Highway finance and the private sector: Issues and alternatives

Private participation in all aspects of transportation has been prevalent throughout the history of the United States. The U.S. approach to transportation finance evolved from European influence. Particularly, the English economist Adam Smith described the role of public works in facilitating national commerce. The notion of user charges or tolls as opposed to general revenue as the source of financial support was offered as a means for constructing and maintaining roads. Highway and transportation development has undergone significant changes in the last few decades. The 1970s ushered in an era of escalating costs of highway development and maintenance. Dependency on imports of foreign oil, global economics, and related events affecting the supply and demand of motor vehicle fuel have had dramatic effects on contemporary means of funding highway programs in the U.S. In responses to this funding dilemma states highway officials began exploring various alternatives for funding transportation improvements. The role of transportation agencies has changed in emphasis since the 1950s. A variety of financial, legal, and logistical issues have forced governments to closely evaluate options for transportation development and finance. State responses to these issues vary. However, there remain a variety of funding alternatives including financing districts, impact fees, tax increment financing, toll financing, and private sector funding.     

Probabilistic analysis of the release of liquefied natural gas (LNG) tenders due to freight-train derailments

Liquefied natural gas (LNG) has emerged as a possible alternative fuel for freight railroads in the United States, due to the availability of cheap domestic natural gas and continued pursuit of environmental and energy sustainability. A safety concern regarding the deployment of LNG-powered trains is the risk of breaching the LNG tender car (a special type of hazardous materials car that stores fuel for adjacent locomotives) in a train accident. When a train is derailed, an LNG tender car might be derailed or damaged, causing a release and possible fire. This paper describes the first study that focuses on modeling the probability of an LNG tender car release incident due to a freight train derailment on a mainline. The model accounts for a number of factors such as FRA track class, method of operation, annual traffic density level, train length, the point of derailment, accident speed, the position(s) of the LNG tender(s) in a train, and LNG tender car design. The model can be applied to any specified route or network with LNG-fueled trains. The implementation of the model can be undertaken by the railroad industry to develop proactive risk management solutions when using LNG as an alternative railroad fuel.     

Virtual reality simulation game approach to investigate transport adaptive capacity for peak oil planning

The peak and decline of world oil production is an emerging issue for transportation and urban planners. Peak oil from an energy perspective means that there will be progressively less fuel. Our work treats changes in oil supply as a risk to transport activity systems. A virtual reality survey method, based on the sim game concept, has been developed to audit the participant’s normal weekly travel activity, and to explore participant’s travel adaptive capacity. The travel adaptive capacity assessment (TACA) Sim survey uses avatars, Google Map™, 2D scenes, interactive screens and feedback scores. Travel adaptive capacity is proposed as a measure of long-range resilience of activity systems to fuel supply decline. Mode adaptive potential is proposed as an indicator of the future demand growth for less energy intensive travel. Both adaptation indicators can be used for peak oil vulnerability assessment. A case study was conducted involving 90 participants in Christchurch New Zealand. All of the participants were students, general staff or academics at the University of Canterbury. The adaptive capacity was assessed by both simulated extreme fuel price shock and by asking, “do you have an alternative mode?” without price pressure. The travel adaptive capacity in number of kilometers was 75% under a 5-fold fuel price increase. The mode adaptive potential was 33% cycling, 21% walking and 22% bus. Academics had adaptive capacity of only 1-5% of trips by canceling or carrying out their activity from home compared to 10-18% for students.     

Fuel price elasticities in the U.S. combination trucking sector

This paper estimates fuel price elasticities of combination trucking operations in the United States between 1970 and 2012. We evaluate trucking operations in terms of vehicle miles traveled and fuel consumption for combination trucks. Our explanatory variables include measures of economic activity, energy prices, and indicator variables that account for important regulatory shifts and changes in data collection and reporting in national transportation datasets. Our results suggest that fuel price elasticities in the United States’ trucking sector have shifted from an elastic environment in the 1970s to a relatively inelastic environment today. We discuss the importance of these results for policymakers in light of new policies that aim to limit energy consumption and reduce greenhouse gas emissions from heavy-duty vehicles.     

Road pricing — an outsider's view of American experiences

Abstract

Substantial changes in urban transport policy have taken place over the past decade. The concern with expanding infrastructure and the preoccupation with providing sufficient road capacity to meet the increasing demand of unrestricted car use, which characterized transport policy in the 1950s and 1960s, has gradually given way to the idea that there is a need to restrain motor traffic if urban society is to function efficiently. A variety of restrictive physical traffic management, land use planning and economic policies have, in consequence, been pursued. One option which has attracted considerable attention in the academic literature, but which has been received more cooly by policy‐makers, is the possibility of optimizing urban traffic congestion through the imposition of road pricing. The introduction and relative success of the area licensing scheme in Singapore has added fuel to the arguments of the advocates of such a policy. This review is not directly concerned with either the experiment with road pricing in Singapore nor the theoretical debates which have taken place concerning the potential merits and defects of such policies but rather looks at the applied work in the United States which has looked into the practical implications of road pricing for its cities. Further, it seeks to explore, again drawing on American experiences, just why there has been so much opposition to the employment of economic pricing principles in the urban road transport market. The author presents the results of an SSRC sponsored study into the practical problems of introducing road pricing to cities in the United States.     

A comprehensive analysis of household transportation expenditures relative to other goods and services: an application to United States consumer expenditure data

This paper proposes a multiple discrete continuous nested extreme value (MDCNEV) model to analyze household expenditures for transportation-related items in relation to a host of other consumption categories. The model system presented in this paper is capable of providing a comprehensive assessment of how household consumption patterns (including savings) would be impacted by increases in fuel prices or any other household expense. The MDCNEV model presented in this paper is estimated on disaggregate consumption data from the 2002 Consumer Expenditure Survey data of the United States. Model estimation results show that a host of household and personal socio-economic, demographic, and location variables affect the proportion of monetary resources that households allocate to various consumption categories. Sensitivity analysis conducted using the model demonstrates the applicability of the model for quantifying consumption adjustment patterns in response to rising fuel prices. It is found that households adjust their food consumption, vehicular purchases, and savings rates in the short run. In the long term, adjustments are also made to housing choices (expenses), calling for the need to ensure that fuel price effects are adequately reflected in integrated microsimulation models of land use and travel.     

Energy use in passenger transport in OECD countries: Changes since 1970

This paper analyzes some of the changes that took place in the structure of energy use for passenger travel in industrialized countries. Data is presented on energy use and travel activity for the four major modes of travel — automobile, bus, rail and air — for eight OECD countries: the United States, Japan, the United Kingdom, West Germany, France, Italy, Sweden, and Norway. We use the Laspeyres and Divisia indices to analyze the causes of the change in energy use between 1970 and 1987. The total change in energy use for travel is explained by changes in domestic passenger transport volumes, the mix of modes of travel, and the energy intensities of each mode. We have found two important effects that have a fundamental impact on energy use for travel since 1970. First, shifts among modes of transport towards more energy-intensive ones and large increases in volumes of travel (measured in passenger-kilometers) increased energy use for travel in many OECD countries, often more rapidly than the overall growth in GDP. Second, energy intensities, measured in mJ/passenger-kilometer, of passenger transport fell only in a few countries between 1970 and 1987. Even though individual automobiles have become more energy-efficient, greater size, power, and weight, worsening traffic conditions in Japan and Europe, and fewer people in cars restrained or even offset efficiency improvements. Particularly notable are the increases in intensities in Japan and Germany. The most important exception to this trend was the United States, but the intensities of land-based travel remain higher there than in most other countries. These findings lead to a pessimistic outlook for future energy use for travel. After all, if little or no energy was saved during the decades of high fuel prices, what can be expected in the 1990s?     

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

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

Lightweighting shipping containers: Life cycle impacts on multimodal freight transportation

Freight transportation by truck, train, and ship accounts for 5% of the United States’ annual energy consumption (U.S. Energy Information Administration, 2017a). Much of this freight is transported in shipping containers. Lightweighting containers is an unexplored strategy to decrease energy and GHG emissions. We evaluate life cycle fuel savings and environmental performance of lightweighting scenarios applied to a forty-foot (12.2 meters) container transported by ship, train, and truck. Use phase burdens for both conventional and lightweighted containers (steel reduction, substitution with aluminum, or substitution with high tensile steel) were compared to life cycle burdens. The study scope ranged from the transportation of one container 100 km to the lifetime movement of the global container fleet on ships. Case studies demonstrated the impact of lightweighting on typical multimodal freight deliveries to the United States. GREET 1 and 2 (Argonne National Laboratory, 2016a,b) were used to estimate the total fuel cycle burdens associated with use phase fuel consumption. Fuel consumption was determined using modal Fuel Reduction Values (FRV), which relate mass reduction to fuel reduction. A lifetime reduction of 21% in the fuel required to transport a container, and 1.4% in the total fuel required to move the vehicles, cargo, and containers can be achieved. It was determined that a 10% reduction in mass of the system will result in a fuel reduction ranging from 2% to 8.4%, depending on the mode. Globally, container lightweighting can reduce energy demand by 3.6 EJ and GHG emissions by 300 million tonnes CO₂e over a 15-year lifetime.     

Prospects for plug-in hybrid electric vehicles in the United States and Japan: A general equilibrium analysis

The plug-in hybrid electric vehicle (PHEV) may offer a potential near term, low-carbon alternative to today’s gasoline- and diesel-powered vehicles. A representative vehicle technology that runs on electricity in addition to conventional fuels was introduced into the MIT Emissions Prediction and Policy Analysis (EPPA) model as a perfect substitute for internal combustion engine (ICE-only) vehicles in two likely early-adopting markets, the United States and Japan. We investigate the effect of relative vehicle cost and all-electric range on the timing of PHEV market entry in the presence and absence of an advanced cellulosic biofuels technology and a strong (450 ppm) economy-wide carbon constraint. Vehicle cost could be a significant barrier to PHEV entry unless fairly aggressive goals for reducing battery costs are met. If a low-cost PHEV is available we find that its adoption has the potential to reduce CO₂ emissions, refined oil demand, and under a carbon policy the required CO₂ price in both the United States and Japan. The emissions reduction potential of PHEV adoption depends on the carbon intensity of electric power generation. Thus, the technology is much more effective in reducing CO₂ emissions if adoption occurs under an economy-wide cap and trade system that also encourages low-carbon electricity generation.     

Explaining “peak car” with economic variables

Many western countries have seen a plateau and subsequent decrease of car travel during the 21st century. What has generated particular interest and debate is the statement that the development cannot be explained by changes in traditional explanatory factors such as GDP and fuel prices. Instead, it has been argued, the observed trends are indications of substantial changes in lifestyles, preferences and attitudes to car travel; what we are experiencing is not just a temporary plateau, but a true “peak car”. However, this study shows that the traditional variables GDP and fuel price are in fact sufficient to explain the observed trends in car traffic in all the countries included in our study: the United States, France, the United Kingdom, Sweden and (to a large extent) Australia and Germany. We argue that the importance of the fuel price increases in the early 2000s has been underappreciated in the studies that shaped the later debate. Results also indicate that GDP elasticities tend to decrease with rising GDP, and that fuel price elasticities tend to increase at high price levels and during periods of rapid price increases.     

Performance Evaluation of Hybrid-Drive Buses and Potential Fuel Savings in Brazilian Urban Transit

Transporting more than 55 million passengers per day, buses are the main transit mode in Brazil. Most of these vehicles use diesel oil and this situation causes dependence on oil, extensive greenhouse gas emissions and increasing air pollution in urban areas. In order to improve this situation the options for Brazilian cities include the use of alternative fuels and new propulsion technologies, such as hybrid vehicles. This article proposes a procedure for evaluating the performance of a recently developed Brazilian hybrid-drive technology. A simple procedure is presented to compare hybrid-drive buses with conventional diesel buses in urban operation focusing on fuel economy and the potential for reducing diesel oil consumption through the use of hybrid-drive buses. Field tests carried out by the authors indicate that fuel consumption improvement through the use of hybrid-drive buses would certainly exceed 20%, resulting in lower fuel costs and reduced carbon dioxide (CO₂) emissions.     

Assessment of hybrid‐drive bus fuel savings for Brazilian urban transit

Buses are the main transit mode in Brazil, transporting more than 55 million passengers per day. Most of these vehicles run on diesel oil causing a dependence on oil, extensive greenhouse gas emissions and increasing air pollution in urban areas. In order to improve this situation, options for Brazilian cities include the use of alternative fuels and new propulsion technologies, such as hybrid vehicles. This paper proposes a procedure for evaluating the performance of a recently developed hybrid‐drive technology. A simple procedure is presented to compare hybrid‐drive buses with conventional diesel buses in urban operations, particularly with respect to fuel economy. Next the potential for reducing diesel oil consumption through the use of hybrid‐drive buses is assessed. Field tests carried out by the authors indicate that fuel consumption improvement through the use of hybrid‐drive buses would certainly exceed 20%, resulting in lower fuel costs and carbon dioxide (CO₂) emissions.     

Evaluation of fuel cell auxiliary power units for heavy-duty diesel trucks

A large number of heavy-duty trucks idle a significant amount. Heavy-duty line-haul truck engines idle about 20–40% of the time the engine is running, depending on season and operation. Drivers idle engines to power climate control devices (e.g., heaters and air conditioners) and sleeper compartment accessories (e.g., refrigerators, microwave ovens, and televisions) and to avoid start-up problems in cold weather. Idling increases air pollution and energy use, as well as wear and tear on engines. Efforts to reduce truck idling in the US have been sporadic, in part because it is widely viewed in the trucking industry that further idling restrictions would unduly compromise driver comfort and truck operations. The auxiliary power units (APUs) available to replace the idling of the diesel traction engine all have had limited trucking industry acceptance. Fuel cells are a promising APU technology. Fuel cell APUs have the potential to greatly reduce emissions and energy use and save money. In this paper, we estimate costs and benefits of fuel cell APUs. We calculate the payback period for fuel cell APUs to be about 2.6–4.5 years. This estimate is uncertain since future fuel cell costs are unknown and cost savings from idling vary greatly across the truck fleet. The payback period is particularly sensitive to diesel fuel consumption at idle. Given the large potential environmental and economic benefits of fuel cell APUs, the first major commercial application of fuel cells may be as truck APUs.     

Short-term impact analysis of fuel price policy change on travel demand in Malaysian cities

Abstract

Malaysia is one of the few countries in the world that provides a fuel subsidy to consumers. Due to the recent economic crisis, the Malaysian Government decided to revise its fuel subsidization policy from a fixed price subsidy to a floating price subsidy dependent on global oil demand. Recognizing that the change in fuel subsidization policy can have an impact on travel behavior, this article investigates the short-term impact of the policy change on private and public transportation in the Klang Valley region of Malaysia. Spectral analyses are performed to investigate if the policy change has an impact on private vehicle travel demand, measured in terms of road traffic, and short-term travel demand elasticity with respect to fuel price is estimated. To measure the impact on the public transportation system, the demand cross-elasticity values of rail transit and buses are also estimated. It was found that traffic flow reduces with an increase in fuel price, although elasticity and cross-elasticity values obtained are low. The article finds that there is a potential mode shift from private vehicles to rail transit with increasing fuel price. It is demonstrated that reducing fuel price subsidy can be an effective travel demand management strategy to alleviate congestion.     

Assessment of stratospheric fuel burn by civil commercial aviation

When jetliners fly in the stratosphere, their emissions tend to be longer-lived and therefore have greater environmental impact. Since the altitude of the tropopause is not consistent and can be as low as 23,000 ft., cruising flights may have a great chance to fly into the stratosphere. In this paper, we present a simple and rapid method to estimate the extent of US commercial passenger and cargo flight that currently occurs in the stratosphere, based on publicly available historical data from 2008 to 2012. We model the vertical profile of a flight and compare it with the height of the tropopause along its route. Our analysis covers 78% of the total travelled distance reported by the United States Bureau of Transportation Statistics, and shows that these flights burnt ∼11 million tons of fuel annually, or ∼31% of cruise fuel, in the stratosphere between 2008 and 2012. Our results also show that the chance of flying into stratosphere varies by area, but flights within the contiguous United States tend to stay below the stratosphere. Moreover, the stratosphere fuel burn of Asia-US flights may be significantly reduced by taking jet stream routes.     

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.     

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.     

The strategic transportation research study — Its origins and purposes

The highway industry in the United States spends about $35 to $40 billion annually. Management of the industry is almost wholly decentralized. This decentralization plus diminishing fuel tax revenues used to finance road improvements have caused road research efforts to decline to a very low level. Comparisons between funds for highway research and those spent by private firms in similar industries show that private firms spend from 5 to 12 times the rate of highway agencies. The problem of how much to spend on research is difficult both for private-sector and for public-sector enterprises. The level of research spending is shown to correlate well with both profitability and growth in U.S. firms. Four methods used for making research decisions in the private sector are discussed. The goals of the Strategic Transportation Research Study (STRS), which is being conducted by the Transportation Research Board to examine highway and transportation needs, are described.     

Valorization of carbon dioxide by conversion into fuel using renewable energy in Algeria

Reducing the emissions of the main anthropogenic greenhouse gases, such as carbon dioxide (CO₂), is one of the major challenges of this century. A partial solution to these environmental problems could be the capture and the conversion of carbon dioxide. The main objective of the present work is to study the opportunities and prospects of recycling carbon dioxide to produce synthetic fuel, particularly methanol, which is a complementary technology to carbon capture and storage (CCS). This methanol will be produced by using several renewable energies, such as solar, wind and geothermal, for the purpose of using it in the transportation sector in Algeria. In 2013, Algeria’s total amount of CO₂ emissions (created by energy consumption) was 143 million tonnes. It is estimated that 44.4 million tonnes of CO₂ can be captured from the exhaust of stationary units (factories and power stations) and converted to methanol every year. By adopting this process, approximately 32 million tonnes of methanol can be produced with an energy value of 580,000 TJ. The methanol produced from CO₂ can be used as an alternative transportation fuel. For this reason, the Geographical Information System (GIS) is used to present the spatial distribution of the methanol demand in short and long terms, based on market penetration rates, vehicle fleet and population data. An analysis of the energy balance, environment and economics of CO₂ recycling process is presented. In terms of environmental performance, the reduction in carbon dioxide emissions that come from the transport sector was remarkable in 2045.