A Mathematical Model for Estimating the Life-Cycle Costs of Hydrogen-Powered Vehicles

Abstract

This study provides a mathematical model that delivers fundamental data for developing a pricing strategy for fuel cell electric vehicles (FCEVs). A mathematical model that transforms the life-cycle cost of a hydrogen vehicle into the corresponding gasoline vehicle is designed using cost-benefit analysis and life-cycle analysis. The FCEV obtains economic advantages when its life-cycle cost is less than or equal to the life-cycle cost of the corresponding gasoline vehicle. Because there is a trade-off between the FCEV’s price and the hydrogen fuel price, the results provide a number of price combinations that can be used for decision-making purposes. Using this model, car makers can develop a number of FCEV pricing scenarios, and policy makers can establish support systems to encourage the market entrance of FCEVs such as a subsidy for purchasing and producing FCEVs and/or hydrogen energy. This study delivers a number of combinations of FCEV-hydrogen fuel pricing combinations, comparing the life-cycle costs of conventional gasoline vehicles and hydrogen fuel cell vehicles.