Reports & Papers

The promise, prospects, and public policy trade-offs related to second-generation biofuels in road transport were addressed in an executive session convened at The Henry Ford Museum in Dearborn, Michigan, on April 7 and 8, 2015. The workshop brought together twenty-eight of the world's leading experts from the fields of policy, science, and business for an intensive two-day session. This report is a summary of the main points and issues raised over the two days. It has been reviewed by all the participants. The summary is intended to reflect the breadth of the discussion, rather than to suggest any form of overall consensus among the participants.

China has ambitious goals for developing and deploying electric vehicles (EV). The stated intention is to “leapfrog” the auto industries of other countries and seize the emerging EV market. Since 2009, policies have included generous subsidies for consumers in certain locations, as well as strong pressure on local governments to purchase EVs. Yet four years into the program, progress has fallen far short of the intended targets. China has only about 40,000 EVs on the road, of which roughly 80% are public fleet vehicles such as buses and sanitation vehicles.

For the past forty years, United States Presidents have repeatedly called for a reduction in the country's dependence on fossil fuels in general and foreign oil specifically. Some officials advocate the electrification of the passenger vehicle fleet as a path to meeting this goal. The Obama administration has embraced a goal of having one million electric-powered vehicles on U.S. roads by 2015, while others proposed a medium-term goal where electric vehicles would consist of 20% of the passenger vehicle fleet by 2030 — approximately 30 million electric vehicles. The technology itself is not in question; many of the global automobile companies are planning to sell plug-in hybrid electric vehicles (PHEVs) and/or battery electric vehicles (BEVs) by 2012. The key question is, will Americans buy them?

One question about the 2009 U.S. "Cash for Clunkers" program is whether it induced consumers to purchase greener vehicles than they would otherwise have purchased. This paper views the program as a natural experiment, which offered higher rebates to consumers buying more fuel-efficient vehicles, and shows that awarding an extra $1,000 on a vehicle made 7.2% of consumers switch. Hence the program - giving away nearly $3 billion - should have drawn many consumers to the subsidized greener vehicles, producing substantial environmental gains. This finding should interest policymakers evaluating similar programs to stimulate the economy while benefiting the environment.

The report is a summary of the discussions from a workshop on "Transportation Revenue Options" convened by the Belfer Center in May 2010. The workshop brought together 27 transportation experts for a two-day workshop to discuss three broad revenue-generating options: higher fuel taxes — perhaps supplemented by a carbon tax; fees collected based on vehicle miles traveled (VMT); and congestion fees on major roadways.

Reducing greenhouse gas emissions from transportation will be a much bigger challenge than conventional wisdom assumes — requiring substantially higher fuel prices combined with more stringent regulation. This paper finds that reducing carbon dioxide emissions from the transportation sector 14% below 2005 levels by 2020 may require gas prices greater than $7/gallon by 2020. It also finds that while relying on subsidies for electric or hybrid vehicles is politically seductive, it is ineffective and extremely expensive.

China's economic boom in the last three decades has spurred increasing demand for transportation services and personal mobility. Consequently, vehicle population has grown rapidly since the early 1990s, especially in megacities such as Beijing, Guangzhou, and Tianjin. As a result, mobile sources have become more conspicuous contributors to urban air pollution in Chinese cities.

Tianjin was our first focus city, and the study there took us about two years to complete. Building upon the experience and partnership generated through the Tianjin study, the research team carried out the Beijing study from fall 2007–fall 2008.

Beijing was chosen to be our second focus city for several reasons: it has the largest local fleet and the highest percentage of the population owning vehicles among all Chinese cities, and it has suffered from severe air pollution, partially due to the ever-growing population of on-road vehicles.

This paper describes the Chinese experience in adopting fuel economy standards for vehicles.  The lessons from China that are described in this paper can be highly relevant for countries that are experiencing or anticipating rapid growth in personal vehicles, those wishing to moderate an increase in oil demand, or those desirous of vehicle technology upgrades.

From March 2005–December 2006, a research team headed by ETIP carried out a project in Tianjin, China, to study emissions from on-road vehicles.

This study examines different policy scenarios for reducing GHG emissions and oil consumption in the U.S. transportation sector using a variant of the National Energy Modeling System (NEMS).