Clean, advanced vehicle technologies, such as battery electric buses (BEBs), can contribute to fewer traffic emissions, improved air quality and public health, economic development opportunities, and a better quality of life for city inhabitants. Globally, the BEB is the fastest growing form of electrified transportation, as public transit in dense cities is key to traffic congestion reduction and air quality improvements, with significant BEB deployment in China (IEA 2020).

Projected technology cost declines are expected to drive BEB sales to 84% of all transit bus sales by 2030 (BNEF 2018). Several factors contribute to BEB market growth. For one, BEBs are 3-4 times more efficient on an energy basis (i.e., joule of energy) than their conventional counterparts (Eudy et al. 2016). Moreover, they typically have lower fuel and maintenance costs than conventional vehicles. In fact, the total cost of ownership of BEBs can be competitive with conventional buses when purchase
subsidies are included to offset high capital costs (BNEF 2020). Third, BEBs produce fewer (or displace) emissions that contribute to local air pollution harmful to human health and greenhouse gas emissions that contribute to climate change. Despite these advantages, barriers such as high upfront costs, reduced range and charging convenience, less vehicle variety, and general unfamiliarity in the field can hinder BEB deployment. The exact benefits and barriers to BEB deployment depend on their application
and implementation; it is not as simple as buying BEBs to replace conventional municipal buses.

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https://www.nrel.gov/docs/fy20osti/76815.pdf