As per J.C. González Palencia et al. / Energy, the barriers have been divided into two parts- Demand side, it deals with the customer and the supply side, deals with the suppliers from the similar industry.
The barriers identified in the demand side of a vehicle using alternative fuels are –
- Capital costs are higher.
- Range is limited.
- Safety in handling battery discharge.
- How reliable and durable are the electric vehicle?
- Inexpensive gasoline is not found.
- Refueling lack in infrastructure.
- Established markets are difficult to break down.
- Economies of scale are lacking.
- Awareness is lacking.
- Demand for the economy is uncertain.
- Risk towards the attitude of the economy and how will it shape in the future?
The barriers identified in the supply side using alternative fuels are –
- Development in the lead times and across the product platforms, the availability is rare.
- Requirement of the capital investment is higher.
- Systems and components which are critical are difficult to find.
- In facilities, utilization of the capacity is problematic.
The major barrier that been identified is the cost of lightweight materials for manufacturing vehicles. The cost of the steel part is higher than compared to other metals. There is also a problem with a manufacturing plant which is established well for steel. To improve the economy for fuel is non-existence due to lack of pressure. The awareness for the concern of environmental pollution is less. Hydrogen fuels are also considered to be complex as compared to fossil fuels.
Battery development has been considered to be a major challenge in BEV’s. There is also speculation that due to the high demand for electricity, the power grid will face high pressure which can be handled by recharging the lightweight vehicles in the night. In developing countries, the policies are also not implemented for replacing the old vehicle with a new vehicle for lowering CO2 emission.
Source:- Handbook of GreenFinance by Jeffrey D.Sachs.