A city with half a million inhabitants would save about SEK 100 million (US$12 million) per year if the city’s buses ran on electricity instead of diesel, according to an analysis conducted in collaboration between the Volvo Group and the audit and advisory firm KPMG. The analysis has taken into consideration such factors as noise, travel time, emissions, energy use, taxes and the use of natural resources.
Standard investment appraisals do not take into account all of the costs that impact society and the environment. Therefore, to quantify all of the aspects, we have now calculated the monetary value of an electric bus line The results show that irrespective of the number of parameters taken into consideration, electric buses comprise the leading public transport solution.—Niklas Gustafsson, Head of Sustainability at the Volvo Group
The analysis was based on a city with about half a million inhabitants and 400 buses. If the buses were run on electricity instead of diesel, the total annualized societal saving would be about SEK 100 million. Among other areas, the savings stem from reduced noise and air pollution, which is estimated to lead to decreased care costs of up to SEK 24 million (US$2.9 million). The annual reduction in carbon dioxide emissions would total 33,000 tons, corresponding to about 3,000 Swedish households.
In June 2015, an entirely new electric bus line was opened in Gothenburg with the aim of developing and testing new solutions for sustainable public transport. The line is the result of a partnership between the Volvo Group and several partners from industry, research and society.