Evaluating policies to reduce greenhouse gas emissions from private transportation

This paper proposes a model system to forecast household greenhouse gas emissions (GHGEs) from private transportation. The proposed model combines an integrated discrete-continuous car ownership model with MOVES 2014. Four modeling components are calibrated and applied to the calculation of GHGEs: vehicle quantity, vehicle type and vintage, miles traveled, and rates of GHGEs. The model is applied to the Washington D.C. Metropolitan Area. Three tax schemes are evaluated: vehicle ownership tax, purchase tax and fuel tax. We calculate that the average GHGEs per vehicle is 5.15 tons of carbon dioxide-equivalent (CO₂E) gases. Our results show that: (a) a fuel tax is the most effective way to reduce vehicle GHGEs, especially for households with fewer vehicles; (b) a purchase tax reduces vehicle GHGEs mainly by decreasing vehicle quantity for households with more vehicles; and (c) an ownership tax reduces vehicle GHGEs by decreasing both vehicle quantity and miles traveled.     

On a pathway to de-carbonization – A comparison of new passenger car CO2 emission standards and taxation measures in the G20 countries

Considering the role of transport for a 1.5 Degree stabilization pathway and the importance of light-duty vehicle fuel efficiency within that, it is important to understand the key elements of a policy package to shape the energy efficiency of the vehicle fleet. This paper presents an analysis focusing on three types of policy measures: (1) CO₂ emission standards for new vehicles, (2) vehicle taxation directly and indirectly based on CO₂ emission levels, and (3) fuel taxation. The paper compares the policies in the G20 economies and estimates the financial impact of those policies using the example of a Ford Focus vehicle model. This analysis is a contribution to the assessment of the role of the transport sector in global decarbonisation efforts. The findings of this paper show that only an integrated approach of regulatory and fiscal policy measures can yield substantial efficiency gains in the vehicle fleet and can curb vehicle kilometres travelled by individual motorised transport. Using the illustrative example of one vehicle model, the case study analysis shows that isolated measures, e.g. fuel efficiency regulation without corresponding fuel and vehicle taxes only have minor CO₂ emission reduction effects and that policy measures need to be combined in order to achieve substantial emission reduction gains over time. The analysis shows that the highest level of impact is achieved by a combination regulatory and fiscal policies rather than only one policy even if this policy is more aggressive. When estimating the quantitative effect of fuel efficiency standards, vehicle and fuel tax, the analysis shows that substantial gains with regard to CO₂ emission are only achieved at a financial impact level above 500 Euros over a four year period.     

Vehicle purchasing behaviors comparison in two-stage choice perspective before and after eco-car promotion policy in Japan

This paper compares the vehicle purchasing behaviors in Japan between before and after the eco-car (environmental friendly vehicle) promotion policy implemented. Consumer behaviors are modeled as a two-stage decision process: a consideration set formation stage and a choice-making stage. In the first stage, all available vehicle types are included in the choice set, and consumers are assumed to apply a conjunctive screening rule to construct consideration sets. In the second stage, consumers only evaluate the vehicles in the consideration set and choose the one with maximum utility. The applied Hierarchical Bayes model can avoid the issue of an indifferentiable and irregular likelihood surface caused by thresholds and discontinuities, and the data augmentation and Markov-Chain Monte Carlo estimation methods make it possible to estimate two stages simultaneously using only the information about the consumers’ actual choices. The estimations indicate that the change of consumer behavior during the formation of consideration sets after the policy implemented: more people preferred compact and hybrid vehicles because of their better fuel efficiency and more competitive prices under the tax reduction policy. The results show, however, that most of consumers who purchase hybrid vehicles after the policy implemented are only including hybrid vehicles in their consideration sets, and oil price and vehicle price still play important roles in the choice-making stage for these who consider both gasoline and hybrid vehicles.     

Evolution of the household vehicle fleet: Anticipating fleet composition, PHEV adoption and GHG emissions in Austin, Texas

In today’s world of volatile fuel prices and climate concerns, there is little study on the relationship between vehicle ownership patterns and attitudes toward vehicle cost (including fuel prices and feebates) and vehicle technologies. This work provides new data on ownership decisions and owner preferences under various scenarios, coupled with calibrated models to microsimulate Austin’s personal-fleet evolution.Opinion survey results suggest that most Austinites (63%, population-corrected share) support a feebate policy to favor more fuel efficient vehicles. Top purchase criteria are price, type/class, and fuel economy. Most (56%) respondents also indicated that they would consider purchasing a Plug-in Hybrid Electric Vehicle (PHEV) if it were to cost $6000 more than its conventional, gasoline-powered counterpart. And many respond strongly to signals on the external (health and climate) costs of a vehicle’s emissions, more strongly than they respond to information on fuel cost savings.Twenty five-year simulations of Austin’s household vehicle fleet suggest that, under all scenarios modeled, Austin’s vehicle usage levels (measured in total vehicle miles traveled or VMT) are predicted to increase overall, along with average vehicle ownership levels (both per household and per capita). Under a feebate, HEVs, PHEVs and Smart Cars are estimated to represent 25% of the fleet’s VMT by simulation year 25; this scenario is predicted to raise total regional VMT slightly (just 2.32%, by simulation year 25), relative to the trend scenario, while reducing CO₂ emissions only slightly (by 5.62%, relative to trend). Doubling the trend-case gas price to $5/gallon is simulated to reduce the year-25 vehicle use levels by 24% and CO₂ emissions by 30% (relative to trend).Two- and three-vehicle households are simulated to be the highest adopters of HEVs and PHEVs across all scenarios. The combined share of vans, pickup trucks, sport utility vehicles (SUVs), and cross-over utility vehicles (CUVs) is lowest under the feebate scenario, at 35% (versus 47% in Austin’s current household fleet). Feebate-policy receipts are forecasted to exceed rebates in each simulation year.In the longer term, gas price dynamics, tax incentives, feebates and purchase prices along with new technologies, government-industry partnerships, and more accurate information on range and recharging times (which increase customer confidence in EV technologies) should have added effects on energy dependence and greenhouse gas emissions.     

Consumer preferences for alternative fuel vehicles: A discrete choice analysis

This paper analyzes the potential demand for privately used alternative fuel vehicles using German stated preference discrete choice data. By applying a mixed logit model, we find that the most sensitive group for the adoption of alternative fuel vehicles embraces younger, well-educated, and environmentally aware car buyers, who have the possibility to plug-in their car at home, and undertake numerous urban trips. Moreover, many households are willing to pay considerable amounts for greater fuel economy and emission reduction, improved driving range and charging infrastructure, as well as for enjoying vehicle tax exemptions and free parking or bus lane access. The scenario results suggest that conventional vehicles will maintain their dominance in the market. Finally, an increase in the battery electric vehicles’ range to a level comparable with all other vehicles has the same impact as a multiple measures policy intervention package.     

Social and spatial effects of transforming the private vehicle fleet in Brisbane,Australia

Transformation of the motor vehicle fleet has been an important feature of the world’s peak car phenomenon. Very few urban transport studies have explored such important changes in large urban cities. Using an innovative green vehicle datasets constructed for 2009 and 2014, this paper investigates the ongoing change in urban private vehicle fleet efficiency (VFE) in Brisbane. The spatial patterns of VFE change were examined with social-spatial characteristics of the urban area. The results showed that the social and spatial effect of VFE changes remain uneven over urban space. The inner urban areas have experienced higher level of VFE change, whilst people in the outer and oil vulnerable areas showed a low tendency in shifting to more efficient vehicles. The implication of VFE change for future household vehicle adoption was also evaluated based on a cost-benefit analysis of new vehicle technology costs and expected fuel savings for households that choose a fuel efficient vehicle. The results show that imposing a stronger national fuel economy target in the long term would accelerate evolution of vehicle fleets and oil vulnerability reduction in Brisbane.     

How much should gasoline be taxed when electric vehicles conquer the market? An analysis of the mismatch between efficient and existing gasoline taxes under emerging electric mobility

The taxation of gasoline is characterized by large variability across countries and recent research has analyzed existing gasoline tax levels from an economic efficiency point of view focusing on conventional internal combustion engine vehicles. Most studies find that existing fuel tax rates do not coincide with economically efficient levels. As long as policymakers do not take action to reduce the resulting efficiency gap, there will be an ongoing welfare loss to the economy. However, the composition of passenger car fleets will probably be subject to fundamental changes in the (near) future due to the emergence of electric mobility. This raises the question of whether the mismatch between current and efficient fuel taxation will persist, shrink, or even exacerbate under emerging electric mobility. This paper aims at answering this question by determining the structure and level of optimal gasoline taxes in the presence of electric vehicles (EVs). First, the optimal (nationwide) gasoline tax is analytically derived employing a general equilibrium approach. It is shown that differences in traffic related marginal external costs among fuel powered cars and EVs affect the corrective Pigouvian component of the optimal gasoline tax while a differential tax treatment influences the fiscal rational of the tax. Second, the model is applied to Germany using differentiated data on e.g. external costs and behavioral responses. Under a wide range of scenarios, the present analyses indicate a strong relationship between optimal gasoline taxes and electric mobility, calling for a downward adjustment of efficient gasoline taxes. The effect is mainly driven by financial incentives for purchasing and using EVs. Since fuel is likely to be undertaxed in many countries, the emergence of electric mobility will therefore close the gap between gasoline taxes in place and economically efficient taxes. On the other side, it will increase the efficiency gap in those countries where gasoline is overtaxed. This also has important implications for policy concerned with environmental objectives. Pushing electric mobility seriously and at the same time taxing gasoline efficiently could actually prevent sufficient CO₂ emission savings. However, at least in the case of Germany, even a downward adjusted optimal gasoline tax under electric mobility is likely to be higher than the current (non-optimal) tax.     

Vehicle mass as a determinant of fuel consumption and secondary safety performance

One interaction between environmental and safety goals in transport is found within the vehicle fleet where fuel economy and secondary safety performance of individual vehicles impose conflicting requirements on vehicle mass from an individual’s perspective. Fleet characteristics influence the relationship between the environmental and safety outcomes of the fleet; the topic of this paper. Cross-sectional analysis of mass within the British fleet is used to estimate the partial effects of mass on the fuel consumption and secondary safety performance of vehicles. The results confirmed that fuel consumption increases as mass increases and is different for different combinations of fuel and transmission types. Additionally, increasing vehicle mass generally decreases the risk of injury to the driver of a given vehicle in the event of a crash. However, this relationship depends on the characteristics of the vehicle fleet, and in particular, is affected by changes in mass distribution within the fleet. We confirm that there is generally a trade-off in vehicle design between fuel economy and secondary safety performance imposed by mass. Cross-comparison of makes and models by model-specific effects reveal cases where this trade-off exists in other aspects of design. Although it is shown that mass imposes a trade-off in vehicle design between safety and fuel use, this does not necessarily mean that it imposes a trade-off between safety and environmental goals in the vehicle fleet as a whole because the secondary safety performance of a vehicle depends on both its own mass and the mass of the other vehicles with which it collides.     

Abatement cost functions for incentive-based policies in the automobile market

This paper compares the outcomes of policies that target vehicle holdings with those that target vehicle usage using data from the US Consumer Expenditure Survey. Results show that a higher price of gasoline shifts vehicle holdings towards more fuel efficient vehicles and reduces the annual demand for miles, whereas imposing a fee on vehicles or a feebate program only shifts vehicle holdings towards more fuel efficient vehicles and has little to no impact on the demand for miles. While it is relatively expensive to reduce CO₂ emission through incentive-based policies, achieving any abatement level is more expensive through imposing fees on vehicles than gasoline taxes. In addition, the maximum amount of abatement attainable by a feebate program is relatively small and the same amount could be achieved by imposing a $0.73 gasoline tax per gallon.     

Long-run relationship among transport demand,income, and gasoline price for the US

Energy used in transport is a particularly important focus for environment-development studies because it is increasing in both developed and developing countries and is largely carbon-intensive. This paper examines whether a systemic, mutually causal, cointegrated relationship exists among mobility demand, gasoline price, income, and vehicle ownership using US data from 1946 to 2006. We find that those variables co-evolve in a transport system; and thus, they cannot be easily disentangled in the short-run. However, estimating a long-run relationship for motor fuel use per capita was difficult because of the efficacy of the CAFE standards to influence fleet fuel economy. The analysis shows that the fuel standards program was effective in improving the fuel economy of the US vehicle fleet and in temporarily lessening the impact on fuel use of increased mobility demand. Among the policy implications are a role for efficiency standards, a limited impact for fuel tax, and the necessity of using a number of levers simultaneously to influence transport systems.     

Fuel economy testing of autonomous vehicles

Environmental pollution and energy use in the light-duty transportation sector are currently regulated through fuel economy and emissions standards, which typically assess quantity of pollutants emitted and volume of fuel used per distance driven. In the United States, fuel economy testing consists of a vehicle on a treadmill, while a trained driver follows a fixed drive cycle. By design, the current standardized fuel economy testing system neglects differences in how individuals drive their vehicles on the road. As autonomous vehicle (AV) technology is introduced, more aspects of driving are shifted into functions of decisions made by the vehicle, rather than the human driver. Yet the current fuel economy testing procedure does not have a mechanism to evaluate the impacts of AV technology on fuel economy ratings, and subsequent regulations such as Corporate Average Fuel Economy targets. This paper develops a method to incorporate the impacts of AV technology within the bounds of current fuel economy test, and simulates a range of automated following drive cycles to estimate changes in fuel economy. The results show that AV following algorithms designed without considering efficiency can degrade fuel economy by up to 3%, while efficiency-focused control strategies may equal or slightly exceed the existing EPA fuel economy test results, by up to 10%. This suggests the need for a new near-term approach in fuel economy testing to account for connected and autonomous vehicles. As AV technology improves and adoption increases in the future, a further reimagining of drive cycles and testing is required.     

A structural analysis of vehicle design responses to Corporate Average Fuel Economy policy

The US Corporate Average Fuel Economy (CAFE) regulations are intended to influence automaker vehicle design and pricing choices. CAFE policy has been in effect for the past three decades, and new legislation has raised standards significantly. We present a structural analysis of automaker responses to generic CAFE policies. We depart from prior CAFE analyses by focusing on vehicle design responses in long-run oligopolistic equilibrium, and we view vehicles as differentiated products, taking demand as a general function of price and product attributes. We find that under general cost, demand, and performance functions, single-product profit maximizing firm responses to CAFE standards follow a distinct pattern: firms ignore CAFE when the standard is low, treat CAFE as a vehicle design constraint for moderate standards, and violate CAFE when the standard is high. Further, the point and extent of first violation depends upon the penalty for violation, and the corresponding vehicle design is independent of further standard increases. Thus, increasing CAFE standards will eventually have no further impact on vehicle design if the penalty for violation is also not increased. We implement a case study by incorporating vehicle physics simulation, vehicle manufacturing and technology cost models, and a mixed logit demand model to examine equilibrium powertrain design and price decisions for a fixed vehicle body. Results indicate that equilibrium vehicle design is not bound by current CAFE standards, and vehicle design decisions are directly determined by market competition and consumer preferences. We find that with increased fuel economy standards, a higher violation penalty than the current stagnant penalty is needed to cause firms to increase their design fuel economy at equilibrium. However, the maximum attainable improvement can be modest even if the penalty is doubled. We also find that firms’ design responses are more sensitive to variation in fuel prices than to CAFE standards, within the examined ranges.     

Connectivity-based optimization of vehicle route and speed for improved fuel economy

Traditionally, vehicle route planning problem focuses on route optimization based on traffic data and surrounding environment. This paper proposes a novel extended vehicle route planning problem, called vehicle macroscopic motion planning (VMMP) problem, to optimize vehicle route and speed simultaneously using both traffic data and vehicle characteristics to improve fuel economy for a given expected trip time. The required traffic data and neighbouring vehicle dynamic parameters can be collected through the vehicle connectivity (e.g. vehicle-to-vehicle, vehicle-to-infrastructure, vehicle-to-cloud, etc.) developed rapidly in recent years. A genetic algorithm based co-optimization method, along with an adaptive real-time optimization strategy, is proposed to solve the proposed VMMP problem. It is able to provide the fuel economic route and reference speed for drivers or automated vehicles to improve the vehicle fuel economy. A co-simulation model, combining a traffic model based on SUMO (Simulation of Urban MObility) with a Simulink powertrain model, is developed to validate the proposed VMMP method. Four simulation studies, based on a real traffic network, are conducted for validating the proposed VMMP: (1) ideal traffic environment without traffic light and jam for studying the fuel economy improvement, (2) traffic environment with traffic light for validating the proposed traffic light penalty model, (3) traffic environment with traffic light and jam for validating the proposed adaptive real-time optimization strategy, and (4) investigating the effect of different powertrain platforms to fuel economy using two different vehicle platforms. Simulation results show that the proposed VMMP method is able to improve vehicle fuel economy significantly. For instance, comparing with the fastest route, the fuel economy using the proposed VMMP method is improved by up to 15%.     

Incentivizing alternative fuel vehicles: the influence of transport policies,attitudes and perceptions

This paper aims to evaluate the influence of policies, attitudes and perceptions when incentivizing alternative fuel vehicles. The impact of possible policies such as gasoline taxes increases, purchase price subsidies, tax exemptions, and increases in fuel recharging station availability for alternative fuelled vehicles is evaluated using hybrid choice models. The models also allow assessing the sensitivity of latent variables (i.e., attitudes and perceptions) in the car purchase behaviour. The models are estimated using data from a stated choice survey collected in five Colombian cities. The latent variables are obtained from the rating of statements related to the transport system, environmental concern, vehicle preferences, and technology. The modelling approach includes regression between latent variables. Results show that environmental concern and the support for green transport policies have a positive influence on the intention to purchase alternative fuel vehicles. Meanwhile, people who reveal to be car-dependent prefer to buy standard fuelled vehicles. The analysis among cities shows similar trends in individual behaviour, although there are differences in attribute sensitivities. The policy scenario analysis revealed high sensitivity to capital cost and the need for extensive investments in refuelling stations for alternative fuel vehicles to become attractive. Nevertheless, all policies should not only be directed at infrastructure and vehicles but also be focused on user awareness and acceptance of the alternative fuel vehicles. The analysis suggests that in an environmentally conscious market, people prefer alternative fuels. However, if the transport policies support private transport, the market shares of alternative fuel vehicles will decrease.     

Traveled distance,stock and fuel efficiency of private vehicles in Canada: price elasticities and rebound effect

This paper presents estimates of the rebound effect and other elasticities for the Canadian light-duty vehicle fleet using panel data at the provincial level from 1990 to 2004. We estimate a simultaneous three-equation model of aggregate demand for vehicle kilometers traveled, vehicle stock and fuel efficiency. Price and income elasticities obtained are broadly consistent with those reported in the literature. Among other results, an increase in the fuel price of 10% would reduce driving by ~2% in the long term and by 1% the average fuel consumption rate. Estimates of the short- and long-term rebound effects are ~8 and 20%, respectively. We also find that an increase in the gross domestic product per capita of 10% would cause an increase in driving distance of 2–3% and an increase of up to 4% in vehicle stock per adult. In terms of policy implications, our results suggest that: (1) the effectiveness of new fuel efficiency standards will be somewhat mitigated by the rebound effect and (2) fuel price increases have limited impacts on gasoline demand.

Empirical distributions of vehicle use and fuel efficiency across space: Implications of asymmetry for measuring policy incidence

Concerns about local air pollution and climate change have prompted all levels of government to consider a variety of policies to reduce vehicle dependence and fuel consumption, as the transportation sector is one of the largest sources of local and global emissions. Because many of the policy options under consideration are market-based (e.g., gasoline tax, carbon tax), it is important to consider how the impacts would vary across space and affect different subpopulations. Evaluating incidence is relevant for both the expected costs and benefits of a particular policy, however detailed data on vehicle-miles traveled (VMT) and fuel consumption allowing for the distributions of these variables to be estimated at a fine geographic scale is rarely available. This paper uses a unique dataset with more than 20 million vehicles in California to derive estimates of VMT and fuel consumption in order to examine the spatial distribution of impacts for an increase in the price of gasoline as well as the consequences of using different statistics for policy evaluation. Results show that VMT and fuel consumption distributions are not symmetrically distributed and vary significantly within transportation planning regions. To understand the potential implications of this asymmetry, we do a back of the envelope comparison using the mean and mode of the VMT or fuel consumption distribution for policy analysis. We find that assuming a symmetric distribution can lead to a divergence of 20–40% from the estimates based on the empirical distribution. Our results, therefore, introduce caution in interpreting the incidence of policies targeting the transportation sector based on averages.     

Willingness-to-pay for infrastructure investments for alternative fuel vehicles

This study investigates potential demand for infrastructure investment for alternative fuel vehicles by applying stated preference methods to a Japanese sample. The potential demand is estimated on the basis of how much people are willing to pay for alternative fuel vehicles under various refueling scenarios. Using the estimated parameters, the economic efficiency of establishing battery-exchange stations for electric vehicles is examined. The results indicate that infrastructural development of battery-exchange stations can be efficient when electric vehicle sales exceed 5.63% of all new vehicle sales. Further, we find a complementary relationship between the cruising ranges of alternative fuel vehicles and the infrastructure established.     

Factors influencing the purchasing decisions of low emission cars: A study of Slovenia

This paper presents a study of customer preferences and opinions about alternative fuel vehicles. Nowadays the studies of green technologies, especially in the area of green transport, are interesting for policy makers, vehicle producers, customers and energy suppliers. Many stakeholders from public and private sector are investing a lot of effort to identify consumer behaviour for future improvements in development of their green products and strategies. This study is a modification of previously conducted research on customer behaviour on the same topic in Scotland. The survey includes almost 700 participants to identify the most important parameters of consumer behaviour related to purchase of alternative fuel vehicle. Therefore the questionnaire includes different factors, combining financial and technical aspects, environmental performance and vehicle design. Results have revealed that the most relevant factor for purchasing low emission vehicle is total vehicle price, and that the segment of potential alternative fuel vehicles buyers is much larger than we initially anticipated. Such vehicles are, surprisingly, also more attractive for the older population, according to our results.     

Analysis of three independent real-world driving studies: A data driven and expert analysis approach to determining parameters affecting fuel economy

It is well established that individual variations in driving style have a significant impact on vehicle energy efficiency. The literature shows certain parameters have been linked to good fuel economy, specifically acceleration, throttle use, number of stop/starts and gear change behaviours. The primary aim of this study was to examine what driving parameters are specifically related to good fuel economy using a non-homogeneous extended data set of vehicles and drivers over real-world driving scenarios spanning two countries. The analysis presented in this paper shows how three completely independent studies looking at the same factor (i.e., the influence of driver behaviour on fuel efficiency) can be evaluated, and, despite their notable differences in location, environment, route, vehicle and drivers, can be compared on broadly similar terms. The data from the three studies were analysed in two ways; firstly, using expert analysis and the second a purely data driven approach. The various models and experts concurred that a combination of at least one factor from the each of the categories of vehicle speed, engine speed, acceleration and throttle position were required to accurately predict the impact on fuel economy. The identification of standard deviation of speed as the primary contributing factor to fuel economy, as identified by both the expert and data driven analysis, is also an important finding. Finally, this study has illustrated how various seemingly independent studies can be brought together, analysed as a whole and meaningful conclusions extracted from the combined data set.     

Changes in fuel economy: An analysis of the Spanish car market

This paper estimates the role that technological change and car characteristics have played in the rate of fuel consumption of vehicles over time. Using data from the Spanish car market from 1988 to 2013, we estimate a reduced form equation that relates fuel consumption with a set of car characteristics. The results for the sales-weighted sample of vehicles show that energy efficiency would have improved by 30% and 42% for petrol and diesel cars respectively had car characteristics been held constant at 1988 values. However, the shift to bigger and more fuel-consuming cars reduced the gains from technological progress. Additionally, using the results of the fuel equation we show that, besides a natural growth rate of 1.1%, technological progress is affected by both the international price of oil and the adoption of mandatory emission standards. Moreover, according to our estimations, a 1% growth in GDP would modify car characteristics in such a way that fuel consumption would increase by around 0.23% for petrol cars and 0.35% for diesel cars.