This article aims to investigate the economic feasibility of renewing a fleet of diesel
light commercial vehicles (LCVs) with equivalent more environmentally friendly vehicles in the distribution of frozen and chilled foods. A Total Cost of Ownership (TCO) approach is proposed that includes all pertinent expenses to compare the cost competitiveness of battery electric, fuel-cell electric, and bio-diesel LCVs with respect to their conventional diesel counterparts, and to perform policy scenarios. We adopt both a private and a social perspective by also accounting for the external costs of transportation. We found that electric LCVs outperform their rivals in the city and panel LCV categories even in the absence of government subsidies while being cost competitive in box LCV segment, while FCEVs require the development of refueling infrastructure and government subsidies to compete with diesel counterparts.
