Fuel cycle emissions and life cycle costs of alternative fuel vehicle policy options for the City of Houston municipal fleet

Municipal fleet vehicle purchase decisions provide a direct opportunity for cities to reduce emissions of greenhouse gases (GHG) and air pollutants. However, cities typically lack comprehensive data on total life cycle impacts of various conventional and alternative fueled vehicles (AFV) considered for fleet purchase. The City of Houston, Texas, has been a leader in incorporating hybrid electric (HEV), plug-in hybrid electric (PHEV), and battery electric (BEV) vehicles into its fleet, but has yet to adopt any natural gas-powered light-duty vehicles. The City is considering additional AFV purchases but lacks systematic analysis of emissions and costs. Using City of Houston data, we calculate total fuel cycle GHG and air pollutant emissions of additional conventional gasoline vehicles, HEVs, PHEVs, BEVs, and compressed natural gas (CNG) vehicles to the City's fleet. Analyses are conducted with the Greenhouse Gases, Regulated Emissions, and Energy use in Transportation (GREET) model. Levelized cost per kilometer is calculated for each vehicle option, incorporating initial purchase price minus residual value, plus fuel and maintenance costs. Results show that HEVs can achieve 36% lower GHG emissions with a levelized cost nearly equal to a conventional sedan. BEVs and PHEVs provide further emissions reductions, but at levelized costs 32% and 50% higher than HEVs, respectively. CNG sedans and trucks provide 11% emissions reductions, but at 25% and 63% higher levelized costs, respectively. While the results presented here are specific to conditions and vehicle options currently faced by one city, the methods deployed here are broadly applicable to informing fleet purchase decisions.     

The impact of private autonomous vehicles on vehicle ownership and unoccupied VMT generation

With 36 ventures testing autonomous vehicles (AVs) in the State of California, commercial deployment of this disruptive technology is almost around the corner (California Department of Transportation, 2016). Different business models of AVs, including Shared AVs (SAVs) and Private AVs (PAVs), will lead to significantly different changes in regional vehicle inventory and Vehicle Miles Travelled (VMT). Most prior studies have already explored the impact of SAVs on vehicle ownership and VMT generation. Limited understanding has been gained regarding vehicle ownership reduction and unoccupied VMT generation potentials in the era of PAVs. Motivated by such research gap, this study develops models to examine how much vehicle ownership reduction can be achieved once private conventional vehicles are replaced by AVs and the spatial distribution of unoccupied VMT accompanied with the vehicle reduction. The models are implemented using travel survey and synthesized trip profile from Atlanta Metropolitan Area. The results show that more than 18% of the households can reduce vehicles, while maintaining the current travel patterns. This can be translated into a 9.5% reduction in private vehicles in the study region. Meanwhile, 29.8 unoccupied VMT will be induced per day per reduced vehicles. A majority of the unoccupied VMT will be loaded on interstate highways and expressways and the largest percentage inflation in VMT will occur on minor local roads. The results can provide implications for evolving trends in household vehicles uses and the location of dedicated AV lanes in the PAV dominated future.     

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.     

The net effects of the built environment on household vehicle emissions: A case study of Austin,TX

Growing concerns over climate change have led to an increasing interest in the role of the built environment to reduce transportation greenhouse gas (GHG) emissions. Many studies have reported that compact, mixed-use, and well-connected developments reduce vehicle miles traveled (VMT). Others, however, argue that densification and mixture of land uses can slow down vehicle movements, and consequently generate more driving emissions. Methodologically, VMT is only a proxy, not an exact measure of emissions. This study quantifies the net effects of the built environment on household vehicle emissions through a case study of Austin, TX. The study employed structural equation modeling (SEM) techniques and estimated path models to improve understanding of the relationship between the built environment and vehicle emissions. The results show a rather complex picture of the relationship. Densification can reduce regional vehicle emissions despite its secondary effect of reduced vehicle travel speed. A 1% increase in density was found to reduce household vehicle emissions by 0.1%. However, intensification of the design feature of the built environment in developed areas may work in the opposite direction; the modeling results showed a 1% increase in grid-like network being associated with 0.8% increase in household vehicle emissions. Based on the results, the study addressed the potential of and the challenges to reducing vehicle emissions through modifying the built environment in local areas.     

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.     

Energy policies for passenger motor vehicles

This paper assesses the costs and effectiveness of several energy policies for light-duty motor vehicles in the United States, using a version of the National Energy Modeling System. The policies addressed are higher fuel taxes, tighter vehicle efficiency standards, and financial subsidies and penalties for the purchase of high- and low-efficiency vehicles (feebates). I find that tightening fuel-efficiency standards beyond those currently mandated through 2016, or imposing feebates designed to accomplish similar changes, can achieve by 2030 reductions in energy use by all light-duty passenger vehicles of 7.1–8.4%. A stronger feebate policy has somewhat greater effects, but at a significantly higher unit cost. High fuel taxes, on the order of $2.00 per gallon (2007$), have somewhat greater effects, arguably more favorable cost-effectiveness ratios, and produce their effects much more quickly because they affect the usage rate of both new and used vehicles. Policy costs vary greatly with assumptions about the reason for the apparent myopia commonly observed in consumer demand for fuel efficiency, and with the inclusion or exclusion of ancillary costs of congestion, local air pollution, and accidents.     

Accelerating the transformation to a low carbon passenger transport system: The role of car purchase taxes,feebates, road taxes and scrappage incentives in the UK

The transition to a low carbon transport world requires a host of demand and supply policies to be developed and deployed. Pricing and taxation of vehicle ownership plays a major role, as it affects purchasing behavior, overall ownership and use of vehicles. There is a lack in robust assessments of the life cycle energy and environmental effects of a number of key car pricing and taxation instruments, including graded purchase taxes, vehicle excise duties and vehicle scrappage incentives. This paper aims to fill this gap by exploring which type of vehicle taxation accelerates fuel, technology and purchasing behavioral transitions the fastest with (i) most tailpipe and life cycle greenhouse gas emissions savings, (ii) potential revenue neutrality for the Treasury and (iii) no adverse effects on car ownership and use.The UK Transport Carbon Model was developed further and used to assess long term scenarios of low carbon fiscal policies and their effects on transport demand, vehicle stock evolution, life cycle greenhouse gas emissions in the UK. The modeling results suggest that policy choice, design and timing can play crucial roles in meeting multiple policy goals. Both CO₂ grading and tightening of CO₂ limits over time are crucial in achieving the transition to low carbon mobility. Of the policy scenarios investigated here the more ambitious and complex car purchase tax and feebate policies are most effective in accelerating low carbon technology uptake, reducing life cycle greenhouse gas emissions and, if designed carefully, can avoid overburdening consumers with ever more taxation whilst ensuring revenue neutrality. Highly graduated road taxes (or VED) can also be successful in reducing emissions; but while they can provide handy revenue streams to governments that could be recycled in accompanying low carbon measures they are likely to face opposition by the driving population and car lobby groups. Scrappage schemes are found to save little carbon and may even increase emissions on a life cycle basis.The main policy implication of this work is that in order to reduce both direct and indirect greenhouse gas emissions from transport governments should focus on designing incentive schemes with strong up-front price signals that reward ‘low carbon’ and penalize ‘high carbon’. Policy instruments should also be subject to early scrutiny of the longer term impacts on government revenue and pay attention to the need for flanking policies to boost these revenues and maintain the marginal cost of driving.     

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.     

VMT, energy consumption, and GHG emissions forecasting for passenger transportation

Globalization, greenhouse gas emissions and energy concerns, emerging vehicle technologies, and improved statistical modeling capabilities make the present moment an opportune time to revisit aggregate vehicle miles traveled (VMT), energy consumption, and greenhouse gas (GHG) emissions forecasting for passenger transportation. Using panel data for the 48 continental states during the period 1998-2008, the authors develop simultaneous equation models for predicting VMT on different road functional classes and examine how different technological solutions and changes in fuel prices can affect passenger VMT. Moreover, a random coefficient panel data model is developed to estimate the influence of various factors (such as demographics, socioeconomic variables, fuel tax, and capacity) on the total amount of passenger VMT in the United States. To assess the influence of each significant factor on VMT, elasticities are estimated. Further, the authors investigate the effect of different policies governing fuel tax and population density on future energy consumption and GHG emissions. The presented methodology and estimation results can assist transportation planners and policy-makers in determining future energy and transportation infrastructure investment needs.     

Estimating fuel demand elasticities to evaluate CO2 emissions: Panel data evidence for the Lisbon Metropolitan Area

This paper estimates fuel demand models for the Lisbon Metropolitan Area (AML) and uses the demand elasticities obtained to predict future levels of road transport CO₂ greenhouse gas emissions. Data for the municipalities constituting the AML and the period 1993–2010 are analysed using static and dynamic panel data models to measure the relative importance of fuel price, income, vehicle stock, the price of public transport, and the availability of urban and suburban rail networks on fuel demand. To the best of our knowledge, this is the first study in the Portuguese context to produce fuel demand elasticities for a specific metropolitan area, as opposed to the estimation of country-level aggregate elasticities. Our findings indicate that the elasticity of fuel demand with respect to fuel price ranges between −0.48 and −0.72 in the short run and between −1.19 and −1.82 in the long run. Income elasticities are found to range between 0.51 and 0.54 in the short run and between 1.26 and 1.37 in the long run. The elasticity of fuel demand with respect to vehicle stock (keeping population constant) is 0.57 in the short run and 1.43 in the long run. There is only weak evidence of a reduction in fuel demand as a result of a decrease in the price of public transport, and no effect of greater availability of rail networks. Based on the elasticities estimated, we predict road transport CO₂ emissions for the AML according to different macroeconomic scenarios. The results indicate that the emissions target is only achieved in the scenario of poor economic performance. In the presence of medium and strong economic growth, fuel prices would need to increase by about 7% and 11% per year respectively in order to meet the emissions target.     

Vehicle type choice under the influence of a tax reform and rising fuel prices

Differentiated vehicle taxes are considered by many a useful tool for promoting environmentally friendly vehicles. Various structures have been implemented in several countries, e.g. Ireland, France, The Czech Republic, and Denmark. In many countries the tax reforms have been followed by a steep change in new vehicle purchases toward more diesel vehicles and more fuel-efficient vehicles. The paper analyses to what extent a vehicle tax reform similar to the Danish 2007 reform may explain changes in purchasing behaviour. The paper investigates the effects of a tax reform, fuel price changes, and technological development on vehicle type choice using a mixed logit model. The model allows a simulation of the effect of car price changes that resemble those induced by the tax reform. This effect is compared to the effects of fuel price changes and technology improvements. The simulations show that the effect of the tax reform on fuel efficiency is similar to the effect of rising fuel prices while the effect of technological development is much larger. The conclusion is that while the tax reform appeared in the same year as a large increase in fuel efficiency, it seems likely that it only explains a small part of the shift in fuel efficiency that occurred and that the main driver was the technological development.     

Cost-benefit analysis of alternative vehicles in the Philippines using immediate and distant future scenarios

Alternative vehicle technologies promise a sustainable future by reducing carbon emissions and pollution. However, their widespread adoption tends to be slow due to high costs and uncertainties in benefits. Using a life cycle-based approach, this study calculates ownership savings and societal benefits for various alternative vehicle technologies against their baseline vehicle technology (e.g. gasoline or diesel). The assessment is performed from a developing country context – in the Philippines. Furthermore, immediate and distant future scenarios are modeled. The immediate future scenario assesses costs and benefits if the shift is to happen now, while the distant future scenario considers the effect of widespread autonomous driving and ridesharing. The results of the study echo the significant societal benefits from electric- and fuel cell-powered vehicles found in literature, but they are hindered by high ownership costs. In the immediate future, the diesel hybrid electric vehicle can potentially have both positive societal and operational costs for public transportation. For a gasoline-powered private passenger car, a simple shift to diesel, 20% biodiesel or 85% methanol can be beneficial. In the distant future, it is expected that autonomous, rideshared vehicles can potentially lure people away from driving their own vehicles, because of lower costs per passenger-kilometer while sustaining the privacy and comfort of a private car.     

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.     

Hybrid- and battery-electric vehicles offer low-cost climate benefits in China

Car ownership in China is expected to grow dramatically in the coming decades. If growing personal vehicle demand is met with conventional cars, the increase in greenhouse gas emissions will be substantial. One way to mitigate carbon dioxide (CO₂) emissions from passenger travel is to meet growing demand for cars with alternative vehicles such as hybrid- and battery-electric vehicles (HEVs and BEVs). Our study examines the cost-effectiveness of transitioning from conventional cars to HEVs and BEVs, by calculating their marginal abatement cost (MAC) of carbon in the long-run. We find that transitioning from conventional to hybrid and battery electric light-duty, four-wheel vehicles can achieve carbon emissions reductions at a negative cost (i.e. at a net benefit) in China. In 2030, the average MAC is estimated to be about −$140/ton CO₂ for HEVs and −$515/ton CO₂-saved for BEVs, varying by key parameters. The total mitigation potential of each vehicle technology is estimated to be 1.38 million tons for HEVs and 0.75 million tons for BEVs.     

Consumers’ willingness to pay for alternative fuel vehicles: A comparative discrete choice analysis between the US and Japan

This paper conducts a comparative discrete choice analysis to estimate consumers’ willingness to pay (WTP) for electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) on the basis of the same stated preference survey carried out in the US and Japan in 2012. We also carry out a comparative analysis across four US states. We find that on average US consumers are more sensitive to fuel cost reductions and alternative fuel station availability than are Japanese consumers. With regard to the comparative analysis across the four US states, consumers’ WTP for a fuel cost reduction in California is considerably greater than in the other three states. We use the estimates obtained in the discrete choice analysis to examine the EV/PHEV market shares under several scenarios. In a base case scenario with relatively realistic attribute levels, conventional gasoline vehicles still dominate both in the US and Japan. However, in an innovation scenario with a significant purchase price reduction, we observe a high penetration of alternative fuel vehicles both in the US and Japan. We illustrate the potential use of a discrete choice analysis for forward-looking policy analysis, with the future opportunity to compare its predictions against actual revealed choices. In this case, increased purchase price subsidies are likely to have a significant impact on the market shares of alternative fuel vehicles.     

Conventional,hybrid and electric vehicles for Australian driving conditions. Part 2: Life cycle CO2-e emissions

This paper is the second of a two part study which quantifies the economic and greenhouse performance of conventional, hybrid and fully electric passenger vehicles operating in Australian driving conditions. This second study focuses on the life cycle greenhouse gas emissions. Two vehicle sizes are considered, Class-B and Class-E, which bracket the large majority of passenger vehicles on Australian roads.Using vehicle simulation models developed in the first study, the trade-offs between the ability of increasingly electric powertrains in curtailing the tailpipe emissions and the corresponding rise in the embedded vehicle emissions have been evaluated. The sensitivity of the life cycle emissions to fuel, electricity and the change in the energy mix are all considered. In conjunction with the total cost of ownership calculated in the companion paper, this allows the cost of mitigating life cycle greenhouse gas emissions through electrification of passenger transport to be estimated under different scenarios. For Class-B vehicles, fully electric vehicles were found to have a higher total cost of ownership and higher life cycle emissions than an equivalent vehicle with an internal combustion engine. For Class-E vehicles, hybrids are found to be the most cost effective whilst also having lowest life cycle emissions under current conditions. Further, hybrid vehicles also exhibit little sensitivity in terms of greenhouse emissions and cost with large changes in system inputs.     

Feebates, footprints and highway safety

This paper presents an analysis of a market-based policy aimed at encouraging manufacturers to develop more fuel efficient vehicles without affecting the car buyer’s choice of vehicle size. A vehicle’s size is measured by its “footprint”, the product of track width and wheelbase. Traditional market-based policies to promote higher fuel economy, such as higher gasoline taxes or gas guzzler taxes, also induce motorists to purchase smaller vehicles. Whether or not such policies affect overall road safety remains controversial, however. Feebates, a continuous schedule of new vehicle taxes and rebates as a function of vehicle fuel consumption, can also be made a function of vehicle size, thus removing the incentive to buy a smaller vehicle. A feebate system based on a vehicle’s footprint creates the same incentive to adopt technology to improve fuel economy as simple feebate systems while removing any incentive for manufacturers or consumers to downsize vehicles.     

Individual transport emissions and the built environment: A structural equation modelling approach

Increasing CO₂ emissions from the transport sector have raised substantial concerns among researchers and policy makers. This research examines the impact of the built environment on individual transport emissions through two mediate variables, vehicle usage and vehicle type choice, within a structural equation modelling (SEM) framework. We find that new-urbanism-type built environment characteristics, including high density, mixed land use, good connectivity, and easy access to public transport systems help reduce transport CO₂ emissions. Such mitigating effect is achieved largely through the reduced vehicle miles travelled (VMT) and is enhanced slightly by the more efficient vehicles owned by individuals living in denser and more diverse neighborhoods, all else being equal. Our research findings provide some new evidence that supports land use policies as an effective strategy to reduce transport CO₂ emissions.     

Fuel economy of hybrid-electric versus conventional gasoline vehicles in real-world conditions: A case study of cold cities in Quebec,Canada

This paper investigates the fuel efficiency of commercial hybrid electric vehicles (HEVs) and compares their performance with respect to standard gasoline vehicles in the context of cold Canadian urban environments. The effect of different factors on fuel efficiency is studied including road driving conditions (link type, city size), temperature, speed, cold-starts and eco-driving training. For this study, fuel consumption data at the link level in real-world conditions was used from a sample of 74 instrumented vehicles. From the study fleet, 21 vehicles were HEVs. Among other results, the beneficial fuel efficiency merits of hybrid vehicles were demonstrated with respect to gasoline cars, in particular at low speeds and in urban (city) environments. After controlling for other factors, sedan HEVs were 28% more efficient than sedan gasoline vehicles. However, the low temperatures (below 0 °C) observed regularly during winter season in the study cities were identified as a detrimental factor to fuel economy. In winter, the fuel efficiency of HEVs decrease about 20% with respect to summer. Other factors such as eco-driving training, city size, cold start and vehicle type were also found to be statistically significant.     

Quantifying the relative contribution of factors to household vehicle miles of travel

Household vehicle miles of travel (VMT) has been exhibiting a steady growth in post-recession years in the United States and has reached record levels in 2017. With transportation accounting for 27 percent of greenhouse gas emissions, planning professionals are increasingly seeking ways to curb vehicular travel to advance sustainable, vibrant, and healthy communities. Although there is considerable understanding of the various factors that influence household vehicular travel, there is little knowledge of their relative contribution to explaining variance in household VMT. This paper presents a holistic analysis to identify the relative contribution of socio-economic and demographic characteristics, built environment attributes, residential self-selection effects, and social and spatial dependency effects in explaining household VMT production. The modeling framework employs a simultaneous equations model of residential location (density) choice and household VMT generation. The analysis is performed using household travel survey data from the New York metropolitan region. Model results showed insignificant spatial dependency effects, with socio-demographic variables explaining 33 percent, density (as a key measure of built environment attributes) explaining 12 percent, and self-selection effects explaining 11 percent of the total variance in the logarithm of household VMT. The remaining 44 percent remains unexplained and attributable to omitted variables and unobserved idiosyncratic factors, calling for further research in this domain to better understand the relative contribution of various drivers of household VMT.