ConsumerBehaviorandActualReliability...................................23ResidentialElectricityRatesandToU...........................................23CalculatingDirectMonetaryCostsofRefueling...........................24SensitivityAnalysis.......................................................................26Table5:DirectMonetaryCostsofFuelingICEandEVsasofMid2021.................................................................................27CalculatingImplicitTimeCostsofRefueling...............................28Table6:EstimationofImplicitTimeBurdenasofMid-2021.30Table7:EstimationofImplicitTimeCostasofMid-2021......31References.............................................................................................32AboutAndersonEconomicGroup.....................................................34Businesses......................................................................................34Governments..................................................................................34Non-profitorganizations................................................................34AbouttheAuthors................................................................................36Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCPurpose3PurposeAMAJORTRANSITION,WITHSIGNIFICANTRISKSTheautomobileindustryisonthecuspofthebiggesttransitioninfunda-mentaltechnologysincetheearliestdaysoftheindustry.Acenturyago,gasoline-poweredvehicleswonthetechnologyraceoftheeraagainstcompetitorsthatincludedelectric,steam,andhorse-poweredcarriages.Today,electricvehiclesareascendant.Thistransitionposessignificantrisksanduncertainties.Forconsumers,oneofthebiggestisthecosttodriveelectricvehicles(EV)comparedtotheirfamiliarinternalcombustionengine(ICE)counterparts.Ifcustom-ersfindthetruecostofEVstobelowerthanforICEvehicles,wecanexpectrapidadoption.Ontheotherhand,ifEVscostmoretodriveandtoown,thattransitionislikelytobemuchslower.COMPARINGTHETRUECOSTOFFUELINGEVANDICEVEHICLESThecosttofuelavehicle,ICEorelectric,isasubstantialpartofthetotalcostofownership.Thus,arealisticexaminationofthesecostsisacriticalquestionforconsumerswhoareconsideringthemovetoEV.Toaddressthisquestion,AndersonEconomicGroupconductedarigor-ousanalysisofthereal-worldcoststofuelbothtypesofvehicles.Weincludedallcategoriesofcosts,includingseveralthatarecommonlyomittedinotherEVstudies.MultipleCategoriesofCostsEVsareoftenpresumedtobelessexpensivetofuelthantheirICEcoun-terparts.Thereisarationaleinphysicsforthis:duetogreaterthermalefficiency,electricmotorsconvertenergymoreefficientlythancombus-tionengines.However,thiscostisonlyoneoffive.Foracompletepic-ture,wemustconsider:1.Commercialandresidentialelectricpower/fuelcosts.2.Registrationtaxes.3.Equipment(e.g.,chargers)andinstallationcosts.4.Deadheadmilesincurreddrivingtoachargerorfuelingstation.5.Thecostoftimespentrefueling.OuranalysiscomparesthesecostsforEVsandICEvehicles,notingthatsomeICEvehicleexpensesarebundledintotheretailpriceofgasoline.WeComparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCPurpose4provideaseparateaccountingofthedirectmonetarycostsandtimeburdensforbothsetsofvehiclestogenerateatrueapples-to-applescomparison.MultipleSourcesandOriginalResearchAndersonEconomicGrouphasovertwodecadesofexperienceintheautomotiveindustry,includingworkformanufacturersanddistributors,suppliers,tradeassociations,andautomobiledealers.Wemakeuseofthatexpertiseinthecarefulmethodologywehavefollowedinthisanaly-sis.Hallmarksofthatmethodologyincludeseparatingvehiclesintospe-cificsegmentsdependingoncostanduse,aswellasrecognizingthedifferencebetweenruralandmetropolitangeographicareas.Unlikemanyotheranalysesonthistopic,wemakeuseofdatasourcesthatcovertherangeofconsumerexperiencesandcostburdensfordriv-ers.Theseextendwellbeyondgovernmentdataonfueleconomyandelectricityprices,andinclude:•StopwatchmeasurementsofthetimerequiredtorefuelEVsandICEvehicles.•Recordedcustomerexperiencesregardingchargerreliability,actualchargingtime,andactualcosts.•ConsumerreportsfromEVdrivers,includingthosepostedonforumsforTaycanandTesladrivers;Reddit;andapplicationsservingEVdriverssuchasPlugShareandChargePoint.•TaxlawsthatimposeregistrationtaxesonEVownerstofundroadconstructionandmaintenance.•Autoindustrydataincludingsegments,purchaseprices,andothermetrics.•ActualdrivingandfuelingexperienceinanEVcoveringmultiplestates,andarangeofcommercialchargingaswellasresidentialchargingexperiences.Inthispublication,readersarepresentedwithoriginalresearch,datasources,andcalculationsthatrepresentcostsasofmid-2021.Becausetheindustryandassociatedtechnologiesarechanging,theseestimatesshouldbeviewedasasnapshotofcomparableexpensesatthetimeofthiswriting.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCPurpose5OUTLINEOFTHEREPORTThisreportproceedsasfollows:•Sectiononepresentsfindingsfromouranalysis,•SectiontwodescribesadditionalcostsassociatedwithchargingEVs,and•Sectionthreepresentsourmethodology,alongwithdirectmonetaryandtimecostcalculations.THEANDERSONECONOMICGROUPEVTRANSITIONSERIESThisisAndersonEconomicGroup’sfirstreportinaseriesofanalysesontheEVtransition.Futurereportswillcover:•LikelymigrationtoEVsbyconsumercohort,basedonmodel,actualcosts,andconsumerpreferences.•Detailed,segment-specificprojections.•Comparisonsofspecificmakesandmodels.•Keytargetconsumers.•FactorsaffectingconsumeradoptionofEVs,andhowthesemaychangeovertime.•Geographicalanalysesofcharginginfrastructureandcostsindifferentareas.•Stateandfederalpolicy,includingsubsidiesandrestrictionsregardingICEandEVs.FormoreinformationaboutAndersonEconomicGroup,pleasesee“AboutAndersonEconomicGroup”onpage34.SubscribingtotheEVTransitionSeriesAndersonEconomicGroupismakingthisfirstinstallmentavailabletothepublicatnocharge.Certainanalysesanddetailedprojectionswillbeavailablebysubscriptiononly.Forfurtherinformation,contactAlstonD’Souzaatadsouza@andersoneconomicgroup.comor(517)333-6984.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCKeyFindings61.KeyFindingsOuranalysisoftherefuelingcostsofvehiclesindicatethefollowing:1.MULTIPLECATEGORIESOFCOSTS1.FuelingcomparisonsbetweenEVsandICEvehiclesmustaccountforallcosts.ThecostoffuelingEVsandICEvehiclesincludethecostoffuel(orelectricity),aswellasthecostofpumporcharger,androadtaxesleviedondrivers.MostofthesearebundledintotheretailpriceofgasolineforICEvehicles.ThecomparablecostoffuelinganEVincludethefollowingfivecategories:1.Commercialandresidentialelectricpowercosts:CommercialchargersoftenimposeperkWhfeesthataredoubleortriplethatofresidentialelectricpowercosts.12.EVregistrationtaxes:Inmanystates,EVdriversneedtopayadditionalautoregistrationtaxesfortheconstructionandmaintenanceofroads.3.Costofchargersandtheirinstallation:EVbuyerstypicallyreceiveaLevel1(L1)chargeralongwiththeirautopurchase.Thesetypicallyuseastandardhomeelectricaloutletandpro-videonlyatricklechargeforanEV.SellersofEVstypicallyencouragethepurchaseofanoptionalLevel2(L2)charger.Manyownersthatrelyprimarilyonhome-charging,purchaseandinstallanL2chargerthatusesaspecialelectricalcircuit.24.Deadheadmiles:EVdriversincurcostsofdrivingmilestoacommercialchargerforthesolepurposeofcharging.Bycom-parison,thereareover100,000gasstationsintheUS.5.Timecostsofcharging:EVdriversalsospendsignificanttimefindinganddrivingtoacommercialcharger,settingupthecharger,andwaitingforthechargingprocesstocomplete.Bycomparison,findingagasstationandrefuelingthevehicleisrelativelyquick.Typically,studiesthatcomparethecostsofdrivingEVsandICEcars1.Thesecostsalsoincludesessionfee,networksubscriptioncostsandchargingefficiencylosses(definedasafractionofpowerdeliveredtotheEVbatterytothepowertransmittedbythecharger).2.InstallationofanL2chargeroftennecessitatesahome-renovationproject.Weestimatethatinstallinga240Vpoweroutletwithcircuitbreaker,andpur-chasingahomeL2chargercostsabout$1600.See“Step2:Calculatingdirectfuelcostperyear”onpage24.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCKeyFindings7systematicallyunderestimatethecostsofdrivingEVs.Fordetails,see“ComparisonWithOtherReportsonEVFuelingCosts”onpage20.WecomparethecategoriesoffuelingcostsforICEandEVcarsinTable1.Source:AndersonEconomicGroup(2021)research.Note:(a)Weincludedatimecostforthechargingprocesstocompleteonlyatcommercialchargers.Therewasnoadditionaltimeincludedbeyondashortset-upanddisconnectionforresidentialchar-gers.TABLE1.ComparisonofEVandICEFuelingCostsEVICEDirectMonetaryCostsCommercialkWhrate,sessioncharges,chargingefficiencyloss}Includedintheretailpriceofgasoline/dieselfuelEVhighwayregistrationtaxesCostofchargerandinstallationDeadheadmilesDeadheadmiles(verysmall)TimeCostsTimetoconnectanddisconnectacharger,syncmobileappwithchargerandmakepayment,andwaitforthechargingprocesstocomplete(a)Timetoconnectanddisconnectagaspump,syncmobileapp(forsomeusers),makepayment,andwaitforthegastofillFrequenttripstoacommercialchargerLessfrequenttripstoagasstationAdditionaltimerequiredduetochargerbreak-downs,andsoftwareandmobileappsyncissues,whicharecommonwithEVchargersSmallnumberofinterruptionsatgasstations,whichareveryreliableComparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCKeyFindings82.EVSOFTENCOSTMORETOFUEL2.ThedirectmonetarycostsoffuelingEVsisoftenhigherthanforcom-parableICEvehicles.Weanalyzedthedirectmonetarycostsoffuel-ingforsixcategoriesofrepresentativevehicles.WeincludedallthedirectmonetarycostslistedinTable1forbothICEandEVs.Ouranalysisincludedthefollowingsteps:•OurrepresentativevehiclesincludedEVandICEcarsintheentry-level,mid-pricedandluxurysegments.3•WerecognizethatEVdriverschoosebetweenhomeandcommer-cialchargersdependingontheirdrivingpatterns,infrastructureavailabilityandotherindividualcircumstances.Therefore,weassumedsomeEVownersprimarilyusehomechargerswhileoth-ersrelyprimarilyoncommercialchargers.•Weusedtheretailpriceofgasoline,whichisinclusiveofroadtaxesandthecostofoperatingthepump.Wecomparedthiswiththecostofelectricityatcommercialandresidentialchargers,andtheadditionalregistrationtaxesleviedinlieuofgastaxesonEVs.Thisisascloseaspossibletoanapples-to-applescomparison.•WealsoaccountedfortheburdenofdeadheadmilesforEVs,whichissignificantlyhigherthanforICEcars.Oncethesecostswereincluded,wecalculatethatEVsoftencostmoretofuelthansimilarICEvehicles.FortheexamplesetinMichigan,thedirectmonetarycoststodrive100milesinanICEvehicleisbetween$8and$12,andinanEVisbetween$12and$15.Asummaryofthisdirectmonetarycostcompar-isonisinTable2onpage9.3.Forsegmentinformation,pleasereferto“Methodology”onpage22ofthisreport.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCKeyFindings9Note:(a)DirectMonetaryCostsforICEandEVvehiclesrefertothefirstfourcategoriesofcostsinTable1,“ComparisonofEVandICEFuelingCosts,”onpage7.Thisincludesthecostoffuel/electricity,costofcharger,registrationorgasolinetaxes,anddeadheadmiles.(b)Costsareestimatedformid-year2021.Forcalculationsandassumptions,refertoTable5,“DirectMonetaryCostsofFuelingICEandEVsasofMid2021,”onpage27.TABLE2.DirectMonetaryCostsofFuelingEVsandICECarsEntryICECommercialfuelingMid-PricedICECommercialfuelingLuxuryICECommercialfuelingMid-PricedEVMostlyCommercialChargingLuxuryEVMostlyCommercialChargingLuxuryEVMostlyHomeChargingPerYearfor12,000miles$1,030$1,030$1,512$1,554$1,862$1,698Per100Miles$8.58$8.58$12.60$12.95$15.52$14.15Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCKeyFindings103.EVFUELINGCOSTSVARYWIDELY3.FuelingcostsvarymuchmoreforEVsthanforICEvehicles.Ouranalysis,whichtakesintoaccountcommercialandresidentialrates,producesanothersurprisingresult:fuelingcostsforEVsvarymuchmorethanICEvehicles.Thisiscausedbymultiplefactors.•Hugelyvaryingelectricpowercosts.Commercialchargerratesareoftendoubleortriplethatofresidentialrates.Evenresidentialratesoftenchange50%ormoreduetoTime-of-Use(ToU)rates.Bycomparison,gaspricesvarybyabout10%orless.•Chargingspeedthatvarieswiththetypeofcharger,levelofchargeinthebattery,temperature,andworkingstatusofthecharger.•PricingatcommercialchargersthatincludeacombinationofperkWh,perunittime,andpersessioncosts.ThisproduceschargingcoststhatvaryconsiderablywhencalculatedonaperkWhbasis.Sources:AEGmarketresearch(2021)atChargePoint,ElectrifyAmerica,Greenlots,andEVgostations;ratesshownonPlugShare,ChargePoint,andGreenlotsappsasofJan-Aug2021.Notes:(a)ThesepricesarefromasampleintheMidwestregion,andaresetupbyalocalentity(oftentheownerofthechargingsta-tion)thatisdifferentfromthechargingnetwork.(b)“Sessiontime”referstoafixedfeeforeverychargingsessionatacommercialchargerthatisseparatefromthekWhrate.Ourcalculationspresumethateach“sessionfee”isassoci-atedwithonechargingsession.Thisimplies,ashortchargingsessioncancostover$1.00perkWh.(c)ChargingefficiencyreferstothefractionofpowerdeliveredtotheEVbatteryfromthepowertransmittedbythecharger.TABLE3.VaryingCostsofEVCommercialChargersResidentialcosts15¢-25¢perkWh“timeofuse”ratesandchargingefficiencylosscancausethistovarysignificantlyCommercialcosts(a)30¢-43¢perkWh33¢-66¢perkWhwithsessiontimecharges(b)Chargingefficiency(c)85-95%Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCKeyFindings114.EVSIMPOSECONSIDERABLETIMEBURDENS4.Findingreliablecommercialfastchargers,andwaitingforEVstocharge,imposesignificanttimecostsondrivers.Evenunderidealconditions,ittakessubstantiallylongertofuelEVsthanforcompara-bleICEcars.Realworldconditionsoftenimposeadditionalburdens,includingthesetwo:1.Drivingandchargingtime:WeestimatethatforatypicalEVdriverinanon-ruralarea,itoftentakesabout20minutestodrivetoareliableDCfastcharger.Itoftentakesanother20to30min-utesforthechargingprocesstocomplete.Ofcourse,thisisforfastDCchargers.SlowerL2chargersaremuchmorecommon,butchargingatthesecantakemultiplehours.Ofcourse,thiswillvaryconsiderablydependingontheresidentlocationofthedriver,andtheiruseofthevehicle.2.Recurrentreliabilityproblems:EVdriversfacerecurringproblemsatchargerssuchasbreakdowns,softwarebugs,delaysinsyncingthemobileapplicationwiththecharger,chargeroutputbeingsig-nificantlylowerthanadvertised,andoutrightfailures.4Thisisinadditiontotheproblemofvehiclesblocking(or“icing”)EVchargingspots.5Onlineforumsarefullofcommentsfromdriversexpressingfrustra-tionabouttheseproblems.6Moreover,ourfirst-handexperiencecon-firmstheexistenceoftheseproblems.7Fortheinfrastructureavailableasofthemid-2021inmetropolitanareasoftheUS,weestimatethattypicaltimecostsforEVdriversareaboutfivetotentimesthatofcomparableICEdrivers.4.Asindicatedinthedetailedcalculationsbelow,weincludeamodestallow-anceoftimeforachargingproblemaboutonceeverytwentyvisitstoacom-mercialcharger.See“Step1:Calculatinghoursspentonfuelingpermonth”onpage28.Asforthedrivingtimecosts,forsomedrivers,thiswillbeasubstantialunderestimate;forothers,itwillbeanoverestimate.5.Whilethe“iced”verbforthisactionisobviouslyrelatedtodriversofICEvehiclesthatblockEVchargers,anothercommonproblemistheblockingofEVchargerspacesbyEVsthatarenolongercharging.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCKeyFindings12ESTIMATINGIMPLICITTIMECOSTSEstimatingimplicittimecostsisaninherentlysubjectiveprocess.Weincludeitonlyasareferencetoquantifythetimespentonrefueling.Formoredetails,pleasesee“ImplicitPricingofTimeCost”onpage20and“SeparatingDirectMonetaryCostsfromImplicitTimeCosts”onpage21.ImplicitTimeCostsatTwoReferenceRatesUsingrelativelymodestassumptions,wecanestimateanimplicittimecostforbothEVsandICEvehicles.Weprovidetworeferencecostperhourratestocalculatethetimecost:1.Minimumhourlywage:Atthisrate,thetimecostforanEVdrivercanbeequivalenttoabout$50amonthormore,butlessthan$10foranICEdriver.2.Hourlywageata$70,000annualsalary:Thecommensuratehourlywageforanindividualmaking$70,000annuallyisabout$33.Thisimpliesatimecostofaround$200permonthforanEVdriver,but$33foranICEdriver.AsummaryofthisimplicittimecostcomparisoninTable4onpage13.Formotivationontheserates,sources,anddescriptionofcalculations,pleasesee“ImplicitPricingofTimeCost”onpage20.6.Forexample,PlugShare(anonlineEVchargingmap)includesa“reliabilityrating”foreachchargingstationthathighlightstherecentworkingconditionofthecharger,andasksuserstoclickaniconthatindicatesthatthechargerdidordidnotwork,aswellasreportthehighestchargingspeedachieved.Areviewoftheseconfirmstherecurringreliabilityissueswithcommercialchargers,aswellasdifferencesintheconsumer-reportedreliabilityofdiffer-entapplicationsanddifferentnetworks.Recently,FordMotorCompanyannouncedtheywouldpayfor“chargingangels”whowoulddrivearoundtocheckonEVchargersandfixnon-work-ingchargers.Thisisanimplicitconfirmationofthereliabilityproblem.SeeRamsey(2021).7.Motivatedreaderswithaccesstotheseforumscanfindnumerousentriesfromtheauthorsonchargingspeed,whetherthechargerwasblocked,whetheritwasworking,andinsomecaseswhetherittookmultipleattemptstogetachargertowork.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCKeyFindings13Source:AndersonEconomicGroup(2021)Research.Note:TimeCostsforICEandEVvehiclesrefertothethreecategoriesoftimecostsinTable1,“Compar-isonofEVandICEFuelingCosts,”onpage7.Theseincludechargingtimeatacommercialchar-ger,ortosetupanddisconnectaresidentialcharger;tripstoacommercialchargeroragasstation,andadditionaltimerequiredduetooccasionalunreliabilityofEVchargers.Thechargingtimeatresidentialchargersisnotincluded.Forcalculationsandassumptions,refertoTable6,“EstimationofImplicitTimeBurdenasofMid-2021,”onpage30and“EstimationofImplicitTimeCostasofMid-2021”onpage31.Seealso“ImplicitPricingofTimeCost”onpage20,and“SeparatingDirectMonetaryCostsfromImplicitTimeCosts”onpage21ontheinherentlysubjectivenatureofcalculatingtimecosts.TABLE4.ImplicitTimeCostComparisonEntryICECommercialfuelingMid-PricedICECommercialfuelingLuxuryICECommercialfuelingMid-PricedEVMostlyCommercialChargingLuxuryEVMostlyCommercialChargingLuxuryEVMostlyHomeChargingTypicalhoursspentonfuel-ingpermonth1orless1orless1orless75.754.5Impliedtimecostspermonth(atminimumwage)$9.65orless$9.65orless$9.65orless$67.55$55.49$43.43Memo:Impliedtimecostspermonth(athourlywagerateof$33)$33orless$33orless$33orless$231.00$189.75$148.50Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCUnpackingtheCostofEVCharging142.UnpackingtheCostofEVChargingVehicleownersarequitefamiliarwiththecostofdrivinganICEcar.OrganizationssuchastheAmericanAutomobileAssociation(AAA)havecalculatedcostsofICEvehicleoperationfordecades,andtheIRSannuallyrevisesasafe-harborfigureonreimbursementfordrivingexpenses.8Fuelingisamajorcomponentofthesecosts.FuelingchargesforICEvehiclesincludethecostofrefinedgasolineordieselfuel,stateandfederalexcisetaxesthatfundroadmaintenance,andstatesalestaxes.Allarebundledintotheretailpriceofgasoline(ordieselfuel)atcommercialgasolinestationsintheUnitedStates.TocalculatethetruecostoffuelingEVs,wemustincludethesameexpensecategories.BecausetheyarenotbundledastheyareforICEvehicles,wemustaccountforeachseparatelybasedonthefourcategoriesofdirectmonetarycosts(below).DirectMonetaryCostsofChargingElectricVehicles:1.Commercialandresidentialelectricpowercosts.Consumerscanchargetheirvehiclesatbothresidentialandcommercialchargers.Aswedescribefurtherbelow,fuelingtimeandfuelingcostsvaryconsid-erablyamongcommercialandresidentialchargers.Theyalsovarybasedondifferentchargingspeeds,andfordifferenttypesofchar-gers.8.AAAfiguresareintendedtoapproximatethetotalcostofowningavehi-cle,expressedasaper-milefigure,forautomobilesthatareregularlydrivenandmaintained.IRSfiguresareintendedtolimitdriverdeductionsforbusi-nessandcharitablepurposes.Assuch,theyshouldnotbeconsideredesti-matesofthetotalcostofcarownership.AAA-publishedownershipcostsfor2021:•83¢for10,000annualmiles.•64¢for15,000annualmiles.•55¢for20,000annualmiles.IRS-issuedstandardmileageratesfor2021:•56¢forbusinessdrivenvehicles.•16¢formedicaldrivenvehicles.•14¢forcharitableorganizationdrivenvehicles.SeeAAA(2021)andInternalRevenueService(2021).Theseandothersourcesarelistedin“References”onpage32.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCUnpackingtheCostofEVCharging15Ouranalysisestimatesthecostsofresidentialandcommercialchargingseparately.Forhomecharging,weassumeresidentialrates(including“timeofuse”ratesforsomehomes).Forcommercialcharging,wecalculateacostthatrepresentsthesumofper-kWhcharges,subscriptionfees,perunittime,andpersessioncosts.Charginganddischargingabatteryinvolvesenergylossesintheformofheat.Thesearecapturedinthe“chargingefficiency”fraction,whichweapplytobothresidentialandcommercialcharging.9Ingeneral,commercialchargingcostsaremuchhigherthanresiden-tial,althoughthecostofthechargeritselfmustbeaddedtothetotalcostofresidentialcharging.Weincludethisexpenseasaseparatecat-egoryforthosewhorelyuponhomecharging.Weassumethecostofahomechargerisspreadovermultipleyears.2.EVregistrationtaxes.Theretailpriceofgasolineincludesexcisetaxestobuildandmaintainroads.Theretailcostofelectricitydoesnot.Asaresult,somestateshaveimposedadditionalregistrationtaxesonEVstoensurethatEVdriverspayaroadtaxburdenthatis(atleastroughly)similartothatofICEvehicledrivers.Michigan,forexample,leviesanadditionalregistrationcostbetween$135and$235formostelectricvehicles.Californialeviesabout$100,whileTexasisconsideringafeebetween$190to$400.Somestatesareconsideringafeeupto$1,000.10AsEVsalesincrease,weexpecteverystatetoimposesomekindofroadusagefeeorchargeforEVdrivers.3.Costofchargersandtheirinstallation.Theretailgasolinepriceincludesthecostofoperatingacommercialgaspump.Similarly,theretailelectricitychargeleviedbycommercialEVchargersincludesthecostofthecommercialcharger.However,thecostofinstallingandoperatingahomechargermustbeaddedtotheresidentialcostofelectricity.4.Deadheadmiles.PoorEVcharginginfrastructureintheUnitedStatesmeansdriverstypicallyexpend“deadheadmiles”togettoafastDCcharger.11Bycomparison,mostmetropolitan-areaICEvehicledrivers(andmanyruraldrivers)havereadyaccesstooneormoreconvenientgasolinestations.9.Seethediscussionandreferencesrelatedtochargingefficiencyunder“CalculatingDirectMonetaryCostsofRefueling”onpage2410.Seealso“CalculatingDirectMonetaryCostsofRefueling”onpage24.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCUnpackingtheCostofEVCharging16Forourreal-worldcostcomparison,welookedatgeographicanalysisoffastDCchargerlocations,utilizedEVdriverreportsonforums,andreliedupontheauthors’EVdrivingexperiencetoestimatetheadditionaldrivingrequiredtorefuelanEV.Noteon“Free”Chargers.Somemunicipalities,colleges,andbusinessesoffer“free”chargingforalimitedamountoftimeinspecificplaces.Theseservicesareoftencombinedwithparking,offeredasaconveniencetoshoppers,orprovidedasabenefittoemployeesorvisitors.Werecognizethattheseinvolveacostthatmustbepaid,andwhichmaybeembeddedinpropertytaxes,tuition,consumerprices,orinvestorburdens.Wepricethemhereusingcommercialrates.NoteonBundledChargingServices.AcommonpracticeinthecurrentmarketistobundleaspecificchargingservicewiththepriceofanewEV,oftenforthefirsttwoorthreeyears.Forexample,vehiclessoldbydealersrepresentingVolkswagenGroupcompanies(includingVW,Audi,andPorscheintheUnitedStates)typicallyhaveabundledservicewithElectrifyAmerica.VehiclessoldbyTeslahaveaccesstotheTeslanetworkofchargers,withinacertainallowance.Inthiscase,theconsumerultimatelypaysforthebundledservicewiththepriceofthevehicle.Torecognizethis,wepricethecostsofbundledcommercialchargingservicesatcommercialrates.11.DriverreportsonEVforumsarefullofcommentsrelatedtotheproblemoffindingareliablecharger,andlamentsregardingthelackoffastDCchar-gers.Theburdenoffindingchargersontripscanbeacute.Somechargingapplica-tions(e.g.,PlugShare2021)offertripplanningwithuser-adjustableparame-tersregardinghowmanymilesadriveriswillingtogoofftheirintendedroutetofindacharger.Electricvehiclesthemselvestypicallyhavesophisti-catedapplicationstoestimatetherangeavailableonthecurrentcharge,aswellasassistanceinfindingchargerstouseonatrip.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCUnpackingtheCostofEVCharging17FIGURE1.DirectMonetaryCostsofFuelingICEVehiclesandEVsDirectMonetaryCostsofFuelingICEandEVsCostper100miles;DifferentVehicleSegmentsandVaryingUseofCommercialEVChargers$8.58$14.15$12.95$15.52$8.58$12.60EntryICECommercialMid-PricedICECommercialLuxuryICECommercialMid-PricedEVMostlyCommercialLuxuryEVMostlyCommercialLuxuryEVMostlyHomeCompositionofDirectMonetaryCosts02468101214Mid-PricedEVMostlyCommercialMid-PricedICECommercial$FuelandCommercialPump/ChargerRoadTaxes/Add'lRegistrationCostsHomeChargerCostsDeadheadMilesSource:AndersonEconomicGroup(2021)research;basedatafromconsumerlogbooks(pricesandchargingmodalities);EIA(gasolineprices);roadandadditionalregistrationtaxesasleviedinthestateofMichigan.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCUnpackingtheCostofEVCharging18TimeCostsforChargingEVs.Weestimateatimeburden,andanimplicitcostforthattime,requiredtochargeanEV.5.Timerequiredtodrivetoachargerandrefuel.ThetimeburdenimposedbyfuelingatacommercialEVchargerissignificantlyhigherthanfuelingacomparableICEcaratagasstation.EVcharginginvolvesthefollowingtimecosts:•Drivingtoaworkingcharger.Thesemilesaresometimesknownas“deadhead”miles,sincetheirprimarypurposedoesnotgetthedrivertothedesireddestination.•Timetosetupandstartthecharger.Thisofteninvolvessyncingasmartphoneappwiththecharger,makingpaymentoraccountarrangements,andwaitingforthechargertoactivateandbegincharging.(Insomecases,italsoinvolvessettingupanapplicationforanewchargingnetwork).•Waitingforthechargingprocesstocomplete.FastDCchargerstypicallyenablethedrivertocompleteachargein20to30minutes.SlowL2chargers,however,maytakehours.Itisworthnotingthatevenafter30minutesofuseatafastDCcharger(andfourhoursofchargingatanL2charger),anEVbatteryisnotlikelytobecom-pletelycharged.12Inadditiontothesetime-intensivetasks,EVdriversbeartheburdenoffindinganavailableworkingcharger.Therecurringphenomenonofunreliable,non-working,orblocked(“iced”)chargersaddssignificantlytoadriver’stimeburden,butiscommonlyignoredinotheranalyses.TimeCostAnalysis.Foradescriptionofthemethodandsourcesweusetocalculatethetimeburdenandestimatetheimplicitcosts,pleasesee“CalculatingImplicitTimeCostsofRefueling”onpage28.12.Thispresumesthatavehiclehasmorethan15%butlessthan50%chargeatthestartofthesession.ForanL2delivering6kW,chargingfor4hoursmayadd24kWhtothebattery.ThisisaboutonethirdofthecapacityofsomecurrentEVs.Chargingfor30minutesata50kWhfastDCchargermightaddasimilaramountofcharge.Theactualchargewillvaryasdiscussedbelowunder“SeparatingDirectMonetaryCostsfromImplicitTimeCosts”onpage21.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCUnpackingtheCostofEVCharging19FIGURE2.TimeCostofFuelingICEVehiclesandEVsTimeCostofFuelingICEandEVsHoursofTimeSpentonRefuelingperMonth,DifferentSegmentsandChargingModalities14.575.7511EntryICECommercialMid-PricedICECommercialLuxuryICECommercialMid-PricedEVMostlyCommercialLuxuryEVMostlyCommercialLuxuryEVMostlyHomeCompositionofTimeCosts01234567Mid-PricedEVMostlyCommercialMid-PricedICECommercialHoursCommercialRefuelingTravellingDeadheadMilesHomeRefuelingAdd'lUncertainitySource:AndersonEconomicGroup(2021)research;basedatafromconsumerlogbooks(pricesandchargingmodalities);stopwatchmeasurementsoftime.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCUnpackingtheCostofEVCharging20COMPARISONWITHOTHERREPORTSONEVFUELINGCOSTSManycommonly-citedstudiesofthecostofdrivingEVsincludeonlythecostofelectricpowerforEVs,butcomparethiswiththetotalcostoffuelinganICEvehicle.Moreover,manypresumedriverscanroutinelychargeatfavorableresidentialrates,ignoringthemuchhighercostsofthecommercialchargersEVdriversmustusewhentheyareawayfromaresidentialcharger(iftheyhaveone).Threesuchanalysesare:1.ElectricCarReport(2020):Estimatesfuelingcostsavingsof40eurospermonthforEVsusingresidentialelectricityrates.Ignorescommer-cialchargingcosts,highwaytaxes,chargerinstallationcosts,anddeadheadmiles.2.ConsumerReports(2020):IncludesthecostofcommercialchargingandestimatesanannualEVsavingsofabout$1,000.Excludesthecostofadditionaltaxes,chargerinstallation,anddeadheadmiles.3.Model3Guru(2021):EstimatesthatabaseTeslaModel3costslessthanhalfthecosttofuelacomparableBMW3-seriessedanperyear($481versus$1,029,basedonOhiocostsanddefaultvaluesforgaso-lineandelectricity).Ignorescommercialchargingcosts,additionaltaxes,chargerinstallationcosts,anddeadheadmiles.AmoresophisticatedanalysisbyBorlaug(2019),includestheamortizedcostsofaresidentialcharger,andalsorecognizeschargingefficiencylossesthatarebornebyresidentialchargerusers.IMPLICITPRICINGOFTIMECOSTEverydriverwillvaluehisorhertimespentchargingavehicledifferently.Toprovideanestimateforthetimeloss,wefollowalongtraditionineconomicsofusingawageratetoimplicitlyvaluelosttime.Theconceptofthecostoftimeisincorporatedintheeconomicprincipleofopportunitycost,whichrecognizesthatbeingrequiredtodoonethingmeansyoucannotdoothers.Itisalsoevidentintheubiquitouspracticeofchargingmoreforconvenienceorimmediateservice.Examplesincludevaletandshort-termparking,expressdelivery,certaintollroads,andpriorityboardingonairlines.Forthisreport,wereferencetwoimplicittimeprices:1.Astateminimumwage,and2.Atypicalwageforaworkerwithsufficientincometoqualifyforaluxurysegmentvehicleloan.Theseareintendedasbroadreferencepointsreaderscanusetoassessapersonaladditionaltimeburdenfordrivinganelectricvehicle.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCUnpackingtheCostofEVCharging21SEPARATINGDIRECTMONETARYCOSTSFROMIMPLICITTIMECOSTSThisreportseparatesimplicittimecostsfromdirectmonetarycosts.Directmonetarycostsareexplicit,andcanbeobjectivelymeasured.Timecostsareinherentlysubjective,andcanonlybeimplicitlyestimated.Weincludethelatterasagaugeforthereader,butdonotaddtimecostestimatestothedirectmonetarycosts.FUELINGCOSTSNOTITEMIZEDINTHISREPORTWhilethisanalysisproperlyaccountsforfourcategoriesofdirectmonetarycosts,anddoessoforbothEVsandICEvehicles,thereareahandfulofknowncoststhatwedonotitemizeorinclude,suchas:1.PhantomDrain.ElectricvehiclesandICEvehiclesrequireacertainamountofelectricpowerwhiletheyarenotbeingactivelydriven.Weignorethisinouranalysis.2.ElectricalPowerUsageWhileCharging.ItiscommonforEVdriverstousevehiclefeatureswhileatacommercialcharger.Thisuseincludeslights,heaterorairconditioner,electricseats(includinganyheatingorcooling),andmusicoraninfotainmentsystem.Inaddition,EVstypicallyuseinternalsystemstomonitorthechargingprocess.ForEVdrivers,thecostofusewhilefuelingismuchhigherthanforICEvehicles.Forsafetyreasons,gasoline-poweredcarsmustbeturnedoffwhilerefueling,andmanystationsrequireapersontobeoutsidethevehicleinviewofthepumpwhileitisoperating.More-over,theveryshorttimerequiredtofillagasolinetankmeansthatanyusageduringthattimeissmall.Weignorethiscategoryofcosts.3.BatteryDegradation.Allvehiclesdegradeovertime.Battery-electricvehicleshaveaprimarysystemthatpredictablydegrades,namelythebattery.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCMethodology22MethodologyVEHICLESEGMENTSTheautomotiveindustryoftenclassifiesvehiclesbycategoriesorsegments.WecategorizeEVandICEvehiclesintosixsegments:entrylevelICE,mid-pricedICE(includingtrucksandcrossovers),luxuryICE,mid-pricedEV(mostlycommercialcharging),luxuryEV(mostlyhomecharging),andluxuryEV(mostlycommercialcharging).13AnentrylevelEVcostsalmostasmuchasanewLexusICEcar(fromtheluxuryICEsegment).WethereforeexcludethiscategoryandlimitouranalysistopurchaseanddrivingdecisionsmadebynewEVownersinthemid-pricedandluxurycarsegments.Somemid-pricedcarsintheEVcohortarethe:•MiniCooperElectric•NissanLeaf•KiaNiro•ChevroletBoltEV•TeslaModel3SomeluxurycarsintheEVcohortarethe:•PorscheTaycan•TeslaModelSandModelX•JaguarI-Pace•Polestar2DATAONDIRECTMONETARYCOSTOFFUELINGThisanalysisusespricesforgasolineandelectricityfromthestateofMichigan.BecauseICEcarsarealmostalwaysfueledatcommercialgasstations,weusestandardgasolinepricesforICEcarfuelingcosts.However,EVdriversmustchoosebetweenhome/workoracommercialcharger.WethereforeweighEVrefuelingcostsusingbothresidentialandcommercialchargingprices.Toillustratetherangeofcostsfacingdrivers,wecreatethreescenariosforbothICEvehiclesandEVs.Thesevarybyautosegment,andbychargingmodality.13.ThesesegmentsarefurtherdefinedintheAndersonEconomicGroup’sAutomotiveDashboard(http://www.andersoneconomicgroup.com/automo-tive-dashboard/).Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCMethodology23•WepresumeallICEvehicledriversrefuelatcommercialgasolinesta-tions.•WepresumesomeEVdriversrelyprimarilyoncommercialchargers,andsomeonresidentialchargers.•Weestimatechargingcostsfortheserepresentativedriversusingaweightedsumoftheresidentialandcommercialchargingcosts(includ-ing,whenapplicable,thecostofahomeL2charger).CONSUMERBEHAVIORANDACTUALRELIABILITYWecollectedinformationonconsumerbehaviorandreal-worldEVandEVchargerreliabilityfrommultiplesources,including:1.DriverForums.Wecollectednumerousfirst-handreportsonEVowners’drivingandcharginghabits,alongwiththecostsofEVown-ership,fromforumssuchasRedditandfrombrand-focusedforumsfordriversofTeslasandPorscheTaycans.2.ChargingApplications.Dataontheextentandreliabilityofcharginginfrastructurewascollectedfromcharger-aggregationwebsites,suchasPlugShare.comandChargePoint.com.3.DrivingExperienceoftheAuthors.Theauthorshavecollectivelydriveninmultiplestatesandhavecharged/attemptedtochargeatmul-tiplecommercialstations,andhavemaintainedpersonallogsthattrackactualcosts,chargingtime,anduserexperience.RESIDENTIALELECTRICITYRATESANDTOUOuranalysispresumesthatafractionofUSconsumersaresubjecttoresidentialTimeofUse(ToU)rates.ToUrates,intendedtodiscourageelectricityuseduringpeakdemandhours,maketheper-kWhratesubstantiallyhigherduringtheday(oftenata2:1ratio).ThiscanbeanadvantageforEVownerswhochargeathome,astheyareabletomakeuseoflowerovernightrates.Itcanalsobeadisadvantagetodriverswhocannot,ordonot,shifttheirchargingtoadvantageousrateperiods.EvidencefromOntarioandareaswhereToUrateshavebeenimposedintheUSsuggesttheydoaffectbehavior.Moreover,bothanecdotalandlimitedempiricalevidenceconfirmwhatcommonsensesuggests:“earlyadopters”ofEVsareofteninterestedinToUrates.Thus,weexpecttheexpansionofToUrateswillaffectfuturechargingbehavior,especiallyamongthosewhoprimarilyrelyuponresidentialchargers.1414.SeeFaruqui,Sergici,andWarner(2017),andLessem,Faruqui,Sergici,andMountain(2017).Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCMethodology24CALCULATINGDIRECTMONETARYCOSTSOFREFUELINGThedirectmonetarycostsoffuelingarecalculatedinTable5onpage27.ItalicizedwordsmatchthenamesofrowsinTable5.Wecalculatedthesecostsasfollows:Step1:Calculatingtotalmilesdrivenperyear1.WeassumebothICEandEVsdrive12,000purposefulmilesperyear.2.WeassumeICEvehiclesmakefourtripspermonthtoagasstation,andEVs,dependingontheirchargingpreferenceandsizeofbattery,makebetween4-8tripspermonthtoacommercialcharger.“Mid-priced”EVshaveasmallerbattery(shorterrange)andneedmorefre-quenttrips.3.WeassumetwodeadheadmilesperrefuelingtripforICEvehicles,andtenforEVs.ThisdifferenceisduetotherelativeabundanceofgasstationsacrosstheUS.4.Wecalculatedeadheadmilesperyearforeachcategoryofvehiclesusingdeadheadmilesperrefuelingtrip.5.Wecalculatetotalmilesdrivenperyearbysummingpurposefulmilesperyearanddeadheadmilesperyear.Step2:Calculatingdirectfuelcostperyear1.WecollectmeasuresforICEandEVfueleconomyfromdatareportedtotheEPA.2.WeassumeanEVchargingefficiencyof88%.Energyislostintheformofheatatthetimeofchargingabattery.Theseheatlossesoccurwithinthechargers(includingthetransformersandinvertersthatcon-verttheACcurrentinthegridtotheDCcurrentusedbythevehicle)andinthevehicleitselfduringthechargingprocess,suchasforcool-ingandrunningthevehicle’schargingsystem.ChargingefficiencyisapproximatelytheratioofpowerdeliveredintotheEVbatterytothepowerconsumedbythecharger.Chargingefficiencyvarieswiththetypeofcharger,chargingcable,ageofthebattery,externaltempera-ture,vehiclesystem,andotherfactors.Someanalysesestimatethisefficiencytobebetween80%to84%;othersplacethefigurecloserto90%.AstraightforwardexplanationwaspresentedbyVoelcker(2021)inCar&Driver.ExperimentalresultsareshowninKostopou-lus(2020).SeeSpeakEV(2019),Kane(2018),BatteryUniversity(2017)andBorlaug(2019).Theconsumerunambiguouslybearsthechargingefficiencylossesatresidentialchargers,asthemetereduseofenergyispartiallylosttoheat.Wewereunabletodeterminethemannerinwhichmultiplecom-mercialchargingservices,withvaryingequipment,metertheenergythatislosttoheatwithintheirchargers.Asanestimateoftheselosses,Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCMethodology25weusethesamechargingefficiencyratioasforresidentialchargers.3.Weassumefractionsfor“homeshare”and“commercialshare”dependingontheamountoffuelobtainedfromthesesources.ForICEcars,100%offuelisfromagasstation.EVdriverswhorelyprimarilyoncommercialchargersanduseanL1chargerathomemaygetonly10%oftheirtotalchargefromresidentialcharging.4.WecollectpricesforgasolinefromEIA;forresidentialchargingfromConsumersEnergyandDTEElectric;forcommercialchargingfromChargePoint,ElectrifyAmerica,Greenlots,andEVgostations.5.Wecalculatetheweightedcostoffuel(“weightedaveragecostperkWh”and“weightedaveragecostpergallon”)usingfractionsandprices.6.Finally,wecalculatedirectfuelcostperyearusingtotalmilesdrivenperyear,fueleconomy,chargingefficiency,andweightedcostoffuel.Step3:Calculatingadditionalchargercostperyear1.WeassumedriverswhorelyonmostlycommercialcharginghaveonlyanL1chargerforhome-charging,andthosewhorelymostlyonresidentialcharginghaveanL2charger.2.WecollectthecostofchargersandinstallationfromEdmunds(2020),Graham(2021),HomeServe.com(2021),andadvertisingfromutilitiessuchasDTEEnergy(n.d.).Wethencalculateanaverage.3.Wecalculatetheadditionalchargercostperyearbyamortizingthecostofchargersoverfiveyears.Step4:Calculatingadditionalregistrationtaxesperyear1.WecollecttheadditionalEVregistrationtaxesperyearfromtheMichiganSecretaryofState’swebsite.Thisadditionalregistrationfeevariesbetween$135to$235peryear.Weuse$200tobearepresenta-tiveofthisfee.Thisfiguremakesanallowanceforthevarianceoffeesacrossstates,andanyincreaseovertime.Step5:Calculatingdirectmonetarycostsoffueling1.Wecalculatethefuelingcostperyearbysummingthecostscalcu-latedinSteps2to4.Step6:Calculatingexcisetaxesonfuelperyear1.Wecalculateexcisetaxesonfuelperyearusingfuelunitsused,andstateandfederalfueltaxes.Fueltaxesare:•26.3¢pergallonleviedbytheStateofMichigan.•18.4¢pergallonleviedbythefederalgovernment.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCMethodology26Step7:Calculatingcostofdeadheadmilesper100purposefulmiles1.Wecalculatecostofdeadheadmilesper100purposefulmilesusingdeadheadmilesperyearandcostoffueling100purposefulmiles.SENSITIVITYANALYSISWeprovidesixscenariosthatvarybytypeofvehicle,vehiclesegment,andamongtheEVs,chargingmodalities.Theserepresentabroadrangeofpotentialdrivers.Wealsomakereasonableassumptionsforthecostsandefficienciesinvolved,inordertomakedirectlycomparablecostestimatesforICEandEVsrepresentedbythesescenarios.Weperformedasetofsensitivityanalysestoassesstheeffectonourfindingsoftheseassumptionsandofthescenarioswepresent,whichwesummarizehere:1.VaryingresidentialchargingandToUrates:Consumersthatareabletorelymoreonresidentialchargingwill,ingeneral,incurlowercosts.ThisisespeciallythecaseiftheconsumertakesadvantageofToUrates.Ontheotherhand,manyconsumerswillfindthattheirrelianceoncommercialchargersislargerthanwepresentinthesescenarios,orwillbehitharderbyexpensiveToUrates.2.Differentchargingefficiency:Wemakeanallowanceforheatlossesduringcharging,andnotethattheconsumerunambiguouslybearsthefullcostofsuchlossesinresidentialcharging.Totheextentcommer-cialchargingiseithermoreefficient,orthatheatlossesarenotpartofthemeteredenergycosttotheconsumers,thatfractionoftheeffi-ciencylosseswillbelower.However,ourliteraturereviewindicatesthatchargingefficiencylossesareoftenhigherwithhigh-currentcharging,andthereforetheconsumercostscouldbehigher.3.Drivingbehavior:Forbothgasolineandelectriccars,driverbehavioraffectsfueleconomy.4.Changingtaxlaws:WemakeanallowanceforstateregistrationtaxesonEVs.Individualstateswill,ofcourse,varyinthesetaxes.Further-more,atleastforsometimeEVdriversinsomestatesmayavoidthedirectroadtaxburdenthatisbornebyotherdrivers.Onthewhole,thesesensitivityanalysesconfirmthegeneralfindingsstatedinthereport,anddemonstratehowindividualcostswillvarybydriver,bystate,andbyvehicle,aswellasbydrivingandchargingbehaviorthatvariesduringtheyear.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCMethodology27TABLE5.DirectMonetaryCostsofFuelingICEandEVsasofMid2021EntryICECommercialFuelingMidͲPricedICECommercialFuelingLuxuryICECommercialFuelingMidͲPricedEVMostlyCommercialChargingLuxuryEVMostlyCommercialChargingLuxuryEVMostlyHomeChargingPurposefulmilesperyear12,00012,00012,00012,00012,00012,000Deadheadmilesperyear969696960720480Totalmilesperyear12,09612,09612,09612,96012,72012,480Fueleconomy:milespergallon(a),(c)333326ͲͲͲFueleconomy:milesperKWh(b),(c)ͲͲͲ4.23.33.3Fuelingefficiencyratio(d)1110.880.880.88Fuelunitsused366.5366.5465.23,506.54,380.24,297.5fractions:commercialshareperunitoffuel1110.70.70.4fractions:homeshareperunitoffuel0000.30.30.6Commercialunitcostoffuel(pergallonorperkWh)(e)2.81$2.81$3.25$0.43$0.43$0.43$Residentialunitcostoffuel(pergallonorperkWh)Ͳ$Ͳ$Ͳ$0.17$0.17$0.17$weightedaveragecostperunitfuel(pergallonorperkWh)2.81$2.81$3.25$0.35$0.35$0.27$Fuelingcostperyear1,030$1,030$1,512$1,234$1,542$1,178$Homechargercostperyear(f)Ͳ$Ͳ$Ͳ$120$120$320$Ͳ$Ͳ$200$200$200$Totalfuelingcostperyear$1,030$1,030$1,512$1,554$1,862$1,698Costperpurposefulmile0.09$0.09$0.13$0.13$0.16$0.14$Fuelingcostper100purposefulmiles8.58$8.58$12.60$12.95$15.52$14.15$Memo:Excisetaxesonfuelperyear(h)163.85$163.85$207.96$ͲͲͲMemo:Costofdeadheadmilesper100purposefulmiles0.07$0.07$0.10$1.04$0.93$0.57$Assumptionsforeachscenario:Deadheadmilesperrefuelingtrip222101010No.homechargingsessionspermonthͲͲͲ252525Numberofcommercialcharger/gasstationtripspermonth444864Notes:(c)Comparisonoffuelefficiencyisforcombinedcity/highwayasreportedtotheEPA.(b)UsingEPAͲreportedefficiencyinkWh/100miles,translatedintomilesperkWhforcomparisionwithMPG.Thehighestreportedefficiencyfigureforthe2021modelyearwas2.9miles/kWhfortheTeslaModelS,PorscheTaycan4S,andPolestar2.(a)EPAͲreportedluxurysegmentfueleconomyincludedmodelyear2021BMW530ixdriveat27mpg;CadillacCTSat26mpg;andMercedesͲBenzA2204maticat28mpg.Reportedfueleconomyfor"familysedans"includedHondaInsight(hybrid)at52mpg;ToyotaPrius(hybrid)at52mpg;HondaAccordat33mpg;ToyotaCamryXLE/XSEat31mpg;andChevroletMalibuat32mpg.Reportedfueleconomyfor"entrylevel"includedNissanVersaat35mpg;HyundaiAccentat33mpg;KiaRioSedanat36mpg;KiaForteat31mpg;SubaruImprezaat32mpg;ChevroletSparkat33mpg;andMitshubishiMirageat36mpg.Additionalregistrationtaxperyear(g)Ͳ(d)Adjustsforenergylostasheatfromthebatteryandchargeratthetimeofcharging.ItisapproximatelythefractionofpowerdeliveredtotheEVbatteryfromthepowertransmittedbythecharger.See"Step2:Calculatingdirectfuelcostperyear"onpage25.(e)EIAdatafor2019showspergallonpricesfor"allgrades"averaged$2.81in2018and$2.69in2019."Premium"averaged$3.25and$2.83.2020priceswereaffectedbythepandemicrecessionandwerelower.CommercialchargingratesatChargePoint,ElectrifyAmerica,Greenlots,andEVgostations;ratesshownonPlugShare,ChargePoint,andGreenlotsappsforJanͲAug2021.(g)EstimatedbasedontaxleviedbytheStateofMichigan.Weselected$200tobearepresentativefigure.Thesefeeswillvaryacrossstatesandareexpectedtoincreaseovertime.Sources:AndersonEconomicGroup(2021)researchusingassumptionslisted;basedatafromconsumerlogbooks(pricesandchargingmodalities);EIA(gasolineprices);excisetaxesandadditionalregistrationtaxesasleviedbytheStateofMichigan.(f)AppliesonlytoEVs.WeassumeanL1chargercosts$600andL2charger(withinstallation)costs$1,600.Thiscostisammortizedover5years.(h)Includedintheretailpriceofgas.Calculatedat26.3centspergallonMichiganstategastax,and18.4centspergallonfederalfueltax.Seenextpageforexpandedscenarios.EntryICECommercialFuelingMid‐PricedICECommercialFuelingMid‐PricedICECommercialFueling/HighEfficiencyLuxuryICECommercialFuelingMid‐PricedEVFullyHomeChargingMid‐PricedEVMostlyCommercialChargingLuxuryEVMostlyCommercialChargingLuxuryEVMostlyHomeChargingPurposefulmilesperyear12,00012,00012,00012,00012,00012,00012,00012,000Deadheadmilesperyear969696960960720480Totalmilesperyear12,09612,09612,09612,09612,00012,96012,72012,480Fueleconomy:milespergallon(a),(c)33334026‐‐‐‐Fueleconomy:milesperKWh(b),(c)‐‐‐‐4.24.23.33.3Fuelingefficiencyratio(d)11110.880.880.880.88Fuelunitsused366.5366.5302.4465.23,246.83,506.54,380.24,297.5fractions:commercialshareperunitoffuel111100.70.70.4fractions:homeshareperunitoffuel000010.30.30.6Commercialunitcostoffuel(pergallonorperkWh)(e)2.77$2.77$2.77$3.40$0.43$0.43$0.43$0.43$Residentialunitcostoffuel(pergallonorperkWh)‐$‐$‐$‐$0.17$0.17$0.17$0.17$weightedaveragecostperunitfuel(pergallonorperkWh)2.77$2.77$2.77$3.40$0.17$0.35$0.35$0.27$Fuelingcostperyear1,015$1,015$838$1,582$552$1,234$1,542$1,178$Homechargercostperyear(f)‐$‐$‐$‐$320$120$120$320$‐$‐$‐$200$200$200$200$Totalfuelingcostperyear$1,015$1,015$838$1,582$1,072$1,554$1,862$1,698Costperpurposefulmile0.08$0.08$0.07$0.13$0.09$0.13$0.16$0.14$Fuelingcostper100purposefulmiles8.46$8.46$6.98$13.18$8.93$12.95$15.52$14.15$Memo:Excisetaxesonfuelperyear(h)163.85$163.85$135.17$207.96$‐‐‐‐Memo:Costofdeadheadmilesper100purposefulmiles0.07$0.07$0.06$0.11$‐$1.04$0.93$0.57$Assumptionsforeachscenario:Deadheadmilespercommercialrefuelingtrip222210101010No.homechargingsessionspermonth‐‐‐‐25252525Numberofcommercialcharger/gasstationtripspermonth44440864Notes:Additionalregistrationtaxperyear(g)‐(d)Adjustsforenergylostasheatfromthebatteryandchargeratthetimeofcharging.ItisapproximatelythefractionofpowerdeliveredtotheEVbatteryfromthepowertransmittedbythecharger.See"Step2:Calculatingdirectfuelcostperyear"onpage25ofourreport.(e)EIAdataforJan‐Aug2021showspergallonpricesfor"regular"wasbetween$2.16and$3.08.Wetakeattheaverageat$2.77."Premium"pergallonwasbetween$2.77and$3.75.Wetaketheaverageat$3.40.CommercialchargingratesatChargePoint,ElectrifyAmerica,Greenlots,andEVgostations;ratesshownonPlugShare,ChargePoint,andGreenlotsappsforJan‐Aug2021.(g)EstimatedbasedontaxleviedbytheStateofMichigan.Weselected$200tobearepresentativefigure.Thesefeeswillvaryacrossstatesandareexpectedtoincreaseovertime.Sources:AndersonEconomicGroup(2021)researchusingassumptionslisted;basedatafromconsumerlogbooks(pricesandchargingmodalities);EIA(gasolineprices);excisetaxesandadditionalregistrationtaxesasleviedbytheStateofMichigan.(f)AppliesonlytoEVs.WeassumeanL1chargercosts$600andL2charger(withinstallation)costs$1,600.Thiscostisammortizedover5years.(h)Includedintheretailpriceofgas.Calculatedat26.3centspergallonMichiganstategastax,and18.4centspergallonfederalfueltax.(c)Comparisonoffuelefficiencyisforcombinedcity/highwayasreportedtotheEPA.(b)UsingEPA‐reportedefficiencyinkWh/100miles,translatedintomilesperkWhforcomparisionwithMPG.Thehighestreportedefficiencyfigureforthe2021modelyearwas2.9miles/kWhfortheTeslaModelS,PorscheTaycan4S,andPolestar2.Wehaveconsideredoneoptimisticscenariointhe"Mid‐PricedEV"segmentwherethecarischargedcompletelyathomeatfavorableresidentialrates.(a)EPA‐reportedluxurysegmentfueleconomyincludedmodelyear2021BMW530ixdriveat27mpg;CadillacCTSat26mpg;andMercedes‐BenzA2204maticat28mpg.Reportedfueleconomyfor"familysedans"includedHondaInsight(hybrid)at52mpg;ToyotaPrius(hybrid)at52mpg;HondaAccordat33mpg;ToyotaCamryXLE/XSEat31mpg;andChevroletMalibuat32mpg.Reportedfueleconomyfor"entrylevel"includedNissanVersaat35mpg;HyundaiAccentat33mpg;KiaRioSedanat36mpg;KiaForteat31mpg;SubaruImprezaat32mpg;ChevroletSparkat33mpg;andMitshubishiMirageat36mpg.Wehaveconsideredoneoptimisticscenariointhe"EntryICE"segmentthatdelivers40milespergallon.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCMethodology28CALCULATINGIMPLICITTIMECOSTSOFREFUELINGThetimecostsforfuelingarecalculatedinTable6onpage30andTable7onpage31.ItalicizedwordsmatchnamesofrowsinTable6andTable7.Wecalculatedthesecostsasfollows:Step1:Calculatinghoursspentonfuelingpermonth1.Consistentwithourpreviouscalculationsfordirectmonetarycostoffueling,weassumeICEvehiclesmakefourtripspermonthtoagasstation,andEVs,dependingontheirchargingpreferenceandsizeofbattery,makebetween4to8tripspermonthtoacommercialcharger.WefurtherassumethatallEVsconduct25home-chargingsessionspermonth.2.Weusestopwatchesandapplicationstocollecttimemeasurementsforrefuelingatgasstations,residentialchargers,andcommercialchar-gers.ForICEvehicles,weincludedthefollowingobservations.•Atypicalrefuelingsessionatacommercialgaspumptakesapproxi-mately2.5minutes,includingthetimeforacreditcardpayment.Ifweaddthistothetimerequiredtopullintoandoutofthegasstation,wearriveatafulltimeburdenofapproximately5minutes.•Arelativelyburdensometripmightinvolve:twomilesofdriving,cross-ingatrafficlightduringabusytrafficperiod,visitingabusycommercialgasstationthatrequiresashortwait,fillingthevehicle’stank,payingforthepurchase,thendrivinganothertwomilesforthereturntrip.Thissce-narioproducedafulltimeburdenofapproximately12minutes.Forelectricvehicles:•Forresidentialcharging,wemeasuredset-upanddisconnecttimesforalreadyplacedchargersatapproximately1½minutestosetupandlessthan1minutetodisconnect.Additionaltimeisneededtousethemobileapptopreparethecarforcharging,ensurethechargerisdeliveringpowertothecar,anddiagnoseanyproblems.Weallotedatotalof5minutesforthisprocess.•Weassumeresidentialchargingdoesnotimposeanadditionaltimeburden.•Forcommercialchargers,weincludedthetimeneededtodrivetoandfromthecharger(deadheadmiles),plustimetoinitiatethecharger(whichinvolvessyncingamobile-phonebasedapplicationwiththecharger).Wethenaddedtimetohookupthecharger,waitforittostart,andthechargingtimeitself.•Weestimatedthetimeburdenfordeadheadmilesusingamixofsecond-aryroadsandhighways.•Weusedactualtimemeasurementsfromnumerouscommercialchargingsessions.Becauseactualchargingpowervariesduringmostcommercialchargingsessions,thesevariationsareincludedintheactualtimemea-surement.TypicalchargingsessionsatfastDCchargersrangedfromabout20minutesto40minutes.ChargingsessionsatL2chargers,likethoseforresidentialchargers,wereoftenmuchlonger.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCMethodology29•Weincludedanadditionaltimeburden(penalty)fortheoccasionalunreli-abilityofcommercialEVchargers.Weassumeapenaltyof0.25hoursforevery1in20commercialchargingsessions.3.Wecalculatehoursspentfuelingpermonthusingtimemeasurements,numberofmonthlytrips,andpenaltyfornon-functionalchargers.4.Wecalculatetotalmonthlyhoursspentrefuelingbysumminghoursspentdrivingdeadheadmilesandhoursspentfuelingpermonth.Step2:Calculatingtimecostsofrefueling1.WecalculatethetimecostsofrefuelingusingMichigan’sminimumwageandtotalmonthlyhoursspentfuelingpermonth.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCMethodology30TABLE6.EstimationofImplicitTimeBurdenasofMid-2021EntryICECommercialFuelingMidͲPricedICECommercialFuelingMidͲPricedEVMostlyCommercialChargingLuxuryEVMostlyCommercialChargingLuxuryEVMostlyHomeChargingPurposefulmilesperyear12,00012,00012,00012,00012,000Deadheadmilesperyear9696960720480Totalmilesdrivenperyear12,09612,09612,96012,72012,480Hoursspentdrivingdeadheadmilespermonth(a)0.20.20.221.51Hoursspentrefueling0.40.40.454.253.5Totalmonthlyhoursspentontherefuelingprocess(b)1175.754.5Assumptionsforeachscenario:NumberofhomechargingsessionspermonthͲͲ252525Numberofcommercialcharger/gasstationtripspermonth44864Refuelingtime:Commercial(includesdeadheadmiles)0.150.150.150.500.500.50Refuelingtime:ResidentialͲͲͲ0.080.080.08Assumptions:NonͲfunctionalEVchargerpenaltytime(c)0.25NonͲfunctionalEVchargerfrequency(d)1in20Notes:(a)Timespentondeadheadmilesiscalculatedassumingthevehiclecoversdeadheadmilesatanaverageof40mph.thevarianceinconsumerdrivingpatternsandroundthemonthlytimeburdentoonehour.(c)TimespentdrivingtoanEVchargertofinditnotͲworking,notworkingproperly,orICE'd.(d)FrequencyoffindinganEVchargerthatisnonͲfunctional.Ͳ4Sources:AndersonEconomicGroup(2021)researchusingassumptionslisted;basedatafromconsumerlogbooks(pricesandchargingmodalities).(b)AlthoughthetotalmonthlyhoursspentrefuelingICEvehiclessumsto0.6hours(about35minutes),wemakeanallowanceforLuxuryICECommercialFueling12,0009612,0961Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCMethodology31TABLE7.EstimationofImplicitTimeCostasofMid-2021EntryICECommercialFuelingMidͲPricedICECommercialFuelingMidͲPricedEVMostlyCommercialChargingLuxuryEVMostlyCommercialChargingLuxuryEVMostlyHomeChargingTotalmonthlyhoursspentontherefuelingprocess1175.754.5Timecostper100milesatminimumwage0.97$0.97$6.76$5.55$4.34$Timecostpermonthatminimumwage9.65$9.65$67.55$55.49$43.43$Memo:TimeͲcostper100milesata$33/hourwagerate3.27$3.27$21.39$17.90$14.28$TimeͲcostpermonthata$33/hourwagerate33.00$33.00$231.00$189.75$148.50$Assumptions:Michiganminimumwageperhour(a)9.65$Hourlywagerateat$70,000/year33.00$Notes:(a)TheMichiganminimumwagewasscheduledtoincreaseto$9.87/hourin2021.However,theratedidnotincreaseastheunemploymentratefor2020exceeded8.5%.SeeMCL408.934(2),WorkforceOpportunityWageAct138of2014,asamended.LuxuryICECommercialFueling19.65$Sources:AndersonEconomicGroup(2021)researchusingassumptionslisted;basedatafromconsumerlogbooks(pricesandchargingmodalities).0.97$3.27$33.00$Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCReferences32ReferencesAAA(2021).“HowMuchDoesitReallyCosttoOwnaNewCar?”Retrievedfrom:newsroom.aaa.com/wp-content/uploads/2021/08/2021-YDC-Brochure-Live.pdfAdamGraham(2021).“Howmuchdoesitcosttoinstallanelectricvehiclechargingstationathome?”FIXR,July7,2021.Retrievedfrom:fixr.com/costs/home-electric-vehicle-charging-station.AhmadFaruqui,SanemSergici,andCodyWarner,“Arcturus2.0:Ameta-analysisoftime-varyingratesforelectricity,”TheElectricityJournal,2017.AndersonEconomicGroup(2021).AutomotiveDashboard.Retrievedfrom:andersoneconomicgroup.com/automotive-dashboard/.BatteryUniversity(2017).“BU-808c:CoulombicandEnergyEfficiencywiththeBattery.”RetrievedinOctober2021from:https://batteryuniversity.com/article/bu-808c-coulombic-and-energy-efficiency-with-the-battery.BrennanBorlaug,Gerdes,SalisburyandMuratori(2020).“LevelizedCostofChargingElectricVehiclesintheUnitedStates,”Joule,no.4,(July2020)pp.1470-1485.Supplementalinformationretrievedfrom:data.nrel.gov/submissions/130.ConsumerReports(2020).“ElectricVehicleOwnershipCosts:Today’sElectricVehiclesOfferBigSavingsforConsumers,”ChrisHarto.Retrievedfrom:advocacy.consumerreports.org/wp-content/uploads/2020/10/EV-Ownership-Cost-Final-Report-1.pdf.DTEEnergy(n.d.).“Chargingoptionsandinstallationresources.”Retrievedfromnewlook.dteenergy.com/wps/wcm/connect/dte-web/home/service-request/residential/electric/pev/charger-installation.EnergyInformationAdministration(2021).“Howmuchtaxdowepayonagallonofgasolineandonagallonofdieselfuel?”Retrievedfrom:eia.gov/tools/faqs/faq.php?id=10&t=10.EnergyInformationAdministration(2021).“MichiganStateEnergyProfile”RetrievedinAugust2021from:https://www.eia.gov/state/print.php?sid=MI.Edmunds(2020).“Thetruecostofpoweringanelectriccar.”September29,2020.Retrievedfrom:edmunds.com/fuel-economy/the-true-cost-of-powering-an-electric-car.html.ElectricCarReport(2020).“Thebigcostcomparison:electriccarvs.ICE,”BlagojceKrivevski.Retrievedfrom:electriccarsreport.com/2020/03/the-big-cost-comparison-electric-car-vs-ice/.EmmanouilD.,etal.(2020).“Real-worldstudyfortheoptimalchargingofelectricvehicles.”EnergyReports,Volume6,pp418-426.ISSN2352-4847,doi.org/10.1016/j.egyr.2019.12.008.JimGorzelany(2021).“StatethatChargeExtraFeestoOwnanElectricVehicle,”MyEV.comBlog.Retrievedfrommyev.com/research/interesting-finds/states-that-charge-extra-fees-to-own-an-electric-vehicle.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCReferences33JohnVoelcker(2021).“EVsExplained:ChargingLosses,”Car&Driver,April10,2021.Retrievedfrom:caranddriver.com/features/a36062942/evs-explained-charging-losses/.KristyHartmanandLauraShields(2021),“SpecialFeesonPlug-InHybridandElectricVehicles,”NationalConferenceofStateLegislatures,October12,2021.Retrievedfrom:ncsl.org/research/energy/new-fees-on-hybrid-and-electric-vehicles.aspx.Homeserve.com(2021).“Howmuchdoesitcosttoinstallanelectriccarchargingstation?”HomeServe.comBlog,February27,2021.RetrievedinAugust2021from:homeserve.com/en-us/blog/cost-guide/ev-charging-station-installation/.InternalRevenueService(2020).“IRSissuesstandardmileageratesfor2021”IRS,December22,2020.Retrievedfrom:irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2021.JonathonRamsey(2021).“Fordworkingon‘ChargeAngels’tohelpimprovechargingstations”AutoBlog,October12,2021.Retrievedfromautoblog.com/2021/10/11/ford-ev-charge-angels/.MarkKane(2018).“BEVsAreEfficient:Use80%OfEnergyToMoveCarDownTheRoad”InsideEVs.com,September6,2018.Retrievedfrom:https://insideevs.com/news/339502/bevs-are-efficient-use-80-of-energy-to-move-car-down-the-road/.MichiganDepartmentofTreasury(2021).“MotorFuelFAQs”.Retrievedfrom:michigan.gov/taxes/0,4676,7-238-43519_43544-154227--,00.html.MichiganSecretaryofState(2021).“FeesforLicensePlates,RegistrationsandTitles.”Retrievedfrom:michigan.gov/sos/0,4670,7-127--75432--,00.htmlModel3Guru(2021).“Ownershipcosts:Model3vsICEvehicles.”Retrievedfrom:model3guru.com/ev-vs-ice.NCCleanEnergy(2020).“StatesEvaluatingEVRegistrationFeesandAlternativestoSupportTransportationInfrastructureFunding”NCCleanEnergyBlog,May27,2020.Retrievedfrom:nccleantech.ncsu.edu/2020/05/27/states-evaluating-ev-registration-fees-and-alternatives-to-support-transportation-infrastructure-funding/ion,NeilLessem,AhmadFaruqui,SanemSergici,andDeanMountain,“TheImpactofTime-of-UseRatesinOntario.”PublicUtilitiesFortnightly,February2017.PlugShare(2020,2021).Author’sreviewofusercommentsregardingEVchargerqualityandavailabilityforspecificlocations.Retrievedfrom:plugshare.com.SpeakEV(2019).“EVACchargingefficiency.”SpeakEV.comGeneralChargingDiscussion.RetrievedinOctober2021from:https://www.speakev.com/threads/ev-ac-charging-efficiency.162054/.WorkforceOpportunityWageAct,2014PA138,MCL§408.414(2014).Retrievedfrom:legislature.mi.gov/doc.aspx?mcl-408-414.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCAboutAndersonEconomicGroup34AboutAndersonEconomicGroupFoundedin1996,AndersonEconomicGroupisoneofthemostrecognizedboutiqueconsultingfirmsintheUnitedStates.ThecompanyhasofficesinEastLansing,MichiganandChicago,Illinois,andspecializesinpublicpolicy,busi-nessstrategy,andmarketanalysis.Thefirm’sconsultantshavewonfivenationalawardsforwritingonbusinesseconomicstopicsthatincludethevalueofbusinesses,businesslocationdeci-sions,economicsandpresidentialelections,andconsumerdemandforalcoholicbeveragesandcannabisproducts.FollowingaresomerepresentativeexamplesofAndersonEconomicGroup’spastclients:BUSINESSESAutomotive.ManufacturersincludingGeneralMotors,FordMotorCompany,HondaMotorCompany,andLithiaMotors;suppliersandtradeassociationsincludingtheMichiganManufacturer’sAssociationandBusinessLeadersforMichigan;anddealersanddealershipgroupsrepresentingAudi,Cadillac,Chev-rolet,Chrysler,Ferrari,Ford,Genesis,Harley-Davidson,Hyundai,Kia,Lambo-rghini,Mercedes-Benz,MINI,Suzuki,andToyota.Financial,Sports,&Retail.ITCHoldingsCorp.,FirstMeritBank,BankofAmericaMerrillLynch,Meijer,Inc.,andReleventSports.Beverage.NationalWine&Spirits,Nestle,LabattUSA,andInBevUSA;wholesalersrepresentingAnheuser-Busch,Molson,Coors,andMiller;andsup-pliersanddistributorsofnumerouscraftbeers,wines,andspirits.GOVERNMENTSTheCanadianfederalgovernment;theStatesofMichigan,NorthCarolina,Ken-tuckyandWisconsin;theCitiesofDetroit,Cincinnati,andSandusky;OaklandCounty,Michigan,andCollierCounty,Florida;andauthoritiessuchastheDetroit-WayneCountyPortAuthority.NON-PROFITORGANIZATIONSHighereducationinstitutionsincludingMichiganStateUniversity,UniversityofChicago,WayneStateUniversity,andUniversityofMichigan;laborunionssuchastheNationalEducationAssociationandServiceEmployeesInternationalUnion;andtradeassociationsthatincludetheNationalAutoDealersAssociation,SmallBusinessAssociationofMichigan,andMichiganChamberofCommerce.PleasevisitAndersonEconomicGroup.comformoreinformation.Comparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCAboutAndersonEconomicGroup35SubscriptionInformationForinformationonsubscriptionstotheAndersonEconomicGroupEVTransitionService,ortoreceivedetailedprojectionsandup-to-dateanalyses,contactinfo@andersoneconomicgroup.comComparison:RealWorldCostofDrivingEVsandICEVehiclesAndersonEconomicGroup,LLCAbouttheAuthors36AbouttheAuthorsPatrickL.AndersonMr.PatrickAndersonfoundedAndersonEconomicGroupin1996,andservesasthecompany’sprincipalandCEO.Mr.Andersonisoneofthenation’sforemostexpertsontheautomotiveindustry.Hisknowledgeextendstomanufacturers,franchisorsandfranchisees,andsuppliers.Heisfrequentlycalledupontoserveasanexpertwitnessinmattersregardingindustrydisputes,andisoftenaskedtoprovidemediacommentaryregardingmattersaffectingtheautosector.Heisalsoasought-afterpresenteratindustryconferences.Beyondhisautomotiveindustryspecialization,Mr.Andersonisanationally-recognizedexpertinbusinesseconomics.Hehaswrittenover100publishedworks,includingEconomicsofBusinessValuationfromStanfordUniversityPress.FiveofhisjournalarticleshavereceivednationalawardsfromtheNationalAssociationofBusinessEconomics.Mr.AndersonisagraduateoftheUniversityofMichigan,whereheearnedaMasterofPublicPolicydegreeandaBachelorofArtsdegreeinpoliticalscience.AlstonL.D’SouzaMr.AlstonD’SouzaworksinAndersonEconomicGroup’sstrategyandbusinessvaluationpracticearea,whereheservesasasenioranalystanddatascientist.WhileatAndersonEconomicGroup,Mr.D’Souza’sworkhasfocusedondamagesandmarketanalysis.Mostrecently,hehasconductedanextensivemarketanalysisrelatedtoelectricvehiclesalesandconsumercosts.Mr.D’Souzaholdsamaster’sdegreeineconometricsandquantitativeeconomicsfromtheUniversityofWisconsin-Madison,andaBachelorofTechnologydegreefromtheNationalInstituteofTechnologyKarnataka(India).
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