Car Ownership Costs in Canada - Internal Combustion Engine vs. Electric and Hybrid Vehicles
Published On: June 24, 2020
Electricity Commodity Update - June 2020
While electric and hybrid vehicles had been developed and gained popularity in the early 1900s, the discovery of the Permian Basin in 1920 brought an abundant supply of oil to market, triggering their decline. By 1935, electric vehicles (EV) had virtually disappeared, and the affordability of internal combustion engine (ICE) vehicles offered no incentives to continue research and the development of alternative technologies. It was not until the 1970s oil crisis when substantial petroleum shortages caused gasoline prices to soar, and incentives to explore alternative technologies were popular once again. In this article, we compare the differences in fuel costs among ICE vehicles and other alternatives and assess whether potential fuel savings are enough to compensate for the price premium when considering all other car-ownership costs.