1. Introduction
Global carbon emissions reached a new peak of 37.4 Gt in 2023 [
1]. Transport and logistics accounted for 24% of global emissions, with 78% coming from road transport [
2]. Much of this has been pinned on the rapid development of business-to-customer (B2C). Compared with self-pickup in the offline market, logistics service has also become an indispensable part of customers evaluating goods. Hence, last-mile transportation has emerged as a significant issue in the logistics sector [
3]. As the e-commerce and logistics industries continue to expand, the frequency of last-mile transportation and carbon dioxide (CO
2) emissions will also rise, further exacerbating greenhouse gas (GHG) emissions from road transport. Therefore, decarbonizing last-mile transportation is an urgent priority. The traditional modes of last-mile transportation are mainly vans, light diesel trucks, bicycles, and tricycles. The latter two are suitable for areas with higher population densities and have the advantage of being small and easy to maneuver, making deliveries convenient when roads are narrow and housing areas are compact. However, their disadvantages include the inability to transport a significant amount of goods at once and increased travel time in larger delivery areas. Consequently, the traditional way is to use vans or light diesel trucks for last-mile transportation. Light diesel trucks are more favorable for short-distance deliveries than larger vans. However, the use of diesel trucks for deliveries leads to significant GHG emissions, thus presenting environmental challenges associated with these traditional vehicles [
4].
The issue is further complicated as global warming becomes a critical concern, prompting national carbon emissions policies to restrict companies from pursuing low-cost strategies at the expense of sustainability. As a result, companies are compelled to transform their logistics and delivery processes, and they need to look for more sustainable delivery methods to meet this challenge. The emergence of Battery Electrical Vehicle (BEV) and Fuel Cell Electrical Vehicle (FCEV) technologies has become an alternative to Conventional Vehicles (CVs) such as light diesel trucks for last-mile transportation. Both of them do not emit any CO
2 during operation. Recent studies have predicted that FCEV trucks could replace 25% of the fleet by 2050 [
5]. Although both BEVs and FCEVs are competitive alternatives to CVs, they will be more expensive than CVs in terms of cost. Although BEVs have a cost advantage over FCEVs, FCEVs will contribute more in terms of environmental benefits. The high cost remains the primary barrier for companies when considering FCEVs. However, larger companies with capacity for long-term growth are more inclined to invest in decarbonization strategies and can accept the slower rate of return that comes with such long-term investment [
6]. As a result, major players with long-term development prospects might explore whether choosing FCEVs can overcome the disadvantages of high investment costs in the long run and bring more sustainable economic and environmental benefits to the company. Therefore, the research question is whether BEVs and FCEVs are viable alternatives to CVs, and more critically, which is the superior choice for last-mile delivery, especially for large enterprises.
China is selected as the study region not only due to data availability but also because it plays a central role in the global transition toward low-carbon transportation. China hosts the world’s largest e-commerce and logistics market, which generates substantial last-mile delivery demand [
7]. It also leads global electric vehicle production and adoption, making it an important context for evaluating BEV deployment [
8]. In addition, China is the world’s largest hydrogen producer and is expanding renewable energy capacity, creating favorable conditions for future FCEV development [
9,
10]. These characteristics provide a strong analytical basis for selecting China as the focus of this study.
To address the motivation mentioned above, this study sets out the following research objectives. The first objective is to assess and compare the two vehicle technologies in terms of their economic and environmental performance using LCA and LCC across the full cradle-to-grave life cycle. The second objective is to quantify the differences in life cycle greenhouse gas emissions and operational costs between BEVs and FCEVs based on the defined functional unit of one kilometer traveled and the system boundaries established for the LCA and LCC models. The third objective is to examine the distribution of environmental impacts in order to identify the specific impact areas in which each technology performs better or worse. These objectives directly inform the methodological design by determining the need for an integrated LCA–LCC framework, structuring the subsequent modeling of environmental impacts and life cycle costs, thereby ensuring a clear alignment between the study’s motivation, analytical choices, and intended contribution to last-mile logistics. The target audience for this study includes, but is not limited to, governments, policymakers, logistics and transport companies, vehicle manufacturers, and researchers.
There have been some discussions in the existing literature about the recommended vehicles for last-mile transportation. Refs. [
11,
12,
13] believed that cargo bikes could provide a more cost-effective and environmentally friendly last-mile delivery service than conventional lorries, in terms of their fixed costs and energy consumption. In addition, ref. [
14] found that using smart bikes instead of traditional vehicles may reduce costs by 87–90 percent. Additionally, some studies believe that drones have advantages in terms of efficiency and environmental benefits for last-mile deliveries. However, as drones are limited by technology costs, operations and maintenance, weather challenges, and other factors, a hybrid truck plus drone transport fit is currently required to be more effective in reducing delivery times and improving environmental benefits [
15,
16]. Therefore, as the most highly regarded BEVs and FCEVs, academics believe they are the most suitable alternatives to replace conventional vehicles. Reference [
5] suggested that finding alternatives to the internal combustion engine is crucial to reducing carbon footprints, and they propose that FCEVs and BEVs will replace CVs in the future. Similarly, ref. [
17] evaluated the cost of electric Light Commercial Vehicles (eLCVs) and CVs by using the Total Cost of Ownership (TCO) model. They concluded that eLCVs are more cost-effective than CVs due to the competitive pricing of eLCVs. Reference [
18] found through cost-based life cycle assessment that FCEVs have environmental and economic advantages over CVs in long-distance transportation.
Current research in terms of last-mile delivery focuses on equipment innovation and route optimization. References [
19,
20] claimed that the innovations are mainly in drone transport, robotics, smart parcel stations, crowdsourcing, and automated vehicles. In terms of reducing carbon emissions in the last mile, ref. [
21] explored drone transport to address route optimization challenges and ecological issues. Reference [
22] used the simulation of predicted vehicle in the heavy congestion operating environment to optimize traffic flow. The existing literature is relatively limited for applying BEVs and FCEVs in last-mile transportation. However, since vehicular transport is still the dominant means of transport in urban distribution, the research on these two emerging vehicle technologies deserves more effort. The characteristic that distinguishes purely electric cars from other vehicles (diesel or hybrid) is that they run entirely on the power stored in the battery to propel the electric motor [
23]. Therefore, they do not emit any CO
2 during operation. In addition to environmental motivations, many governments worldwide are promoting BEVs and FCEVs as part of broader industrial and technological strategies aimed at strengthening competitiveness in the global automotive sector. Recent studies show that national policies in both developed and developing economies increasingly link low-carbon mobility transitions with goals related to industrial upgrading, supply chain leadership, and long-term economic positioning in emerging clean-technology markets. Such policies reflect a recognition that the shift toward electrified and hydrogen-powered transport is not only a response to climate and energy challenges but also a strategic opportunity to shape future manufacturing capabilities and innovation trajectories [
24,
25]. This broader policy-industrial landscape underscores the significance of evaluating BEVs and FCEVs within an evolving technological and economic environment.
Although pure electric vehicles are more environmentally friendly, they also suffer from weak range, long charging time, and low penetration of charging infrastructure [
26]. According to [
27], electric vehicles are a promising alternative to conventional internal combustion engines for passenger and freight transport. eLCVs can contribute to cleaner urban goods distribution. Electric trucks emit 42–61 percent less greenhouse gases and consume 32–54 percent less energy than diesel trucks [
17]. Therefore, eLCVs are generally chosen as alternatives to regular light trucks for last-mile issues.
A highly anticipated alternative is the Hydrogen Fuel Cell Vehicle (HFCV), in which hydrogen fuel and fuel cells replace batteries. It takes compressed hydrogen from an onboard storage tank, mixes it with the atmosphere, and generates direct current electricity to drive an electric motor [
28]. FCEVs are environmentally friendly, emitting only water and involving no heat or combustion. Because hydrogen fuel contains no carbon, it also emits no CO
2, carbon monoxide, or hydrocarbons. According to the power type of fuel cell, it can be divided into three types: Compensation, Hybrid, and Full Power. It uses the fuel cell system as the primary power source and is equipped with a power battery as an auxiliary power source, which can play the role of energy recovery [
29]. The most common fuel cell type for FCEVs is the Proton Exchange Membrane Fuel Cell (PEMFC), which is particularly suitable for automotive applications due to its fast start-up capability and high-power density, making it particularly suitable for such scenarios where quick response operation is required [
30]. However, the critical point for FCEVs regarding environmental protection is how hydrogen is produced, which is still dominated by Steam Methane Reforming (SMR), or gray hydrogen, which accounts for 50 percent of the overall hydrogen [
31]. Moreover, this way of making hydrogen still releases CO
2 into the atmosphere. However, due to high cost, the green hydrogen produced by renewables accounts for only a small portion of hydrogen production. Still, it is already being invested heavily and is expected to be able to reduce the price significantly in the next decade [
32]. As hydrogen costs are likely to decrease by 43% gradually, fuel cell vehicles are rapidly developing with a hydrogen demand of about 60,000 tons [
33]. Therefore, although there are still challenges with FCEVs today, with the gradual advancement of green hydrogen fuel technology, hydrogen plays a role in the energy transition of the transport sector. Recent studies illustrate that the carbon intensity of hydrogen differs substantially depending on the production route and logistics, with evidence showing that supply chain configuration, transportation distance, and production energy mix collectively determine the life cycle impacts of hydrogen used in mobility applications [
34,
35]. Emerging green hydrogen pathways have been shown to significantly reduce upstream emissions compared with conventional methods, highlighting the importance of considering hydrogen source variability in FCEV assessments [
34]. In addition, China, as the world’s largest hydrogen producer, will achieve a hydrogen production of 25 Mt in 2030, a year-on-year increase of 13.6%, accounting for one-third of the global hydrogen production [
18]. The decarbonization trajectory of China’s regional electricity grids will also significantly influence the long-term environmental performance of BEVs, as declining grid carbon intensity directly reduces operational emissions in the use phase [
36,
37]. These findings underscore the need to consider evolving energy systems when comparing life cycle results for BEVs and FCEVs in China.
Research on BEVs and FCEVs in the existing literature has largely focused on daily travel or public transportation. When it comes to commercial applications, studies typically discuss overall transit rather than delving into specifics for each transportation segment. Some scholars believe that BEVs would be a better choice. Compared to CVs, BEVs have some emission reduction benefits and are more mature than FCEVs in terms of construction and development of charging infrastructure [
38]. Reference [
39] conducted a sensitivity analysis based on a cost-based life cycle assessment and concluded that increasing the mileage and reducing fuel costs are the key improvement points that can increase the benefits of FCEVs and BEVs in China. Reference [
40] simulated urban freight transportation and concluded that BEVs have a cost advantage over FCEVs, as the price and unstable source of hydrogen are still factors to be considered. Therefore, because of the relatively low cost of BEVs and their effectiveness in reducing carbon footprint, many believe that BEVs will become mainstream commercial transportation in the future [
40]. Recent comparative life cycle assessments provide updated evidence that the relative environmental performance of BEVs and FCEVs varies across vehicle segments, life cycle stages, and regional energy conditions, illustrating that no single technology performs best under all scenarios [
41,
42,
43]. Systematic reviews further emphasize that material production, particularly for batteries, and the treatment of end-of-life processes remain critical contributors to BEV impacts [
44]. Despite FCEVs’ advantages over BEVs in terms of carbon emissions and the effectiveness of decarbonization, their high cost has hindered broader consideration. However, with the gradual stabilization and development of hydrogen battery technology, FCEVs are expected to become competitive with BEVs in terms of capital cost, sustainability, and reducing range anxiety [
45]. Moreover, ref. [
46] found that the industry is still undecided about which of the two types of vehicles is the industry’s future. Different companies will choose different types of vehicles to expand their business territory based on their unique business models. Therefore, BEVs and FCEVs are still attractive for logistics companies to study in the last mile. The literature review reveals that research focuses on the entire transportation industry, there is a lack of specific studies on the relationship between different business sizes and vehicle choices. Reference [
47] evaluated the choice between BEVs and FCEVs for the last-mile problem in the Spanish market, mainly through a TCO model. However, the article’s focus on cost raises the question of whether the competitiveness of FCEVs could be enhanced by considering the assessment of long-term environmental benefits. Since FCEVs have higher greenhouse gas emission reduction benefits, as mentioned by [
40], it is hypothesized that balancing the carbon reduction benefits with the acquisition costs of FCEVs may be more favorable for companies that can grow in the long term. Reference [
6] also analyzed the sustainability management of companies of different sizes. They found that larger companies have more spare resources to use more effective tools in reducing emissions. Incorporating dynamic modeling elements, such as battery aging, technology learning, evolving grid structures, and hydrogen supply chain variability into vehicle LCAs is essential, as these factors can meaningfully shift comparative outcomes between BEVs and FCEVs [
34,
42,
44].
To synthesize the current state of knowledge and to highlight methodological differences across existing assessments,
Table 1 summarizes representative LCA studies focusing on BEVs and FCEVs, including their scopes, functional units, system boundaries, assessment methods, and key findings.
Although existing studies provide valuable insights into the relative cost and environmental performance of BEVs and FCEVs, they tend to generalize results across the entire transportation sector and do not reflect the distinct operational conditions of companies of different sizes. Current LCA and LCC analyses often examine these vehicle technologies independently or emphasize only one dimension of performance, which limits their usefulness for organizations that must evaluate both long-term environmental outcomes and financial investment strategies. Moreover, most assessments do not employ a unified LCA–LCC framework that compares BEVs and FCEVs across multiple environmental impact categories while simultaneously accounting for lifetime cost implications. As a result, there remains a lack of research that specifically examines how large enterprises should evaluate the tradeoffs between BEVs and FCEVs for last-mile delivery, since they possess greater capacity to adopt emerging technologies.
Building on these insights, this study extends previous comparative analyses of BEVs and FCEVs by introducing a large-company perspective. The study focuses on large-scale companies that aim to sustain long-term operations by achieving both economic and ecological benefits. Given the dual focus of this study on both environmental performance and economic feasibility, a life cycle-based analytical framework is particularly suitable for assessing the trade-offs between BEVs and FCEVs. Previous research has primarily applied the Life Cycle Assessment (LCA) and Life Cycle Cost (LCC) framework to individual users or public transportation cases, without considering how firm heterogeneity influences decision-making. Large enterprises, however, differ substantially from smaller entities in investment horizon, risk tolerance, and sustainability orientation. They are also the first to be targeted by policy reforms and often subject to stricter decarbonization requirements, which motivate them to pursue long-term emission reductions despite higher initial costs. Moreover, to align the analysis with firms’ long-term investment horizons, this study employs a total discounted cost of ownership (TDCO) approach, which is an enhanced form of the traditional TCO model that integrates discount and inflation rates to account for the time value of money [
33]. The TDCO approach provides a more realistic assessment of economic feasibility from a long-term perspective, particularly relevant for large firms with greater financial resilience and stronger sustainability commitments. Through this integration, the research not only extends the analytical reach of existing TCO-based studies but also enhances the policy relevance of life cycle analysis by illustrating how firm-scale differences in financial flexibility and carbon accountability can reshape the comparative evaluation of BEVs and FCEVs. This perspective suggests that policies promoting low-carbon logistics should account for firm-scale heterogeneity, prioritizing large enterprises as early adopters while designing differentiated support mechanisms for smaller firms.
The originality of this research lies in integrating LCA and LCC within a unified analytical framework to evaluate BEVs and FCEVs simultaneously from both environmental and economic perspectives. In contrast to previous studies that examine these technologies in general transportation contexts, this study focuses specifically on large enterprises engaged in last-mile delivery, a segment where long-term operational strategy and sustainability investment capacity play a crucial role. Furthermore, by assessing multiple environmental impact categories using the ReCiPe 2016 Midpoint (H) method, the study provides a more comprehensive understanding of the tradeoffs between BEVs and FCEVs.
To address these gaps, the present study analyzes BEVs and FCEVs using an integrated LCA–LCC framework tailored to the operational conditions of large enterprises engaged in last-mile delivery. This study applies Life Cycle Assessment (LCA) and Life Cycle Cost (LCC) to determine whether BEVs or FCEVs are better options for last-mile transportation for large companies. The study focuses on large-scale companies that seek to maintain long-term operations through sustainable economic and ecological benefits. The rest of this article is structured as follows:
Section 2 presents the methodology used to evaluate BEVs and FCEVs in terms of economic and environmental aspects;
Section 3 gives results and preliminary insights on three subsections on BEVs, FCEVs and a comprehensive comparison of both vehicles;
Section 4 is an in-depth analysis of the results. It also lists the study’s contributions;
Section 5 summarizes this study and indicates the limitations and implications for future research directions.