A welfare cost assessment of various policy measures to reduce pollutant emissions from passenger road vehicles

Policy options to reduce passenger transport emissions in Europe are simulated with the EUCARS model. The EUCARS welfare analysis includes changes in consumer surplus, congestion and tax revenues. Simulations also address consumer myopia, i.e., the underestimation of fuel costs by car buyers. The best policy mix to reduce CO₂ consists of fuel taxes that are combined with differentiated purchase taxes to correct for the assumed myopia. This combination could reduce CO₂ emissions of over 25% without reducing contemporaneous well-being. For the reduction of conventional emissions, an equivalent best mix includes an emissions-based kilometre tax combined with a purchase feebate. This mix allows a 60% reduction in toxic emissions without any noticeable welfare reduction. The overall superiority of these two mixes compared to alternative choices is higher when the evaluation includes a broad group of externalities, a premium on public funds, and positive feedbacks across emissions categories. Local traffic management measures are important zero-cost complements for an overall emissions strategy.     

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 fleet size and mix pollution-routing problem

This paper introduces the fleet size and mix pollution-routing problem which extends the pollution-routing problem by considering a heterogeneous vehicle fleet. The main objective is to minimize the sum of vehicle fixed costs and routing cost, where the latter can be defined with respect to the cost of fuel and CO₂ emissions, and driver cost. Solving this problem poses several methodological challenges. To this end, we have developed a powerful metaheuristic which was successfully applied to a large pool of realistic benchmark instances. Several analyses were conducted to shed light on the trade-offs between various performance indicators, including capacity utilization, fuel and emissions and costs pertaining to vehicle acquisition, fuel consumption and drivers. The analyses also quantify the benefits of using a heterogeneous fleet over a homogeneous one.     

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.     

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.     

Road vehicle emission inventory of a Brazilian metropolitan area and insights for other emerging economies

The vehicle fleet in the Ceará state has grown 180% over the last ten years. The growth of the resulting emissions is unknown in view of the expansion of this fleet in the greater Fortaleza Metropolitan Area (FMA). The largest fleet in the FMA is in the Fortaleza city itself, where flex fuel vehicles predominate (∼30%). Flex fuel motorcycles increased significantly (greater than 800%) between 2010 and 2015. This paper aims to estimate the road vehicle emissions of carbon monoxide (CO), non-methane hydrocarbons (NMHC), aldehydes (RCHO), nitrogen oxides (NO_x), and particulate matter (PM) from the main road vehicle fleets of Fortaleza and its metropolitan area using a macrosimulation, bottom-up method, between 2010 and 2015. The results showed that road vehicle emissions of CO, NMHC and RCHO increased mainly by Otto cycle vehicles increase due to the introduction of flex fuel vehicles; however, the NO_x and PM emissions noticeable reduction is also a result of emission policies that seed the introduction of new technologies. In 2015, more than 70,000 tons of CO (21.2 ton/1000person), 8000 tons of NMHC (2.5 ton/1000person), 290 tons of RCHO (0.09 ton/1000person), 15,000 tons of NO_x (4.4 ton/1000person) and 600 tons of PM (0.2 ton/1000person) were emitted in the region under study. Comparing with other Brazilian regions, FMA emit higher levels of pollutants per inhabitant than the state of São Paulo and the state of Rio de Janeiro but lower levels than Porto Alegre city.     

Impacts of an emission based private car taxation policy - First year ex-post analysis

This paper assesses the impacts of a targeted policy designed to influence car purchasing trends towards lower CO₂ emitting vehicles. Vehicle registration tax and annual motor tax rates in Ireland changed in July 2008 from being based on engine size to emissions performance of cars. This paper provides a one year ex-post analysis of the first year of the tax change, tracking the change in purchasing trends arising from the measure related to specific CO₂ emissions, engine size and fuel, and the implications for car prices, CO₂ emissions abatement, and revenue gathered. While engine efficiency improvements had been offset by purchasing trends towards larger and generally less efficient cars in the past, with the average MJ/km remaining constant from 2000 to 2007, this analysis shows that in the first year of the new taxation system the average specific emissions of new cars fell by 13% to 145 g/km. This was brought about, not by a reduction in engine size, but rather through a significant shift to diesel cars. Despite an unexpected reduction in car sales due to a recession in 2008, the policy measure has had a larger than anticipated impact on CO₂ emissions, calculated to be 5.9 ktCO₂ in the first year of the measure. The strong price signal did however result in a 33% reduction in tax revenue from VRT, in financial terms amounting to a drop of €166 million compared to a baseline situation.     

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.     

The impact of depot location,fleet composition and routing on emissions in city logistics

This paper investigates the combined impact of depot location, fleet composition and routing decisions on vehicle emissions in city logistics. We consider a city in which goods need to be delivered from a depot to customers located in nested zones characterized by different speed limits. The objective is to minimize the total depot, vehicle and routing cost, where the latter can be defined with respect to the cost of fuel consumption and CO₂ emissions. A new powerful adaptive large neighborhood search metaheuristic is developed and successfully applied to a large pool of new benchmark instances. Extensive analyses are performed to empirically assess the effect of various problem parameters, such as depot cost and location, customer distribution and heterogeneous vehicles on key performance indicators, including fuel consumption, emissions and operational costs. Several managerial insights are presented.     

Evaluating the effects of green port policy: Case study of Kaohsiung harbor in Taiwan

The paper evaluates the effectiveness of strategies designed to reduce these pollutants in port areas, based on a newly developed assessment model to calculate emissions. The case study found that the strategy of reducing the ship’s speed to 12 knots is most effective in cutting fuel consumption and costs, as well as emissions. Adopting an onshore power supply system could reduce CO₂ emission by 57.16% and PM by 39.4%. By adopting the strategies of both reduced speed and cold ironing emissions control, a reduction in emissions of 71% to 91% can be achieved with a 20 nautical mile reduced speed zone. Therefore, the goals of reductions in emissions to improve port areas air quality could be achieved through adopting a green port policy in the future.     

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.     

Impacts of replacement of engine powered vehicles by electric vehicles on energy consumption and CO2 emissions

This paper evaluates the impacts on energy consumption and carbon dioxide (CO₂) emissions from the introduction of electric vehicles into a smart grid, as a case study. The AVL Cruise software was used to simulate two vehicles, one electric and the other engine-powered, both operating under the New European Driving Cycle (NEDC), in order to calculate carbon dioxide (CO₂) emissions, fuel consumption and energy efficiency. Available carbon dioxide data from electric power generation in Brazil were used for comparison with the simulated results. In addition, scenarios of gradual introduction of electric vehicles in a taxi fleet operating with a smart grid system in Sete Lagoas city, MG, Brazil, were made to evaluate their impacts. The results demonstrate that CO₂ emissions from the electric vehicle fleet can be from 10 to 26 times lower than that of the engine-powered vehicle fleet. In addition, the scenarios indicate that even with high factors of CO₂ emissions from energy generation, significant reductions of annual emissions are obtained with the introduction of electric vehicles in the fleet.     

Thermodynamic,environmental and economic analysis of absorption air conditioning unit for emissions reduction onboard passenger ships

In this paper, the waste heat of exhaust gases and jacket cooling water in marine diesel engines are analyzed to operate the absorption refrigeration unit (ARU). Thermo-economic and environmental analysis of the absorption refrigeration cycle operated with the two heat sources that use lithium bromide as an absorbent is carried out. The analysis is performed using Engineering Equation Solver (EES) software package where the thermodynamic properties of the steam and the LiBr-water mixtures are provided. The used EES code is verified by published experimental data. As a case study, high speed passenger vessel operating in the Red Sea area has been investigated. The results show that a considerable specific economic benefit could be achieved from ARU jacket cooling water operated over that gained from main engine exhaust gases. Environmentally, applying ARU machine during cruise will reduce the annual fuel consumption for the diesel generators by 156 ton with a reduction percentage of 23%. This will reduce the exhaust gas emissions by 6.3% from the applied main engine emissions. In addition, this will result in reducing NO_x, SO_x, and CO₂ emissions with cost-effectiveness of 4.99 $/kg, 13.18 $/kg, and 0.08 $/kg, respectively.     

Bunker levy schemes for greenhouse gas (GHG) emission reduction in international shipping

A fuel levy is one of the market-based measures (MBMs) currently under consideration at the International Maritime Organization. MBMs have been proposed to improve the energy efficiency of the shipping sector and reduce its emissions. This paper analyses the economic and environmental implications of two types of levy on shipping bunker fuels by means of an analytical model built on the cobweb theorem. A unit-tax per ton of fuel and an ad-valorem tax, enforced as a percentage of fuel prices, are examined. In both cases, a speed and fuel-consumption reduction equivalent to an improvement in the energy efficiency of the sector would be expected as a result of the regulation enforcement. The speed reduction in the unit-tax case depends on fuel prices and the tax amount, whereas in the ad-valorem case it relies upon the enforced tax percentage.Both schemes lead to industry profit decline, the extent of which depend on the structure of the levy and market conditions. Since there is concern that the costs resulting from the policy will be passed from shipping companies to their customers along the supply chain, the paper dwells on how the costs arising from the enforcement of the levy will be actually allocated between ship-owners and operators, and cargo-owners. In a market characterised by high freight rates and with no or limited excess capacity, a higher percentage of the total tax amount is transferred from ship-owners to shippers. In case of a recession the opposite happens.     

Effect of a speed reduction of containerships in response to higher energy costs in Sulphur Emission Control Areas

The objective of this paper is to explore the possible consequences of the future low-sulphur fuel requirements in Sulphur Emission Control Areas (SECA) on vessel speed, from the standpoint of the container shipping industry. Rational energy use, speed reduction, and revenues are closely related in the container shipping sector because speed reductions may provide substantial energy and cost savings. The operators could consider reducing their speed in SECA in order to save on fuel that will become relatively expensive. However, to maintain a weekly frequency without adding new ships, such a behaviour implies that the required speed at sea outside the SECA area increases. This paper aims to investigate if such a difference in speed is cost-effective, and if the increase in speed outside SECA may result in an increase in CO₂ emissions of the total cycle. We propose a cost model that estimates the cost-minimising combination of speeds inside and outside SECA, and the resulting CO₂ emissions of the liner service. Applying this model to representative liner services serving North Europe, we find that differentiating speed accordingly slightly decreases total costs and increases CO₂ emissions in a similar way. The results are sensitive to the price of low-sulphur fuels, the part of the cycle in SECA and the number of ships deployed in the service.     

Development of two driving cycles for utility vehicles

Driving cycles are used to assess vehicle fuel consumption and pollutant emissions. The premise in this article is that suburban road-work vehicles and airport vehicles operate under particular conditions that are not taken into account by conventional driving cycles. Thus, experimental data were acquired from two pickup trucks representing both vehicle fleets that were equipped with a data logger. Based on experimental data, the suburban road-work vehicle showed a mixed driving behavior of high and low speed with occasional long periods of idling. In the airport environment, however, the driving conditions were restricted to airport grounds but were characterized by many accelerations and few high speeds. Based on these measurements, microtrips were defined and two driving cycles proposed. Fuel consumption and pollutant emissions were then measured for both cycles and compared to the FTP-75 and HWFCT cycles, which revealed a major difference: at least a 31% increase in fuel consumption over FTP-75. This increased fuel consumption translates into higher pollutant emissions. When CO₂ equivalent emissions are taken into account, the proposed cycles show an increase of at least 31% over FTP-75 and illustrate the importance of quantifying fleet speed patterns to assess CO₂ equivalent emissions so that the fleet manager can determine potential gains in energy or increased pollutant emissions.     

Potential of low viscosity oils to reduce CO2 emissions and fuel consumption of urban buses fleets

This paper shows the results of a comparative fleet test the main objective of which was to measure the influence of Low Viscosity Oils (LVO) over the fuel consumption and CO₂ emissions of urban buses. To perform this test, 39 urban buses, classified into candidate and reference groups depending on the engine oil viscosity, covered a 60,000 km mileage corresponding to two rounds of standard Oil Drain Interval (ODI). In the same way, for 9 buses of the 39 buses, the effect of differential LVO over fuel consumption and their interaction with engine LVO was assessed during the second ODI.Test results confirm that the use of LVO could reduce fuel consumption, hence CO₂ emissions. However, special attention should be taken prior to its implementation in a fleet, particularly if the vehicles are powered by engines with high mechanical and thermal stresses during vehicle operation because this could lead to friction loss increase, loss of the potential fuel consumption reduction of LVO and, in the worst scenario, higher rates of engine wear.     

Six years of CO2-based tax incentives for new passenger cars in The Netherlands: Impacts on purchasing behavior trends and CO2 effectiveness

There is growing evidence that consumers respond more effectively to upfront price signals, such as vehicle purchase taxes and feebate policies, and to tax incentives that are more salient than others, such as company car taxes graded by CO₂ emissions. This paper examines tax changes in The Netherlands, which are among the most stringent and most salient in Europe, and assesses the ex-post purchasing impacts and CO₂ effectiveness of six years of CO₂-based tax incentives for low-carbon cars in The Netherlands. Dutch tax incentives resulted in 13 g/km, or 11% lower average CO₂ emissions in 2013. The Netherlands has moved from the 12th position before the tax changes in 2007 to become Europe’s number one in terms of the lowest average new car CO₂ emissions and highest share of electric vehicles in 2013. Tax incentives for new cars sold between 2008 and 2013 have resulted in 4.6 million tons of potential lifetime CO₂ abatement at the cost of a drop in tax revenues of 30–50%. However, when corrected for the Dutch policy-induced increasing real-world fuel-economy shortfall and leakage of carbon reduction potential through vehicle export of low-carbon cars, only 3.5 million tons or 75% of the CO₂ reduction remains. CO₂-based tax incentives for company cars seem to have contributed the most to the observed turnaround in purchasing behavior towards lower CO₂-emitting passenger cars.     

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.     

Congestion and emissions mitigation: A comparison of capacity,demand, and vehicle based strategies

Capacity, demand, and vehicle based emissions reduction strategies are compared for several pollutants employing aggregate US congestion and vehicle fleet condition data. We find that congestion mitigation does not inevitably lead to reduced emissions; the net effect of mitigation depends on the balance of induced travel demand and increased vehicle efficiency that in turn depend on the pollutant, congestion level, and fleet composition. In the long run, capacity-based congestion improvements within certain speed intervals can reasonably be expected to increase emissions of CO₂e, CO, and NO_x through increased vehicle travel volume. Better opportunities for emissions reductions exist for HC and PM_2.5 emissions, and on more heavily congested arterials. Advanced-efficiency vehicles with emissions rates that are less sensitive to congestion than conventional vehicles generate less emissions co-benefits from congestion mitigation.