Policy Pathways to 100% Zero-Emission Vehicles by 2035 in Canada

The value of model variety is given by the logarithm of the ratio (nj /N, N is the number of conventional vehicle models).20 For example, in 2020, only about 28 models for PHEVs exist in Canada, in comparison to about 300 for conventional vehicles. [...] Policy Pathways to 100% Zero-Emission Vehicles by 2035 in Canada 21 Where C0tk is the cost of production of a single vehicle of type k in time t, a is a scaling constant (Table 3) and Qtk(Ptk,n) represents the total quantity of vehicles of type k produced in time t. [...] For the VES, similarly, the regulation cost is ÞFE*Qk*(ZFE-Zk ), where ÞFE is the penalty, Qk is the number of vehicles of drivetrain technology k that are sold, ZFE is the fuel economy limit, and Zk is the fuel economy of vehicle k. [...] The vehicle use under policy (Vp) is a function of the projected travel demand in the baseline case (V0), the elasticity parameter (e) and the changes to the fuel cost in the policy scenario relative to the reference case, given by: Where fuel costP is the fuel cost under policy, while fuel cost0 is the fuel cost in the reference baseline. [...] To account for uncertainty in our sensitivity analysis, we assume the utility factor is 50 per cent in the pessimistic case, and 90 per cent in the optimistic case; however, in each scenario the split is exogenous and does not respond to changes in fuel or electricity prices.