International Journal of Academic Research in Business and Social Sciences

search-icon

Green Financial Model for Heavy-Duty Commercial Vehicle

Open access
Environmental-friendly Transportation is the latest evolution in managing operation and combating climate crises. In the automotive industry, this concept introduces a new feasibility study to the post usage stage of the transitioning green heavy-duty vehicle specifically in municipal operations. This financial model research investigates the environmental, social and economics, focusing overloading problems for improvement needs. To achieve this, factors of vehicles for Total Cost of Ownership (TCO) is considered. Then, each factor is individually modelled to accurately represent its respective environmental, economic, and societal needs. A mathematical financial model, derived based on the modelled relationship, was later constructed, and later converted into a computer model. Furthermore, the result of each model will be able to assist the Malaysian Government, automotive manufacturers, and hired waste management contractors to formulate policies and strategies that would lead towards positive financial performance with related to environmental issues to be quantified. Hence, this paper examines the adoption of environmentally friendly technologies in Malaysia, focusing on the challenge of assessing the minimum Total Cost of Ownership (TCO) for GHDV fleets. This paper highlights the need for comprehensive TCO analysis, considering environmental impacts, and integrating LCC principles for effective implementation and management of cost-efficient HDV fleets.
Saadatlu, A. E., Barzinpour, F., & Yaghoubi, S. (2022). A sustainable model for municipal solid waste system considering global warming potential impact: A case study. Computers & Industrial Engineering, 169, 108127. doi: https://doi.org/10.1016/j.cie.2022.108127
Alonso-Villar, A., Davíðsdóttir, B., Stefánsson, H., Ásgeirsson, E. I., & Kristjánsson, R. (2022). Technical, economic, and environmental feasibility of alternative fuel heavy-duty vehicles in Iceland. Journal of Cleaner Production, 369. doi:
10.1016/j.jclepro.2022.133249
Bae, Y., Mitra, S. K., Rindt, C. R., & Ritchie, S. G. (2022). Factors influencing alternative fuel adoption decisions in heavy-duty vehicle fleets. Transportation Research Part D: Transport and Environment, 102. doi: 10.1016/j.trd.2021.103150
Bhardwaj, S., & Mostofi, H. (2022). Technical and Business Aspects of Battery Electric Trucks—A Systematic Review. Future Transportation, 2(2), 382-401.
doi:10.3390/futuretransp2020021
Cameron Rout, H. L., Valerie Dupont, Zia Wadud. (2022). A comparative total cost of ownership analysis of heavy duty on-road and off-road vehicles powered by hydrogen, electricity, and diesel. Heliyon, 8(12), e12417. doi: 10.1016/j.heliyon.2022.e12417
Cunanan, C., Manh-Kien Lee, Youngwoo Kwok, Shinghei Leung, Vincent Fowler, Michael Fowler (2021). A review of heavy-duty vehicle powertrain technologies: Diesel engine vehicles, battery electric vehicles, and hydrogen fuel cell electric vehicles. Clean Technologies, 3(2), 474-489. doi: 10.3390/cleantechnol3020028
Demeulenaere, X. (2019). The use of automotive fleets to support the diffusion of alternative fuel vehicles: A rapid evidence assessment of barriers and decision mechanisms. Research in Transportation Economics, 76. doi:10.1016/j.retrec.2019.100738
Department of Energy and Climate Change, D. (2023). Definition and specifications. Retrieved from https://afdc.energy.gov/laws/9218#:~:text=An%20alternative%20fuel%20is%20defined,or%20a%20synthetic%20transportation%20fuel.
Troncon, D. L. A., & Mattetti, M. (2019). A feasibility study for agriculture tractors electrification: duty cycles simulation and consumption comparison. 2019 IEEE Transportation Electrification Conference and Expo (ITEC).
Endiz, M. S. (2023). A comparison of battery and hydrogen fuel cell electric vehicles for clean transportation. Orclever Proceedings of Research and Development, 2(1), 10-17. doi:10.56038/oprd.v2i1.230
Ene, S., & Ozturk, N. (2015). Network modeling for reverse flows of end-of-life vehicles. Waste Manag, 38, 284-296. doi:10.1016/j.wasman.2015.01.007
Gunawan, T. A., & Monaghan, R. F. D. (2022). Techno-econo-environmental comparisons of zero- and low-emission heavy-duty trucks. Applied Energy, 308, 118327. doi:https://doi.org/10.1016/j.apenergy.2021.118327
Guo, X., Sun, Y., & Ren, D. (2023). Life cycle carbon emission and cost-effectiveness analysis of electric vehicles in China. Energy for Sustainable Development, 72, 1-10.
doi:10.1016/j.esd.2022.11.008
Stancin, H., Wang, H. M. X., & Duic, N. (2020). A review on alternative fuels in future energy system. Renewable and Sustainable Energy Reviews, 128.
doi:10.1016/j.rser.2020.109927
Hsieh, I. Y. L., & Green, W. H. (2020). Transition to electric vehicles in China: Implications for total cost of ownership and cost to society. SAE International Journal of Sustainable Transportation, Energy, Environment, & Policy, 1(2). doi:10.4271/13-01-02-0005
Jovan, D. J., & Dolanc, G. (2020). Can green hydrogen production be economically viable under current market conditions. Energies, 13(24). doi: 10.3390/en13246599
Junjie Li, M. L., Wanjing Cheng, & Shuhao Wang. (2020). Life cycle cost of conventional, battery electric, and fuel cell electric vehicles considering traffic and environmental policies in China. doi: 10.1016/j.ijhydene.2020.12.100
Kara, S., Li, W., & Sadjiva, N. (2017). Life cycle cost analysis of electrical vehicles in Australia. Procedia CIRP, 61, 767-772. doi:10.1016/j.procir.2016.11.179
Kotze, R., Brent, A. C., Musango, J., de Kock, I., & Malczynski, L. A. (2021). Investigating the investments required to transition New Zealand’s heavy-duty vehicles to hydrogen. Energies, 14(6). doi: 10.3390/en14061646
Lambros K., Mitropoulos, P. D. P., & Kopelias, P. (2017). Total cost of ownership and externalities of conventional, hybrid and electric vehicle. Transportation Research Procedia, 24, 267–274.
Lui, J., Paul, M. C., Sloan, W., & You, S. (2022). Techno-economic feasibility of distributed waste-to-hydrogen systems to support green transport in Glasgow. International Journal of Hydrogen Energy, 47(28), 13532-13551. doi: 10.1016/j.ijhydene.2022.02.120
Ministry of Transport Malaysia, M. (2021). Malaysia transportation statistics 2021.
Alp, O. T. T., Udenio, M. (2022). Transitioning to sustainable freight transportation by integrating fleet rreplacement and charging infrastructure decisions. Omega, 109. doi: 10.1016/j.omega.2022.102595
Pardhi, S., Chakraborty, S., Tran, D.-D., El Baghdadi, M., Wilkins, S., & Hegazy, O. (2022). A review of fuel cell powertrains for long-haul heavy-duty vehicles: Technology, hydrogen, energy and thermal management solutions. Energies, 15(24). doi: 10.3390/en15249557
Petrauskien?, K., Galinis, A., Kliaugait?, D., & Dvarionien?, J. (2021). Comparative environmental life cycle and cost assessment of electric, hybrid, and conventional vehicles in Lithuania. Sustainability, 13(2). doi: 10.3390/su13020957
Qiao, Y., Wang, Z., Meng, F., Parry, T., Cullen, J., & Liu, S. (2022). Evaluating the economic and environmental impacts of road pavement using an integrated local sensitivity model. Journal of Cleaner Production, 371. doi: 10.1016/j.jclepro.2022.133615
Rodriguez, F. (2018). The European Commission's proposed CO2 standards for heavy-duty vehicles. International Council on Clean Transportation
Salvi, B. L., Subramanian, K. A., & Panwar, N. L. (2013). Alternative fuels for transportation vehicles: A technical review. Renewable and Sustainable Energy Reviews, 25, 404-419. doi:10.1016/j.rser.2013.04.017
Sugihara, C., & Hardman, S. (2022). Electrifying California fleets: Investigating light-duty vehicle purchase decisions. Transportation Research Interdisciplinary Perspectives, 13. doi: 10.1016/j.trip.2021.100532
Todorovic, M., & Simic, M. (2019). Feasibility study on green transportation. Energy Procedia, 160, 534-541. doi: 10.1016/j.egypro.2019.02.203
Tyson, M., & Charlie Bloch. (2019). Breakthrough batteries: Powering the era of clean electrification. Rocky Mountain Institute. Retrieved from http://www.rmi.org/breakthrough-batteries
Verma, S., Dwivedi, G., & Verma, P. (2022). Life cycle assessment of electric vehicles in comparison to combustion engine vehicles: A review. Materials Today: Proceedings, 49, 217-222. doi: 10.1016/j.matpr.2021.01.666
Vijayagopal, R., & Rousseau, A. (2021). Electric truck economic feasibility analysis. World Electric Vehicle Journal, 12(2). doi: 10.3390/wevj12020075
Yaïci, W., & Longo, M. (2022). Feasibility investigation of hydrogen refuelling infrastructure for heavy-duty vehicles in Canada. Energies, 15(8). doi: 10.3390/en15082848
Zhang, L., Lu, Q., Yuan, W., Jiang, S., & Wu, H. (2022). Characterizing end-of-life household vehicles’ generations in China: Spatial-temporal patterns and resource potentials. Resources, Conservation and Recycling, 177. doi: 10.1016/j.resconrec.2021.105979