Carbon taxation using LCCO₂ and LCC for clean energy vehicles

The paper proposes a carbon taxation scheme using life cycle assessment (LCA) for clean energy vehicles (CEVs). This taxation scheme can enable to be discussed tax amount, tax revenue and total CO₂ emissions by changing the scenarios and parameters, such as: technology development, energy price and total driving distance. The authors figure out the tax rate 28.05[JPY/kg-CO₂], which makes the hybrid electric vehicle's life cycle cost (LCC) less than that of conventional gasoline vehicles. The simulation results show that LCC after taxation of electric vehicles (EVs) have lowest total cost when battery cost is 0.14 times the 2007 cost and have lower total cost than that of GVs when driven more than 221,600 km. In addition, EVs have lowest emissions when driven more than 63,000 km considered CO₂ emissions in the manufacturing phase, and it is expected that elders who drive shorter distances are best suited for hybrid electric vehicles and gasoline vehicles not electric vehicles considering LCCO₂. The proposed tax system can provide consumers with an incentive to choose vehicles with lower CO₂ emissions.