1. Introduction
1.1 Background
Land Transport Authority (LTA) released a yearly vehicle statistic in 2018 regarding the motor vehicle population in Singapore along with the types of fuel used by the vehicles as shown in Figure 1. The statistics showed clearly that over the past 10 years, there is only a slight increase in the electric vehicles(EVs) population while petroleum, diesel and petrol-electric operated cars increased largely.
With the growing amount of fuel consuming vehicles, the consumption of oil in Singapore has also increased greatly over the past 10 years. According to Census and Economic Information Center(CEIC) data (2019), Singapore’s oil consumption was 1,448.792 barrel/day in December 2018 which is 2.1 percent more than that in Dec 2017 as shown in Figure 2.
Singapore’s oil consumption data was updated annually, with an average of 457.718 barrel/day from Dec 1965 to 2018. This means that a vehicle is consuming at least 166,805 Barrels/Year. However, vehicles in Singapore consumed 528,520 barrel/year in 2018 which exceeds the average oil consumption from 1965 to 2018. This shows that oil consumption in Singapore is increasing at a tremendous pace.
LTA has updated its latest road tax formula where it is used to calculate the car’s engine displacement or power. For petroleum vehicles with an engine capacity of 998cc, the road tax cost about $391 yearly while the road tax for electric vehicles with 120 horsepower is about 89kW costs about $1099 yearly (CarBuyer, 2019) This means that owning an electric vehicle will need to pay more tax as compared to petroleum vehicles.
Regarding the issue of insufficient publicity on EVs, the main stakeholders would be LTA as well as businesses related to the automobile industry. LTA is responsible for constructing and implementing policies that will greatly affect the actions taken to promote the use of electric vehicles. These policies can aid in promoting the adoption of new technologies for electric vehicles. The government can introduce campaigns to raise awareness to the public on the use of EVs in the long run. Businesses that have a stake in this issue include local automobile businesses such as motor vehicle manufacturers and petrol stations. These businesses are responsible for advocating the use of electric vehicles to ensure that they have a sustainable business in the long run. Insufficient publicity on EVs also accounts for high carbon emissions from petroleum vehicles as there is a lack of awareness to educate the public to adopt the use of EVs.
According to the report ‘Incentives for Electric Vehicles in Norway‘, Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) (2018) had introduced different ways to incentivize motorists who choose to use electric vehicles. Some of the incentives that the government has implemented were an exemption from registration tax, low annual tax, free municipal parking, having access to bus lanes, and many more. In Norway, the most important incentives would be financial incentives. The total cost of ownership of Plug-In Electric Vehicles(PEVs) is much lower as compared to the Internal Combustion Engine(ICEs).
Based on the report, a study led by Haugneland, Lorentzen, Bu, & Hauge (2017) has shown that the main reason consumers will consider purchasing EVs is to save money with the different incentives provided by the government. Other studies based on surveys conducted for consumers had shown that operational cost and upfront investment are some of the vital considerations that consumers will look into before purchasing EVs. In Norway, the price of fossil fuels is relatively higher as compared to electricity. The transportation sector in Norway was heavily taxed, registration taxes on new vehicles, annual taxes, taxes on fuels and numerous toll roads were included. This allows the government to provide more incentives for consumers so that it can influence consumer’s decisions to purchase different types of vehicles.
1.2 Problem Statement
Motorists in Singapore are not using EVs due to insufficient publicity on electric vehicles and incentives provided by the government are inadequate. Implementing policies to educate the public about EVs and providing more incentives to promote the use of EVs that can be considered as a sustainable mode of transport for motorists.
1.3 Purpose Statement
This report aims to propose to Mr Heng Sweat Keat, the finance minister of Singapore to promote the use of EVs in Singapore by providing more incentives for motorists who use EVs.
2. Proposed Solutions
The team referenced the electric vehicle’s benchmark in Norway and we came up with three solutions to increase the number of EVs in Singapore.
2.1 Increase the number of incentives given to consumers that purchase EVs
The incentives that the government provides for consumers are insufficient therefore there is a need to increase the incentive amount for consumers who purchase EVs. According to the report Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) (2018), Plug-In Electric Vehicles(PEVs) is much lower as compared to Internal Combustion Engine(ICEs). Car owners usually will take into consideration the total cost of ownership before purchasing a new car. Therefore, incentives from the government will definitely encourage consumers to purchase EVs. Currently, Norway is the leader of EVs in the market and the main reason that the Norwegians are purchasing EVs is to save money. To reduce the total cost of ownership for its citizens, the Norweigian government provided a series of incentives for consumers who are using EVs. Some of the incentives that the Norwegian government offers are reducing company car tax, having access to bus lanes, Value-added tax (VAT) tax exemption and many more. VAT and road tolls had been successful in encouraging consumers in Norway to purchase EVs.
The team proposes that the government should impose 40 percent of incentives for consumers that purchase EVs.
2.2 Increase the availability of charging port for EVs
According to the news article, most of the motorists are hesitant to purchase EVs due to the lack of charging port in Singapore (Choo,2018). Due to the lack of charging ports, the motorist has to buy their own charging port in their private estate or they would have to travel to places that have charge port to charge their vehicles. This means that the motorist will have to fork out more money to purchase the charging port. On the other hand, traveling to places that have charging port will also lead to the same problem, if the nearest charging port to the driver requires him/her to travel for 1 hour, this means that while travelling the motorist already uses up a huge part of the electric power in the vehicle. This also means that the driver has to spend more time on charging and traveling, which is totally unnecessary. Thus, by implementing more charging ports at the housing estate in Singapore, will reduce the unnecessary problem caused by a lack of charging ports. which will lead to a decrease in the reasons for not buying EVs and increase the amount of EVs in Singapore.
The team proposes that the charging area should consist of 5 charging stations which can charge up to 10 cars at the same time. Every housing estate should have at least 1 charging area within 5 km.
2.3 Impose a higher tax on petroleum/diesel vehicles.
Tax on petroleum/diesel vehicles are currently much lesser as compared to EVs. The road tax for petroleum/diesel vehicles of 998cc is $391 yearly while the road tax for electric vehicles with 120 horsepower is about 89kW cost about $1099 yearly (Carbuyer, 2019). This shows that if the road tax for electric vehicles is higher, motorists would consider purchasing petroleum/diesel vehicles instead. Therefore, there is a need to increase the tax on petroleum/diesel vehicles to encourage motorists to switch to EVs.
2.4 Prioritize solution
The team has come up with three solutions and the team’s recommended prioritize solution is to increase the incentive amount for the motorist who purchases EVs. Most motorists will take into consideration the financial factor when purchasing new cars. Therefore, the amount of incentive given would influence the consumer’s decision in purchasing EVs. To conclude, the team has decided to choose the first solution to be implemented in Singapore.
3. Benefits
The team’s proposed solutions can lead to an increase in EVs in Singapore, having more motorists switching to EVs can reduce carbon emissions and increase energy efficiency.
3.1 Reduce in Carbon Emissions
According to ‘Transport Policy’ (Noela, Rubensa, Kestera, Sovacoola, 2018) of the 227 interviews that were carried out, 167 shared that one of the more prominent benefits of using EVs is an environmental benefit. The response of the 167 respondents is equivalent to 73% of the interviews. Out of those who mentioned emission, 99 interviews clearly mentioned about the benefits of reduction of carbon emissions by using Electric Vehicles (EVs) as compared to Internal Combustion Engine Vehicles (ICEVs). While 94 interviews also mentioned the impact that EVs can have on decreasing local health emissions such as NOx. The table below has shown the data of the interview that reflects what the respondents think is the co-benefits of an electric vehicle. With the use of EVs, there will be fewer ICEVs on the road and therefore the emission of harmful gases to the environment will be reduced. The emission of carbon dioxide is commonly used to assess the impact the vehicle has caused to the environment. Charging of EVs reduced carbon dioxide emission by roughly 10% as compared to the base case of gasoline vehicles. In general, it is clear that EVs reduce the total carbon emission even in electricity systems. This is because of the high efficiency of the electric motor as compared to the internal combustion engine.
The global EVs fleet consumed approximately 58 terawatt-hours (TWh) of electricity in 2018 as compared to the total electricity demand of Switzerland in 2017 (IEA, 2019). Of all the vehicles, two-wheelers account for the largest percentage of EV energy demand whereas light-duty vehicles show a stronger growth as compared to other transport modes in 2017 and 2018. China has accounted for 80% of the world's electricity demand for EVs in 2018. The global EV market in 2018 has emitted about 38 million tonnes of carbon dioxide as compared to the internal combustion engine fleet which emitted 78 million tonnes. This means that EBs can save approximately 40 million tonnes of carbon dioxide and reduces the carbon emissions caused to the environment.
3.2 Increase in energy efficiency
Typically, the energy density of an internal combustion engine is affected by the fuel tank size and is separated from the energy conversion device, which will decrease the balances between the compromising acceleration for cruising efficiency. The distinctly high energy density of the tank of liquid fuel reduces the utilization of an inefficient energy conversion device. While a BEV is competent in providing maximum power and average power at outstanding efficiency but has a fairly low energy density. BEVs attain approximately 3–6 mile kWh1 (INL, 2006) rely on vehicle design and driver behavior. This means that BEV provides a more balance compromising acceleration for cruising efficiency as the energy density is low throughout.
4. Drawbacks of proposed solutions
4.1 High cost of batteries installed in EVs
A class V3 EV with 24 KWh of battery size could only please approximately 80% of the car Z25’s needs. This also means that in order for an EV to travel at long distances, it would require an installation of multiple batteries which is not feasible due to the rise in cost and weight. This would extend the charging time of the vehicle. Currently, Z25 is irreplaceable with an EV in the absence of fast-charging or battery swapping.
4.2 Long charging time of EVs
Currently, the process of refueling an Internal combustion engine vehicles (ICEV) is much quicker and accessible as compared to ICEV. The process of charging an EV is less accessible due to the location of the charging station and the time required to charge an EV fully. In contrast to petroleum vehicles that only take minutes to refuel, EVs take a longer charging time with the latest battery technology. According to (NCCS), the fast-charging battery can reach 80% within 20 to 30 minutes depending on the battery capacity and the speed of the charging station while most EVs engine requires at least 4 to 7 hours to reach a full charge.
To mitigate the long charging time of EVs, EVs users can consider planning their road journey carefully as running out of electricity could not be solved by a quick visit to the petrol station. This allows motorists to travel efficiently without having to worry that their vehicles will stop operating in the middle of their road journey. The full battery life of an EV last three days for motorists who travel less than 100 kilometers. For instance, the road distance for motorists travelling from Pasir Ris to Jurong East is 32 kilometers. This shows that the full battery life will only affect motorists who are travelling long distances.
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