Environmental life-cycle assessment of transit buses with alternative fuel technology

The paper presents a life-cycle assessment of costs and greenhouse gas emissions for transit buses deploying a hybrid input-output model to compare ultra-low sulfur diesel to hybrid diesel-electric, compressed natural gas, and hydrogen fuel-cell. We estimate the costs of emissions reductions from alternative fuel vehicles over the life cycle and examine the sensitivity of the results to changes in fuel prices, passenger demand, and to technological characteristics influencing performance and emissions. We find that the alternative fuel buses reduce operating costs and emissions, but increase life-cycle costs. The infrastructure requirement to deploy and operate alternative fuel buses is critical in the comparison of life-cycle emissions. Additionally, efficient bus choice is sensitive to passenger demand, but only moderately sensitive to technological characteristics, and that the relative efficiency of compressed natural gas buses is more sensitive to changes in fuel prices than that of the other bus types.     

Imperfect reversibility of air transport demand: Effects of air fare,fuel prices and price transmission

There are recent evidence that air transport demand may not have a perfectly reversible relationship with income and jet fuel prices, as is assumed in most demand models. However, it is not known if the imperfectly reversible effects of jet fuel price are a result of asymmetries in the supply side, i.e., asymmetries in cost pass through from fuel prices to air fare, or of demand side behavioral asymmetries whereby people value gains and losses differently. This paper uses US time series data and decomposes air fare and fuel price into three component series to develop an econometric model of air transport demand that is capable of capturing the potential imperfectly reversible relationships and test for the presence or absence of reversibility. We find that air transport demand shows asymmetry with respect to air fare, indicating potential imperfect reversibility in consumer behavior. We also find evidence of asymmetry and hysteresis in cost pass-through from jet fuel prices to air fare, showing rapid increases in airfare when fuel prices increases but a slower response in the opposite direction.     

The impact of strategic management and fleet planning on airline efficiency - A random effects Tobit model based on DEA efficiency scores

As a result of the liberalisation of airline markets; the strong growth of low cost carriers; the high volatility in fuel prices; and the recent global financial crisis, the cost pressure that airlines face is very substantial. In order to survive in these very competitive environments, information on what factors impact on costs and efficiency of airlines is crucial in guiding strategic change. To evaluate key determinants of 58 passenger airlines’ efficiency, this paper applies a two-stage Data Envelopment Analysis (DEA) approach, with partially bootstrapped random effects Tobit regressions in the second stage. Our results suggest that the effects of route optimisation, in the sense of average stage length of the fleet, are limited to airline technical efficiency. We show that airline size and key fleet mix characteristics, such as aircraft size and number of different aircraft families in the fleet, are more relevant to successful cost management of airlines since they have significant impacts on all three types of airline efficiency: technical, allocative and, ultimately, cost efficiency. Our results also show that despite the fuel saving benefits of younger aircraft, the age of an airline’s fleet has no significant impact on its technical efficiency, but does have a positive impact on its allocative and cost efficiency.     

A note on implicit consumer discounting of automobile fuel economy: Reviewing the available evidence

A key element in the long run response of the automotive market to higher fuel prices is consumers' willingness to pay for fuel economy improvements. Eight recent studies are examined and estimates of asset price/operating cost discount rates are derived for each. A critical comparison of results suggests that most are implausible. Plausible estimates range from 4 to 40% as a function of household income.     

An investment appraisal method to compare LNG-fueled and conventional vessels

Ever stricter emission regulations stimulate vessel owners to consider the adoption of alternative marine fuels, such as Liquefied Natural Gas (LNG). In deciding whether to invest in LNG-fueled vessels, initial investment and operating costs are decisive factors that have not yet been fully studied in the literature. In this paper, we present a new investment appraisal method to compare the costs of LNG-fueled vessels with conventional vessels. We analyze the fuel costs and overall exploitation costs by simulating bunker planning decisions under stochastic fuel prices, presence in emission controlled areas, and route lengths. Our analyses reveal that the fuel costs of LNG-fueled vessels are often lower than those of conventional vessels, even under unfavorable LNG prices. Due to the higher initial investment costs in LNG-fueled vessels, these fuel cost reductions do not always translate into lower overall exploitation costs. By conducting numerical experiments, we identified conditions under which the exploitation costs of LNG-fueled vessels are lower than conventional vessels.     

Evaluation and implications of environmental charges on commercial flights

Environmental charges are one of the economic instruments for controlling externalities. Their application to commercial flights has become a preferred method of encouraging the sustainable development of the air transport industry. Two kinds of externalities, aircraft noise and engine emissions, both generating profound impacts on human beings and on the environment, are considered here. The hedonic price method is applied to calculate the social cost of aircraft noise during the landing and take-off stages of the flight. The marginal impact of each flight with specific aircraft/engine combinations is derived for the allocation of aggregate noise social costs. In contrast, the dose - response method is applied to estimate the social cost of each engine exhaust pollutant during different flight modes. The combination of aircraft noise and engine emissions social costs is then evaluated on the basis of several environmental charge mechanism scenarios, using Amsterdam Airport Schiphol as a case study. It is shown that the current noise or engine emissions related charges at airports are lower than the actual social costs of their respective externalities. The implications of charge mechanism scenarios are subsequently discussed and evaluated in terms of their impacts on airline costs, airfares and passenger demand.     

An optimization model of energy and transportation systems: Assessing the high-speed rail impacts in the United States

This paper presents a long-term investment planning model that co-optimizes infrastructure investments and operations across transportation and electric infrastructure systems for meeting the energy and transportation needs in the United States. The developed passenger transportation model is integrated within the modeling framework of a National Long-term Energy and Transportation Planning (NETPLAN) software, and the model is applied to investigate the impact of high-speed rail (HSR) investments on interstate passenger transportation portfolio, fuel and electricity consumption, and 40-year cost and carbon dioxide (CO₂) emissions. The results show that there are feasible scenarios under which significant HSR penetration can be achieved, leading to reasonable decrease in national long-term CO₂ emissions and costs. At higher HSR penetration of approximately 30% relative to no HSR in the portfolio promises a 40-year cost savings of up to $0.63 T, gasoline and jet fuel consumption reduction of up to 34% for interstate passenger trips, CO₂ emissions reduction by about 0.8 billion short tons, and increased resilience against petroleum price shocks. Additionally, sensitivity studies with respect to light-duty vehicle mode share reveal that in order to realize such long-term cost and emission benefits, a change in the passenger mode choice is essential to ensure higher ridership for HSR.     

Fuel burn and environmental implications of airline hub networks

Hubs act as switching points for interactions and so are places through which flows are concentrated. This research uses the interactions between a system of cities as an experimental context for understanding selected environmental costs and benefits of concentrated flow. Whether hub based networks create additional environmental costs has been debated in the literature. In this paper, fuel burn is used as an indicator of environmental cost. The essential ideas are: (1) to examine fuel costs associated with larger aircraft; (2) to determine implications of higher loads on dense routes; and (3) to model the resulting implications for hub and gateway location. Variants of these questions apply to passenger and freight flows, and the paper will initially concentrate on passenger models.The paper shows that by modeling fuel burn and introducing a fixed charge (like a set up cost), a multiple allocation hub and spoke model can be adjusted to direct more or less flow onto the inter-facility connector. In other words, usage of multiple connections and direct links can be controlled and modeled as a function of the fixed charge. The resulting networks are characterized by quite different levels of passenger miles, aggregate fuel burn and fixed charges. The preferred network in terms of minimal fuel burn is found by subtracting the fixed set up charge, thereby focusing attention on the modeled fuel burn. The lowest cost set up is a network with a high degree of connectivity, and a pure single assignment hub network has the highest fuel cost (as a result of larger passenger miles needed by connecting paths). The data also allow a tabulation of total passenger miles, which, not surprisingly, track very closely with the fuel burn. In an interesting application of the ideas, it is shown that a fuel efficient network may require a large number of smaller regional jets, and in the interests of avoiding noise and congestion from so many extra airport operations, the carriers may choose to substitute a smaller number of larger planes, thereby slightly increasing fuel needs. This paper also provides a key ingredient for models of an international network where it is impossible to serve many long distance market pairs without consolidation.     

A math-heuristic algorithm for the integrated air service recovery

A sophisticated flight schedule might be easily disrupted due to adverse weather, aircraft mechanical failures, crew absences, etc. Airlines incur huge costs stemming from such flight schedule disruptions in addition to the serious inconveniences experienced by passengers. Therefore, an efficient recovery solution that simultaneously decreases an airline's recovery cost while simultaneously mitigating passenger dissatisfaction is of great importance to the airline industry. In this paper, we study the integrated airline service recovery problem in which the aircraft and passenger schedule recovery problems are simultaneously addressed, with the objective of minimizing aircraft recovery and operating costs, passenger itinerary delay cost, and passenger itinerary cancellation cost.Recognizing the inherent difficulty in modeling the integrated airline service recovery problem within a single formulation (due to its huge solution space and quick response requirement), we propose a three-stage sequential math-heuristic framework to efficiently solve this problem, wherein the flight schedules and aircraft rotations are recovered in the first stage, Then, a flight rescheduling problem and passenger schedule recovery problems are iteratively solved in the next two stages. Time-space network flow representations, along with mixed-integer programming formulations, and algorithms that take advantages of the underlying problem structures, are proposed for each of three stages. This algorithm was tested on realistic data provided by the ROADEF 2009 challenge and the computational results reveal that our algorithm generated the best solution in nearly 72% of the test instances, and a near-optimal solution was achieved in the remaining instances within an acceptable timeframe. Furthermore, we also ran additional computational runs to explore the underlying characteristics of the proposed algorithm, and the recorded insights can serve as a useful guide during practical implementations of this algorithm.     

Operating costs in Norwegian toll companies: a panel data analysis

The objective of this paper is to ease the planning of new toll projects by providing estimates of operating costs, and to help us make better informed decisions about the design of toll collection systems. To do so we use panel data for Norwegian toll companies to estimate average cost functions. The main results can be summarised as follows. We provide evidence of very important unexploited economies of scale. The estimated cost curves are very steep for traffic levels below the sample mean, and become almost entirely flat over a wide range above the sample mean. A higher share of vehicles using on board units will significantly reduce average costs. Competitive tendering will significantly reduce average operating costs by as much as 25%. Our results also suggest that increased number of lanes, higher debt and passenger charging will increase average operating costs whereas average operating costs are lower for toll cordons compared with other projects.

Real option analysis for environmental compliance: LNG and emission control areas

A wide array of technical and operational solutions is available to shipowners in order to comply with existing and upcoming environmental regulation within Emission Control Areas (ECAs). Liquefied Natural Gas (LNG) is a promising alternative since it offers potential cost savings in addition to ensuring compliance with ECA regulation. But investment to retrofit existing vessels to be able to use LNG carries significant upfront costs, and a high degree of uncertainty remains on the differential between the prices of LNG and conventional maritime fuels, as well as on the availability of LNG and the reliability of its supply chain. New technologies such as LNG inherently carry substantial risk and an ill-chosen investment strategy may have irreversible consequences that could jeopardise the future of the shipping company. One important question is whether interested owners should invest in LNG now to comply with ECA rules in 2015 and reap the benefits of lower LNG prices, or whether it would be advisable to wait until some of the uncertainty is resolved.While traditional discounted cash flow techniques are unable to account for the value of managerial flexibility linked, for example, to the possibility of deferring an investment, real option analysis can be used to analyse such cases. The paper discusses the optimal time for investment in LNG retrofit and takes specific account of the value of an investment deferral strategy versus the advantages obtainable from the immediate exploitation of fuel price differentials. Through the use of a real option model the paper shows that there is a trade-off between low fuel prices and capital expenses for investment in LNG retrofit. The development in LNG is critically dependent on its future price as well as the reduction in capital costs and ship retrofitting costs. In this respect, policy makers can play a critical role in providing support to advance technical knowledge, maintain LNG prices at favourable levels and in avoiding ambiguity on regulation.     

Assessment of carbon emission costs for air cargo transportation

This study presents a set of models that calculate carbon emissions in individual phases of flight during air cargo transportation, investigates resultant carbon footprints by aircraft type and flight route, and estimates increases in transportation costs for airlines due to carbon taxes imposed by the EU ETS. The estimated results provide useful references for airlines in aircraft assignment on different routes and in aircraft selection for new purchases. Validation of the model is conducted by simulating the potential impact of the implementation of the EU ETS on costs of air cargo transportation for six routes and six types of aircraft. Results show that the impact may be subject to various factors including unit carbon emissions per aircraft, aviation emission allowances per airline, and carbon trading prices; and that increases in costs of air cargo transportation range from 0% to 5.27% per aircraft per route. Therefore, the implementation of the EU ETS may encourage airlines to cut down their operating costs by reducing their carbon emissions, thereby ameliorating greenhouse gas pollution caused by air cargo transportation.     

A comparison of technologies for carbon-neutral passenger transport

In this study, the use of energy carriers based on renewable energy sources in battery-powered electric vehicles (BPEVs), fuel-cell electric vehicles (FCEVs), hybrid electric vehicles (HEVs) and internal combustion engine vehicles (ICEVs) is compared regarding energy efficiency, emission and cost. There is the potential to double the primary energy compared with the current level by utilising vehicles with electric drivetrains. There is also major potential to increase the efficiency of conventional ICEVs. The energy and environmental cost of using a passenger car can be reduced by 50% solely by using improved ICEVs instead of ICEVs with current technical standard. All the studied vehicles with alternative powertrains (HEVs, FCEVs, and BPEVs) would have lower energy and environmental costs than the ICEV. The HEVs, FCEVs and BPEVs have, however, higher costs than the future methanol-fuelled ICEV, if the vehicle cost is added to the energy and environmental costs, even if significant cost reductions for key technologies such as fuel cells, batteries and fuel storages are assumed. The high-energy efficiency and low emissions of these vehicles cannot compensate for the high vehicle cost. The study indicates, however, that energy-efficiency improvements, combined with the use of renewable energy, would reduce the cost of CO₂ reduction by 40% compared with a strategy based on fuel substitution only.     

A comparison of hedonic price and stated preference methods to derive monetary values for aircraft noise disturbance and annoyance

This paper compares monetary values for aircraft noise disturbance and annoyance derived using hedonic price and stated preference methods in the same sample areas and over the same sampling time periods. The hedonic price method compares house prices in residential areas across a range of aircraft noise sound levels. The statistical power can be compromised by the many other variables which have significant and often greater effects on prices and because only small fractions of the overall housing stock are bought and sold at any one time. The stated preference method on the other hand, by requiring study participants to trade hypothetical money against hypothetical noise, is entirely based on subjective opinion. It seems that neither method is entirely satisfactory, but there are strong positive correlations between the ratios of aggregated stated preference values to weighted average house prices and LAeq, 16 h and similar noise metrics suggesting sufficient underlying similarities     

Fuel and time savings by flying continuous cruise climbs: Estimating the benefit pools for maximum range operations

This paper estimates the benefits, in terms of fuel and time, which continuous climb operations can save during the cruise phase of the flights, assuming maximum range operations. Based on previous works, a multiphase optimal control problem is solved by means of numerical optimization and using accurate aircraft performance data from the manufacturer. Optimal conventional trajectories (subject to current air traffic management practices and constraints) are computed and compared with ideal continuous operations only subject to aircraft performance constraints. Trip fuel and time for both concepts of operations are quantified for two aircraft types (a narrow-body and a wide-body airplane) and a representative set of different trip distances and landing masses. Results show that the continuous cruise phase can lead to fuel savings ranging from 0.5% to 2% for the Airbus A320, while for an Airbus A340 the dispersion is lower and savings lie in between 1% and 2%. Interestingly, trip time is also reduced between 1% and 5%.     

Life cycle model of alternative fuel vehicles: emissions,energy, and cost trade-offs

This paper describes a life cycle model for performing level-playing field comparisons of the emissions, costs, and energy efficiency trade-offs of alternative fuel vehicles (AFV) through the fuel production chain and over a vehicle lifetime. The model is an improvement over previous models because it includes the full life cycle of the fuels and vehicles, free of the distorting effects of taxes or differential incentives. This spreadsheet model permits rapid analyses of scenarios in plots of trade-off curves or efficiency frontiers, for a wide range of alternatives with current and future prices and levels of technology. The model is available on request.The analyses indicate that reformulated gasoline (RFG) currently has the best overall performance for its low cost, and should be the priority alternative fuel for polluted regions. Liquid fuels based on natural gas, M100 or M85, may be the next option by providing good overall performance at low cost and easy compatibility with mainstream fuel distribution systems. Longer term, electric drive vehicles using liquid hydrocarbons in fuel cells may offer large emissions and energy savings at a competitive cost. Natural gas and battery electric vehicles may prove economically feasible at reducing emissions and petroleum consumption in niches determined by the unique characteristics of those systems.     

Asymmetric responses of highway travel demand to changes in fuel price: An explanation via fuel price uncertainty

Previous research has examined asymmetric effects of fuel price uncertainty on energy demand. If we consider that energy demand is related to travel demand, the changes in fuel prices may have asymmetric effects on highway travel demand via fuel price uncertainty. In other words, when in general fuel price is steadily rising, the highway traffic volume decreases by a small percentage. On the other hand, the highway traffic volume increases by a large percentage when fuel prices are falling. We hypothesize that the uncertainty in fuel prices generates this kind of asymmetric effect on highway traffic volume in Korea. We use the Korean monthly fuel price and highway traffic volume data from 2001 to 2009, and define the intra-month (weekly) fuel price changes as monthly fuel price volatility which is a proxy for monthly fuel price uncertainty. We found that the direction of the change in fuel prices had asymmetric effects on highway travel demand and that the fuel price uncertainty led drivers to respond asymmetrically to the changes in fuel prices.     

A decision analysis framework for intermodal transport: Comparing fuel price increases and the internalisation of external costs

This paper presents the impact of fuel price increases on the market area of intermodal transport terminals. Aim of this research is to determine whether an increase in fuel prices is sufficient enough to raise the market area of intermodal transport to the same degree that would be accomplished by stimulating intermodal transport through policy instruments. Therefore, several fuel price scenarios are analysed in order to verify the impact of different fuel price evolutions on the market area of unimodal road transport compared to intermodal transport in Belgium. The LAMBIT-model (Location Analysis for Belgian Intermodal Terminals), which is a GIS-based model (Macharis and Pekin, 2008), is used to analyse the different fuel price increases and enables a visualisation of the impact on the market area. The LAMBIT model incorporates the different network layers for each transport mode by setting up a GIS network that includes four different layers: the road network, the rail network, the inland waterways network and the final haulage network. The geographic locations of the intermodal terminals and the port of Antwerp are added as nodes in the network and the Belgian municipality centres are defined and connected to the different network layers. Based on the different fuel price scenarios representing respectively a fuel price increase with 10% (low price case), 50% (business as usual case) and 90% (high price case), the results of the LAMBIT model show that the market areas rise in favour of intermodal barge/road and intermodal rail/road. Depending on the scenario, the degree of modal shift however differs. Additionally, in order to compare policy measures with the effect of a fuel price increase, the internalisation of the external costs is analysed with the LAMBIT model. For some years, the European Commission is supporting the idea that transportation costs should reflect the true impacts on environment and society, and is relentlessly pushing towards the so called ‘internalisation of external costs’ as a policy instrument in order to establish fair and efficient pricing of different transport modes. This requires monetarizing the external effects of transport and adding them to the already internalized costs in order to give the correct price signals. Results of this comparative analysis performed with the LAMBIT model are also presented in this paper.     

Rail line length in a crosstown corridor with many-to-many demand

An analytical model that determines the optimal location and length of rail line along a crosstown transportation corridor with the objective of minimizing the total transportation cost is presented. A general, many-to-many passenger demand pattern is considered. The objective function, which includes the rail and bus riding costs, rail and bus operating costs, rail fleet costs and rail line costs, is minimized by using the classical optimization method with the aid of a computer program developed for the model. The model is applied to the Northwest-South transportation corridor in Calgary, Alberta, and the sensitivity of the optimal rail line location and length to the unit cost and demand parameters at their reasonable ranges is tested. It is found that although the total passenger demand, unit rail line cost, and unit bus operating cost have greater influence than the unit bus and rail riding costs, and unit rail fleet and operating costs, the optimal line length is generally insensitive to all these parameters. It is also found that the length of the existing LRT line in the corridor is comparable to the optimal line length obtained from the model, but the existing line should be extended further south in order to meet the heavier demand in that direction optimally.