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ROI a Misused Metric for Electric Vehicles? (Response to “Honda Fit EV Faces Tough ROI Arguments”)

29 June 2012 | Clean Technica

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ROI is a consideration that is increasingly referenced by implication if not specifically mentioned in alternative energy issues. It is a tool designed to reduce uncertainty and, like other such cost/benefit considerations, it attempts to take human errors and uncertainty out of the decision-making process.

Recently, Eric Loveday compared the Honda Fit EV to its petrol counterpart. In his analysis, using the return on investment (ROI) to compare the vehicles, the EV came up wanting. But it is humans that make assumptions when using this measure. It is humans that suffer the effects of pollution. It is humans that may suffer a shortage of petroleum. And so it is humans who must decide how we should spend our funds. ROI is a formula that artificially abbreviates a problem we might have difficulty putting into words. We can use a formula but how often do we assume that ROI is an unbiased and absolute truth not requiring further clarification?


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