Transport infrastructure costs in low-carbon pathways

The rate and manner in which transport infrastructure (e.g. roads, railway tracks, airports) is deployed, will play an important role in determining energy demand, greenhouse gas emissions and the economic impact of the transport sector. This paper describes an exercise where the costs of infrastructure deployment for the transport sector have been incorporated into the IMACLIM-R Global E3 IAM. In addition to adding these costs, the modelling of the criteria for the deployment of infrastructure for roads has also been improved. It is found that this model recalibration results in a more accurate baseline as compared to historically observed data (2001–2013) for investments in energy demand, road infrastructure, and passenger kilometers travelled. Regarding macroeconomic effects, it is found that the imposition of a carbon emission trajectory to 2100 cause GDP to decrease relative to the newly calibrated baseline – this is a standard IAM result. However, when the deployment of infrastructure for roads and air travel is further constrained, the GDP loss is less than with a fixed carbon emission trajectory only. This is because early restriction of infrastructure for roads and air travel allows an expansion of public transport infrastructure which is adequate to meet low-carbon transport service demand whereas when less public transport infrastructure is available, more costly mitigation investments must be made in other parts of the economy. This suggests that restricting infrastructure deployment as a complementary policy to carbon pricing, lowers the cost of mitigation.     

Climate change and the contribution of transport: Basic facts and the role of aviation

There is a world-wide consensus that climate change policy has to be intensified to achieve reduction goals set for 2020 and 2050. But it is heavily debated which contribution should be expected from the transport sector. It is often argued that in the transportation sector CO₂ marginal mitigation costs are higher such that – together with high growth of transport activities – the reduction targets for this sector should be relaxed. Green transport policy is contrasting this view and underlines that considerable reductions of climate gases in the transport sector are possible without risking economic prosperity. The aviation industry is in the focus of this discussion and first attempts are being made in the European Union to integrate aviation in an emission trading system. It will be shown that the impact of this policy will be very low in the medium term and that additional measures are necessary to create enough incentives for the aviation industry to exploit their reduction potential.     

Road transport and climate change: Stepping off the greenhouse gas

Transport is Australia’s third largest and second fastest growing source of greenhouse gas (GHG) emissions. The road transport sector makes up 88% of total transport emissions and the projected emissions increase from 1990 to 2020 is 64%. Achieving prospective emission reduction targets will pose major challenges for the road transport sector. This paper investigates two targets for reducing Australian road transport greenhouse gas emissions, and what they might mean for the sector: emissions in 2020 being 20% below 2000 levels; and emissions in 2050 being 80% below 2000 levels. Six ways in which emissions might be reduced to achieve these targets are considered. The analysis suggests that major behavioural and technological changes will be required to deliver significant emission reductions, with very substantial reductions in vehicle emission intensity being absolutely vital to making major inroads in road transport GHG emissions.     

Measuring foregone output under industry emission reduction target in the transportation sector

Numerous countries have implemented or are considering a range of policies to lower emissions from transportation. An analysis of the impacts of environmental regulation is a crucial issue, which has not been properly highlighted in the transportation literature, particularly in terms of the foregone output by such regulation. This study develops a novel DEA model that measures the foregone output when the industry emissions target is imposed. This model reflects the real regulatory process more appropriately than other models in that the authority in charge sets the emission reduction target first, and the transport operators respond to it. In addition, the model can test the industrywide impacts over a wide range of emission target values, which can help policy makers determine the optimal emission target. Finally, the proposed model was applied to the port industry in Korea. The results suggest that Korean ports can reduce their emissions by a maximum of 239,850 tons of CO₂, which accounts for 13% of the total emissions in 2010. The 13% reduction in emission, however, would result in $ 91,109,000 of foregone cargo traffic to the Korean economy. In addition, the foregone cargo traffic increases at much faster rate than the emission reduction rate. For example, the shadow price of emission differs by 2.25 times between the most moderate and strictest emission targets. This suggests that the government needs to impose moderate emission targets at the initial stages if it decides to minimize the regulatory impacts on the industry.     

Factors and scenario analysis of transport carbon dioxide emissions in rapidly-developing cities

To identify key factors of transport CO₂ emissions and determine effective policies for emission reductions in fast-growing cities, this study establishes transport CO₂ emission models, quantifying the influences of polycentricity and satellite cities and re-examining the effects of per capita GDP and metro service. Based on the model results, we forecast future residents’ urban transport CO₂ emissions under several scenarios of different urban and transport policies and new energy technologies. We find nonlinear quadratic growth relationship between commuting CO₂ emissions and per capita GDP, and the elasticities of household and individual commuting CO₂ emission to per capita GDP are 1.90% and 1.45%, respectively. Developing job-housing balanced satellite cities and self-contained polycentric city can greatly decrease emissions from high emitters and can contribute to about 51–82% of the emission reductions by 2050 compared with the scenario of business as usual (BAU). Promotion of electric vehicles, electric public buses, metros, and improvement of traditional energy efficiency contributes to about 48–57% of the emission reductions by 2050 compared with the BAU. When these policies and technologies are combined, about 90% of the emissions could be reduced by 2050 compared with the BAU, and the emissions will be about 1.2–4.9 times of the present. The findings suggest that fostering polycentric urban form and job-housing balanced satellite cities is the key step for future transport CO₂ emission reductions. Metro network promotion, energy efficiency improvement, and new energy type applications can also be effective in emission reductions.     

Reducing CO<Subscript>2</Subscript> from cars in the European Union

The European Union (EU) recently adopted CO₂ emissions mandates for new passenger cars, requiring steady reductions to 95 gCO₂/km in 2021. We use a multi-sector computable general equilibrium (CGE) model, which includes a private transportation sector with an empirically-based parameterization of the relationship between income growth and demand for vehicle miles traveled. The model also includes representation of fleet turnover, and opportunities for fuel use and emissions abatement, including representation of electric vehicles. We analyze the impact of the mandates on oil demand, CO₂ emissions, and economic welfare, and compare the results to an emission trading scenario that achieves identical emissions reductions. We find that vehicle emission standards reduce CO₂ emissions from transportation by about 50 MtCO₂ and lower the oil expenditures by about €6 billion, but at a net added cost of €12 billion in 2020. Tightening CO₂ standards further after 2021 would cost the EU economy an additional €24–63 billion in 2025, compared with an emission trading system that achieves the same economy-wide CO₂ reduction. We offer a discussion of the design features for incorporating transport into the emission trading system.     

Modeling the impacts of alternative emission trading schemes on international shipping

Various market-based measures have been proposed to reduce CO₂ emissions from international shipping. One promising mechanism under consideration is the Emission Trading Scheme (ETS). This study analyzes and benchmarks the economic implications of two alternative ETS mechanisms, namely, an open ETS compared to a Maritime only ETS (METS). The analytical solutions and model calibration results allow us to quantify the impacts of alternative ETS schemes on the container shipping sector and the dry bulk shipping sector. It is found that an ETS, whether open or maritime only, will decrease shipping speed, carrier outputs and fuel consumption for both the container and dry bulk sectors, even in the presence of a “wind-fall” profit to shipping companies. Under an open ETS, the dry bulk sector will suffer from a higher proportional reduction in output than the container sector, and will thus sell more emission permits or purchase fewer permits. Under an METS, container carriers will buy emission permits from the dry bulk side. In addition, under an METS the degree of competition within one sector will have spill-over effects on the other sector. Specifically, when the sector that sells (buys) permits is more collusive (competitive), the equilibrium permit price will rise. This study provides a framework for identifying the moderating effects of market structure and competition between firms on emission reduction schemes, and emphasizes the importance of understanding the differential impacts of ETS schemes on individual sectors within an industry when considering alternative policies.     

Hydrogen refueling station networks for heavy-duty vehicles in future power systems

A potential solution to reduce greenhouse gas (GHG) emissions in the transport sector is to use alternatively fueled vehicles (AFV). Heavy-duty vehicles (HDV) emit a large share of GHG emissions in the transport sector and are therefore the subject of growing attention from global regulators. Fuel cell and green hydrogen technologies are a promising option to decarbonize HDVs, as their fast refueling and long vehicle ranges are consistent with current logistic operational requirements. Moreover, the application of green hydrogen in transport could enable more effective integration of renewable energies (RE) across different energy sectors. This paper explores the interplay between HDV Hydrogen Refueling Stations (HRS) that produce hydrogen locally and the power system by combining an infrastructure location planning model and an electricity system optimization model that takes grid expansion options into account. Two scenarios – one sizing refueling stations to support the power system and one sizing them independently of it – are assessed regarding their impacts on the total annual electricity system costs, regional RE integration and the levelized cost of hydrogen (LCOH). The impacts are calculated based on locational marginal pricing for 2050. Depending on the integration scenario, we find average LCOH of between 4.83 euro/kg and 5.36 euro/kg, for which nodal electricity prices are the main determining factor as well as a strong difference in LCOH between north and south Germany. Adding HDV-HRS incurs power transmission expansion as well as higher power supply costs as the total power demand increases. From a system perspective, investing in HDV-HRS in symbiosis with the power system rather than independently promises cost savings of around seven billion euros per annum. We therefore conclude that the co-optimization of multiple energy sectors is important for investment planning and has the potential to exploit synergies.     

Can regional transportation and land-use planning achieve deep reductions in GHG emissions from vehicles?

The Intergovernmental Panel on Climate Change estimates that greenhouse gas emissions (GHG) must be cut 40–70% by 2050 to prevent a greater than 2 °Celsius increase in the global mean temperature; a threshold that may avoid the most severe climate change impacts. Transportation accounts for about one third of GHG emissions in the United States; reducing these emissions should therefore be an important part of any strategy aimed at meeting the IPCC targets. Prior studies find that improvements in vehicle energy efficiency or decarbonization of the transportation fuel supply would be required for the transportation sector to achieve the IPCC targets. Strategies that could be implemented by regional transportation planning organizations are generally found to have only a modest GHG reduction potential. In this study we challenge these findings. We evaluate what it would take to achieve deep GHG emission reductions from transportation without advances in vehicle energy efficiency and fuel decarbonization beyond what is currently expected under existing regulations and market expectations. We find, based on modeling conducted in the Albuquerque, New Mexico metropolitan area that it is possible to achieve deep reductions that may be able to achieve the IPCC targets. Achieving deep reductions requires changes in transportation policy and land-use planning that go far beyond what is currently planned in Albuquerque and likely anywhere else in the United States.     

Low-carbon futures for Shenzhen’s urban passenger transport: A human-based approach

Shenzhen, one of China’s leading cities, has the potential to be a model for achieving China’s ambitious CO₂ emission reduction targets. Using data from a travel diary survey in Shenzhen in 2014, we develop a human-based agent model to conduct a scenario study of future urban passenger transport energy consumption and CO₂ emissions from 2014 to 2050. Responses to different policy interventions at the individual level are taken into account. We find that with current policies, the carbon emissions of the urban passenger transport sector in Shenzhen will continuously increase without a peak before 2050. Strengthening 21 transport policies will help Shenzhen to peak the carbon emissions by 2030 for passenger transport. Among these policies, the car quota policy and the fuel economy standard are essential for achieving a carbon peak by 2030. In addition, a package of seven policies, including fewer car quotas, a stricter fuel economy standard, raising parking fees, limiting parking supply, increasing EV charging facilities and subway lines, and improving public transport services, is sufficient to peak carbon emissions by 2030, although at an emissions level higher than for the 21 policies.     

Examining transport futures with scenario analysis and MCA

Climate change is a global problem and across the world the transport sector is finding it difficult to break projected increases in carbon dioxide (CO₂) emissions; there are very few contexts where deep reductions in transport CO₂ emissions are being made. A number of research studies are now examining the potential for future lower CO₂ emissions in the transport sector. This paper develops this work to consider some of the wider sustainability impacts (economic, social and local environmental) as well as the lower CO₂ transport impacts of different policy trajectories. Hence the central argument made is for an integrated approach to transport policy making over the longer term - incorporating scenario analysis and multi-criteria assessment (MCA) - to help assess likely progress against a range of objectives.The analysis is based on work carried out in Oxfordshire, UK. Different packages of measures are selected and two scenarios developed which satisfy lower CO₂ aspirations, one of which also provides wider positive sustainability impacts. A simulation model has been produced to help explore the strategic policy choices and tensions evident for decision-makers involved in local transport planning. The paper argues for a ‘strategic conversation’ (Van der Heijden, 1996) at the sub-regional and city level, based upon future scenario analysis and MCA, discussing the priorities for intervention. Such an approach will help us examine the scale of change and trade-offs required in moving towards sustainable transport futures.     

Biofuel futures in road transport – A modeling analysis for Sweden

First and second generation biofuels are among few low-carbon alternatives for road transport that currently are commercially available or in an early commercialization phase. They are thus potential options for meeting climate targets in the medium term. For the case of Sweden, we investigate cost-efficient use of biofuels in road transport under system-wide CO₂ reduction targets to 2050, and the effects of implementation of targets for an almost fossil-free road transport sector to 2030. We apply the bottom-up, optimization MARKAL_Sweden model, which covers the entire Swedish energy system including the transport sector. For CO₂ reductions of 80% to 2050 in the Swedish energy system as a whole, the results of the main scenario show an annual growth rate for road transport biofuels of about 6% from 2010 to 2050, with biofuels accounting for 78% of road transport final energy use in 2050. The preferred biofuel choices are methanol and biomethane. When introducing additional fossil fuel phase-out policies in road transport (−80% to 2030), a doubling of the growth rate to 2030 is required and system CO₂ abatement costs increases by 6% for the main scenario. Results imply that second generation biofuels, along with energy-efficient vehicle technologies such as plug-in hybrids, can be an important part of optimized system solutions meeting stringent medium-term climate targets.     

Efficiency of European Funds in the Accession Countries: The Case of Transport Infrastructure Investments in Latvia

ABSTRACT

A transport initiative, like any kind of public action, has an impact on the monetary cost, time cost, efficiency and comfort of the transportation of goods and people, in particular transport infrastructure investments. All such initiatives are subject to cost benefit analyses at the national and EU level to know whether the present value of total net benefits including environmental impacts exceeds their cost. However, several important policy issues remain unresolved in standard evaluation procedures. One issue is whether the so-called direct measurement of user benefit, which consists of quantifying changes in surplus of the users of the transport system, captures all welfare generated in the economy. Another issue is how the gains (or possibly losses) of a transport initiative are distributed among regions. The aim of this article is to perform a systematic and quantitative analysis of the socio-economic and spatial impacts of alternative transport investments by carrying out scenario simulations in order to improve the understanding of the impact of transportation policies on the short- and long-term spatial development in Latvia. The general result from the scenario simulations is that rail projects seem to be more effective in terms of promoting regional economic activity than road projects.     

The future tourism mobility of the world population: Emission growth versus climate policy

Much of global passenger transport is linked to tourism. The sector is therefore of interest in studying global mobility trends and transport-related emissions. In 2005, tourism was responsible for around 5% of all CO₂ emissions, of which 75% were caused by passenger transport. Given the rapid growth in tourism, with 1.6 billion international tourist arrivals predicted by 2020 (up from 903 million in 2007), it is clear that the sector will contribute to rapidly growing emission levels, and increasingly interfere with global climate policy. This is especially true under climate stabilisation and “avoiding dangerous climate change” objectives, implying global emission reductions in the order of −50% to −80% by 2050, compared to 2000. Based on three backcasting scenarios, and using techniques integrating quantitative and qualitative elements, this paper discusses the options for emission reductions in the tourism sector and the consequences of mitigation for global tourism-related mobility by 2050. It ends with a discussion of the policy implications of the results.     

The effect of uncertainty on US transport-related GHG emissions and fuel consumption out to 2050

The future of US transport energy requirements and emissions is uncertain. Transport policy research has explored a number of scenarios to better understand the future characteristics of US light-duty vehicles. Deterministic scenario analysis is, however, unable to identify the impact of uncertainty on the future US vehicle fleet emissions and energy use. Variables determining the future fleet emissions and fuel use are inherently uncertain and thus the shortfall in understanding the impact of uncertainty on the future of US transport needs to be addressed. This paper uses a stochastic technology and fleet assessment model to quantify the uncertainties in US vehicle fleet emissions and fuel use for a realistic yet ambitious pathway which results in about a 50% reduction in fleet GHG emissions in 2050. The results show the probability distribution of fleet emissions, fuel use, and energy consumption over time out to 2050. The expected value for the fleet fuel consumption is about 450 and 350 billion litres of gasoline equivalent with standard deviations of 40 and 80 in 2030 and 2050, respectively. The expected value for the fleet GHG emissions is about 1360 and 850 Mt CO₂ equivalent with standard deviation of 130 and 230 in 2030 and 2050 respectively. The parameters that are major contributors to variations in emissions and fuel consumption are also identified and ranked through the uncertainty analysis. It is further shown that these major contributors change over time, and include parameters such as: vehicle scrappage rate, annual growth of vehicle kilometres travelled in the near term, total vehicle sales, fuel economy of the dominant naturally-aspirated spark ignition vehicles, and percentage of gasoline displaced by cellulosic ethanol. The findings in this paper demonstrate the importance of taking uncertainties into consideration when choosing amongst alternative fuel and emissions reduction pathways, in the light of their possible consequences.     

The impact of high-speed rail investment on economic and environmental change in China: A dynamic CGE analysis

This study investigates the impact of high-speed rail investment on the economy and environment in China using a computable general equilibrium (CGE) model. The analysis is implemented in a dynamic recursive framework capturing long-run capital accumulation and labor market equilibrium. A national level impact was simulated through direct impact drivers including land use conversion, output expansion, cost reduction, productivity increase, transport demand substitution and induced demand. The results suggest that rail investment in China over the past decade has been a positive stimulus to the economy, while the effect on CO₂ emissions generation has been large. Overall, the economic impacts of rail investment are achieved primarily through induced demand and output expansion, whereas the contribution from a reduction of rail transportation costs and rail productivity increases were modest. In addition, negligible negative impacts were found from land use for rail development and the substitution effect among other modes. Emissions reduction from substitution of rail for other modes was small and offset by output expansion due to lowered rail transport costs and induced demand.     

Future advanced long-haul Evacuated Tube Transport (EET) system operated by TransRapid Maglev (TRM): a multidimensional examination of performance

This paper presents a multidimensional examination of the infrastructural, technical/technological, operational, economic, environmental, social, and policy performance of the future advanced Evacuated Tube Transport (ETT) system operated by TransRapid Maglev (TRM) (the ETT-TRM system). The examination implies analyzing, modeling, and estimating selected performance criteria using the case of the Trans-Atlantic passenger transport market currently served exclusively by the Air Passenger Transport (APT) system. The purpose is to assess the ETT-TRM system’s competitive capabilities compared to those of the current and future APT system and consequently its potential contribution to mitigating impacts of both systems on society and the environment – the sustainability of the transport sector - under given conditions.     

Improvement in the estimation and back-extrapolation of CO2 emissions from the Irish road transport sector using a bottom-up data modelling approach

Road transport is a major source of CO₂ emissions in Ireland and accounts for almost 96% of the total CO₂ emissions from the transport sector. Following the recent adopted UNFCCC reporting guidelines on annual inventories [24/CP.19], this study applied the 2006 IPCC Guidelines for National Greenhouse Gas Inventories (2006 IPCC GLs) tier 3 approach to estimate CO₂ emissions from road transport at the vehicle category level, for the first time in Ireland. For this, disaggregated datasets were prepared based on year of vehicle registration and mileage since registration of the vehicle. Such an approach provided a more realistic national scenario in comparison to the use of average mileage degradation in emission calculations. This investigation comprised a recalculation of previous emissions estimates (1990–2012) and an estimation of CO₂ emissions in 2013 using a previously unavailable level of data disaggregation for vehicle mileage as well as using vehicle class specific data and an improved bottom-up estimation methodology in COPERT. Historic vehicle fleet data were restructured, annual mileage data were estimated in relation to the fleet data and back extrapolated using a regression approach.The results showed that the mileage degradation was not only subject to fuel technology, engine size, and age but also the emissions class and vehicle category. It was also observed that the disaggregated level of data provided a different CO₂ emissions split among the vehicle categories than that of previous estimations which were based on an aggregated level of data. Previous emissions inventories (1990–2012) were shown to have underestimated the share from diesel fuelled passenger cars by more than 56% in 2012. Diesel fuelled passenger cars were also found to account for the majority of CO₂ emissions from road transport activities in Ireland in 2013. The level and trend assessment showed that emissions from Euro-II and Euro-III classed vehicles especially for passenger cars, which have a significant contribution to the total emission in 2013 have caused an increase in fleet level emissions in Ireland. In addition, the results also showed that the emissions share from Light Duty Vehicles and Heavy Duty Vehicles were overestimated by previous investigations. This paper highlights the importance of the resolution of data used in emissions inventory preparation which may impact upon future projections and policy formulation. The findings of this investigation are also discussed in relation their implications for road transport policy, including carbon taxation and future policy options aimed at achieving EU emissions target in 2020.     

Decouple transport CO2 emissions from China’s economic expansion: A temporal-spatial analysis

China’s transport industry is energy intensive and high-polluting. While with the surging urbanization and the development of service industry, China’s economic relies more and more on the transport sector. Therefore, exploring the relationship between transport energy-related carbon emission (TECE) and economic development is crucial to the realization of China’s “Post Paris” mitigation target. The paper carries out a decoupling research between TECE and Gross domestic product (GDP) at both national level and province level based on Logarithmic Mean Divisia Index (LMDI) decomposition analysis with the extended Kaya identity and Tapio decoupling model. The model quantifies eight factors’ effects on the relationship with focusing on external macro socio-economic related factors (i.e., spatial pattern, urbanization, per capita service industry output value, reciprocal of the service industry’s share of GDP, and demographic variable) successfully. The key conclusions are indicated as follows: (1) the national decoupling status was extensive coupling during 2004–2010 and then weak decoupling during 2010–2016. The progress can be attributed to the decline of energy intensity. (2) Per capita service output was always the prominent factor to promote carbon emissions growth in different time periods and provinces with inhibiting the advancement of decoupling process, followed by urbanization. (3) Scenario analysis shows that with the continuous growth of traffic demand and the promotion of urbanization, improving energy efficiency has become the key link to realize the decoupling between China’s TECE and its economy.     

Interplay between electricity and transport sectors – Integrating the Swiss car fleet and electricity system

Electric vehicles are seen as a future mobility option to respond to long term energy and environmental problems. The 2050 Swiss energy strategy envisages 30–75% introduction of electric cars by 2050, which is designed to support the goal of decarbonising the energy sector. While the Swiss government has decided to phase out nuclear electricity, deployment of electric cars can affect electricity supply and emission trajectories. Therefore, potential interactions between the electricity and transport sectors must be considered in assessing the future role of electric mobility. We analyse a set of scenarios using the Swiss TIMES energy system model with high temporal resolution. We generate insights into cross-sectoral trade-offs between electricity supply and electrification/decarbonisation of car fleets. E-mobility supports decarbonisation of car fleet even if electricity is supplied from large gas power plants or relatively low cost sources of imported electricity. However, domestic renewable based electricity generation is expected to be too limited to support e-mobility. Stringent abatement targets without centralised gas power plants render e-mobility less attractive, with natural gas hybrids becoming cost effective. Thus the cost effectiveness of electric mobility depends on policy decisions in the electricity sector. The substitution of fossil fuels with electricity in transport has the potential to reduce revenues from fuel taxation. Therefore it is necessary to ensure consistency between electricity sector and transport energy policies.