[Due to the increasing size of the archives, each topic page now contains only the prior 365 days of content. Access to older stories is now solely through the Monthly Archive pages or the site search function.]
ICCT study finds that transitioning to low-GWP MAC refrigerants in China could avoid up to US$150B in costs
September 25, 2016
A new study from the International Council on Clean Transportation (ICCT) assesses the feasibility, benefits, and costs of phasing out HFC-134a as the refrigerant in mobile air conditioning (MAC) systems in the Chinese LDV fleet, focusing on three alternatives with lower global warming potential (GWP) most likely to be adopted by automakers with a global supply chain: HFO-1234yf, HFC-152a, and CO2.
Among the findings of the report, “HFC-134a phase-out in the Chinese light-duty motor vehicle sector”, was that, considering the social cost of CO2e, up to 1 trillion RMB in costs (US$150 billion) required to address climate change could be avoided through 2050 by transitioning to low-GWP alternative MACs.
DOT issues Federal Policy for safe testing and deployment of highly automated vehicles (SAE levels 3-5)
September 20, 2016
The US Department of Transportation issued Federal policy for highly automated vehicles (HAVs)—i.e., SAE Levels 3-5 vehicles with automated systems that are responsible for monitoring the driving environment as defined by SAE J3016.
Although the primary focus of the Federal Automated Vehicle Policy is on highly automated vehicles, or those in which the vehicle can take full control of the driving task in at least some circumstances, portions of the policy also apply to lower levels of automation, including some of the driver-assistance systems already being deployed by automakers today. The newly released policy embodies four key elements:
ICCT analysis of California top EV cities finds link between EV uptake and many underlying factors
September 12, 2016
A detailed, city-level multivariate regression analysis of EV penetration in California has found a link between electric vehicle uptake and many underlying factors. A team at the International Council on Clean Transportation (ICCT) found that electric vehicle model availability; public electric vehicle charging network; local promotion activities for electric vehicles (e.g., outreach events, informational websites; electric car sharing services; and government and fleet programs) and median income in each city to be correlated significantly with new electric vehicle sales share. They cautioned that causality could not be determined within the analysis.
The team drilled into the activities of the 30 California cities with the highest rates of electric vehicle penetration, examining how local organizations—regional and city governments, utilities, businesses, and nonprofits are promoting electric vehicles through a wide array of activities. In these 30 cities, electric vehicles account for 6% to 18% share of new vehicle sales—this is 8 to 25 times that of the US average in 2015. These vehicle markets range greatly in size, from hundreds of electric vehicle sales up to approximately 4,000 (San Jose).
BC government unveils climate plan
August 23, 2016
The government of British Columbia recently unveiled its Climate Leadership Plan, targeting the reduction of net annual greenhouse gas emissions by up to 25 million tonnes below current forecasts by 2050 and the creation of up to 66,000 jobs over the next ten years. BC’s target is to reduce 2050 emissions 80% below 2007 levels.
The plan’s initial 21 action items include making electric vehicles more affordable and boosting the Low Carbon Fuel Standard from 10% to 15%. Government is also targeting making buildings more efficient, sequestration opportunities in forests and emission reductions in natural gas production and processing.
CALSTART brief highlights growth of and future opportunity for California’s clean transportation technology industry
August 08, 2016
A new CALSTART brief indicates that California’s climate and energy policies are not only helping to protect the environment and improve air quality, but are also helping to accelerate growth of the clean transportation technology industry (CTTI) in the state.
The paper, “California’s Clean Transportation Technology Industry: Time to Shift into High Gear,” profiles the development of a burgeoning manufacturing sector that is producing zero- and near-zero emission light-, medium- and heavy-duty vehicles, as well as clean fuels, engines, vehicle components, and new mobility services.
Researchers say fuel market rebound effect can result in increased GHG emissions under RFS2; suggest taxes over mandates
The US Renewable Fuel Standard (RFS2) is intended to reduce greenhouse gas emissions from transportation. However, argues a team from the University of Minnesota in an open-access paper published in the journal Energy Policy, once the “fuel market rebound effect” is factored in, RFS2 actually increases GHG emissions when all fuel GHG intensity targets specified under the act are met.
Increasing the supply of low-carbon alternative fuels is a basic strategy to reduce greenhouse gas emissions. However, the Minnesota team notes, increasing the supply of fuels tends to lower energy prices, which encourages in turn encourages additional fuel consumption. This “fuel market rebound effect” can undermine climate change mitigation strategies, even to the point where efforts to reduce GHG emissions by increasing the supply of low-carbon fuels may actually result in increased GHG emissions.
Researchers urge Chinese government to encourage bikes, buses and rail over cars and commercial vehicles due to emissions and health concerns
August 01, 2016
Based on the results of their analysis of the potential air quality and health impacts of travel demand in China under business-as-usual and alternative transport scenarios, a team of researchers in China is urging policymakers to encourage the replacement of private cars for short trips with bicycles or public buses and the replacement of commercial vehicles with rail transport.
In their paper, published in the journal Energy Policy, Ling-Yun HE and Lu-Yi QIU, observe that regulatory policies imposed on vehicle usage as well as on car ownership can not solve the growing emissions problem.
European Strategy for low-emission mobility stresses digital tech, electrification and ZEVs
July 22, 2016
Earlier this week, the European Commission published a strategy for low-emission mobility, which sets out guiding principles to Member States to prepare for the future. EU legislation currently refers to low-emission vehicles as vehicles having tailpipe emissions below 50 g/km. This would include some plug-in hybrids, full electric cars and hydrogen fuel cell vehicles. The latter two examples also represent zero-emission vehicles.
The low-emission mobility strategy will frame the initiatives that the Commission is planning in the coming years, and it maps the areas in which it is exploring options. It also shows how initiatives in related fields are linked and how synergies can be achieved. In parallel to this strategy, the Commission is launching public consultations on the approach towards reducing emissions from road transport: cars and vans as well as trucks, buses and coaches.
Obama Administration launches series of actions to accelerate EV adoption; inc. $4.5B in loan guarantees, pursuing 350 kW fast charge
July 21, 2016
The Obama Administration has announced a series of actions from the Federal government, private sector, and states, as well as a new framework for collaboration for vehicle manufacturers, electric utilities, electric vehicle charging companies, and states, all geared towards accelerating the deployment of electric vehicle charging infrastructure and putting more electric vehicles on the road.
The collaboration, forged by the White House in partnership with DOE and the Department of Transportation (DOT), the US Air Force and US Army, and the Environmental Protection Agency, is centered on a set of Guiding Principles to Promote Electric Vehicles and Charging Infrastructure. 46 organizations have signed on to the principles so far.
Report: combination of new mobility technologies creates opportunities for cutting emissions, but requires strategic policy interventions
June 30, 2016
The combination of connectivity, automation plus shared vehicle ownership and use has the potential to make car travel greener and cheaper, cutting energy use and helping accelerate the introduction of low carbon vehicles. However, these energy and carbon benefits are by no means guaranteed and will require strategic policy interventions to maximize them according to new report by the Institute for Transport Studies (ITS) at the University of Leeds, commissioned by the Low Carbon Vehicle Partnership (LowCVP) and the Institution of Mechanical Engineers (IMechE).
The study—Automated vehicles; Automatically low carbon?— was presented at the Low Carbon Vehicle Partnership Conference at the Olympic Park in London. According to the study, better coordination and connectivity between vehicles and infrastructure is likely to improve energy efficiency, as well as potentially make road transport safer and quicker.
WEC report: EVs need 16% market share by 2020 for fuel economy standards to be met
Electric vehicles (EVs) will need to increase their combined market share to 16% by 2020 for markets to achieve the aggressive fuel economy standards set by regulators, according to new research by the World Energy Council, the UN-accredited global energy body representing the entire energy spectrum.
While EVs currently represent less than 1% combined market share across the world’s largest markets for new passenger cars, they should be considered central to any policy and technology portfolio designed to lower transport emissions, WEC said.
ITF launches global initiative to decarbonize transport
May 19, 2016
The International Transport Forum (ITF) at the OECD has launched a major global initiative towards carbon-free transport. Transport activity currently contributes 23% of global CO2 emissions from fossil fuels, with the share expected to rise. The long-term objective of the project is to define a commonly-acceptable pathway to achieve zero transport emissions by around 2050.
The Decarbonizing Transport project, announced during the Annual Summit of transport ministers in Leipzig, Germany aims to provide a common assessment tool based on a comprehensive modeling framework supported by dialogue with key stakeholders; to enable countries and other stakeholders to translate roadmaps into actions that deliver results grounded in quantitative data; and to support actions to achieve the UN Sustainable Development Goals along with the decarbonization of the transport sector.
Report: Ontario targeting 5% EV share of all new vehicles sold by 2020, 12% by 2025 as part of C$7B climate plan
May 16, 2016
Canada’s Globe and Mail reports that as part of a more C$7-billion (US$5.4-billion), 4-year climate change plan, the Ontario government will invest C$285 million (US$221 million) in electric vehicle incentives; implement lower carbon fuel standards; and invest C$280 million (US$217 million) to help school boards buy electric buses and trucking companies switch to lower-carbon trucks, including by building more liquid natural gas fueling stations.
The Globe and Mail obtained a copy of the currently confidential 57-page Climate Change Action Plan, which lays out a strategy from 2017 to 2021. The document outlines contains about 80 different policies, grouped into 32 different actions. The Globe had previously uncovered details of the plan, but this is the first time the full blueprint has been revealed. The strategy is scheduled to be further reviewed by cabinet ministers and fine-tuned, sources told the Globe and Mail, with public release slated for June.
Ghosn: Renault-Nissan needs both high- and low-spec EVs to be player in China market; ongoing importance of gov’t support
May 05, 2016
At a press roundtable held at the Auto China 2016, Renault-Nissan Alliance CEO Carlos Ghosn observed that both Nissan and Renault had what he called “high-spec” electric vehicle offers in China: the Venucia for Nissan, and the coming Freelance Electric by Renault. He defined high-spec as models with a high-price and very good performance.
Unfortunately, he noted, these models are not selling very well in China. The China market is currently oriented toward “lower-spec” models—i.e., more affordable. Accordingly, both Renault and Nissan are working to develop high spec models that are lower cost and with more range. The two are also working very hard, in conjunction with partner Dongfeng, to introduce a low-spec affordable EV, Ghosn said.
California issues draft plan for more efficient, less polluting freight system
May 03, 2016
California agency leaders released the Draft California Sustainable Freight Action Plan, an ambitious document that lays a foundation for modernizing California’s multi-billion dollar freight transportation system.
The Draft Action Plan puts forward a single shared vision to improve the efficiency of California’s freight system while reducing its pollution, while continuing to bolster the competitiveness of California’s goods movement system nationally and internationally. Key components of the Action Plan include:
The importance of considering non-exhaust traffic emissions; the role of EVs
May 02, 2016
Regulatory regimes seeking to reduce emissions from transport have largely focused on tailpipe emissions—i.e., the criteria pollutants and CO2 that emerge with the exhaust from the tailpipe. However, there is more than 15 years of research showing that the contribution of non-exhaust primary particles to the total traffic generated primary particles is significant in urban areas. Non-exhaust PM factors include tire wear, brake wear, road surface wear and resuspension of road dust. Further, a 2013 review by Denier van der Gon et al., 2013 found that the ratio of non-exhaust to exhaust particles is strongly increasing in the last two decades, due to exhaust emission reductions.
While battery electric vehicles have the obvious advantage of zero tail-pipe emissions, they are not equally advantaged when it comes to non-exhaust emissions. Accordingly, there have been a number of recent studies working to assess the impact of non-exhaust emissions from EVs and suggesting a regulatory or policy response (e.g., earlier post).
Germany pumping €1B into plug-in vehicle subsidies, infrastructure; base price cap of €60K
April 27, 2016
The German government will put approximately €1 billion (US$1.1 billion) into subsidies for plug-in vehicles and the supporting charging infrastructure, beginning next month.
Electric car buyers will receive a €4,000 (US$4,500) subsidy; buyers of plug-ins will receive €3,000 (US$3,400). Half of the amount will be provided by the government, the other half by automakers. The total funding is limited to €1.2 billion (US$1.4 billion) (€600 million from the federal government, €600 million from the auto industry) and has a term expiring no later than 2019.
Cal Energy Commission hosting technology merit review workshop on EV charging infrastructure project
April 22, 2016
The California Energy Commission will host a workshop Monday, 25 April, in which executives from four companies including ChargePoint and Green Charge Networks, two non-profits, one municipal utility district and one state agency will discuss the successes and challenges of developing electric vehicle charging technology in California.
This workshop will influence future funding opportunities at the Commission through its Alternative and Renewable Fuel and Vehicle Technology Program, which provides up to $100 million a year for alternative fuels and vehicle technology development.
Japan updates hydrogen fuel cell targets; 320 stations by 2025, 800,000 vehicles by 2030
April 15, 2016
Japan’s Council for a Strategy for Hydrogen and Fuel Cells, which includes experts from industry, academia, and government, recently issued a revised version of the Strategic Roadmap for Hydrogen and Fuel Cells.
Japan’s Ministry of Economy, Trade and Industry (METI) established the Council in December 2013; the Strategic Road Map was first published in June 2014. With the increased dissemination of fuel cells for households, the launch of fuel cell vehicles onto the market, and steady progress in the construction of hydrogen stations, the Council has revised the plan, setting new targets. For vehicles, these targets are:
European Transport Ministers sign Amsterdam Declaration on steps for development and harmonization of connected, autonomous driving in Europe
On 14 April, the transport ministers of all 28 EU member states signed the Amsterdam Declaration, laying down agreements on the steps necessary for the development of connected, autonomous driving technology in the EU. The signatories pledge to draw up rules and regulations that will allow autonomous vehicles to be used on the roads.
A lack of good cooperation between EU member states could give rise to a jumble of different rules, thereby preventing the large-scale availability of this new technology. Agreements also need to be made on issues such as liability, privacy, data security and the effects of self-driving vehicles on traffic and the road network.
California Energy Commission releases $17.3M funding opportunity for H2 stations
April 08, 2016
The California Energy Commission has released a $17.3-million solicitation (GFO-15-605) for publicly accessible hydrogen refueling stations that serve California’s light duty fuel cell electric vehicles (FCEVs).
The Energy Commission will make available two categories of Capital Expense (Cap-X) funding. Operation and Maintenance (O&M) funding is also available for stations whose capital expenses are funded under this solicitation. This solicitation places a preference on hydrogen refueling stations that fill hydrogen refueling station coverage gaps and hydrogen refueling capacity gaps in California.
California ARB posts discussion document on $500M FY 2016-17 spend for low carbon transportation and fuels; $230M to fund CVRP
March 28, 2016
The California Air Resources Board (ARB) staff has posted a discussion document prior to a 4 April 2016 public workshop on the development of the FY 2016-17 Funding Plan for Low Carbon Transportation and Fuels Investments and AQIP.
The Governor’s proposed 2016-17 budget would appropriate to ARB $500 million in Cap-and-Trade auction proceeds for Low Carbon Transportation and Fuels investments—including $40 million for very low carbon fuel production incentives—and $28.6 million for Air Quality Improvement Program (AQIP) projects.
Study suggests policymakers need to move beyond alt fuels hype to decarbonize transport successfully
March 02, 2016
Policymakers who want to decarbonize the transportation sector will need to move beyond the hype that has characterized alternative fuels over the past three decades and find better ways to assess and sustain promising technologies and fuels, according to a study from Simon Fraser University, Canadian consulting firm Navius Research, and the University of California, Davis.
In the study, published in the journal Nature Energy, Noel Melton, Jonn Axsen and Daniel Sperling conduct a media analysis to show how society’s attention has skipped among alternative fuel vehicle (AFV) technology between 1980 and 2013, including methanol, natural gas, plug-in electric, hybrid electric, hydrogen and biofuels. They then make recommendations that governments can follow to move past hype to support significant AFV adoption and displace fossil fuel use in the transportation sector.
Study finds autonomous vehicles may plausibly nearly double, or nearly halve, road transport GHGs depending on the scenario
February 26, 2016
A study by a team from the University of Leeds (UK), University of Washington (USA) and Oak Ridge National Laboratory has found that vehicle automation might plausibly reduce road transport GHG emissions and energy use by nearly half—or nearly double them—depending on the scenario.
The researchers also found that many potential energy-reduction benefits may be realized through partial automation, while the major energy/emission downside risks appear more likely at full automation. In a paper describing the study published in the journal Transportation Research Part A, the authors also presented implications for policymakers and identify priority areas for further research.
U Chicago, MIT study suggests ongoing use of fossil fuels absent new carbon taxes
February 24, 2016
A paper by a team from the University of Chicago and MIT suggests that technology-driven cost reductions in fossil fuels will lead to the continued use of fossil fuels—oil, gas, and coal—unless governments pass new taxes on carbon emissions. Their analysis is published in the Journal of Economic Perspectives.
While renewable energy has made promising gains in just the last few years—the cost of solar dropped by about two-thirds from 2009 to 2014—new drilling and extraction techniques have made fossil fuels cheaper and markedly increased the amount of oil and gas available. In the US alone, oil reserves have expanded 59% between 2000 and 2014, and natural gas reserves have expanded 94% in the same time.
CMU study concludes alt fuel vehicle incentives for OEMs result in increased fleet gasoline consumption and emissions
February 15, 2016
A study by researchers at Carnegie Mellon University has concluded that regulatory incentives for OEMs for alternative fuel vehicles (AFVs) intended to encourage a technology transition in the transportation fleet result in increased fleet-wide gasoline consumption and emissions. Their paper is published in the ACS journal Environmental Science & Technology.
In the US, the main regulatory drivers for increased light-duty vehicle fuel efficiency are the National Highway Traffic Safety Administration’s (NHTSA) CAFE standards and the US Environmental Protection Agency’s (EPA) GHG standard. The two standards are harmonized for comparable stringency, but there are differences. (Earlier post.)
President Obama proposes 50% increase in spending on clean transportation, funded by $10/barrel tax on oil
February 05, 2016
President Obama has laid out a plan for building a “21st Century Clean Transportation System”, the investment for which would be funded by a new $10 per barrel fee on oil paid by oil companies, which would be gradually phased in over five years. The President’s plan would increase US investments in clean transportation infrastructure by roughly 50%.
The President’s plan invests nearly $20 billion per year above current spending to reduce traffic and provide new ways for families to get to work and to school. The plan would expand transit systems in cities, suburbs and rural areas; make high-speed rail a viable alternative to flying in major regional corridors and invest in new rail technologies like maglev; modernize the freight system; and expand the Transportation Investment Generating Economic Recovery (TIGER) program begun in the Recovery Act to support high-impact, innovative local projects.
CPUC approves SDG&E pilot EV grid integration project; 3,500 charging stations at 350 sites, dynamic pricing
January 29, 2016
Almost two years after SDG&E proposed its Electric Vehicle Grid-Integration (VGI) pilot project (April 2014), the California Public Utilities Commission (CPUC) approved a modified version of the program, enabling the utility to own and to install 3,500 charging stations at 350 sites—businesses and multi-family communities, including in underserved neighborhoods, throughout San Diego and south Orange Counties.
The program features dynamic pricing—a time-variant rate—that creates incentives for charging when renewable energy is most available. The CPUC decision comes two weeks after a separate CPUC decision to approve a proposal from Southern California Edison to deploy 1,500 charging stations across its territory. (Earlier post.)
Volkswagen Group confirms 20 more EV or PHEV models by 2020; Müller says Europe needs to lead with electric mobility
January 26, 2016
At the Volkswagen Group’s New Year reception in Brussels, Group CEO Matthias Müller said that the Group would concentrate on sustainability more than ever before—encompassing products, strategy and management. Müller will present the new Strategy 2025 for the Group this summer.
Among other things, the company’s brands will introduce about 20 additional models with electrical or plug-in hybrid drive trains by 2020, the CEO confirmed. (That number had been put forth by former CEO Martin Winterkorn at the Frankfurt Motor Show in September 2015. Earlier post.) The Volkswagen Group comprises twelve brands from seven European countries.
Obama Administration proposes $4B to accelerate development and adoption of autonomous vehicles; policy update
January 15, 2016
US Transportation Secretary Anthony Foxx announced a proposed 10-year, nearly $4-billion investment to accelerate the development and adoption of safe vehicle automation through real-world pilot projects. Secretary Foxx made the announcement at the North American International Auto Show in Detroit.
The pilot programs, funded via the President’s FY17 budget proposal, would test connected vehicle systems in designated corridors throughout the country, and work with industry leaders to ensure a common multistate framework for connected and autonomous vehicles.
Bain: Germany’s goal of 1M electric cars by 2020 is unattainable; fewer than 50,000 units on road by end of this year
December 23, 2015
The German Federal Government plan to have one million electric cars on its roads by 2020 has failed, according to the analysis of international management consulting firm Bain & Company. By the end of 2015, there will be a total of about 50,000 electric cars and plug-in hybrids on the roads in Germany (about 75% below plan); nevertheless, structural transformation towards electromobility is continuing, according to the firm.
Stricter emission laws and the technological advances in electric drives will accelerate the trend towards e-mobility in the medium term, Bain said.
GFEI: vehicle fuel economy is below global targets, jeopardizing action on climate and energy; failure of policy
December 08, 2015
Worldwide, the vehicle fleet is not making enough progress on fuel economy and is failing to reach global targets aimed at reducing CO2 emissions, cutting oil consumption and improving energy efficiency according to a new report from the Global Fuel Economy Initiative (GFEI) (earlier post) released at the Paris COP21 Climate Summit.
The new report shows that while fuel economy is improving in OECD countries, progress is still below the rate needed to hit global targets by 2030. Meanwhile, developing countries—where vehicles markets are set to grow massively—are failing to make any substantial improvements in fuel economy, and are way off target as measured by the GFEI. The GFEI targets—which are reflected in the new global Sustainable Development Goals—include a 50% reduction in l/100km by 2030 in all new cars worldwide.
UCLA–UC Berkeley paper outlines how CA can boost biofuel production to cut pollution and help the economy
December 07, 2015
California has not taken full advantage of opportunities to increase its in-state production of biofuel, despite state policies that encourage biofuel consumption, according to a policy paper by the Climate Change and Business Research Initiative at the UCLA and UC Berkeley law schools. The paper is the sixteenth in a series of reports on how climate change will create opportunities for specific sectors of the business community and how policy-makers can facilitate those opportunities.
The report—titled Planting Fuels: How California Can Boost Local, Low-Carbon Biofuel Production—underscores the importance of local production of low-carbon biofuel, suggesting that the state could reduce emissions by not shipping feedstocks from out-of-state or overseas; spurring development of carbon-reducing byproducts such as biochar compost; and reducing the risk of wildfire.
EPA nudges up volume of renewable fuel in final requirements for 2014-2016 under RFS
November 30, 2015
The US Environmental Protection Agency (EPA) announced the final volume requirements under the Renewable Fuel Standard (RFS) program today for the years 2014, 2015 and 2016, and final volume requirements for biomass-based diesel for 2014 to 2017.
This rule finalizes higher volumes of renewable fuel than the levels EPA proposed in June (earlier post), but still represents a reduction compared to the original statutory requirements.
Study finds EV deployment in China to increase Environmental Justice challenge there
November 16, 2015
A new study by a team from the University of Tennessee, Tsinghua University and the University of Minnesota has found that the wide-scale deployment of electric vehicles in China can increase the Environmental Justice (EJ) challenge in that country.
According to their findings, published in a paper in the ACS journalEnvironmental Science & Technology, most (∼77%, range: 41–96%) emission inhalation attributable to urban EVs use—i.e., from the shifting of transportation’s air pollution from urban tailpipes to rural power plants—is distributed to predominately rural communities the incomes of which are on average lower than the cities in which the EVs are used.
Report finds road transportation sector in Canada likely to fall far short of 2050 GHG emissions reduction target
November 12, 2015
A new Conference Board of Canada report finds that Canada is unlikely to achieve an 80% reduction in greenhouse gas emissions from 1990 levels by 2050. Even when taking into account reduced distances traveled per vehicle, improvements in fuel efficiency, and greater market penetration of alternative technology vehicles, Canada falls short of the 80-by-50 target.
Despite voluntary and regulatory initiatives that have improved the emissions efficiency of passenger and freight transportation, emissions from road transportation are increasing due to growing number of cars on the road and Canadians’ changing preference for light trucks. Canada’s road transport emissions were 40% higher in 2013 than in 1990. Between 1990 and 2013, transportation emissions accounted for nearly half of the growth of Canada’s total emissions levels, with road transport accounting for the largest share of transportation emissions.
Obama Administration announces actions to sustain and advance nuclear energy in US
November 07, 2015
Although overshadowed by the announcement on denial of a Presidential Permit to build the Keystone XL pipeline (earlier post), on Friday, the Obama administration also on Friday announced and highlighted a number of actions to sustain and advance nuclear energy in the US.
In 2014, nuclear power generated about 60% of carbon-free electricity in the United States, and continues to play a major role in efforts to reduce carbon emissions from the power sector. According to the Administration, the continued development of new and advanced nuclear technologies along with support for currently operating nuclear power plants is an important component of the country’s clean energy strategy.
MIT study finds carbon prices more cost-effective than fuel economy regs at reducing CO2 emissions; fuel economy regs more efficient at reducing fuel use
October 12, 2015
Researchers at the MIT Joint Program on the Science and Policy of Global Change have compared the worldwide economic, environmental, and energy impacts of currently planned fuel economy standards (extended to the year 2050) with those of region-specific carbon prices designed to yield identical CO2 emissions reductions.
Their study, which appears in the Journal of Transport Economics and Policy, finds that such stringent fuel economy standards would cost the economy 10% of global gross domestic product (GDP) in 2050, compared with a 6% cost under carbon pricing. This finding reinforces economists’ contention that improving the efficiency of motor vehicles through fuel economy standards will yield significantly less CO2 emissions reduction per dollar than an economy-wide instrument that encourages such cutbacks where they are cheapest—principally in the electric power and industrial sectors.