Financing Electric and Hybrid-Electric Buses

This research paper by the World Resources Institute provides guidance for city decision-makers on the financial mechanisms, procurement strategies, and business models required to implement electric and hybrid-electric bus fleets, noting that while capital costs are higher than conventional buses, total cost of ownership can be competitive.

• The global electric bus fleet experienced a growth of approximately 32 percent in 2018, making it the fastest-growing segment of the electric vehicle market. However, fully electric buses can have capital costs double or triple those of internal combustion engine (ICE) buses, and batteries typically require replacement every six to eight years.
• Electric buses can offer a competitive or lower total cost of ownership (TCO) compared to diesel buses because of reduced maintenance and energy costs per mile. They also provide economic, health, and environmental benefits, including the reduction of emissions that cause global climate change and poor air quality.
• Cities are utilizing flexible procurement and new market entrants to manage risk. This includes leasing buses and batteries from manufacturers or utility companies. Additionally, governments provide support through grants for capital and operational expenditures, R&D, and tax incentives including corporate profit, import, and value-added tax breaks. Operators may also use concessional debt or credit guarantees from public sector financial institutions.

APA

World Resources Institute (n.d.). Financing Electric and Hybrid-Electric Buses. https://www.wri.org/research/financing-electric-and-hybrid-electric-buses

Chicago

World Resources Institute. Financing Electric and Hybrid-Electric Buses. n.d. https://www.wri.org/research/financing-electric-and-hybrid-electric-buses.

Wikipedia

{{cite report |author=World Resources Institute |title=Financing Electric and Hybrid-Electric Buses |url=https://www.wri.org/research/financing-electric-and-hybrid-electric-buses |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendfinancing, author = {{World Resources Institute}}, title = {{Financing Electric and Hybrid-Electric Buses}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/financing-electric-and-hybrid-electric-buses}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }