An elasticity is significant when the output variable changes significantly (in this case the output variables are cost per mile and net present value). Table 20 Elasticity between various input variables and per-mile net cost (diesel 3.32 mpg) Factors 0% subsidy 80% subsidy Vehicle Factors Diesel bus mpg -0.24 0.00 (2.5 3.3) – Hybrid bus mpg 0.00 -0.26 (3.15 4.15) – Diesel bus O&M cost function slope 0.06 0.00 ($0.0417/mi/year $0.0509/mi/year) – Hybrid bus O&M cost function slope 0.00 0.09 ($0.0595/mi/year $0.0727/mi/year) – Diesel bus price 0.38 0.00 ($589,600 $737,000) – Hybrid bus price 0.13 0.17 ($766,400 $958,000) – General Factors Annual utilization -0.41 -0.17 (28,379 miles/year 39,679 miles/year) – CO2 emissions penalty cost 0.03 0.03 ($0/ton $100/ton) – Fuel price 0.25 0.35 ($2.64/gallon $4.46/gallon) – Fuel inflation rate 0.09 0.13 (0% 5%) – Nominal annual discount rate -0.85 -1.01 (5% 15%) – Table 21 Elasticity between various input variables and 20 years NPV (diesel 2.50 mpg) Factors 0% subsidy 80% subsidy Vehicle Factors Diesel bus mpg 0.00 -0.16 (2.0 3.0) – Hybrid bus mpg -0.05 -0.31 (3.15 4.15) – Diesel bus O&M cost function slope 0.01 0.02 ($0.0417/mi/year $0.0509/mi/year) – Hybrid bus O&M cost function slope 0.01 0.03 ($0.0595/mi/year $0.0727/mi/year) – Diesel bus price 0.36 0.00 ($589,600 $737,000) –
An elasticity is significant when the output variable changes significantly (in this case the output variables are cost per mile and net present value). Table 20 Elasticity between various input variables and per-mile net cost (diesel 3.32 mpg) Factors 0% subsidy 80% subsidy Vehicle Factors Diesel bus mpg (2.5 – 3.3) -0.24 0.00 Hybrid bus mpg (3.15 – 4.15) 0.00 -0.26 Diesel bus O&M cost function slope ($0.0417/mi/year – $0.0509/mi/year) 0.06 0.00 Hybrid bus O&M cost function slope ($0.0595/mi/year – $0.0727/mi/year) 0.00 0.09 Diesel bus price ($589,600 – $737,000) 0.38 0.00 Hybrid bus price ($766,400 – $958,000) 0.13 0.17 General Factors Annual utilization (28,379 miles/year – 39,679 miles/year) -0.41 -0.17 CO2 emissions penalty cost ($0/ton – $100/ton) 0.03 0.03 Fuel price ($2.64/gallon – $4.46/gallon) 0.25 0.35 Fuel inflation rate (0% – 5%) 0.09 0.13 Nominal annual discount rate (5% – 15%) -0.85 -1.01 Table 21 Elasticity between various input variables and 20 years NPV (diesel 2.50 mpg) Factors 0% subsidy 80% subsidy Vehicle Factors Diesel bus mpg (2.0 – 3.0) 0.00 -0.16 Hybrid bus mpg (3.15 – 4.15) -0.05 -0.31 Diesel bus O&M cost function slope ($0.0417/mi/year – $0.0509/mi/year) 0.01 0.02 Hybrid bus O&M cost function slope ($0.0595/mi/year – $0.0727/mi/year) 0.01 0.03 Diesel bus price ($589,600 – $737,000) 0.36 0.00