Airline ambidextrous competition under an emissions trading scheme – A reference-dependent behavioral perspective

This study presents a reference-dependent Hotelling model for analyzing airline competition in pricing and green transportation investment, as well as the resulting financial performance under the European Union emission trading scheme. One feature of the proposed methodology is that it embeds psychological benefits/costs of consumers to characterize consumer attitudes to the increases in airline fare adjustments and improvements in green transportation. This study then investigates the equilibrium solutions for airfare adjustment and green transportation investment margins in different scenarios. The analytical results reveal specific operational conditions under which a cost-efficient airline can gain supreme competitive advantage by increasing both airfare and green transportation investment margins beyond the increases made by competitors under the emission trading scheme, whereas certain specific conditions may favor a cost leadership strategy. Conversely, a cost-inefficient airline can compete with a cost-efficient airline in both market share and profitability using the green transportation investment-differentiation strategy, particularly when consumers perceive the airfare difference as equaling the increased psychological benefit induced by the airline’s green effort.     

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.     

Assessment of carbon emission costs for air cargo transportation

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

Emission rates of intermodal rail/road and road-only transportation in Europe: A comprehensive simulation study

Intermodal rail/road transportation combines advantages of both modes of transport and is often seen as an effective approach for reducing the environmental impact of freight transportation. This is because it is often expected that rail transportation emits less greenhouse gases than road transportation. However, the actual emissions of both modes of transport depend on various factors like vehicle type, traction type, fuel emission factors, payload utilization, slope profile or traffic conditions. Still, comprehensive experimental results for estimating emission rates from heavy and voluminous goods in large-scale transportation systems are hardly available so far. This study describes an intermodal rail/road network model that covers the majority of European countries. Using this network model, we estimate emission rates with a mesoscopic model within and between the considered countries by conducting a large-scale simulation of road-only transports and intermodal transports. We show that there are high variations of emission rates for both road-only transportation and intermodal rail/road transportation over the different transport relations in Europe. We found that intermodal routing is more eco-friendly than road-only routing for more than 90% of the simulated shipments. Again, this value varies strongly among country pairs.     

Much Ado about Nothing? - An analysis of economic impacts and ecologic effects of the EU-emission trading scheme in the aviation industry

From 2012 on, all CO₂ emissions from flights departing from or arriving at airports within the European Union have to be offset. We analyze the economic and ecological impacts that are caused by an inclusion of the aviation industry into the proposed emissions trading scheme (ETS). Building on the now fixed system design we employ a simulation model to estimate the impacts of the scheme. Our results indicate that financial impacts are highly dependant on external settings, such as allowance prices and demand growth. We show that the financial burden on the aviation industry will be rather modest in the first years after the introduction of the system and therefore induce only low competition distortions. Likewise, emission reductions within air transportation will be comparably low. While aviation will induce a decline of emissions in other sectors, significant absolute reductions within air transportation can only be reached by a more restrictive system design.     

Parking permits management and optimal parking supply considering traffic emission cost

Given a many-to-one bi-modal transportation network where each origin is connected to the destination by a bottleneck-constrained highway and a parallel transit line, we investigate the parking permit management methods to minimize traffic time cost and traffic emission cost simultaneously. More importantly, the optimal supply of parking spots is also discussed in the policies of parking permit. First, we derive the total travel costs and emission costs for the two cases of sufficient and insufficient parking spot provisions at the destination. Second, we propose a bi-objective model and solve the Pareto optimal parking permit distribution, given a certain level of parking supply. Third, we investigate the optimal parking supply in the policy of parking permit distribution, with the objectives of minimizing both total travel cost and traffic emission. Fourth, we provide a model of optimizing parking supply, in the policy of free trading of parking permits. Finally, the numerical examples are presented to illustrate the effectiveness of these schemes, and the numerical results show that restricting parking supply at the city center could be efficient to reduce traffic emission.     

Measuring foregone output under industry emission reduction target in the transportation sector

Numerous countries have implemented or are considering a range of policies to lower emissions from transportation. An analysis of the impacts of environmental regulation is a crucial issue, which has not been properly highlighted in the transportation literature, particularly in terms of the foregone output by such regulation. This study develops a novel DEA model that measures the foregone output when the industry emissions target is imposed. This model reflects the real regulatory process more appropriately than other models in that the authority in charge sets the emission reduction target first, and the transport operators respond to it. In addition, the model can test the industrywide impacts over a wide range of emission target values, which can help policy makers determine the optimal emission target. Finally, the proposed model was applied to the port industry in Korea. The results suggest that Korean ports can reduce their emissions by a maximum of 239,850 tons of CO₂, which accounts for 13% of the total emissions in 2010. The 13% reduction in emission, however, would result in $ 91,109,000 of foregone cargo traffic to the Korean economy. In addition, the foregone cargo traffic increases at much faster rate than the emission reduction rate. For example, the shadow price of emission differs by 2.25 times between the most moderate and strictest emission targets. This suggests that the government needs to impose moderate emission targets at the initial stages if it decides to minimize the regulatory impacts on the industry.     

Designing Emission Charging Schemes for Transportation Conformity

This paper designs emission charging schemes to ensure traffic emissions not exceeding the emission budgets in emission regulation areas. In a network where all links are tollable, we prove that, under mild conditions, there exists a non‐negative link‐based toll scheme that achieves the transportation conformity requirement while minimizing total emissions. We further consider only tolling in the emission regulation areas and formulate a model to determine optimal area‐based emission charges to ensure the conformity. The model is formulated as a mathematical program with complementarity constraints. A solution framework is developed to solve the model, leveraging on a derivative‐free pattern search algorithm and integrating MOVES to estimate vehicular emissions more accurately. The proposed models are demonstrated on two numerical examples. Copyright © 2013 John Wiley & Sons, Ltd.     

Tradable credit schemes on networks with mixed equilibrium behaviors

This paper analyzes and designs tradable credit schemes on networks with two types of players, namely, a finite number of Cournot–Nash (CN) players and an infinite number of (infinitesimal) Wardrop-equilibrium (WE) players. We first show that there are nonnegative anonymous credit schemes that yield system optimum, when transaction costs are not considered. We then analyze how transaction costs would affect the trading and route-choice behaviors of both CN and WE players, and discuss the equilibrium conditions on the coupled credit market and transportation network in the presence of transaction costs. A variational inequality is formulated to describe the equilibrium and is subsequently applied to a numerical example to assess the impacts of transaction costs on a tradable credit system. As expected, transaction costs reduce the trading volume of credits and change their market price. They also change the way how players respond to credit charges in their route choices and cause efficiency losses to the credit schemes that are previously designed without considering transaction costs. With transaction costs, travel costs of WE players will likely increase while those of CN players may decrease due to their higher adaptability in routing strategies.     

Using intelligent agents for Transportation Regulation Support System design

This paper presents an agent-based approach used to design a Transportation Regulation Support System (TRSS), that reports the network activity in real-time and thus assists the bus network regulators. The objective is to combine the functionalities of the existing information system with the functionalities of a decision support system in order to propose a generic model of a traffic regulation support system. Unlike the other approaches that only deal with a specific task, the original feature of our generic model is that it proposes a global approach to the regulation function under normal conditions (network monitoring, dynamic timetable management) and under disrupted conditions (disturbance assessment and action planning of feasible solutions). Following the introduction, the second section presents the notions of the domain and highlights the main regulation problems. The third section details and motivates our choice of the components of the generic model. Based on our generic model, in the fourth section, we present a TRSS prototype called SATIR (Système Automatique de Traitement des Incidents en Réseau – Automatic System for Network Incident Processing) that we have developed. SATIR has been tested on the Brussels transportation network (STIB). The results are presented in the fifth section. Lastly, we show how using the multi-agent paradigm opens perspectives regarding the development of new functionalities to improve the management of a bus network.     

Climate change and the contribution of transport: Basic facts and the role of aviation

There is a world-wide consensus that climate change policy has to be intensified to achieve reduction goals set for 2020 and 2050. But it is heavily debated which contribution should be expected from the transport sector. It is often argued that in the transportation sector CO₂ marginal mitigation costs are higher such that – together with high growth of transport activities – the reduction targets for this sector should be relaxed. Green transport policy is contrasting this view and underlines that considerable reductions of climate gases in the transport sector are possible without risking economic prosperity. The aviation industry is in the focus of this discussion and first attempts are being made in the European Union to integrate aviation in an emission trading system. It will be shown that the impact of this policy will be very low in the medium term and that additional measures are necessary to create enough incentives for the aviation industry to exploit their reduction potential.     

交通运输能耗与排放统计监测平台及应用研究

在我国交通运输行业节能减排的背景下,本文以交通运输行业能耗特点与统计监测方法为基础,建立涵盖了公路客运、公路货运、城市公交、城市出租、水路运输、港口生产等行业的能耗碳排统计监测系统,分析了省级交通运输能耗与排放特点,明确了能耗数据统计对象与内容,并对能耗数据采集的方法进行了研究,建立了省级交通运输能耗统计监测系统,并以辽宁省交通运输为依托,对全省交通运输行业能耗统计监测系统进行了验证与应用,同时也为交通运输行业的节能减排提供了决策支撑和数据支持。     

An integrated modeling approach for facilitating emission estimations of alternative fueled vehicles

This paper develops an integrated model for reliable estimation of daily vehicle fuel savings and emissions using an integrated traffic emission modeling approach created by incorporating the US Environmental Protection Agency’s vehicle emission model, MOVES, and the PARAMICS microscopic traffic simulation package. A case study is conducted to validate the model using a well-calibrated road network in Greenville, South Carolina. For each transportation fuel considered, both emission and fuel consumption impacts are evaluated based on market shares.     

Residential density and transportation emissions: Examining the connection by addressing spatial autocorrelation and self-selection

This paper examines the effect of residential density on CO₂ equivalent from automobile using more specific emission factors based on vehicle and trip characteristics, and by addressing problems of spatial autocorrelation and self-selection. Drawing on the 2006 Puget Sound Regional Council Household Activity Survey data, the 2005 parcel and building database, the 2000 US Census data, and emission factors estimated using the Motor Vehicle Emission Simulator, we analyze the influence of residential density on road-based transportation emissions. In addition, a Bayesian multilevel model with spatial random effects and instrumental variables is employed to control for spatial autocorrelation and self-selection. The results indicate that the effect of residential density on transportation emissions is influenced by spatial correlation and self-selection. Our results still show, however, that increasing residential density leads to a significant reduction in transportation emissions.     

A fuzzy-stochastic optimization model for the intermodal fleet management problem of an international transportation company

ABSTRACT

In this paper, a fuzzy-stochastic optimization model is developed for an intermodal fleet management system of a large international transportation company. The proposed model integrates various strategic, tactical and operational level decisions simultaneously. Since real-life fleet planning problems may involve different types of uncertainty jointly such as randomness and fuzziness, a hybrid chance-constrained programming and fuzzy interactive resolution-based approach is employed. Therefore, stochastic import/export freight demand and fuzzy transit times, truck/trailer availabilities, the transport capacity of Ro-Ro vessels, bounds on block train services, etc. can also be taken into account concurrently. In addition to minimize overall transportation costs, optimization of total transit times and CO₂ emission values are also incorporated in order to provide sustainable fleet plans by maximizing customer satisfaction and environmental considerations. Computational results show that effective and efficient fleet plans can be produced by making use of the proposed optimization model.     

VISSIM/MOVES integration to investigate the effect of major key parameters on CO2 emissions

This paper looks at CO₂ emissions on limited access highways in a microscopic and stochastic environment using an optimal design approach. Estimating vehicle emissions based on second-by-second vehicle operation allows the integration of a microscopic traffic simulation model with the latest US Environmental Protection Agency’s mobile source emissions model to improve accuracy. A factorial experiment on a test bed prototype of the I-4 urban limited access highway corridor located in Orlando, Florida was conducted to identify the optimal settings for CO₂ emissions reduction and to develop a microscopic transportation emission prediction model. An exponentially decaying function towards a limiting value expressed in the freeway capacity is found to correlate with CO₂ emission rates. Moreover, speeds between 55 and 60 mph show emission rate reduction effect while maintaining up to 90% of the freeway’s capacity. The results show that speed has a significant impact on CO₂ emissions when detailed and microscopic analysis of vehicle operations of acceleration and deceleration are considered.     

Sailing into a dilemma: An economic and legal analysis of an EU trading scheme for maritime emissions

On the basis of a joint economic and legal analysis, we evaluate the effects of a “regional” (European) emission trading scheme aiming at reducing emissions of international shipping. The focus lies on the question which share of emissions from maritime transport activities to and from the EU can and should be included in such a system. Our findings suggest that the attempt to implement an EU maritime ETS runs into a dilemma. It is not possible to design a system that achieves emission reductions in a cost efficient manner and is compatible with international law.     

Heterogeneous fixed fleet vehicle routing considering carbon emission

The paper considers heterogeneous fixed fleet vehicle routing with carbon emission to minimizing the sum of variable operation costs. A cost-benefit assessment of the value of purchasing or selling of carbon emission rights, using a mixed integer-programming model to reflect heterogeneous vehicle routing, is incorporated. Essentially, the use of a carbon market as a means of introducing more flexibility into an environmentally constrained network is considered. Tabu search algorithms are used to obtain solutions within a reasonable amount of computation time. In particular, we show the possibility that the amount of carbon emission can be reduced significantly without sacrificing the cost due to the benefit obtained from carbon trading.     

Measuring energy and environmental efficiency of transportation systems in China based on a parallel DEA approach

Because of China’s rapid economic development, its transportation system has become one of China’s high-energy-consumption and high-pollution-emission sectors. However, little research has been done which pays close attention to China’s transportation system, especially in terms of energy and environmental efficiency evaluation. In this paper, data envelopment analysis (DEA) is applied to measure the energy and environment performance of transportation systems in China with the goal of sustainable development. This paper treats transportation as a parallel system consisting of subsystems for passenger transportation and freight transportation, and extends a parallel DEA approach to evaluate the efficiency of each subsystem. An efficiency decomposition procedure is proposed to obtain the highest achievable subsystem efficiency. Our empirical study on 30 of mainland China’s provincial-level regions shows that most of them have a low efficiency in their transportation system and the two parallel subsystems. There are large efficiency differences between the passenger and freight transportation subsystems. In addition, unbalanced development has occurred in the three large areas of China, with the east having the highest efficiency, followed by central China and then west. Therefore, more measures should be taken to balance and coordinate the development between the three large areas and between the two subsystems within them. Our analysis approach gives data for determining effective measures.     

基于层次分析法的交通运输节能减排示范项目绩效评价研究

交通运输是国家节能减排工作的重点领域,为促进交通运输节能减排技术发展,开展交通运输节能减排示范项目是政府部门一项重要的政策措施。对示范项目进行绩效评价工作能衡量财政资金投入政策实施效果,也是交通运输主管部门非常关注的问题。在交通运输节能减排示范项目绩效评价的逻辑框架下,运用层次分析法建立交通运输节能减排示范项目绩效评价指标体系及权重值,具有较好的实操性,能为开展同类型项目的绩效评价工作提供参考。