Economic Comparison of Automobiles with Electric and with Combustion Engines: An Analytical Study

Abstract

Automobiles with electric motor are becoming increasingly attractive alternative to the car with combustion engine, considering the effects on the environment as well as economic factors such as gradual increasing price of fluid fossil fuels and others. The European Union and therefore all member countries try to produce the least possible impact of activities on the environment in which we live. Transport is a sector of the national economy, which largely affects the environment. An effort to reduce the impact of road transport is therefore logical. The actual trend is the promotion of electric cars and the gradual replacement of combustion vehicles with “electro mobiles”. The aim of the paper is to analyze the impact of production, operation and fluidation of automobiles with electric and with combustion engines on the environment and economic interpretation of their effects on the economy. Direct and indirect effects of individual automobile types on the environment, with emphasis on air pollution, are described in the paper. The economic analysis is aimed to evaluate the effectiveness of investment comparing electric powered and combustion engine powered cars, considering the use by individuals and companies.