SUMMA Deliverable 9 of Workpackage 2 Marginal Costs of Abatement for Environmental Problems Caused by Transport FINAL version 3.0 July 2003 RAND Europe (Netherlands) Transport & Mobility Leuven (Belgium) Kessel + Partner (Germany) Study Group Synergo/Econcept (Switzerland) Gaia Group (Finland) SUDOP PRAHA a.s. (Czech Republic) Institut für Energiewirtschaft und Rationelle Energieanwendung (Germany) Funded by the EC in the R&D Programme "Competitive and Sustainable Growth". Key action "Sustainable Mobility and Intermodality" SUstainable Mobility, policy Measures and Assessment Project Title: SUMMA SUMMA SUstainable Mobility, policy Measures and Assessment Deliverable: Deliverable 9 Marginal Costs of Abatement for Environmental Problems Caused by Transport Date of Delivery: 25 July 2003 Workpackage Ref: WP 2 Keywords: Sustainability, policy measures Classification: WP Report Name of client: European Commission – Directorate General for Energy and Transport Contract Number: GMA2/2000/32061-S07.14497 For community activities in the field of the specific programme for RTD and demonstration on “Competitive and Sustainable Growth” Project Co-ordinator: RAND Europe Authors: Joeri Van Rompuy, Griet De Ceuster, Bart Van Herbruggen, Filip Vanhove (Transport & Mobility Leuven) Peter Bickel, Stefan Reis, Thomas Pregger (IER - University of Stuttgart) Distribution Level: European Commission Issue: 3.0 Contact details: [email protected] Page II Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment SUMMARY This report is Deliverable D9 of the Fifth Framework project SUMMA, which addresses Key Action 2 of the Growth Programme: “Economic, environmental, and social conditions for the sustainable development of transport”. There is an increasing demand for transport and mobility in our society. At the same time there is a desire for a clean environment, preserving nature, and concern for the welfare of future generations. Policy-makers have to accommodate these conflicting desires by balancing the positive and negative impacts of transport. SUMMA helps policy-makers do so by helping to develop more efficient and effective transport policies that cater to the need for mobility while reducing transport’s adverse impacts to acceptable levels. The SUMMA project is designed to support policy-makers by providing them with a consistent framework for making trade-offs, where appropriate, among the economic, environmental and social components of sustainability. SUMMA will provide an assessment of policy options for promoting sustainable transport and mobility. To achieve this, SUMMA will 1) define and operationalise sustainable mobility and transport, develop an appropriate system, and define a set of indicators for monitoring the environmental, economic and social dimensions of sustainable transport and mobility; 2) assess the scale and scope of the problems of sustainability in the transport sector; 3) assess policy measures in the White Paper on transport policy, as well as other policy measures, that are to be found in the literature, that can be used to promote sustainable transport and mobility at the national, regional, and city levels. The first step in achieving these objectives is taken in Workpackage 1 (WP1). WP1 has reviewed the state of the art of concepts, evidence and experiences in the context of sustainability, sustainable transport and mobility. It has covered its three dimensions economic, environmental and social sustainability - and reviewed existing indicator development. This resulted in Deliverable D2, “Setting the Context for Defining Sustainable Transport and Mobility”. This deliverable (though part of Workpackage 2) is a continuation of the work in WP1. It performs a literature survey on the costs and options of reducing environmental problems caused by the transport sector for the SUMMA project. This executive summary presents the key conclusions. The report has been prepared by Transport & Mobility Leuven and by IER - University of Stuttgart in co-operation with the members of the SUMMA Consortium and in coordination with RAND Europe. The abatement cost report reviews existing reports on the European Commission level and includes some specific academic literature and local authority reports. Major EC reports contributing to this survey are Cantique, cost-effectiveness reports from the Auto-Oil II program, IIASA reports, and several reports on the Economic Evaluation of Sectoral Emission Reduction Objectives for Climate Change. As such, the report contains results from a number of transport specific models (TREMOVE, TRENEN, COPERT…) and of models encompassing all economic sectors (PRIMES, RAINS, MARKAL…). The objective is to assess methodological issues on calculating abatement costs for the transport sector, and to indicate general headlines with respect to policy options to reduce environmental externalities from transport and the associated costs. Methodological issues focus on cost calculation methods, baselines used for calculating emission reductions and costs, and cost scope – including second order effects of policy measures-, as well as methods to deal with incorporating the benefits of policy measures that reduce emissions of several pollutants simultaneously in the calculation of cost-effectiveness indicators. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page III SUstainable Mobility, policy Measures and Assessment SUMMA Three main areas in the cost-effectiveness of environmental policy in transport are targeted; up to which point is it cost-effective to focus on the transport sector to reduce environmental annoyance if other sectors may contribute much cheaper to solving environmental problems? Should policy measures focus on specific regions to reduce emissions from a costeffectiveness viewpoint? And which policy measures should be targeted first in transport to achieve effective solutions at minimum cost? In doing this, this report will contribute to forthcoming SUMMA work in • identifying most cost-effective policy measures (SUMMA “Policy Measures”) • identifying key environmental problems in transport (SUMMA “Environmental indicators”) • identifying which relationships require endogenous modelling (SUMMA “Model”) • identifying side effects on economic or social capital (SUMMA “System Diagram” and “Social and economic indicators”) The scope of the report is limited to environmental impacts, as SUMMA has identified transport as a major contributor to existing environmental problems in Europe and as environmental impacts have been identified as primary targets of sustainable mobility. The report distinguishes three major environmental impact areas, being air pollution, global warming and noise. Furthermore, policy domains are split up according to their focus; technology standards (vehicle technology, fuel technology), traffic management and transport pricing. Air pollution The reports under survey that consider air pollution generally focus on PM10, NOX and VOC reduction options. PM2.5, which appears to be more relevant in terms of adverse health effects has been covered much less in the available studies. Technical abatement options offer high reduction potentials and are therefore important elements in designing reduction strategies. However, the analysis in e.g. RAINS reports has shown that there are significant differences in specific abatement costs between sectors and countries that may offer important insight in optimal EU policy design. Cost-effective reduction strategies have to take into account that for example the reduction of PM10/PM2.5 emissions should be addressed with measures in other sectors than road transport, because associated costs are at least a factor of 3 lower in other sectors. Lower abatement costs estimates in Germany e.g. are around € 70/kg PM while in industry PM abatement costs € 25/kg. This is in general true for all countries, and may serve as an indication that European environmental legislation in transport has been advancing at a higher pace than in other sectors, leaving only limited potential for low-cost PM emission reduction in transport. However, if very high PM reductions need to be achieved, measures in the road transport sector may become cost-efficient at a certain point, either because the control options in other sectors become extremely expensive (e.g. general switching to bio fuels in residential heating) or because there is no more reduction potential in other sectors. This would result in EURO-V and EURO VI standards for HDV and LDV with cost ranges from € 150 to € 300 per kg PM10. Technological options to reduce NOX emissions however need to consider the transport sector from some point on. In general the cheapest options are to be found in other sectors with some values around € 250/ton NOX. When this potential is used, some countries need to consider cheap NOX reduction options in transport to avoid wasting valuable resources (€ 1.000-2.000 per ton). In order to reach quite substantial NOX reduction in a cost-effective way, most countries would need to consider targeting HDV transport with NOX converters (€ 2.000-3.000 per ton). Moreover, in contrast to PM, NOX emission reduction is not by definition cheaper in accessing countries. Note that the RAINS analysis does not take into account the effects on VOC, which are reduced simultaneously with NOX. Traffic management and pricing policies should be viewed as contributors to cost-effective urban air pollution abatement in transport. Several reports confirmed that in particular traffic Page IV Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment control regulations, parking regulations and road pricing are low cost measures to reduce emissions related to road transport. Infrastructural investments and major regulations for freight transport are reported to be much less cost-effective in reducing ambient air quality in major European cities. As these reports include combined effects when multiple air quality indicators are affected, the risk of biased results appears to be small. Cost-effective nontechnical abatement costs for NOX ranged from € 3.700 to € 25.500 per ton, and from € 1.500 to € 4.330 for CO. These estimates do not take into account secondary benefits (reduction in other pollutants or congestion), but cost-benefit analysis has shown attractive net benefits for some non-technical policy measures. Greenhouse Gas abatement Greenhouse gas emission abatement options are to be found in vehicle technology, fuel technology, and traffic management and road pricing options. The survey of these reports indicates some limited potential in transport to reduce CO2 emissions, but stresses that other sectors may provide these CO2 reductions at far lower costs. Moreover, as the baseline scenarios in these reports often do not take into account new legislation decided upon, or the voluntary ACEA agreement to reduce average fuel consumption of new cars, it is unclear whether technological vehicle innovation as such offers more unexploited potential to reduce carbon emissions below € 20/TCE. Local reports contributed to the understanding of the importance of driving behaviour for emission control, though SUMMA experts’ doubts on the effectiveness of measures targeting driving behaviour should be noted. Nevertheless, the authors have pointed out the relevance of cheap emission abatement contributions, even if the potential is rather small, as the alternative abatement costs may be excessively high. As an internal EC report and a US report point out, technological greenhouse gas abatement measures may not be cost-effective as they entail second-order effects that may annihilate emission abatement efforts, while still resulting in high extra costs. Moreover, similar abatement results can be obtained at much lower cost by increasing fuel taxes or exploiting road pricing options. To illustrate this, some reports indicate that a fuel efficiency standard may represent social costs of € 363/TCE, while equivalent fuel taxes reduce the costs to € 326/TCE. Taking into account other external effects, the costs of a fuel efficiency standard would drop significantly to € 255/TCE, while a € 1 increase in fuel taxation may offer € 175/TCE net benefits while reducing CO2 as well. Equivalent road pricing would increase total benefits per carbon abatement four-fold compared to fuel taxes, as the reduction in congestion costs entails major societal benefits. With respect to greenhouse gas abatement in other sectors, some reports indicate that it is wise to look at other sectors first. The greenhouse gas emission reduction possibilities in transport point to limited cost-effective potential in technological innovation, as carbon emission abatement in other sectors is much cheaper than in transport. The reports indicated a4% cost-effective emission reduction potential, compared to 13% in industry and 39% in electricity generation, before the ACEA agreement. This leaves little room for extra cost-effective measures as from now. Reduction of noise annoyance Noise reduction is a somewhat specific area of research, and no specific abatement costs have been found in the survey, except for a report for the Netherlands indicating a total cost in net present value of € 7.000 to € 9.500 million to reduce country-wide problem areas by 80% in all cities and up to 55% in other remaining areas (compared to a threshold of 55 dB). Future research may be required to assess noise reduction contributions of tire width regulations, and road maintenance. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page V SUstainable Mobility, policy Measures and Assessment SUMMA General conclusions In general, this literature survey revealed some important headlines for policy measures on a European level. A first headline points to the availability of non-technical measures, such as road pricing and local traffic management interventions, to avoid using expensive vehicle or fuel technology standards. In particular, road pricing and local parking and traffic management regulations may contribute cost-effectively to the reduction of transport emissions. Taking into account reductions in congestion costs, such policy measures in urban areas allow policy makers to reduce emissions without net costs to society. Increased fuel taxes do allow for market-based emission control as well, but have less impact on congestions and hence offer only a secondbest solution to an integrated transport policy. A second headline points to the availability of low-cost reduction potential in other sectors. Especially in greenhouse gas emission reduction and PM10/PM2.5 abatement the economical potential to switch technologies in transport is limited when compared to the potential in other sectors. This may be somewhat less the case for specific pollutants like NOX and VOC, where the contribution of transport to total emissions is important, and end-pipe technology for vehicles may become cost-effective if major reductions in these emissions need to be established. However, insisting on increasingly high technical standards in transport while not using low-cost opportunities in other sectors should be considered as a waste of valuable resources. A third headline points to the scarcely available information on cost-effectiveness of measures that affect multiple pollutants -or external effects in general. Though technical estimates for vehicle and fuel improvement are becoming widely available, and indications of costs are becoming more reliable, only few reports consider the integrated cost-effectiveness of policy measures that tackle multiple emission sources. As integrated reports become more available, policy makers may find that some policy measures may seem expensive with respect to single pollutant abatements, but prove to be least-cost alternatives in view of the many pollutants it may target. On advantages in focusing transport policy on specific countries or regions with respect to emission reduction, little evidence has been found. These cost advantages seem much more available in other sectors, where specifically accession countries offer low-cost opportunities to reduce PM10/PM2.5 and greenhouse gas emissions. Finally, European policy may be required to provide national and regional policy makers with the required framework to assess integrated emission abatement policies in transport, notably by indicating required methodology and estimates for calculating benefits of policy measures. As indicated in this report, comparability across currently available reports is limited due to different baseline assumptions, different calculation methodology, and different basic parameters and approaches (such as the single pollutant approach versus integrated abatement approaches). A general framework providing generally accepted estimates on external damages (such as ExternE) could provide a first step forward towards integrated policy assessment. These estimates could be used in cost-benefit assessments as well as in multi-point cost effectiveness assessments. As such efforts will be done later during the SUMMA project, this could offer major improvements in both methodology and results of integrated resource planning. Page VI Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment CONTENTS SUMMARY ............................................................................................................................... III CONTENTS ............................................................................................................................. VII 1. INTRODUCTION ............................................................................................................ 1 2. SCOPE AND METHODOLOGICAL ISSUES ................................................................ 5 2.1. Scope ............................................................................................................................................5 2.2. Marginal costs of abatement......................................................................................................6 2.2.1. Calculation of marginal costs of abatement......................................................................6 2.2.2. Purpose of calculating marginal abatement costs .............................................................7 2.2.3. Abatement costs of policy measures with multiple effects ...............................................9 2.3. Abatement costs in transport markets....................................................................................10 2.3.1. Simplified transport market ............................................................................................10 2.3.2. Increased complexity with congestion costs...................................................................11 2.3.3. Taxes in transport markets..............................................................................................12 2.3.4. Summary discussion of abatement cost in transport markets .........................................12 2.4. Comparing abatement costs across studies ............................................................................13 3. REDUCING TRANSPORT AIR POLLUTION .............................................................. 15 3.1. Technology options ...................................................................................................................16 3.1.1. PM10 and PM2.5 abatement...........................................................................................17 3.1.2. NOX abatement ...............................................................................................................21 3.1.3. VOC abatement ..............................................................................................................25 3.1.4. Assessment of simultaneous emission reduction ............................................................26 3.2. Non-technical options ...............................................................................................................28 3.2.1. Overview of non-technical measures..............................................................................28 3.2.2. Driving behaviour...........................................................................................................33 3.2.3. Local traffic measures and urban air quality...................................................................36 3.3. Comparison with other sectors................................................................................................39 3.3.1. PM10 abatement .............................................................................................................39 3.3.2. NOX abatement ...............................................................................................................42 3.3.3. VOC abatement ..............................................................................................................45 3.4. Summary discussion of reducing transport air pollution......................................................46 4. REDUCING TRANSPORT GREENHOUSE GAS EMISSIONS .................................. 49 4.1. Technology Options..................................................................................................................50 4.1.1. Road transport vehicle technology .................................................................................50 4.1.2. Rail transport vehicle technology ...................................................................................58 4.1.3. Aviation vehicle technoloy .............................................................................................59 4.1.4. Fuel technology ..............................................................................................................59 4.1.5. Summary discussion of technology options to reduce transport GHG emissions ..........62 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page VII SUstainable Mobility, policy Measures and Assessment SUMMA 4.2. Pricing measures.......................................................................................................................64 4.2.1. Circulation and registration taxes ...................................................................................64 4.2.2. Subsidising vehicle scrappage ........................................................................................65 4.2.3. Fuel taxes........................................................................................................................65 4.2.4. Kilometre charging or road charging..............................................................................67 4.2.5. Integrated transport pricing.............................................................................................68 4.2.6. Summary discussion of pricing measures to reduce transport GHG emissions..............70 4.3. OTHER Non-technical options................................................................................................71 4.3.1. Improving driving behaviour ..........................................................................................71 4.3.2. Improving public transport .............................................................................................74 4.3.3. Freight logistics policy ...................................................................................................75 4.3.4. Summary discussion of other non-technical options to reduce GHG emissions.............76 4.4. Comparison with other sectors................................................................................................77 4.4.1. Bottom-up analysis .........................................................................................................77 4.4.2. Top-down analysis with PRIMES ..................................................................................79 4.4.3. Top-down analysis with MARKAL................................................................................80 4.4.4. Summary discussion of the comparison with other sectors ............................................82 4.5. Summary discussion of reducing transport GHG emissions ................................................83 5. REDUCING TRANSPORT NOISE ANNOYANCE....................................................... 85 5.1. Technology options ...................................................................................................................86 5.1.1. Tire width .......................................................................................................................87 5.1.2. Body noise - commercial vehicles ..................................................................................87 5.1.3. Motor technology............................................................................................................88 5.2. Non-technical options ...............................................................................................................88 5.2.1. Traffic management........................................................................................................88 5.2.2. Infrastructure ..................................................................................................................89 5.2.3. Integrated Policy Package...............................................................................................89 5.3. Summary discussion of reducing transport noise annoyance ...............................................91 6. ABATEMENT OF ROAD ACCIDENTS ....................................................................... 93 6.1. SWOV study..............................................................................................................................93 6.2. Vahidnia and Walsh study....................................................................................................... 95 7. CONCLUSIONS AND FURTHER STEPS ................................................................... 97 REFERENCES ........................................................................................................................ 99 GLOSSARY........................................................................................................................... 103 ANNEX 1: LITERATURE REVIEW....................................................................................... 109 ANNEX 2: EXTENDED TABLES FOR AIR POLLUTION REDUCTION ............................. 111 Page VIII Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment List of Tables Table 3-1: RAINS PM10 Control technologies for road vehicles ............................................ 19 Table 3-2: RAINS PM10 abatement costs road transport (€/kg)............................................. 20 Table 3-3: RAINS NOX Control technologies for road vehicles ............................................... 24 Table 3-4: RAINS NOX Abatement costs road transport (€/t).................................................. 25 Table 3-5: EEV Options applicable to new heavy duty vehicles and buses............................ 26 Table 3-6: Gasoline scenarios - main results in 2010 (EU9)................................................... 27 Table 3-7: Cantique list of studies under survey ..................................................................... 29 Table 3-8: Cantique overview of cost-effective policy measures ............................................ 32 Table 3-9: AMINAL overview on technical traffic measures and vehicle emission ................. 33 Table 3-10: Correction factors for passenger cars when driving sportily ................................ 34 Table 3-11: Correction factors for passenger cars when driving economically....................... 34 Table 3-12: Correction factors for passenger cars when exceeding speed limits................... 34 Table 3-13: Correction factors for passenger cars when using air conditioning ..................... 35 Table 3-14: TNO NO2 and PM10 concentrations at 50m east from highway.......................... 37 Table 3-15: RAINS PM10 Abatement cost comparison with other sectors (€/kg) .................. 40 Table 3-16: RAINS NOX control technologies for stationary sources...................................... 43 Table 3-17: RAINS NOX Abatement cost comparison with other sectors (€/t)........................ 45 Table 4-1: CO2 reduction Cost-Effectiveness Analysis for technical measures; Petrol Cars (Exc. Taxes)..................................................................................................................... 50 Table 4-2: CO2 reduction Cost-Effectiveness Analysis for technical measures; Diesel Cars (Excl. Taxes).................................................................................................................... 51 Table 4-3: CO2 reduction Cost-Effectiveness Analysis for technical measures; Freight (Excl. Taxes) .............................................................................................................................. 51 Table 4-4: GHG emission reduction options and costs in EU transport.................................. 52 Table 4-5: EU Transport emission reduction potential & costs in 2010 by cost bracket ......... 53 Table 4-6: Impact of CO2 emission reduction targets to EU transport sector ......................... 55 Table 4-7: Impact of CO2 emission reduction targets to EU transport sector ......................... 55 Table 4-8: Vehicle improvement in EU road transport ............................................................ 56 Table 4-9: Vehicle improvement in EU rail transport............................................................... 58 Table 4-10: Vehicle improvement in EU air transport.............................................................. 59 Table 4-11: Cost parameters in Proost (1997) EC report........................................................ 60 Table 4-12: CO2 Abatement cost of a fuel efficiency standard, without external costs........... 61 Table 4-13: External costs of transport excluding CO2 ........................................................... 61 Table 4-14: CO2 Abatement cost of fuel efficiency standard including external costs ............ 62 Table 4-15: CO2 Abatement cost of a €1 fuel tax increase, without external costs ................ 66 Table 4-16: CO2 Abatement cost of €1 fuel tax increase, including external costs................. 66 Table 4-17: CO2 Abatement cost of equivalent road pricing excluding external costs ........... 67 Table 4-18: CO2 Abatement cost of equivalent road pricing including external costs ............ 68 Table 4-19: Integrated optimal pricing policy for Brussels, 2005 ............................................ 69 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page IX SUstainable Mobility, policy Measures and Assessment SUMMA Table 4-20: Effects on transport volumes with optimal charges in Belgium, 2005.................. 69 Table 4-21: VLIETbis speed delimiter abatement costs.......................................................... 72 Table 4-22: VLIETbis cruise control abatement costs............................................................. 72 Table 4-23: VLIETbis board computer abatement costs ......................................................... 73 Table 4-24: VLIETbis econometers abatement costs ............................................................. 73 Table 4-25: VLIETbis eco-driver training abatement costs ..................................................... 74 Table 4-26: Sectoral emission reduction potentials for all sectors .......................................... 77 Table 4-27 Cost-effective sectoral contribution to Kyoto target .............................................. 78 Table 4-28: PRIMES top-down cost-effective Kyoto compliance ............................................ 80 Table 4-29: MARKAL cost effective emission reduction scenarios......................................... 81 Table 5-1: Noise reduction effectiveness in 2030 in dB(A) ..................................................... 90 Table 5-2: Cost estimates of noise annoyance reducing package in Netherlands ................. 91 Table 1: Marginal PM10 abatement costs (€1990) in 2010 in road transport and other sectors IIASA (2003) .................................................................................................................. 112 Table 2: RAINS Marginal NOX abatement costs (€1990) in the year 2010 in road transport and other sectors (IIASA 2003) ..................................................................................... 120 Page X Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment List of Figures Figure 2.1: A typical curve for the total costs of abatement ...................................................... 6 Figure 2.2: A typical curve for the marginal costs of abatement ............................................... 7 Figure 2.3: Cross-sector marginal cost curve and abatement .................................................. 8 Figure 2.4: Cost-ineffective abatement policies across sectors ................................................ 8 Figure 2.5: Abatement costs with adjustment for multi-point effects......................................... 9 Figure 2.6: A simplified transport market................................................................................. 10 Figure 2.7: A simplified transport market with congestion costs ............................................. 11 Figure 3.1: Cantique cost-effectiveness overview for CO2 ...................................................... 30 Figure 3.2: Cantique cost-effectiveness for NOX ..................................................................... 30 Figure 3.3: Cantique cost-effectiveness for CO ...................................................................... 31 Figure 3.4: Cantique Cost-Benefit overview for CO and NOX ................................................. 31 Figure 3.5: Cantique Cost-Benefit overview for CO, NOX, VOC and CO2............................... 32 Figure 3.6: TNO Local NO2 Impact of traffic measures near highway .................................... 36 Figure 3.7: TNO Local PM10 Impact of traffic measures near highway.................................. 36 Figure 4.1: Bottom-up GHG emission reduction in transport by cost bracket ......................... 54 Figure 5.1: Range of Variation of the Noise Sources with Future Trends............................... 86 Figure 5.2: Noise source distribution of a 74 dB(A) vehicle in pass-by test ................................. 87 Figure 5.3: RIVM effect of measures on noise problem areas in the Netherlands ................. 90 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page XI SUstainable Mobility, policy Measures and Assessment Page XII SUMMA Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 1. INTRODUCTION Motorised transport is an essential element of modern life and economy. At the same time, transport contributes considerably to many problems we face, e.g. in the area of airborne emissions and noise. In the year 2000 the transport sector contributed 29% of all CO2 emissions in the EU, of which road transport alone was responsible for 83% (European Commission, 2003). Another serious problem is congestion; by some estimates the costs of congestion amount to almost 0,5% of the EU GDP. Building new transport infrastructure is unlikely to solve these problems. The need for new approaches in transport policy has been recognised and the Treaty of Amsterdam introduced the idea of integrating environmental considerations into Community policies. The Cardiff European Council (June 1998) asked the 1 sectoral councils to initiate this integration . In October 1999, the “Transport” Council targeted five sectors, namely: 1) growth in CO2 emissions from transport, 2) health impacts from pollutant emissions, 3) anticipated growth in demand, 4) modal distribution and its development, and 2 5) noise from transport . In November 2000, the Gothenburg European Council identified modal shift as being at the heart of the sustainable development strategy. Furthermore, the Gothenburg Council underlined the need for the Community’s transport system to be sustainable from an economic, social and environmental point of view. The Commission's White Paper “European transport policy for 2010: time to decide” reiterates the importance and urgency of taking steps now to ensure the development of a sustainable transport system in the future. There is an increasing demand for transport and mobility in our society. At the same time there is a desire for a clean environment, preserving nature, and concern for the welfare of future generations. Policy-makers have to accommodate these conflicting desires by balancing the positive and negative impacts of transport. SUMMA helps policy-makers do so by helping to develop more efficient and effective transport policies that cater to the need for mobility while reducing transport’s adverse impacts to acceptable levels. SUMMA is designed to support policy-makers in several ways. First, SUMMA will operationalise the concept of sustainability, making it possible to assess the impacts of various policies on the sustainability of transport and mobility. Second, SUMMA will develop a system of indicators for monitoring developments inside and outside the transport sector that are important for the sustainability of the transport sector. Policy-makers can use these indicators for proactively deciding when and where policy action is needed. Third, SUMMA will provide policy-makers with a consistent framework for making trade-offs, where appropriate, among the economic, environmental and social components of sustainability, an inherent part of choosing from among different policies. Finally, SUMMA will provide policymakers with an assessment of policy options for promoting sustainable transport and mobility. The three main objectives of SUMMA are: 1) to define and operationalise sustainable mobility and transport, develop an appropriate system, and define a set of indicators for monitoring the environmental, economic and social dimensions of sustainable transport and mobility; 2) to assess the scale and scope of the problems of sustainability in the transport sector; 3) to assess policy measures in the White Paper on transport policy, as well as other policy measures, that are to be found in the literature, that can be used to promote sustainable transport and mobility at the national, regional, and city levels. 1 Cardiff European Council, 15 & 16 June 1998, Presidency Conclusions 2 (1999) Council strategy on the integration of the environment and sustainable development into transport policy Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 1 SUstainable Mobility, policy Measures and Assessment SUMMA The first steps in achieving these objectives have been taken in Work Package 1 (WP1), where the state of the art of concepts has been reviewed, and evidence and experiences in the context of sustainability, sustainable transport and mobility was collected. The information provided in Deliverable 2 – “Setting the Context for Defining Sustainable Transport and Mobility” - forms the starting point for defining and operationalising sustainable transport and mobility and for developing indicators for sustainable transport. The current report will contribute to WP2 in reviewing the potential and costs of different options to bring European mobility back in line with sustainable mobility, focusing on two main policy questions. • Should environmental problems be tackled in the transport sector or are there solutions in other sectors that provide cost advantages to do so? • Within the transport sector, what policies could support sustainable transport at low costs? In doing this, this report will contribute to forthcoming SUMMA work in • identifying most cost-effective policy measures (SUMMA “Policy Measures”) • identifying key environmental problems in transport (SUMMA “Environmental indicators”) • identifying which relationships require endogenous modelling (SUMMA “Model”) • identifying side effects on economic or social capital (SUMMA “System Diagram” and “Social and economic indicators”) The report on abatement costs will be restricted to environmental impacts for several reasons. First, during WP1 environmental impacts have been clearly identified as primary targets of sustainable transport, following the targets of the October 1999 Transport Council. Second, several indicators in SUMMA pointed to the transport sector as a significant contributor to existing environmental problems in Europe. This has been extensively documented in Deliverable 2. Finally, reliable reports on environmental impacts of transport policy are becoming widely available, and may offer significant input to the assessment of abatement efforts in the transport sector. This document will compile abatement cost estimates from the AUTO-OIL II program, and cost-effectiveness studies performed for the European Commission in the framework of global warming and acidification (PRIMES and RAINS), and will furthermore collect information on measures with multiple effects (e.g. three-way-catalysts reducing the emissions of NO2, CO, and VOC, but increasing the emissions of N2O and CO2). Moreover, this report will illustrate the broader effects of emission abatement measures based on market equilibrium analysis. For example the introduction of a vehicle technology standard may lead to a higher emission reduction than expected if vehicle users decide to drive their “clean vehicles” less in response to increased vehicle costs, induced by this technology standard. This will be done by referring to existing simulation results and will offer the possibility to include non-technical traffic measures and transport pricing policies in the survey of policies for sustainable mobility. Special attention will be put on the problem of reaching the Kyoto target. Climate technology becomes more and more relevant in international environmental policy negotiations. At the Kyoto conference binding emission reduction targets have been established for several regions of the world. The major challenge is how to realise these reduction goals with minimum costs without generating new distributional and social difficulties. Results from several reports for the European Commission and similar academic publications will be used for SUMMA. Results from a very relevant new project (CITEPA - Expert Group on Techno-Economic Issues (EGTEI)) are expected to become available by mid of 2003, and will be taken on board in an update of this report by the end of 2003. The structure of this report is as follows. Chapter 2 gives a brief overview of some basic concepts in transport economy and some methodological issues with respect to abatement Page 2 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment cost estimates. Chapter 3 reviews existing work on abatement costs in reducing air pollution, comparing costs of policy measures in transport with those of other sectors, and identifying the most attractive policy measures within transport. Chapter 4 analyses if and how European transport could contribute to Kyoto targets in greenhouse gas reduction. Some evidence on the costs on reducing noise annoyance from transport is presented in Chapter 5. Chapter 6 draws the conclusions from the work undertaken with respect to the further work in SUMMA. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 3 SUstainable Mobility, policy Measures and Assessment Page 4 SUMMA Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 2. SCOPE AND METHODOLOGICAL ISSUES This section will provide some details on the scope of the current report, and illustrate methodological issues that may aid readers to understand the economic reasoning, purpose and limitations of the literature survey. Section 2.1 discusses the scope of the literature survey. Section 2.2 provides a framework for calculating marginal costs of emission abatement. Section 2.3 elaborates abatement costs in the framework of welfare economics. Some limitations on the comparability of abatement cost results across reports are displayed in section 2.4. 2.1. SCOPE The scope of this report is to summarise the available literature on costs of abatement for the environmental impact of transport. Emphasis is put on studies and reports set up for the European Commission, as these show broad acceptance and are generally publicly available. Selected academic reports and studies will be used to stress specific issues whenever required. The main environmental effects associated with transport will be categorised according to the following scheme, where available: Air Pollution - SO2 - CO - NOX (+ ozone) - VOC (+ ozone) - PM Climate Change - CO2 emissions that are a direct result of the combustion of vehicle fuels - Non-CO2 greenhouse gas emissions in transport sector Noise - Noise from motors and from tires Road safety - Accidents Full abatement cost information on other transport impacts as income distribution, social cohesion or land use has not been found. Where available, for each type of environmental effect this report will distinguish: - Emission reduction options & costs in transport (technical estimates) - Second order effects (change in costs when reaching new market equilibrium) - Abatement costs in other sectors - Conclusions on policy options As most of the published studies report only on EU-9 or EU-15 levels, the abatement costs for accession countries (AC) have not been extensively included. For some policy areas, the inclusion of AC in the geographical scope may dramatically change abatement cost estimates and hence primary policy focus. The RAINS estimates in section 3 do provide estimates for AC countries that are comparable with EU-15 estimates. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 5 SUstainable Mobility, policy Measures and Assessment SUMMA 2.2. MARGINAL COSTS OF ABATEMENT There may be some opportunities for countries to reduce some emissions at no cost – allowing for “no-regrets” solutions that are in the primary interest of policy makers. But largescale reductions in such emissions will definitely entail costs. 2.2.1. Calculation of marginal costs of abatement Figure 2.1 indicates a typical relationship between emission abatement and cost. On the xaxis the tons of emissions abated (or avoided) are displayed. The y-axis shows the costs induced by emission reduction efforts. Total costs increase with the extent of abatement. Initial emission abatement –to the left of the x-axis- will not entail large costs. As more emission abatement efforts are taken, the costs of doing this increase along. This cost increase is generally at an increasing rate, as indicated by the fact that the slope of the total cost curve gets steeper, because for extensive abatement efforts, costlier equipment or policy measures will be required. cost (€) Total costs Abated emissions (ton) Figure 2.1: A typical curve for the total costs of abatement A central concept in evaluating environmental policy is the marginal cost of emission reductions. The marginal cost is the cost of the incremental amount of abatement. For example, it is the cost associated with augmenting the reduction in CO2 from 5 tons to 6, or from 150 to 151. The slope of the total cost curve represents the marginal cost – the extra cost of an incremental unit in emission abatement. Figure 2.2 displays the marginal costs corresponding to the various levels of abatement in Figure 2.1. For simplicity, marginal costs are assumed to be linearly increasing in total emission abatement quantities. The area under the marginal cost curve corresponds to the total costs involved. This marginal cost curve is the least-cost solution to arrive at emission abatement quantities. Page 6 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment €/ton Marginal costs (MC) Abated emissions (ton) Figure 2.2: A typical curve for the marginal costs of abatement In Figure 2.2, the marginal costs increase with the amount of abatement. This corresponds to the fact that the slope of the total cost curve in Figure 2.1 increases as the amount of abatement gets larger. Rising marginal costs are consistent with the idea that it is relatively easy to remove the first units of a pollutant, but that removing additional units becomes increasingly difficult and costly. 2.2.2. Purpose of calculating marginal abatement costs Actual numbers for marginal abatement costs will be retrieved in the literature survey. These estimates of abatement costs can be used to enforce efficient and cost-effective strategies across sectors and within the transport sector. Within the transport sector, policies aimed at reducing emissions or noise should target selected least cost solutions first in order to avoid taking expensive policy measures where cheaper alternatives exist. Essentially, this corresponds to ranking policy options by cost levels and identifying their potential in emission abatement to derive the marginal abatement cost curve in Figure 2.2. Similar cost-effectiveness exercises can be done in other sectors, resulting in an abatement cost curves or these other sectors (industry, power generation, agriculture, services, and households). This is done in Figure 2.3. Next, the potential and cost for both transport and other sectors can be added to derive a marginal abatement cost curve for the whole economy (all sectors). This is done by comparing for each cost level how much abatement potential there is in each sector and adding this potential. For a marginal cost of abatement MC*, the least cost solution to reduce emissions by Qa is to take policy measures up to Qt in transport and Qo in other sectors. From Figure 2.3 it is clear that in this case, the transport sector has relatively limited emission abatement potential at low costs and hence should not be forced by policy measures to go into emission abatement activities any further than Qt. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 7 SUstainable Mobility, policy Measures and Assessment SUMMA €/ton Transport sector All sectors Other sectors MC* Abated emissions (ton) Qt Qo Qa Figure 2.3: Cross-sector marginal cost curve and abatement Policies that would fail to do so and aim at near-uniform emissions standards for all sectors, would entail very high costs for the transport sector and do not use cross-sectoral variation in abatement cost. Figure 2.4 displays such a policy where transport is required to produce half of total emission abatements Qa. €/ton Transport sector MCt Other sectors All sectors MC* MCo Abated emissions (ton) Qa/2 Qa Figure 2.4: Cost-ineffective abatement policies across sectors A policy that requires transport to contribute Qa/2 in emission abatement will result in rather high marginal abatement costs MCt compared to marginal abatement costs in other sectors (MCo). Total costs of emission abatement will be higher too. If the transport sector could negotiate with other sectors, it would be willing to pay up to MCt to the other sectors to take over some abatement responsibilities. Other sectors would gladly accept because the cost for taking over these abatement efforts are only MCo. The result of these negotiations would be a solution where both transport and other sectors reduce emissions up to the point where marginal abatement costs in all sectors are MC* - which essentially is the situation in Figure 2.3. The problem here is that such negotiations between sectors are unfeasible. Thus, policy makers need to be informed quite accurately about marginal abatement costs in all sectors before they can decide how to allocate emission abatement efforts across sectors, without running the economy into high and unnecessary costs. Models like PRIMES or RAINS provide this information. Page 8 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 2.2.3. Abatement costs of policy measures with multiple effects Several measures, both in transport and in other sectors, will show effects on multiple emissions. For example, increased diesel fuel efficiency reduces CO2 emissions and may reduce particulate matter emissions as well. In case the full cost of a multi-point policy measure (e.g. CO2 reduction) is related only to abated emissions of a single pollutant, the emission reduction in other pollutants (e.g. PM10) is attributed a zero value. A methodology that does not correct for this will achieve biased solutions towards policy measures that achieve major reductions in single pollutants (e.g. specific end-pipe technology), and neglect feasible solutions that show intermediate reductions in several pollutants (e.g. traffic management), even if the latter would be less costly overall. Two methodologies may remedy this bias. A first solution consists in setting up a full-scale model where all pollutants and all technologies are combined (e.g. RAINS, MARKAL or Primes). Hence, the least-cost solution for single pollutant abatement will typically depend on the desired pollutant abatement levels for all other pollutants. As this will result in shadow prices internal to the model, the true costs of reducing emissions of a single pollutant can be calculated, e.g. increasing fuel efficiency may be chosen as cost-effective solution to reduce PM emissions only if the Kyoto agreement needs to be achieved. The set-up of a full-scale model is, however, out of the scope of this project. Several top-down studies included in this survey will however indicate major headlines and conclusions. A second way of amending this bias consists of using externally calculated costs for each pollutant (marginal damage costs), and adjusting the abatement cost for the environmental side-effects. Thus, multi-point policy measures are rewarded for all the effects they realise, and the abatement cost per pollutant takes the monetised environmental effects into account. The Cantique project discussed in section 3.2 provides cost/benefit results according to this second adjustment method. €/ton Marginal costs Single pollutant Corrected for external effects Abated emissions (ton) Figure 2.5: Abatement costs with adjustment for multi-point effects This method is widely accepted if there is sufficient consensus on the €-value of each pollutants damage, and if that monetary value is sufficiently constant – which rules out threshold value related problems or damage values that change in response to policy measures. Future work in SUMMA will deal with the monetization of these damages. In the literature under survey, some sources use these methods to reveal net costs and benefits of policy measures – see for example section 4.2.5. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 9 SUstainable Mobility, policy Measures and Assessment 2.3. SUMMA ABATEMENT COSTS IN TRANSPORT MARKETS If a policy measure increases transport costs, transport users may change behaviour and reduce the use of transport or change towards other transport modes. Hence, the analysis of abatement cost will need to take these second-order behavioural changes into account if it wants to calculate the net effect of a policy measure. Certainly, up to now, not all policy evaluation models took this effect into account. Only some of the reports under survey do. In order to illustrate the importance of these second-order effects of measures aiming at reducing e.g. greenhouse gas emission from transport, we need to expound how environmental policy measures affect the transport market equilibrium and how total welfare costs are influenced by it. In this section the economic approach to calculate the social costs will be illustrated using a simplified framework with an application to three types of policy measures; • fuel efficiency standards • fuel taxes • road pricing The approach illustrated here will serve as a framework in sections 3, 0 and 5. 2.3.1. Simplified transport market Assume a simple transport market where only one type of passenger car is used, the lifetime of all cars is equal, no taxes or charges are paid, and transport users do not take into account time needed to perform a trip. Figure 2.6 represents the demand for transport in a specific area with a given infrastructure. For simplicity, linear relationships are used. €/km a Demand curve p2 e2 p1 b Extra cost efficient car e1 Transport cost per km Q2 Q1 Transport (km) Figure 2.6: A simplified transport market The demand for transport is illustrated by the downward sloping curve, representing a high willingness to pay for the first transport kilometres, and significantly less for more transport. The initial supply curve is assumed to be horizontal – representing constant average costs per km. The transport cost per kilometre takes into account all monetary costs components (fuel, purchase cost, insurance …). The initial market equilibrium is found in e1, where Q1 km are driven at a cost of p1. Total costs of transport are equal to p1 * Q1. Some of the reports under survey –e.g. using the TREMOVE model- will include this extra cost in the abatement cost estimate. If a new fuel-efficient car standard is imposed, the purchase cost of new cars will increase, but fuel costs per km will decrease. The net effect is an increase in transport costs up to p2. The total costs of the fuel efficiency standard would hence be estimated in first order to be Q1*(p2-p1). Page 10 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment However, we know that transport users are sensitive to transport costs. The increased transport costs lead to a lower transport demand from Q1 to Q2 in Figure 2.6. Total costs under this new policy are p2*Q2. The policy has thus increased total transport costs by (p2*Q2)-(p1*Q1). Note that total transport costs are not necessarily higher under this policy. If total costs may be lower, what is lost then by using more expensive cars? The answer is mobility. Transport users will travel less, and hence are worse off. The welfare loss induced by this policy is measured by the change in consumer surplus (the difference between the willingness to pay of the consumer -the surface under the demand curve- and the price that he pays in the market). In Figure 2.6 the initial consumer surplus was equal to the surface a e1 p1. After the introduction of a fuel-efficiency standard, consumer surplus is equal to surface a e2 p2. Thus the loss in welfare is equal to the difference between both surfaces, p2 e2 e1 p1. This welfare loss has two components: • The welfare loss to the consumers that do not drive anymore (e2 e1 b) • The increased costs for the consumers that keep driving (p2 e2 b p1) This welfare loss is the true cost of the fuel efficiency policy. It is thus different from the change in marginal transport cost, or technical cost : (p2-p1) the change in total transport cost (p2*Q2)-(p1*Q1) and should be related to the emission reduction obtained by this policy measure to calculate abatement costs of a fuel efficiency standard. 2.3.2. Increased complexity with congestion costs In reality, transport costs for users entail more than only financial costs paid, and include some value related to travel time (also called time cost or congestion cost). Existing congestion problems on European roads support the idea that the required travel time increases as more vehicle kilometres are driven in an area. Thus the congestion cost per km increases as transport kilometres increase. Figure 2.7 illustrates a simplified transport market where congestion costs are taken into account. For simplicity again all relationships are assumed to be linear in kilometres driven. €/km a Demand Curve Extra cost efficient car p2 e2 p1 px c e1 Congestion cost b Transport cost per km Q2 Q1 Transport (km) Figure 2.7: A simplified transport market with congestion costs In a market with congestion costs, the equilibrium will be e1 with Q1 kilometres driven at a cost of monetary transport costs per km plus a substantial congestion cost. When a fuel-efficient vehicle is introduced to reduce emissions, an extra cost will occur driving the market equilibrium to e2, with fewer kilometres driven. Again, the welfare loss caused by the introduction of a new fuel efficiency standard is the difference between the consumer surplus before (a e1 p1) and after (a e2 p2) the implementation of the measure. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 11 SUstainable Mobility, policy Measures and Assessment SUMMA The welfare loss is thus equal to the grey surface, and is now composed of three components: • The welfare loss for the consumers that do not drive anymore (e2 e1 c) • The increased costs for consumers that keep driving (p2 e2 b px) • The reduction in congestion costs for the consumers that keep driving (p1 c b px) The increased costs that are caused by the introduction of the fuel efficiency standard are partly compensated by the reduction in time costs due to the decrease in transport demand. Policy measures that help reducing congestion costs should therefore see their associated costs to be lowered to reflect these extra benefits. Policies that aim at reducing emissions or noise, will need to account for these costs to evaluate the emission abatement to. 2.3.3. Taxes in transport markets Up to now the framework abstracted taxes in transport and its influence on abatement costs. In reality taxes on fuel, vehicle taxes and annual registration taxes represent an important share of the total costs to European transport users. A European fuel-efficiency standard increases car costs (including taxes), but fuel costs and fuel taxes per km decrease. The net result remains to be an increase of the total transport cost per km on the level of consumer 3 budgets . This cost increase will lead to a decrease in the transport demand, as in Figure 2.7. A policy measure like a fuel-efficiency standard will therefore show to have an important impact on the government revenues from transport. Government revenues from fuel taxes decrease in two steps as a consequence of fuel efficiency standards. • First, as fuel consumption per car km decreases, revenue is restricted. • Secondly, as fewer kilometres are driven, the former effect is reinforced. Thus the available government budget in transport may decrease substantially. In principle, this should not be viewed upon as a particular problem as government taxes are a transfer of wealth, and hence do not constitute a cost as such. However, since the loss in tax revenue will need to be compensated by an increase in other taxes (e.g. labour taxes) to balance the government budget, they may inflict a loss of social welfare in those related markets. For this reason, welfare economics may attribute a somewhat higher weight to the government budget, taking implicit costs of taxation into 4 account when evaluating total emission abatement cost . 2.3.4. Summary discussion of abatement cost in transport markets Second order effects are effects of a policy measure that induce changes in the equilibrium of a transport market and may hence reinforce or weaken policy effects. Simple policy measures like environmental standards for vehicles may increase production costs for vehicles. A second order effect of this standard may be that fewer kilometres are driven. As such, abatement cost estimates need to take these effects into account as they change both the costs of a policy (the denominator of abatement costs) measure and the abatement level (the divisor of abatement costs). Moreover, as these simple models for transport markets have illustrated, abatement costs may need to take into account more than production costs alone. Since policies may affect the transport market equilibrium, they will influence the welfare of producers and consumers in these markets. Hence, cost indicators for policy measures should provide information on; 3 If a more fuel-efficient car would lead to a lower cost for the consumer, it would have been introduced in the market already. 4 Similar results will be obtained if the government does not compensate the decline in fuel tax income by increasing other taxes. In that case the government budget will decrease, and government expenditures will have to be cut (e.g. through a reduction of government investments or social security provisions), leading to a welfare loss for government expenditure receivers. Page 12 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA • • • SUstainable Mobility, policy Measures and Assessment impact on resource costs (excluding taxes) impact on consumer welfare (including congestion costs) impact on taxes raised in transport markets 2.4. COMPARING ABATEMENT COSTS ACROSS STUDIES As this report covers a wide range of studies and reports, the underlying studies differ in many aspects: • in technologies and policy measures under research • in geographical scope • in approach and calculation method • in baseline scenario to compare both emission reduction and related costs to The difference in calculation method for abatement costs arises from differences in; • Cost scope (first-order effects or inclusion of second-order effects, implementation resource costs only or including costs borne by other economic agents – so called welfare analysis) • Cost data (among which discount rates and exchange rates for fuel prices) • Cost calculation (discounted cost & abatement calculations vs. annuity cost method) The difference in baseline projections is a particular issue for a survey on abatement costs. Some sources consider a 1990 or 1995 “frozen technology” baseline to estimate emission abatement costs, thereby neglecting exogenous technological progress that may reduce pollution and abatement costs to lower levels. Other studies take into account different time paths of technological progress, or assume different policy levels already decided on. Both type of studies have proven to offer valuable information, but results of abatement cost estimates and abatement potential are often not comparable. In particular for transport, the 1999 ACEA voluntary agreement to reduce CO2 emissions for cars, and the EU policy measures, e.g. implied in EURO I to IV standards for vehicles, have a significant impact on the calculation of both baseline transport costs and on baseline emission levels. Hence, comparing a pre-EURO II cost-effectiveness study to a post-EURO II study may indicate important differences in abatement costs and options. As a consequence, different optimal policy measures may be indicated, though these differences arise only due to differences in baseline scenario assumptions. This issue is equally important for the calculation of abatement costs in other sectors. Hence fully comparable results in either abatement costs or abatement potential are in general not achievable for such a diversity of reports. Consequently, the authors have preferred to list the results for each transport market and emission reduction topic carefully according to individual reports, and to assess the differences in approach and calculation method across studies in separate evaluation headings. Where possible, this will be indicated by a division into several paragraphs; • background, scope and baseline • abatement costs • evaluation The authors acknowledge that this approach may have effects on the structure of this report. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 13 SUstainable Mobility, policy Measures and Assessment Page 14 SUMMA Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 3. REDUCING TRANSPORT AIR POLLUTION Air pollution is considered to be a major regional problem. It exacerbates existing health problems, produces health problems where otherwise there would not be any and, in severe cases, may cause death. Air pollution is also responsible for a wide variety of negative environmental effects including damaged forests and crops, acid deposition (acid rain) and widespread destruction of acid sensitive aquatic environments and organisms. As such, air pollution by the transport sector should be considered as a negative effect that is not consistent with sustainable mobility. The transport sector is responsible for an important share of emissions in this respect. In the SUMMA report “Setting the context for Defining Sustainable Transport and Mobility” (European Commission 2003), the transport sector was found to be responsible for; • 38% of 1999 PM emissions in EU15 • 37% of NMVOC emissions • 63% of NOX emissions • 64% of CO emissions. From this, it would seem that a reduction of transport air pollution is required. However, from an economic point of view this is only true to the extent that the costs of reducing air pollution are lower in the transport sector than in other sectors – see section 2.2.2. Moreover, within the transport sector, policy measures with the lowest cost in reducing emissions should be 5 chosen first . This section will offer a literature survey on the cost-effectiveness of reducing air pollution from transport relative to pollution abatement in other sectors. Furthermore it will help to identify which policy measures in transport may offer cost-effective emission reduction solutions. The structure of this section is as follows. Section 3.1 provides an overview of technology options to reduce PM10/PM2.5, NOX and VOC emissions in the road transport sector. Main sources for single emission abatement cost estimates for technical measures are the RAINS databases. Estimates of the Auto-Oil II Project provide cost estimates for control options that reduce several emissions simultaneously. Section 3.2 discusses costs of non-technical policy measures, including traffic pricing and policy measures influencing driving behaviour, to reduce air pollution. Major contributions here are from the EC Cantique project and some local reports. In section 3.3 abatement costs in the road transport sector are compared to abatement costs in other sectors. Section 3.4 discusses the policy options and costs to reduce air pollution. 5 Note that the effects of emissions from different sources and different geographical areas may be different, even if emission abatement costs are equivalent. For instance, fine particles emitted by cars in general cause higher health effects than power plant emissions, simply because they take place closer to people. Furthermore chemical transformation of pollutants, including ozone formation from NOX and NMVOC and formation of nitrates, will have different impacts as the emissions are established in different locations. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 15 SUstainable Mobility, policy Measures and Assessment 3.1. SUMMA TECHNOLOGY OPTIONS Sections 3.1.1 to 3.1.3 discuss the findings of the RAINS database on NOX, PM10/PM2.5 and VOC emission options, focusing on the relative cost advantage of transport in comparison with other sectors. Section 3.1.4 presents costs of a number of options that reduce emissions of several pollutants simultaneously, as they have been issued by the EC Auto-Oil II program. The control options are similar to those assessed in RAINS. However in contrast to RAINS the associated costs were not allocated to the reduction of the different pollutants. The RAINS model identifies for each of its application areas (i.e. emission source categories considered in the model) a limited list of characteristic emission control options. In each case, RAINS estimates the specific cost of reductions, taking into account investment-related and operating costs. Investments are annualised over the technical lifetime of the pollution control equipment, using a discount factor of 4 per cent. The technical performance as well as investments, maintenance and material consumption are considered to be technology-specific and thereby, for a given technology, equal for all European countries. Fuel characteristics, boiler sizes, capacity utilization, labour and material costs, on the other hand, are important country-specific factors influencing the actual costs of emission reduction under given conditions. Non-technical options are not included in the database since they would be better addressed in energy-environment and/or economic models. In RAINS abatement costs are calculated from the expenditures on emission controls, which are differentiated into: • investments, • fixed operating costs, and • variable operating costs From these three components annual costs per unit of activity level are calculated. Next, these costs are related to one ton of pollutant abated. Some of the parameters are considered common for all countries. These include technologyspecific data, such as removal efficiencies, unit investment costs, fixed operation and maintenance costs, as well as parameters used for calculating variable cost components like extra demand for labour, energy, and materials. Country-specific parameters characterise more closely the type of capacity operated in a given country and its operation regime. To these parameters belong: average size of installation in a given sector, plant factors, annual fuel consumption and/or mileage for vehicles. In addition, the prices for labour, electricity, fuel and other materials as well as cost of waste disposal also belong to that category. The most important factors leading to differences among countries in unit abatement costs are: different annual energy consumption per vehicle and country-specific unabated emission factors. The latter difference is caused by different compositions of the vehicle fleet as well as differences in driving patterns (e.g., different share of urban vs. highway driving depending on available infrastructure in a given country). Only abatement measures were selected, which go beyond measures implemented to fulfil current legislation in 2010 (in other words: measures that are still available on top of measures required by the current legislation). Marginal abatement costs are given for the EU15 countries and eight of the 10 future EU member countries (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia). For Malta and Cyprus RAINS does not provide cost estimates. Page 16 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 3.1.1. PM10 and PM2.5 abatement 3.1.1.1. Abatement options Klimont et al. (2002) describe the control options available in IIASA (2003), which form the basis of the abatement costs considered. The main emission control options for road vehicles can be divided into the following categories: • • • Changes in fuel quality, e.g., decreases in sulphur content. Changes in fuel specifications may provide engine manufactures with greater flexibility to use new emission reduction technologies. Changes in engine design, which result in better control of the combustion processes in the engine. Flue gas post-combustion treatment, using various types of trap concepts and catalysts to convert or capture emissions before they leave the exhaust pipe. Engine technology is very different for diesel engines and for gasoline engines. Diesels emit much higher amounts of particles than gasoline engines do, leading to much higher reduction potential for diesel engines. a) Diesel vehicles 1) Changes in fuel quality High sulphur or aromatics contents have an impact on the quantity and quality of particulate matter emissions. They also interfere with several technologies controlling diesel exhaust. A reduction of fuel density lowers NOX and PM emissions, but on the other hand it increases hydrocarbon (HC) and carbon monoxide (CO) exhaust. The use of synthetic diesel fuel, gained from feedstock such as gas or coal, significantly reduces all pollutant emissions, including PM. Other measures, which may result in lower PM emissions, are the use of biodiesel, derived from various vegetable oils, and of dimethyl ether (DME), made, for example, from natural gas and coal (http://www.dieselnet.com). 2) Changes in engine design Changes in diesel engine design have reduced emissions from diesel vehicles by more than 90 percent. Important improvements are electronic controls and fuel injectors to deliver fuel at the best combination of injection pressure, injection timing and spray location, air-intake improvements, combustion chamber modifications, exhaust gas re-circulation and ceramic incylinder coatings (see also Cofala and Syri, 1998b). 3) Flue gas post combustion treatment Catalysts increase the rate of chemical reaction. In emission control applications heterogeneous catalysts are used, which are supported on high surface area porous oxides. Two processes may cause malfunction of emission control catalysts: poisoning and thermal deactivation. The catalyst’s active sites can be chemically deactivated or the catalytic surface can be masked, mainly by sulphur and phosphorus. High temperature can result in a sintering of the catalytic material or the carrier. Diesel oxidation catalysts were first introduced in the 1970s in underground mining as a measure to control CO. Today catalysts are used on many diesel cars in Europe, primarily to control PM and hydrocarbon emissions. Early diesel catalysts utilised active oxidation formulations such as platinum on alumina. They were very effective in oxidizing emissions of CO and HC as well as the organic fraction (SOF) of diesel particles. However, catalysts also oxidise sulphur, which is present in diesel exhaust from the combustion of sulphur-containing fuels. The oxidation of sulphur to SO2 leads to the generation of sulphate particulate matter. This may significantly increase total primary particle Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 17 SUstainable Mobility, policy Measures and Assessment SUMMA emissions, although the SOF PM fraction is reduced. Newer diesel oxidation catalysts are designed to be selective, i.e., to obtain a compromise between sufficiently high HC and SOF activity and acceptably low formation of SO2. Diesel particulate traps physically capture diesel particles preventing their release to the atmosphere. Diesel traps work primarily through a combination of deep-bed filtration mechanisms, such as diffusion and inertial particle deposition. The most common filter materials are ceramic wall-flow monoliths and filters made of continuous ceramic fibres. A number of methods have been proposed to regenerate diesel filters. Passive filter systems utilise a catalyst to lower the soot combustion temperature. Active filter systems incorporate electric heaters or fuel burners to burn the collected particles. The regeneration of a diesel filter is characterised by a dynamic equilibrium between the soot being captured in the filter and the soot being oxidised. The rate of soot oxidation depends on the filter temperature. At temperatures that are typically found in diesel exhaust gases, the rate of soot oxidation is small. Therefore, to facilitate filter regeneration, either the exhaust gas temperature has to be increased or a catalyst has to be applied. The catalyst can be applied directly onto the filter media or dissolved in the fuel as a fuel additive. Wall-flow monoliths became the most popular diesel filter design. They are derived from flowthrough catalyst supports where channel ends are alternately plugged to force the gas flow through porous walls acting as filters. The monoliths are made of specialised ceramic materials. Most catalysed diesel traps utilise monolithic wall-flow substrates coated with a catalyst. The catalyst lowers the soot combustion temperature, allowing the filter to selfregenerate during periods of high exhaust gas temperature. Filters of different sizes, with and without catalysts, have been developed and are available as standard products. The CRT (Continuously Regenerating Trap) system for diesel particulate utilises a ceramic wall-flow filter to trap particles. The trapped PM is continuously oxidised by nitrogen dioxide generated in an oxidation catalyst, which is placed upstream of the filter. The CRT requires practically sulphur-free fuel for proper operation. Fuel additives (fuel soluble catalysts) can be used in passive diesel trap systems to lower the soot combustion temperature and to facilitate filter regeneration. The most popular additives include iron, cerium, copper, and platinum. Many laboratory experiments and field tests have been conducted to evaluate the regeneration of various diesel filter media using additives. Cerium additive is utilised in a commercial trap system for diesel cars. Electric regeneration of diesel traps has been attempted in off- and on-board configurations. On-board regeneration by means of an electric heater puts a significant additional load on the vehicle electrical system. Partial flow layouts or regeneration with hot air are more energy efficient. An on-board, hot air regenerated diesel trap was tested on over 2000 urban buses in the U.S. A system with off-board electric regeneration has also been developed and commercialised. Diesel fuel burners can be used to increase the exhaust gas temperature upstream of a trap in order to facilitate filter regeneration. Fuel burner filters can be divided into single point systems and full flow systems. The full flow systems can be regenerated during regular vehicle operation but require complex control to ensure a thermally balanced regeneration. An advanced system featuring electronically controlled full flow burner regeneration has been developed. b) Gasoline engines Although there are no standards for PM emissions from gasoline (spark ignition) engines, implementation of emission control technologies aimed at mitigation of emissions of NOX and NMVOC also reduces the emissions of particles from those engines. For gasoline exhaust it has been assumed that catalytic converters lead to a reduction of PM emissions of 50 % (Euro I to Euro VI). Page 18 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA 1) SUstainable Mobility, policy Measures and Assessment Implementation of control options in RAINS The options to control vehicle emissions in RAINS simulate the effects of implementation of European legislation on mobile sources. Table 3-1 presents the control options considered. See Klimont et al. (2002) for more information. Table 3-1: RAINS PM10/PM2.5 Control technologies for road vehicles Diesel engines Diesel light duty trucks and passenger cars EURO I -1992/94 EURO II – 1996 EURO III – 2000 EURO IV – 2005 EURO V - post- 2005, Stage 1 EURO VI - post 2005, Stage 2 Gasoline engines Heavy duty vehicles, spark ignition engines Stage 1 Stage 2 Stage 3 Motorcycles, and mopeds 2-stroke Stage 1 Stage 2 Stage 3 Motorcycles 4-stroke Stage 1 Stage 2 Stage 3 3.1.1.2. Heavy duty diesel trucks and buses EURO I – 1992 EURO II – 1996 EURO III – 2000 EURO IV – 2005 EURO V – 2008 EURO VI - post-2008 Light duty gasoline direct injection (DI) engines EURO III EURO IV EURO V - post 2005, stage 1 EURO VI - post 2005, stage 2 Light duty 4-stroke spark ignition engines, not DI EURO I EURO II EURO III EURO IV EURO V - post 2005, stage 1 EURO VI - post 2005, stage 2 Abatement costs Table 3-2 and Table 3-3 give an overview of the ranges of marginal PM10 abatement costs for the road transport sector in the EU15 countries plus 8 future member states and PM2.5 6 abatement costs for a subset of these countries respectively . The range of abatement costs is based on marginal abatement cost curves given by IIASA (2003). The tables indicate a “low” value, giving the cheapest measure on top of measures required by the current legislation (CLE). The “central” value gives the marginal costs of the measure with which 50% of the total reduction achieved in the sector (on top of CLE) is reached. This value provides an indication of the cost of an “average” abatement option in the respective sector and thus can be used for comparisons. The “high” value does not give the cost of the most expensive control option available, but gives the cost of the measure with which 98% of total amount abated (on top of CLE) is reached. This procedure is used to cut extreme values, which occur at the high end of the abatement cost curves. Table 3-2 shows that the cost for the cheapest abatement measure is the same for all accession countries. For those countries – as well as for Austria, Belgium, Germany, Portugal, Spain and Sweden – the introduction of 2-stroke motorcycles and mopeds complying with stage 2 offers the cheapest opportunity for reducing PM10 emissions. For Italy, the introduction of further heavy-duty diesel vehicles complying with EURO IV represents the cheapest measure. In the rest of the countries, introduction of diesel light duty and passenger cars according to the post-2005 stage1 (“EURO V”) standard is the least cost measure. 6 More detailed information is included in Annex Table 0-1 page 112 and Table 0-2 page 117. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 19 SUstainable Mobility, policy Measures and Assessment SUMMA When looking at the sum of emissions that can be abated using all control options (see Table 0-1 in the Annex), it shows that road transport has a relevant potential for abating PM10 emissions in most countries. For most countries considered the cheapest control option lies in a quite narrow range of 68 to 89 €/kg PM abated. Denmark, Luxemburg and Italy showing higher costs, Spain and Greece lower costs. The case of Greece is interesting, because it offers the cheapest measure of all countries, but belongs to the most expensive countries for 7 the central value and at the high end of the cost curve . With the exception of Finland, France, Italy and the Netherlands the central value, which is the most suitable for comparisons, is considerably higher than the low value. For Finland and France the cheapest control option allows to reach 50% of the total abatement potential in the road transport sector; therefore low and central value are identical. Table 3-2: RAINS PM10 abatement costs road transport (€/kg) Austria Belgium Denmark Finland France Germany Greece Ireland Italy Luxemburg Netherlands Portugal Spain Sweden UK Czech Rep. Estonia Hungary Latvia Lithouania Poland Slovakia Slovenia Road Transport Low Central High 77,9 101,4 121,7 77,9 109,9 324,5 103,5 156,5 262,8 89,1 89,1 195,6 73,3 73,3 170,4 68,1 118,3 211,7 25,7 199,7 335,5 82,0 228,4 383,5 124,4 126,7 209,0 99,3 120,3 202,1 82,7 88,6 291,2 77,9 147,1 247,1 52,8 143,4 145,1 77,9 110,1 184,8 86,1 127,2 213,7 77,9 151,8 256,0 77,9 162,4 272,7 77,9 151,8 255,0 77,9 162,4 272,7 77,9 162,4 272,7 77,9 151,8 255,0 77,9 151,8 255,0 77,9 183,9 308,9 When comparing the central value between countries, a variation of up to a factor of 3 can be found. Finland, France and the Netherlands offer the cheapest control options; Ireland, Greece and Slovenia have the highest costs. When aiming at implementing abatement measures in European road transport, this should be taken into account. It has to be noted, that abatement measures in the future member countries are not necessarily cheaper than in the EU15 countries. Table 3-3 presents the abatement costs for PM2.5 instead of PM10 for a subset of the countries covered above. The measures included in the analysis are the same as for PM10, however the removal efficiency is lower for PM2.5 compared to that for PM10. This implies that the cost per kg are higher for the same control option. The abatement measures identified are mostly the same as for PM10, therefore the conclusions are basically the same as above. A striking exception is the high value for Poland, which is extremely high. To reach 7 The exceptional situation of the Greek transport system in PM10 reduction may be attributed largely to the lack of diesel passenger cars in Greek vehicle stock. Page 20 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 98% of the emission abatement possible in the road transport sector a very expensive option – the reduction of particle emissions from light duty vehicles with 4-stroke spark ignition engines – has to be implemented. Table 3-3: RAINS PM2.5 abatement costs road transport (€/kg) France Germany Greece Italy Spain Sweden UK Czech Rep. Hungary Poland 3.1.2. Road Transport Low Central High 88,4 88,4 172,6 145,6 163,7 290,1 37,3 37,3 396,2 133,4 133,4 224,2 89,4 190,6 190,6 105,3 125,7 210,0 124,5 124,5 254,2 105,3 132,8 289,7 105,3 132,8 289,7 105,3 132,8 41.818,8 NOX abatement 3.1.2.1. Abatement options Cofala and Syri (1998) describe the control options used for abatement cost calculations in RAINS. Main emission control options for road vehicles are; • Changes in engine design to better control the combustion processes in the engine. • Flue gas post combustion treatment of the exhaust gas by various types of catalytic converters. a) Diesel engines The high pressures and temperatures and the relatively low fuel-to-air ratios in diesel engines reduce the incomplete combustion, making these engines more fuel efficient than sparkignition engines. Due to the lower degree of incomplete combustion, diesel engines emit lower amounts of VOC and CO than do Otto engines, whereas NOX emissions depend on the design and the rated power of the engine. Approximately 10 to 20 % of nitrogen oxides from diesel engines are emitted as NO2 (nitrogen oxide), which is five times more toxic than NO (nitrogen monoxide). Gasoline engines emit less than 10 % as NO2. However, this NO is converted to NOX within short time. For diesel engines there is also an inherent conflict between some of the most powerful NOX control techniques and the emissions of particulates. This ‘trade-off’ is not absolute – various NOX control techniques have varying effects on soot and VOC emissions, and the importance of these effects varies with engine speed and load. These tradeoffs place limits on the extent to which any of the three pollutants can be reduced. 1) Changes in engine design Modern engines of diesel passenger cars and light duty trucks are built according to two concepts: the direct injection and the indirect injection of fuel. Engines for heavy-duty trucks are built as direct injection engines. The uncontrolled emissions of NOX for direct injection engines are typically twice as high as with the indirect injection design. However, after implementation of appropriate control measures the emissions from these two types of engines become comparable. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 21 SUstainable Mobility, policy Measures and Assessment SUMMA There is no single technology to drastically reduce NOX emissions from light- and heavy-duty diesel engines without major adverse impacts on the emissions of soot, VOC and noise, and on the fuel efficiency. Thus usually reduction measures are applied in combination and need to be optimised to achieve a reasonable trade-off between the emissions of individual pollutants. Measures available are discussed below. Injection Timing. The timing relationship between the beginning of the fuel injection and the top of the compression stroke of the piston has an important effect on diesel engine emissions and fuel economy. For purposes of fuel efficiency it is preferable that the combustion begins just at the point of greatest compression, which requires fuel injection somewhat before this point. A long ignition delay provides more time for air and fuel to mix, which increases both the amount of fuel that burns in the premixed combustion phase and the maximum temperature in the cylinder. Both of these effects tend to increase NOX emissions, but reduce particulate and VOC emissions. Therefore, the injection timing must compromise between emissions of particulates and VOC and fuel economy on one hand and noise, NOX emissions and maximum cylinder pressure on the other. A higher injection pressure might alleviate the need for this compromise. The injection pressure in modern engines reaches 1.500 bar. Turbo charging and intercooling. A turbocharger consists of a centrifugal air compressor feeding the intake manifold, mounted on the same shaft as an exhaust gas turbine in the exhaust stream. By increasing the mass of air in the cylinder prior to compression, turbo charging correspondingly increases the amount of fuel that can be burned without excessive smoke, the potential maximum power output and the fuel efficiency of the engine. The compressed air can be cooled in an intercooler before it enters the cylinder. This increase of the air mass in the cylinder and the reduction of its temperature can reduce both NOX and particulate emissions. In the USA, virtually all heavy-duty engines produced since 1991 are equipped with these systems. Exhaust gas recirculation (EGR). EGR reduces the partial pressure for oxygen and the combustion temperature, leading to reduced NOX formation. EGR is a proven NOX control technique for light-duty gasoline and diesel vehicles. In heavy-duty trucks, EGR has shown to increase wear rates and oil contamination, resulting in higher maintenance expenses and shorter engine life. After initial difficulties the EGR is also considered as a viable option for heavy-duty engines. 2) Flue gas post-combustion treatment The process of catalytic NOX reduction used on gasoline vehicles is inapplicable to diesel. Because of their heterogeneous combustion process, diesel engines require substantial excess air, and their exhaust thus inherently contains significant oxygen. The three-way catalysts used on automobiles require precise stoichiometric mixture in the exhaust gas to properly function; in the presence of excess oxygen, their NOX conversion efficiency rapidly approaches zero. The application of catalytic converters to diesel engines has been intensively tested. For light duty engines the zeolyte catalyst with reducing agent as well as other types of de-NOX catalysts offers a promising solution. NOX catalytic converters for heavy-duty engines are expected to be on a market within the next years. The catalysts enable to reduce the emissions by more than 80 % compared with the uncontrolled emissions from engines with the late 1980’s design. b) Gasoline engines The combustion temperature determines the formation of NOX in gasoline fuelled Otto engines, the residence time in the peak temperature zone and by the oxygen content of the fuel-to-air ratio. Gasoline engines without emission control are usually operated with stoichiometric or slightly over-stoichiometric fuel-to-air ratio, whereas engines built in the sixties were designed to operate below stoichiometry. The resulting high CO emissions of the early design initiated the first technical regulations to limit CO emissions. The new engines indeed reduced the CO and Page 22 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment VOC emissions, but at the same time (due to the higher stoichiometric ratio) the NOX emissions increased drastically. There are several means to reduce NOX emissions from gasoline-fuelled cars. 1) Changes in engine design Exhaust gas recirculation (EGR). The recirculation of exhaust gases substitutes part of the fresh intake air by exhaust gas, reducing the oxygen content in the combustion chamber and dampening through its additional heat capacity the temperature peaks. Both effects contribute to lower NOX emissions. Removal efficiencies of up to 30 % are achievable without any increase in fuel consumption. Lean burn engines. A change in the stoichiometry of the fuel-to-air ratio towards leaner mixtures results also in reduced NOX emissions. To guarantee satisfactory operation of the engines, some changes in the general design of the engines are necessary. Therefore, only new engines can be designed along the lean burn concept. 2) Flue gas post-combustion treatment A catalytic converter enables and accelerates the chemical conversion of CO, VOC and NOX to CO2, H2O and N2 at temperatures well below that at which it would occur spontaneously. Completing the combustion process facilitates the oxidation of CO and VOC, nitrogen oxides are catalytically reduced. The catalysts consist of ceramic materials coated with precious metals (platinum, palladium or rhodium) or with active metal oxides (e.g., gamma alumina, copper oxide, etc.). Catalysts require the use of lead-free fuels, since the leaded antiknock additives form inorganic lead salts, which deposit on the catalytic surface, deactivating it. The three-way catalyst, which is standard equipment for currently produced cars, uses a single unit, which oxidises CO and VOC to carbon dioxide and reduces NOX to nitrogen. For this process to work, it is necessary to have a very careful control of the concentrations of all the gases on the catalytic surface. Therefore, these systems require a fuel injection system capable of maintaining precise control of the fuel-to-air ratios under all driving conditions. This is achieved by means of electronic fuel injection combined with an oxygen sensor in the exhaust gas stream. The catalytic unit is programmed to control some 70 to 90 % of the CO/VOC/NOX during urban diving and up to 99 % at high speed. Advanced catalysts are characterised by a shorter warm-up periods to avoid idle operation after starting up the car. Possible solutions depend on splitting the whole mass of catalyst into two parts - one located close to the engine manifold and the main catalyst. The pre-catalyst warms-up quickly and reduces the emissions in the period when the main catalyst has not yet reached its working temperature. Also electrically heated catalysts and burner-heated catalysts with are under development. 3) Implementation of control options in RAINS The available control options were grouped into technology packages that enable to meet the current emission standards as well as legislative proposals discussed in the European context for individual categories of vehicles. It should be stressed that these packages comprise different types of measures, i.e., not only the changes in engine technology and the use of catalytic converters, but also changes in fuel specifications and measures to improve inspection and maintenance. Table 3-4 presents the control options considered (see Cofala and Syri (1998) for more information). Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 23 SUstainable Mobility, policy Measures and Assessment SUMMA Table 3-4: RAINS NOX Control technologies for road vehicles Gasoline 4-stroke passenger cars and LDV 3-way catalytic converter - 1992 standards 3-way catalytic converter - 1996 standards Advanced converter with maintenance schemes – EU 2000 standard Advanced converter with maintenance schemes – possible EU post-2005 standard Natural gas 4-stroke passenger cars and LDV 3-way catalytic converter Heavy duty vehicles Natural gas - catalytic converter Gasoline - catalytic converter 3.1.2.2. Diesel passenger cars and LDV Combustion modification - 1992 standards Combustion modification - 1996 standards Advanced combustion modification with maintenance schemes - EU 2000 standards NOX converter Heavy duty vehicles - diesel Euro I - 1993 standards Euro II - 1996 standards Euro III - EU 2000 maintenance schemes Euro IV (NOX converter) standards with Abatement costs Table 3-5 presents the ranges of marginal NOX abatement costs for road transport in the 8 EU15 countries plus 8 future member states . The range of abatement costs is based on marginal abatement cost curves given by Cofala and Syri (1998). As in the case of PM10, three values are used to characterise the cost curve: the “low” value, associated with the cheapest measure on top of measures required by the current legislation (CLE); the “central” value, giving the marginal costs of the measure with which 50% of the total reduction achievable in the sector (on top of CLE) is reached; and the “high” value, indicating the cost of the measure with which 98% of the total amount abatable in a sector (on top of CLE) is reached. Low values differ considerably between countries with many of the new member countries at the higher end. For Denmark, Finland, France, Sweden and the UK low and central value are identical, because the cheapest control option allows reaching 50% of the total abatement potential in the road transport sector in these countries. 8 More detailed information is included in the Annex tables. Page 24 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment Table 3-5: RAINS NOX Abatement costs road transport (€/t) Austria Belgium Denmark Finland France Germany Greece Ireland Italy Luxemburg Netherlands Portugal Spain Sweden UK Czech Rep. Estonia Hungary Latvia Lithouania Poland Slovakia Slovenia Road Transport Low Central High 975 2,049 18,294 1,114 2,637 17,774 2,404 2,404 18,294 2,216 2,216 16,298 2,047 2,047 24,152 1,754 3,146 17,349 2,560 3,772 21,066 1,738 4,019 16,043 793 1,746 35,711 1,424 3,371 19,601 1,203 2,138 19,837 4,255 6,268 41,962 1,088 2,374 35,328 2,355 2,355 16,684 2,976 2,976 16,396 2,927 3,424 40,570 1,806 3,179 27,047 1,925 3,709 38,380 1,945 3,424 27,047 1,945 3,424 27,047 4,520 6,087 37,190 5,091 5,955 40,570 2,543 3,424 27,047 It is remarkable that the central value for road transport for all countries considered is 9 associated to the same control option: Diesel HDV - EURO4 (NOX converter) . However, the marginal costs differ considerably; there is a factor of 3.6 between the cheapest implementation in Italy and the most expensive implementation in Portugal. So if there is a choice for geographical differentiation, this measure should be implemented in Italy first. As for PM abatement, the control costs in the new member countries belong to the highest of all 23 countries considered. 3.1.3. VOC abatement Many of the options for reducing NOX emissions from road transport activities simultaneously reduce VOC emissions. Separate VOC cost curves for such measures are not available in RAINS. As a consequence, RAINS gives only marginal abatement costs for reducing evaporative losses from gasoline powered vehicles and reducing exhaust emissions from two-stroke gasoline engines (see Klimont et al., 2000). Refuelling losses are estimated as part of the emissions from gasoline stations. The three main sources of evaporative emissions from vehicles are: • diurnal emissions - result from the vapour expansion inside the gasoline tank that is associated with the daily variation in ambient temperature, • hot soak emissions - occur when a hot engine is turned off and the heat from the engine and exhaust system raises the temperature of the fuel system, and • running losses - during vehicle operation, high ambient temperature and heat from the exhaust system will contribute to the generation of vapour in the gasoline tank The magnitude of emissions from these sources will be affected by the volatility of the gasoline, the ambient temperature, temperature changes, and vehicle design characteristic and driving habits. 9 See Annex; Table 0-3 page 120 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 25 SUstainable Mobility, policy Measures and Assessment SUMMA Control options include small and large on-board carbon canisters, which adsorb gasoline vapours and desorb them to the engine under appropriate conditions. Also, use of lower volatility gasoline results in reduction of emissions. Currently RAINS includes small carbon canisters (SCC) as a control option with a unit cost range of 50 – 600 €/t VOC. The EU Directive 91/441/EEC requires the installation of carbon canisters in all new gasoline passenger car models since 1993. For this reason, this control option is not relevant for our purpose of looking at measures on top of current legislation. Uncontrolled two-stroke gasoline engines are characterised by very high VOC emissions rates. These types of engines are used in cars, mopeds and in some off-road machinery, e.g. lawn mowers and motor saws used in forestry. With oxidation catalysts tailpipe emissions of VOC from two-stroke engines can be reduced by up to 90 %. Oxidation catalysts reduce hydrocarbon and carbon monoxide emissions. Klimont et al. (2000) indicate a unit cost of 900 €/t VOC. 3.1.4. Assessment of simultaneous emission reduction The Auto-Oil II reports (European Commission, 1999, 2000a to 2000d) perform a social welfare analysis on emission reductions in 9 EU countries and a number of European cities. In terms of vehicle technology, effects and costs of future emission limits for motorcycles have been investigated. Furthermore, the report presents options for so-called Enhanced Environmentally Friendly Vehicles (EEV) and associated costs for heavy-duty vehicles and buses, and for passenger cars and light duty vehicles. Table 3-6 lists emission reductions and associated costs for heavy-duty vehicles and buses for illustration. Table 3-6: EEV Options applicable to new heavy-duty vehicles and buses % cost increase (on catalyst cost) Vehicle types All with oxidation catalysts All with particulate traps All with deNOX catalysts, deNOX traps or selective catalytic reduction (SCR) 0-10 200 (2) € 1.500 SCR 15-300 over oxidation catalysts for deNOX catalysts or traps % emission reduction on top of standards for 2005 and in advance of 2008 PM CO HC NOX 60-95 60-95 0 20-25 (1) 50-80 0-60 0-60 50-70 0-50 All with more than one or all 20-400 50-95 50-95 50-70 50-80 above devices (MeOH) reformer or direct n.a. 95 95 99 99 MeOH fuel cell vehicles (1) All reduction in particulates are in mass. For particulate trap systems incorporating catalysts the highest reductions assume the use of < 10 ppm sulphur fuel since on 50 ppm fuel the sulphate part of the total particulate mass would be equivalent to the 2005 limit values. (2) SCR -- Selective Catalytic Reduction The control options considered are very similar to those included in the RAINS abatement cost estimates. But in contrast to RAINS, the AUTO-Oil II reports do not allocate costs to single pollutants. This better reflects reality but makes comparisons between measures and sectors almost impossible. Page 26 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment In terms of fuel technology, Auto-Oil II investigates effects and costs of a number of fuel quality scenarios. These scenarios aim at improving vehicle emissions taking account of predicted trends in the market and regulations already in place. Based on air quality predictions for 2010 and the expected needs for further improvements, European wide fuel scenarios were focused on reductions in PM and VOC emissions as only PM and ozone concentrations were expected to exceed the Community standards in a number of European urban areas. For other pollutants under consideration, Community standards were expected to be met in general although some problems were expected to remain in some cities or in some limited areas in city centres. To solve those local problems, certain tailor made solutions were analysed, including city fuel scenarios and/or the promotion of alternative fuels. Table 3-7 shows an example result for the gasoline scenarios analysed. Note that these fuel adjustments increased NOX and PM10 emissions, but offered primarily reductions in VOC. Contrary to RAINS, the indicated costs are net present values of the costs required to change the fuel supply chain (refineries…). As such, these costs are not comparable with RAINS results. Table 3-7: Gasoline scenarios - main results in 2010 (EU9) EU9 in 2010 Cost and impact on transport Impact on emissions (ton) Total extra cost (NPV 2005-2020) - 2010 budget impact - Passenger demand (Mpkm) 5.474.409 Freight demand (Mtkm) 2.253.687 NOX PM VOC NMVOC 1.463.540 61.202 789.472 730.441 Fuel – MQ1 1.532 -27 -427 22 15.444 81 -9.045 -8.087 -46 Fuel – MQ2 3.517 -59 -955 41 31.539 84 -25.112 -22.762 -134 Fuel – MQ3 2.367 -40 -641 28 19.904 82 -16.323 -14.729 -90 Fuel – MQ4 3.833 -66 -1.065 49 25.409 85 -21.112 -19.106 -149 Base case level Impact on transport (%) CO2 (kton) 660.513 Impact on emissions (%) Fuel – MQ1 0,0% 0,0% 1,1% 0,1% -1,1% -1,1% 0,0% Fuel – MQ2 0,0% 0,0% 2,2% 0,1% -3,2% -3,1% 0,0% Fuel – MQ3 0,0% 0,0% 1,4% 0,1% -2,1% -2,0% 0,0% Fuel – MQ4 0,0% 0,0% 1,7% 0,1% -2,7% -2,6% 0,0% To summarise, the Auto-Oil II report indicated that considerable reductions in pollutant emissions could be achieved with control options in the field of vehicle technology and fuel technology. However, it is difficult to derive quantitative marginal abatement costs for different pollutants from the information given in the Auto-Oil II report. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 27 SUstainable Mobility, policy Measures and Assessment SUMMA 3.2. NON-TECHNICAL OPTIONS This section contains an overview of non-technical policy options, including traffic pricing and measures that influence driving behaviour, to reduce air pollutions. Section 3.2.1 provides an overview of several options as they have been reported in the EC Cantique reports. Section 3.2.2 discusses a report of the Flemish Community on potential effects of policy measures that influence driving behaviour. Section 3.2.3 reports on a Dutch TNO study for the impact of local traffic management on urban ambient air quality. 3.2.1. Overview of non-technical measures 3.2.1.1. Background, scope and baseline Cantique (Concerted Action on Non Technical Measures and their Impact on Air Quality and Emissions) aims to inform policy-makers on the use of non-technical transport measures to improve urban air quality and reduce CO2 emissions. Non-technical measures cover a wide range of measures like public transport and inter-modality, traffic management, efficient road freight transport, pricing measures and other measures influencing drivers’ and travel behaviour. The target audience for Cantique are policy makers on EU-, national and regional level as well as planners and consultants. Based on the available information about research projects and practical attempts on national and EU-level the environmental and economic effects of non-technical measures have been analysed and put into a scheme with the aim to make them comparable. A cost-effectiveness analysis was made and ranking of measures was performed (subject to data availability). Furthermore, an assessment of the most promising measures was made, both individually and in bundles. The notion of costs adopted is quite “restrictive”, i.e. it does not refer to generalised cost perceived by users (travellers, households and so on), but only to costs directly involved for its implementation, mainly related to infrastructure equipment, maintenance and personnel. The discussion of costs in the context of an impact assessment could hence distinguish between: • Costs directly induced by a measure (investment, operation, maintenance...) • Costs saving by changing traffic parameters, i.e. the monetary value of emissions and CO2, including health damage, buildings and crops. The former are regarded as the costs of a measure, the latter as the benefits - reductions of environmental costs, with no accounting of accident costs and time costs due to lack of data. Cantique does not offer complete information on benefits (emission reduction) as in many reports some pollutants are not considered. This detracts from the significance and comparability of monetary cost/benefit assessments. Therefore the benefits were also computed in terms of abatements of (available) pollutants in physical terms and a cost/benefit analysis was carried out in terms of cost per unit mass of abated pollutant. This resulted in a two-level approach in the cost-benefit analysis: • a “cost-effectiveness” level, analysing costs of measure with reference to each specific pollutant abated • a “cost-benefit” second level, based on more restricted measure, with a common spectrum of pollutants abated. Table 3-8 provides an overview of the non-technical measures analysed in Cantique, with project reference and project location. Page 28 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment Table 3-8: Cantique list of studies under survey PROJECT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 MEASURE LOCATION PRICING POLICIES - PARKING CHARGES AUTO OIL II Parking charges ATHENS AUTO OIL II Parking charges LYON AIUTO Parking charges COMO PRICING POLICIES - ROAD PRICING AUTO OIL II Road Pricing ATHENS NASQ Road Pricing LONDON EUROTOLL Cordon Pricing STUTTGART AIUTO Road Pricing COMO INFRASTRUCTURE -INVESTMENT AIUTO New lines, Public Transport COMO Frequency Increase OVERALL ECONOMIC.. Integrated Telematic Systems GERMANY- AREA WIDE AUTO OIL II UTC- increasing road capacity ATHENS AUTO OIL II Bus lanes, priority ATHENS QUARTET PLUS ITC TURIN INFRASTRUCTURE - URBAN FREIGHT MANAGEMENT OVERALL Distribution Centre GERMANY- AREA WIDE ECONOMIC.. CITY LOGISTICS Distribution Centre COLOGNE OVERALL ECONOMIC.. Increased of payload GERMANY- AREA WIDE AUTO OIL II City Logistics ATHENS REGULATIONS - AIR QUALITY RESPONSIVE TRAFFIC CONTROL NASQ Parking management LONDON OPTION TO REDUCE Traffic restrictions NETHERLAND -AREA WIDENASQ Low emission zones LONDON REGULATIONS - URBAN FREIGHT TRANSPORT CITY LOGISTICS Enlarging consignments COLOGNE CITY LOGISTICS Supply condition COLOGNE OVERALL ECONOMIC.. Route planning GERMANY- AREA WIDE PACKAGES OF MEASURES - TRAFFIC DEMAND MANAGEMENT 23 24 25 AIUTO AIUTO AIUTO Park Pricing & Car Pool COMO Park Pricing & Dial a Ride COMO Park Pricing & Public transport COMO PACKAGES OF MEASURES - ITS MEASURES 26 27 28 29 QUARTET PLUS QUARTET PLUS QUARTET PLUS QUARTET PLUS ITS- Packages ITS- Packages ITS- Packages & bus/tram priority ITS- Packages & bus/tram priority STUTTGART GOTHENBURG STUTTGART GOTHENBURG The Cantique report accepts the cost calculation of the underlying studies it surveys, which reduces comparability of results, both on the cost side and on the emission abatement side. The Cantique report itself points out several discrepancies undermining cross-study comparability, like the base period to estimate abatement costs and the discount rates used for investments in infrastructure. Nevertheless, the report tackles differences in environmental benefits calculations by referring to DG Environments ExternE projects and using uniform monetary impact values for all studies under survey to perform cost-benefit calculations. However, the cost-benefit calculation produces only relative numbers, in a cost/benefit ratio, thus reducing comparability with other reports. 3.2.1.2. Abatement costs for road transport In order to limit dispersion of results of the CANTIQUE reports, this section contains sections on CO2 abatement as well. Further CO2 abatement assessments are made in section 0. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 29 SUstainable Mobility, policy Measures and Assessment SUMMA NON-TECHNICAL MEASURES COST-EFFECTIVENESS ASSESSMENT PER 1 TONN. CO2 REDUCED - 000/EUROs 1995 pricesParking charges (Athens) 0.007 Regulations Traffic Control (London Lez) 0.016 Parking charges (Lyon) 0.025 Regulations Traffic Control (London) 0.060 Road Pricing (Athens) 0.120 Infrastruc. Urban Freight Manag. (German-Payload) 0.147 Infrastruc. Investment (Cologne) 0.167 Road Pricing (Stuttgart) 0.168 Road Pricing (London) 0.314 Regulations Urban Freight Transport (German-Route) 0.513 Infrastruc. Urban Freight Manag. (Cologne) 0.527 Infrastruc. Investment (Turin) 0.555 Infrastruc. Investment (Athens Bus Lanes) 0.568 Infrastruc. Urban Freight Manag.(Athens) 0.666 Infrastruc. Urban Freight Manag. (German Avr.) 1.482 Infrastruc. Investment (Athens-Utc) 1.519 2.701 Regulations Urban Freight Transport (Cologne-Suppl. Cond.) 5.026 Regulations Urban Freight Transport (Cologne-Size Incr.) Figure 3.1: Cantique cost-effectiveness overview for CO2 NON-TECHNICAL MEASURES COST-EFFECTIVENESS ASSESSMENT PER 1 TONN. NOx REDUCED - 000/EUROs 1995 pricesRegulations Traffic Control (Netherland Avr.) 0.1 Regulations Traffic Control (London Lez) 1.6 Parking charges (Athene) 2.3 Regulations Traffic Control (London) 5.8 Parking charges (Lyon) 8.8 Road Pricing (Como) Road Pricing (Athens) 12.2 24.4 Road Pricing (London) 30.1 Infrastruc. Investment (Athens Bus Lanes) 32.6 Packages TDM (Como-Park Pricing&Car Pool) 38.1 Packages ITS (Stuttgart-Public) 45.9 Road Pricing (Stuttgart) 51.0 Parking charges (Como) 50.2 Packages TDM (Como-Park Pricing&Dial-a-Ride) Infrastruc. Investment (Turin) Packages ITS (Gothenburg-Public) Packages TDM (Como-Park Pricing&Pub.Trans.Incre.) Infrastruc. Investment (Athens-Utc) 51.6 32.6 68.8 245.0 297.3 Packages ITS (Stuttgart-Individual) 722.2 Figure 3.2: Cantique cost-effectiveness for NOX Page 30 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment NON-TECHNICAL MEASURES COST-EFFECTIVENESS ASSESSMENT PER 1 TONN. CO REDUCED - 000/EUROs 1995 prices0.4 Parking charges (Athene) Regulations Traffic Control (London Lez) 0.6 Parking charges (Lyon) 0.8 Road Pricing (Como) 0.9 Regulations Traffic Control (London) 2.4 Packages TDM (Como-Park Pricing&Car Pool) 2.9 Road Pricing (Stuttgart) 3.0 Parking charges (Como) 3.8 Packages TDM (Como-Park Pricing&Dial-a-Ride) 3.8 9.1 Road Pricing (Athens) 12.2 Road Pricing (London) 14.9 Infrastruc. Investment (Athens Bus Lanes) 17.6 Packages TDM (Como-Park Pricing&Pub.Trans.Incre.) 25.5 Infrastruc. Investment (Turin) Figure 3.3: Cantique cost-effectiveness for CO The Cost-benefit of Non-Technical measures for CO and NOX is assessed as: NON-TECHNICAL MEASURES BENEFIT/COST RATIO ASSESSMENT FOR REDUCING CO AND NOx EMISSIONS - EURO GAINED PER 1EURO INVESTED 1995 prices6.083 Regulatio ns Traffic Co ntro l (Lo ndo n Lez) 4.932 P arking charges (Athene) 2.420 Ro ad P ricing (Co mo ) 1.666 P arking charges (Lyo n) 1.639 Regulatio ns Traffic Co ntro l (Lo ndo n) P ackages TDM (Co mo -Park P ricing&Car P o o l) 0.420 Ro ad Pricing (Athens) 0.394 Ro ad P ricing (Stuttgart) 0.354 P arking charges (Co mo ) 0.319 Ro ad P ricing (Lo ndo n) 0.315 Packages TDM (Co mo -P ark Pricing&Dial-aRide) 0.313 Infrastruc. Investment (A thens B us Lanes) Infrastruc. Investment (Turin) P ackages TDM (Co mo -Park P ricing&Pub.Trans.Incre.) 0.286 0.163 0.067 Figure 3.4: Cantique Cost-Benefit overview for CO and NOX Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 31 SUstainable Mobility, policy Measures and Assessment SUMMA The Cost-benefit of Non-Technical measures for CO, NOX, VOC and CO2 is assessed as: NON-TECHNICAL MEASURES BENEFIT/COST RATIO ASSESSMENT FOR REDUCING CO, NOx, VOC AND CO2 -EURO GAINED PER 1 EURO INVESTED 1995 prices10.676 P arking charges (A thene) 9.300 Regulatio ns Traffic Co ntro l (Lo ndo n Lez) 3.573 P arking charges (Lyo n) 2.507 Regulatio ns Traffic Co ntro l (Lo ndo n) Ro ad Pricing (Stuttgart) Ro ad P ricing (Lo ndo n) Infrastruc. Investment (Turin) 0.710 0.482 0.255 Figure 3.5: Cantique Cost-Benefit overview for CO, NOX, VOC and CO2 As was clearly illustrated in Figure 3.1 to Figure 3.5, and represented in Table 3-9, parking regulations, road pricing and traffic control regulations offer most cost-effective emission reductions, with the notable exception of CO2 abatements where infrastructure policies may offer cost-effective solutions. Please note that these numbers cannot be compared to e.g. RAINS estimates as they indicate net present value costs for a long period and since they take into account reductions in transport users welfare. Table 3-9: Cantique overview of cost-effective policy measures Policy Cost-effectiveness values 000/ton CO2 NOX CO Pricing 0,127 25,56 4,33 Infrastructure 0,704 120,83 20,18 Regulations 1,663 3,67 1,50 Package-TDM - 111,54 8,094 Package-ITS - 278,99 - Taking into account ExternE results on €-values for other emission reductions (see section 2.2.3 on multi-point policy measures), Cantique also reports importantly advantageous costbenefit ratios for parking charges and some traffic control regulations as these policy measures do not entail major infrastructure investments. The most promising measures, individually or in bundles, appear to be expected from the association of pricing policy and regulatory measures. This statement was also confirmed by expert opinions’ emerging from the questionnaire answer analysis that was performed in this study. Page 32 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 3.2.2. Driving behaviour 3.2.2.1. Background, scope and baseline To control the emissions of road transport, the regional government of Flanders has established an environmental policy plan (MINA-plan 2). One part of this plan concerns the development of a package of measures to influence driving behaviour. In this context, a study was assigned to the VUB and TNO, see VUB (2002). The purpose of the study was to quantify the influence of driving behaviour on the emissions of NOX, HC, PM, CO, SO2 and CO2. Although this report does not provide any information on the costs associated with policy measures, it does provide crucial information on emissions avoided by influencing driving behaviour and by infrastructure options. Other reports, not included here, may provide information on the cost side of measures that contribute to influencing driving behaviour. Two types of measures were analysed to determine their influence on fuel consumption and vehicle emissions: technical traffic measures influencing driving behaviour on a local scale (plateau humps, 30 km/h zone, green wave, roundabouts…), driving behaviour itself and onboard systems. Two methodologies are used to obtain emission reduction results. A first methodology uses measurements in actual driving conditions, which lead to driving cycles that are performed on a number of vehicles in laboratories to deliver final results. A second methodology uses the Vehicle Simulation Program (VSP) developed by VUB. Final conclusions are made on the basis of the results of both methodologies. 3.2.2.2. Emission abatements for technical policy measures The influence of technical traffic measures was determined on the basis of actual driving conditions, and repeated in reference driving cycles in laboratory conditions. Table 3-10 summarises the results of the measurements on 12 vehicles (7 petrol cars and 5 diesel cars). Statistically non-significant results are indicated n.c. (not consistent, e.g. when there was no common trend among all vehicles tested). Table 3-10: AMINAL overview on technical traffic measures and vehicle emission Plateau humps 30 km/h zone Green wave Roundabouts Petrol Diesel Petrol Diesel Petrol Diesel Petrol Diesel CO2 [g/km] +45% +55% -10% -10% -20% -20% +10% n.c. CO [g/km] n.c. n.c. n.c. n.c. -80% n.c. -60% n.c. HC [g/km] +25% -65% n.c. -75% n.c. n.c. n.c. NOX [g/km] +55% +75% -50% n.c. -40% -40% n.c. n.c. PM [g/km] +75% -35% -35% n.c. As expected, some traffic management measures influence local emissions considerably. Specifically plateau humps that reduce traffic speed have severely increased emissions for all vehicles and hence do not contribute to emission reductions. “Green wave” speed harmonization on the other hand has high emission abatement potential for urban areas. Roundabouts are reported to have emission potential for CO, but increased emission for CO2. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 33 SUstainable Mobility, policy Measures and Assessment 3.2.2.3. SUMMA Driving behaviour and emission reductions Up to the point where information campaigns and driver training are effective, some measures may help to reduce emissions. As in Cantique reports, no cost information is available, so emission abatement potential is highlighted. Table 3-11 to Table 3-13 show correction factors for passenger cars, where 1 indicates no extra emissions, 0.5 indicate a 50% reduction in emissions, etc… Table 3-11: Correction factors for passenger cars when driving sportily highwa y urban rural highwa y urban rural highwa y urban rural Euro 0 Euro 1 Euro 2 1,6 5,8 5,8 1,5 8,1 8,1 1,1 6,2 6,2 1,6 4,0 4,0 1,5 7,4 7,4 1,1 2,8 2,8 1,6 3,0 3,0 1,5 1,7 1,7 1,1 1,2 1,2 - - - Euro 0 Euro 1 Euro 2-IDI Euro 2-DI 1,2 1,2 1,2 1,2 1,0 1,0 1,0 1,0 1,5 1,5 1,5 1,5 1,4 1,4 1,4 1,4 2,0 2,0 2,0 2,0 2,6 2,6 2,6 2,6 2,0 2,0 2,0 2,0 2,0 2,0 2,0 2,0 1,6 1,6 1,6 1,6 2,1 2,1 2,1 2,1 1,8 1,8 1,8 1,8 1,5 1,5 1,5 1,5 standard highwa y PM10 NOX rural fuel HC urban CO petrol/LPG diesel Table 3-11 indicates sportily driving behaviour should be considered as a severe polluter in all emission categories, with emission factors running up to 8 times for CO in normal driving conditions and 3 times for NOX. Although diesel cars have less extreme emissions resulting from sportily driving behaviour, 20%-150% extra emissions needs to be considered with care knowing how costly a 5% reduction in emission may be. Table 3-12: Correction factors for passenger cars when driving economically PM10 NOX fuel petrol/LPG diesel urban 0,5 1 rural 0,5 0,7 urban 0,9 rural 0,8 Economical driving on the other hand may contribute to emission reduction programs as emissions are significantly reduced (10%-50%), both in urban as in rural conditions. Table 3-13: Correction factors for passenger cars when exceeding speed limits CO fuel petrol/LPG diesel severe 3 10 HC slight 1,5 5 severe 1,3 1 slight 1,15 1 NOX severe slight 1,3 1,15 2 1,5 PM10 severe slight 4 2 Note: Exceeding speed limits above 120 km/h (severe > 10 km/h, slight < 10 km/h) Table 3-13 shows that speeding on highways is detrimental to all emissions with factors up to 15%-50% for gasoline cars. Note that diesel speeding should be considered as an extremely heavy polluter for NOX, CO and especially PM10. Cheap measures contributing to reducing speeding may help in reducing emissions cost-effectively, though the potential of this should not be overstated. 3.2.2.4. On-board instruments and emission reductions In several experiments and demonstration projects involving econometers, cruise control, board computers and speed limiters, it is shown that the use of in-car devices results in an average reduction in fuel consumption of 5%. Page 34 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment On the other hand, air conditioning should be considered as detrimental as correction factors for most emission show high excess emissions in most conditions. Moreover, other reports indicate that non-CO2 GHG are emitted as a consequence of leakage in mobile air conditioning. In view of the increased demand for mobile air conditioning, these effects may contribute to increasingly higher emissions in the future. Reducing air conditioning use in cars may contribute cost-effectively to emission abatement, even though hot climate car users may not feel compelled to switch car air-conditioning off so that reduction in hot areas may not be achievable. Table 3-14: Correction factors for passenger cars when using air conditioning HC PM10 highway urban rural highway rural highway urban rural highway petrol/LPG 8,5 13,0 3,8 4,0 3,7 1,7 2,0 1,0 1,2 - - - diesel 12,0 0,5 1,0 0,5 1,0 2,0 1,6 1,5 1,5 2,4 1,6 3,6 fuel 3.2.2.5. urban rural NOX urban CO Evaluation The VUB/TNO report indicates sportily driving behaviour and speeding are highly polluting. Low-cost policy measures contribution to reducing this excess in emissions may offer some limited potential to reduce emissions from transport. Several measures may help drivers to do this: traffic measures like low-speed zones and green waves offer significant emission reductions, and on-board instruments may help drivers to control driving behaviour. The use of plateau humps and especially the increasing use of mobile air conditioning may deserve attention of local infrastructure managers and drivers as they prove to be detrimental to air pollution emissions. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 35 SUstainable Mobility, policy Measures and Assessment 3.2.3. SUMMA Local traffic measures and urban air quality This presentation presents emission reduction measurements for local NO2 and PM10 levels on a highway in the Overschie district (Netherlands), see TNO (2002). The baseline emission level is normal traffic without policy measures. Two policy results have been reported, a 80 km/h speed limit and a truck ban. Figure 3.6: TNO Local NO2 Impact of traffic measures near highway Figure 3.7: TNO Local PM10 Impact of traffic measures near highway The TNO report indicates that PM10 and NO2 contributions of highway traffic are reduced to 10 some extent by speed control, but are more affected by a ban on heavy-duty vehicles . 10 TNO however notes that this may not be economically achievable. Page 36 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment Table 3-15: TNO NO2 and PM10 concentrations at 50m east from highway 3 NO2 [ug/m ] Before measure After measure 3 PM10 [ug/m ] Before measure After measure Background 37 37 Background 30 30 Traffic 15 12 Traffic 3 2 Total 52 49 Total 33 32 However, as background levels of pollutions in the test area are more important in determining air quality, the impact of traffic measures on air quality is rather limited. TNO finally notes that these measures were welcomed by residents, indicating that local noise levels may strongly be influenced by these measures. Reports on noise abatement and costs thereof are taken up in section 5. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 37 SUstainable Mobility, policy Measures and Assessment Page 38 SUMMA Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 3.3. COMPARISON WITH OTHER SECTORS The following section compares the abatement costs for road transport with those for other sectors. The basis for the comparison is the RAINS databases, which provide consistent cost values for the different sectors. In every section a brief overview of the emission control options in other sectors is given, before the costs are compared. 3.3.1. PM10 abatement 3.3.1.1. Control options for other sectors The emission control options for other sectors (mainly stationary emission sources) considered in Klimont et al. (2002) reflect groups of technological solutions with similar emission control efficiencies and costs. For large boilers in industry and power stations, and industrial processes the following options are available: • Cyclones; • Wet scrubbers; • Electrostatic precipitators (three stages, i.e., one field, two fields, and more than two fields); • Wet electrostatic precipitators; • Fabric filters; • Regular maintenance of oil fired industrial boilers; • Two stages (low and high efficiency) of fugitive emissions control measures. These options are divided into three categories: power plants, industrial combustion, and industrial processes that can have different emission reduction and cost characteristics. For small and medium size boilers in the residential/commercial sector, a number of measures, depending on the size, fuel, and operation mode (manual or automatic loading), are available: • Cyclones; • Fabric filters; • Regular maintenance of oil fired boilers; • New type of boiler, e.g., pellets or wood chips. For domestic sources, i.e., fireplaces, single-family boilers, the principal option is a switch to a newer type of installation. Additionally for fireplaces, an option of installing a catalyst or noncatalyst insert is included. Modernization options (two stages potentially including catalytic and non-catalytic and/or primary and secondary air deflectors) are included for coal and wood stoves. As with other categories, regular maintenance of oil-fired boilers is also included. For non-combustion PM sources the following control options are included: Agriculture: • Feed modification (all livestock) • Hay-silage for cattle • Free range poultry • Low-till farming, alternative cereal harvesting • Good practice (other animals) Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 39 SUstainable Mobility, policy Measures and Assessment SUMMA Other sources • Good practice, storage and handling • Good practice in oil and gas industry, flaring • Ban on open burning of waste • Good practice in mining industry • Spraying water at construction sites • Filters in households (kitchen) • Generic, e.g., street washing For more information see Klimont et al. (2002). 3.3.1.2. Comparison of abatement costs Table 3-16 gives an overview of the ranges of marginal PM10 abatement costs for the road transport sector on one hand and for other sectors on the other hand, in the EU15 countries plus 8 future member states (Table 3-17 presents the same information for PM2.5 abatement 11 costs in a subset of countries) . The range of abatement costs is based on marginal abatement cost curves given by IIASA (2003). The tables indicate a “low” value, giving the cheapest measure on top of measures required by the current legislation (CLE). The “central” value gives the marginal costs of the measure with which 50% of the total reduction achieved in the sector (on top of CLE) is reached. This value provides an indication of the cost of an “average” abatement option in the respective sector and thus can be used for comparisons. The “high” value does not give the cost of the most expensive control option available, but gives the cost of the measure with which 98% of total amount abated (on top of CLE) is reached. Table 3-16: RAINS PM10 Abatement cost comparison with other sectors (€/kg) Austria Belgium Denmark Finland France Germany Greece Ireland Italy Luxemburg Netherlands Portugal Spain Sweden UK Czech Rep. Estonia Hungary Latvia Lithouania Poland Slovakia Slovenia 11 Road Transport Low Central High 77,9 101,4 121,7 77,9 109,9 324,5 103,5 156,5 262,8 89,1 89,1 195,6 73,3 73,3 170,4 68,1 118,3 211,7 25,7 199,7 335,5 82,0 228,4 383,5 124,4 126,7 209,0 99,3 120,3 202,1 82,7 88,6 291,2 77,9 147,1 247,1 52,8 143,4 145,1 77,9 110,1 184,8 86,1 127,2 213,7 77,9 151,8 256,0 77,9 162,4 272,7 77,9 151,8 255,0 77,9 162,4 272,7 77,9 162,4 272,7 77,9 151,8 255,0 77,9 151,8 255,0 77,9 183,9 308,9 Other Sectors Low Central High 11,4 30,4 566,7 15,4 30,4 234,1 19,9 28,0 566,7 15,9 30,4 566,7 9,4 30,4 566,7 24,7 30,4 540,1 0,3 2,1 234,1 24,7 30,4 234,1 15,4 30,4 566,7 24,6 30,4 138,1 15,4 28,7 138,1 19,7 30,4 566,7 9,1 30,4 566,7 15,4 30,4 566,7 12,1 30,4 138,1 0,1 0,1 92,0 0,1 0,1 92,0 1,1 9,4 92,0 0,2 3,6 566,8 0,2 28,0 234,1 0,6 2,1 566,7 0,4 1,4 30,4 0,2 2,0 566,7 More detailed information is included in Annex Table 0-1 page 112 and Table 0-2 page 117. Page 40 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment For all countries considered in Table 3-16, an emission reduction in other sectors is much cheaper than in the road transport sector, at the lower end of the abatement costs ("low" and “central” value). A closer look at the central value shows that in the EU15 countries (except Greece) and Lithuania abatement in road transport is a factor 3 to 7,5 more expensive than for other sectors. In AC (except Lithuania) and Greece, this factor is even higher (starting from 16). This implies that abatement measures should be taken in other sectors first on cost grounds. However, of course the picture may change if the associated benefits (above all reduced health effects) are taken into account. Due to the proximity of the emission sources to the receptors the benefits from measures taken in the road transport sector may be much higher than in other sectors. At the high end of the cost curves, the picture is different. For Austria, Denmark, Finland, France, Germany, Italy, Portugal, Spain, Sweden, Latvia, Poland, and Slovenia the high value is lower for road transport than for other sectors. This means that if very high reductions need to be achieved, measures in the road transport sector become cost efficient at a certain point. For the remaining countries the order between road transport and other sectors does not change. It has to be noted, that transport sector measures in the future member countries are not necessarily cheaper than in the EU15 countries. This is in contrast to the situation in other sectors, where abatement measures in future member states (except Lithuania) are up to one 12 order of magnitude cheaper than in EU15 countries (except Greece) . When looking at the sum of emissions that can be abated using all control options (see Table 0-1 in the Annex), it shows that road transport has a relevant potential for abating PM10 emissions in most countries. For Austria, Belgium, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, and the UK the abatement potential (in terms of absolute emissions that can be abated when applying all measures on top of CLE in the sector) in road transport and other sectors is similar. In the other countries, the potential for reducing emissions in other sectors is much higher than in road transport. Table 3-17 presents the abatement costs for PM2.5 instead of PM10 for a subset of the countries covered above. The conclusions are mostly the same as for PM10. With the exception of the high value for Poland, which is caused by the need for applying a very expensive option for reaching 98% of the emission abatement possible in the road transport sector. Table 3-17: RAINS PM2.5 Abatement cost comparison with other sectors (€/kg) France Germany Greece Italy Spain Sweden UK Czech Rep. Hungary Poland Road Transport Low Central High 88,4 88,4 172,6 145,6 163,7 290,1 37,3 37,3 396,2 133,4 133,4 224,2 89,4 190,6 190,6 105,3 125,7 210,0 124,5 124,5 254,2 105,3 132,8 289,7 105,3 132,8 289,7 105,3 132,8 41818,8 Other Sectors Low Central High 14,7 142,5 3020,6 51,8 91,3 2114,5 0,5 1,1 585,0 15,7 142,5 665,1 11,4 91,3 665,1 15,7 142,5 665,1 23,2 91,3 665,1 1,9 2,8 443,8 1,0 2,4 526,3 1,4 1,4 585,0 12 The exceptional situation of the Greek transport system in PM10 reduction may be attributed largely to the lack of diesel passenger cars in Greek vehicle stock. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 41 SUstainable Mobility, policy Measures and Assessment 3.3.2. SUMMA NOX abatement 3.3.2.1. Control options for other sectors The control options for other sectors (mainly stationary emission sources) considered in Cofala and Syri (1998) can be categorised into following broad groups: • In-furnace control of NOX emissions for stationary sources, i.e., the so-called combustion modifications (CM) or primary NOX reduction measures; • Secondary measures depending on the treatment of flue gases (selective catalytic reduction (SCR), selective non-catalytic reduction (SNCR)); • Measures to control process emissions. 1) Primary measures (Combustion Modification) Improvements in the boiler design can result in considerable reductions of NOX formation during the combustion processes. Although the level of NOX emissions from the same fuel varies considerably with the type of the plant (depending on design characteristics such as the placing of burners or the fuel-to-air ratio), all combustion modification techniques or primary measures make use of the same principles: • the reduction of excess oxygen levels (especially at periods of peak temperature); • reduction of the peak flame temperature. The most commonly used primary measure to reduce NOX emissions from boilers and furnaces is the use of low-NOX burners (LNB). Compared with the classical burners, where the total amount of fuel and air is injected in the same point, low NOX burners modify the way of injecting air and fuel to delay the mixing, reduce the availability of oxygen and reduce the peak flame temperature. LNB retard the conversion of fuel-bound nitrogen to NOX and the formation of thermal NOX, maintaining high combustion efficiency. The low NOX burners are easy to install and are suitable for retrofit in existing plants. Energy losses caused by unburned fuel particles are small. The reductions of NOX emissions achieved through the use of LNB are typically in the range of 50 %; for lignite, oil, and gas furnaces efficiencies of up to 65 % are reported. Another NOX emission reduction technology that falls into the ’Combustion modification’ category is fuel injection, or reburning at boiler level. This technology creates different combustion zones in the furnace by staged injection of fuel and air. The aim of reburning is to reduce the nitrogen oxides that have already been formed back to nitrogen. In boilers using that concept three combustion zones can be distinguished. In the primary zone 85 to 90 % of fuel is burnt in an oxidizing or slightly reducing atmosphere. In the second (reburning) zone, the secondary fuel is injected into a reducing atmosphere. Hydrocarbon radicals produced in this zone react with already formed nitrogen oxides. Next, in the burnout zone, final air is added to complete the combustion. The reduction efficiency of that technology is in the range of 50 to 60 %. The technology can be applied to boilers at power plants and in the industry. Implementation to waste incinerators as well as to some industrial processes (glass and cement production) is in the phase of development. It is also possible to decrease emissions of nitrogen oxides through the use of oxygen instead of combustion air (the so-called oxy-combustion). This decreases the nitrogen content in the combustion zone, leading to lower emissions of nitrogen oxides. Oxy-combustion has found its application mainly in industrial furnaces (glass production), where high combustion temperatures are necessary due to technological reasons. 2) Secondary measures (Flue Gas Cleaning) A variety of flue gas treatment methods have been developed to remove NOX after the combustion process. From the large number of available processes, the selective catalytic reduction (SCR) has become the most important technique and is at present widely applied in some countries. The SCR process uses ammonia to convert nitrogen oxides into molecular nitrogen (N2) and water (H2O) in presence of a catalyst. Page 42 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment Selective non-catalytic reduction is another add-on technique that can be used for controlling NOX emissions. It depends on injection of ammonia or other reducing agents into the flue gas; the NOX reduction takes place without use of a catalyst. The SNCR process is also temperature-sensitive and, therefore, the effectiveness of NOX removal depends on successful temperature control. In contrast to SCR technologies, no catalysts are required, which lowers investments and maintenance costs because no replacement of catalyst is necessary. Furthermore, energy costs are lower, and less space is required. If combined with primary NOX reduction measures, removal efficiencies of about 70 % and more are possible. 3) Combined NOX control Because SCR and SNCR options apply to different parts of the NOX formation process, it is also possible to combine primary measures such as combustion modification and secondary options such as SCR or SNCR. In case when SCR is combined with primary measures the resulting removal efficiency (compared to uncontrolled combustion) could reach 90 %. Because of the lower NOX concentration at the inlet of the SCR plant, the consumption of reaction agents (NH3) is reduced compared with the exclusive use of add-on secondary reduction measure. 4) Control of process emissions Industrial activities emitting nitrogen oxides can be divided into combustion processes and processes where emissions cannot be directly linked to energy use. The latter are processes that release nitrogen contained in the raw material (e.g. during production of nitric acid) or processes where the emission factors are intrinsically different compared with the emissions from boilers due to different (much higher) process temperature (e.g., cement production). The available measures for reducing emissions from process sources are strongly related to the main production technology. They are site-specific and depend, inter alia, on the quality of raw materials used, the process temperature and on many other factors. Therefore, it is difficult to develop generally valid technological characteristics of control technologies at the same degree of detail as for fuel-related emissions. Thus, for estimating emission control potentials and costs, the emissions from all processes are combined into one group, to which three stages of control can then be applied. Without defining specific emission control technologies, these three stages are represented by typical removal efficiencies with increasing marginal costs of reduction. Table 3-18: RAINS NOX control technologies for stationary sources Power plant sector Brown Coal - Combustion modification (CM) – existing plant Brown Coal - Selective catalytic reduction (SCR) – new plant Brown Coal - CM + SCR – existing plant Hard Coal – CM – existing plant Hard Coal - SCR – new plant Hard Coal – CM + SCR – existing plant Oil and Gas - CM – existing plant Oil and Gas - SCR – new plant Oil and Gas - CM + SCR – existing plant Process emissions Stage 1 control Stage 2 control Stage 3 control Industrial boilers and furnaces CM - Solid Fuels CM – Oil & Gas CM+SCR Solid Fuels CM+SCR Oil &Gas CM+ Selective non-catalytic reduction (SNCR) Solid Fuels CM+SNCR Oil &Gas Residential and Commercial CM Heavy Fuel Oil - Commercial CM Medium Distillates and Light Fractions (MD&LF)-Commercial CM Gas - Commercial CM MD&LF-Commercial and Residential CM Gas - Commercial and Residential Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 43 SUstainable Mobility, policy Measures and Assessment 3.3.2.2. SUMMA Comparison of abatement costs Table 3-19 presents the ranges of marginal NOX abatement costs for road transport and for 13 other sectors in the EU15 countries plus 8 future member states . The range of abatement costs is based on marginal abatement cost curves given by Cofala and Syri (1998). As in the case of PM10, three values are used to characterise the cost curve: the “low” value (cheapest measure on top of CLE) the “central” value (costs of measure with which 50% of total reduction in the sector on top of CLE is reached), and the “high” value (cost of measure with which 98% of total amount abatable in a sector on top of CLE is achieved). In all countries considered, the cheapest control option available on top of CLE (low value) is more expensive in the road transport sector than in other sectors. In other words, there are cheaper measures in other sectors to start with when reducing NOX emissions. When looking at the central value, which is more appropriate for comparisons, this picture changes. For Austria, France, Germany, Luxembourg, and the Netherlands control costs in other sectors are a factor of 1,5 to 3,3 greater than in road transport. This reflects the high level of NOX reduction measures implemented already in these countries. In consequence, additional reduction measures should be implemented in the road transport sector first. In the remaining 18 countries abatement costs in road transport are greater than in other sectors. However, with a factor of 1 to 1,6 differences between sectors are low in Belgium, Finland, Italy, Sweden, the UK, Czech Republic, and Slovenia. Considerable cost differences (factors of 2 to 5,3) can be observed for Denmark, Greece, Ireland, Portugal, Spain, Estonia, Hungary, Latvia, Lithuania, Poland and Slovakia. In these countries reduction measures should be implemented in other sectors first in any case. At the high end of the cost curves, only for Denmark, Germany and the UK high values are lower in road transport than in other sectors. So for Germany, reduction in other sectors is always the best option. For Denmark and the UK, measures in the road transport sector become cost efficient at a certain point, when high reductions have to be achieved. For all other countries, control options in road transport only become relevant when no more options are available in other sectors. 13 More detailed information is included in extended tables in the Annex. Page 44 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment Table 3-19: RAINS NOX Abatement cost comparison with other sectors (€/t) Austria Belgium Denmark Finland France Germany Greece Ireland Italy Luxemburg Netherlands Portugal Spain Sweden UK Czech Rep. Estonia Hungary Latvia Lithouania Poland Slovakia Slovenia Road Transport Low Central High 975 2,049 18,294 1,114 2,637 17,774 2,404 2,404 18,294 2,216 2,216 16,298 2,047 2,047 24,152 1,754 3,146 17,349 2,560 3,772 21,066 1,738 4,019 16,043 793 1,746 35,711 1,424 3,371 19,601 1,203 2,138 19,837 4,255 6,268 41,962 1,088 2,374 35,328 2,355 2,355 16,684 2,976 2,976 16,396 2,927 3,424 40,570 1,806 3,179 27,047 1,925 3,709 38,380 1,945 3,424 27,047 1,945 3,424 27,047 4,520 6,087 37,190 5,091 5,955 40,570 2,543 3,424 27,047 Other Sectors Low Central 303 3,593 168 2,581 216 1,217 133 1,553 216 3,088 267 5,506 119 1,000 103 1,519 119 1,105 263 7,000 388 1,193 114 1,193 80 1,000 216 2,043 173 2,831 567 2,623 99 1,000 137 1,238 98 649 98 1,000 388 1,286 388 2,863 242 2,651 High 15,079 11,976 22,014 11,000 17,976 20,939 11,000 11,153 11,153 11,976 11,000 11,000 11,000 11,768 18,575 11,153 14,043 17,375 15,079 15,079 11,000 15,079 11,976 For the other sectors high discrepancies between countries can be observed for the central value: a factor of 11 lies between Latvia and the Netherlands. For cost efficient emission reduction such differences have to be taken into account in designing emission reduction policies. However, it is remarkable that differences in control costs between EU15 and future member countries are much lower for NOX than for PM10 3.3.3. VOC abatement Klimont et al. (2000) identify control options for the main activity groups: solvent use; chemical industry; liquid fuel extraction, processing and distribution; and combustion. The unit cost ranges identified varies dramatically between control options and countries. There are measures that reduce VOC emissions at virtually no costs (e.g. the use of solvent free ink in offset printing). At the top end of the cost curve costs may reach up to 10000 €/t VOC abated for the use of catalysts in residential combustion (see Table 9 in Klimont et al., 2000, page 48). With 50 to 900 €/t VOC the abatement costs for the road transport control options small carbon canister and oxidation catalysts for two-stroke engines lie in the same order of magnitude as most of the other sector options. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 45 SUstainable Mobility, policy Measures and Assessment SUMMA 3.4. SUMMARY DISCUSSION OF REDUCING TRANSPORT AIR POLLUTION Technical measures for reducing pollutant emissions offer high reduction potentials and are therefore important elements in designing reduction strategies. However, the analysis in e.g. RAINS reports has shown that there are significant differences in specific abatement costs between sectors and countries. In section 3.1 the costs of technological options to reduce air pollution were compared across sectors. The RAINS calculations indicated that cost-effective reduction strategies need to take into account that the reduction of PM10/PM2.5 emissions should be addressed with measures in other sectors than road transport, because associated costs are at least a factor of 3 lower. Of course the picture may change if the associated benefits (above all reduced health effects) are taken into account. Due to the proximity of the emission sources to the receptors the benefits from measures taken in the road transport sector may be much higher than in other sectors. Lower abatement costs estimates for transport in Germany e.g. are around € 70/kg PM while industry abatement costs for PM are € 25/kg. This is in general true for all countries, and may serve as an indication that European environmental legislation in transport has been advancing at a higher pace than in other sectors, leaving only limited potential for low-cost PM emission reduction in transport. However, if very high PM reductions need to be achieved, measures in the road transport sector may become cost-efficient at a certain point, either because the control options in other sectors become extremely expensive (e.g. general switching to bio fuels in residential heating) or because there is no more reduction potential in other sectors. This would result in EURO V and EURO VI standards for HDV and LDV with cost ranges from € 150 to € 300 per kg PM10. Technological options to reduce NOX emissions however need to consider the transport sector from some point on. In general the cheapest options are to be found in other sectors with some values around € 250/ton NOX. When this potential is used, some countries need to consider cheap NOx reduction options in transport to avoid wasting valuable resources (€ 1.000-2.000 per ton). In order to reach quite substantial NOX reduction in a cost-effective way, most countries would need to consider targeting HDV transport with NOX converters (€ 2.000-3.000 per ton). Moreover, in contrast to PM, NOX emission reduction is not by definition cheaper in AC countries. Note that the RAINS analysis does not take into account the effects on VOC, which are reduced simultaneously with NOX. In section 3.2 it was illustrated that local traffic management and road-pricing policies should be viewed as contributors to cost-effective urban air pollution abatement in transport. Reports under survey include Cantique (EC report on non-technical transport measures and emissions), and local studies for Flanders (VITO) and the Netherlands (TNO). Especially the EC Cantique report is a useful source of information as it gives an overview of costeffectiveness of measures across European cities, thus reducing the chance of outlying results. However, it should be noted that Cantique does not correct for differences in costeffectiveness calculations across underlying reports, and this may reduce comparability of results. Several of these reports confirmed that in particular traffic control regulations, parking regulations and road pricing are low cost measures to reduce emissions related to road transport. Infrastructure investments and major regulations for freight transport are reported to be much less cost-effective in reducing ambient air quality in major European cities. As Cantique reports on combined effects when multiple air quality indicators are affected, the risk of biased results appears to be small. Cost-effective non-technical abatement costs for NOX ranged from € 3.700 to € 25.500 per ton, and from € 1.500 to € 4.330 for CO (net present value of all costs). Taking into account the simultaneous reductions in several emissions, significant net benefits can be found in traffic regulation and parking charges in large urban areas. Local reports contributed to the understanding of the importance of driving behaviour for emission control, though SUMMA experts’ doubts on the effectiveness of measures targeting Page 46 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment driving behaviour should be noted. Nevertheless, the authors have pointed out the relevance of cheap emission abatement contributions, even if the potential is rather small, as the alternative abatement costs may be excessively high. Summarizing, transport policy measures aiming at reducing air pollution should focus on; • NOX emissions as they prove to be costly to reduce in other sectors • reducing PM emissions in urban areas where PM may be most harmful: for general air quality, PM emission reductions are cheaper in other sectors (however control options for road transport vehicles in general offer a higher benefit) • implementation of cheap local traffic management to reduce emissions • research on the potential to reduce emissions as a result from sportily driving and speeding As for the SUMMA project, the abatement costs in section 3.1 may provide guidelines for comparison with damage estimates for each pollutant. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 47 SUstainable Mobility, policy Measures and Assessment Page 48 SUMMA Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 4. REDUCING TRANSPORT GREENHOUSE GAS EMISSIONS Climate change is a global challenge, and dealing successfully with it will require the efforts of many nations. The centre of attention for recent international policy discussions has been the Kyoto Protocol, an international agreement formulated in December 1997. Under the Protocol, industrialised nations commit themselves to national targets (or ceilings) for their emissions of greenhouse gases; these targets would need to be reached by the “commitment period” of 2008-2012. In order to comply with the Kyoto Protocol, GHG studies for the EU have focused on the costeffectiveness of policy measures across sectors, and have identified low-cost solutions in each sector. This section will discuss the main findings in the literature under survey. It should be noted that a global carbon emission permit system with trading opportunities would lead to 14 a permit price of $ 0,3-22/Ton CO2 . These estimates serve as a benchmark for global carbon emission abatement costs. The main greenhouse gas (GHG) emissions associated with transport are CO2 emissions that are a direct result of the combustion of vehicle fuels (petrol, diesel, aviation kerosene etc). N2O emissions from petrol cars equipped with 3-way catalytic converters are reported to be higher than emissions from non-catalyst cars, and could constitute a growing source. The transport sector is responsible for an important share of GHG emissions. In the SUMMA report “Setting the context for Defining Sustainable Transport and Mobility” (European Commission 2003), the transport sector was found to be responsible for 26% of 1999 CO2 emissions in EU15. From this, it would seem that the transport sector could contribute largely to reducing carbon emissions. However, from an economic point of view this is only true to the extent that the costs of reducing air pollution are lower in the transport sector than in other sectors – see section 2.2.2. Moreover, within the transport sector, policy measures with the lowest cost in reducing emissions should be chosen first. This section will offer a literature survey on the cost-effectiveness of reducing air pollution from transport relative to pollution abatement in other sectors. Furthermore it will help to identify which policy measures in transport may offer cost-effective emission reduction solutions. An important emphasis will be put on second order effects. The structure of this section is as follows. Section 4.1 provides an overview of technology options to reduce greenhouse gas emissions in transport, mainly in the area of vehicle and fuel technology. Primary sources for technological abatement costs are the Auto-Oil II Project and a bottom-up analysis for the EC. Sections 4.2 and 4.3 discusses non-technology options, including fiscal measures and transport management. Section 4.4 reviews these findings and compares abatement costs with those in other sectors. 14 See Eyckmans et al (2001). Prices up to $ 20 per ton CO2 have been reported worldwide in academic literature and serve as a benchmark for carbon emission reduction policies worldwide. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 49 SUstainable Mobility, policy Measures and Assessment SUMMA 4.1. TECHNOLOGY OPTIONS This section will discuss the technical abatement options to reduce greenhouse gas emissions in the transport sector. Section 4.1.1 indicates costs of road transport vehicle technology. Sections 4.1.2 and 4.1.3 do the same for rail transport and aviation. Section 4.1.4 focuses on fuel technology – alternative fuels. Finally section 4.1.5 discusses these findings on technical options and costs to reduce greenhouse gas emissions. 4.1.1. Road transport vehicle technology Road transport vehicle technology has been studied in several reports, including: • Bates (2001) report • Hendricks (2001) report • Capros (2001) report • Kleit (2002) report • Auto-Oil (2000a) report These reports will be discussed one by one in this section. 4.1.1.1. The Bates (2001) report The Bates (2001) report for EU DG Environment contains a detailed bottom-up analysis, updated in 2001, on GHG emission reductions in the EU15 transport sector. Details about the report, the background, scope and baseline can be found in Annex 1. a) Passenger transport The cost-effectiveness calculation of technical measures for petrol passenger cars is illustrated in Table 4-1: Table 4-1: CO2 reduction Cost-Effectiveness Analysis for technical measures; Petrol Cars (Exc. Taxes) Measure Engine Efficiency Improvements Hi-Speed Engine Variable Valve Lift & Timing Cylinder Deactivation at Idle and Part Load CVT (Continuously Variable Transmission) Major Engine Changes Petrol to Diesel shift Hybrid Power Train Vehicle GDI Engine DISC Engine Weight Reduction Lightweight Interior Components High strength steel body Aluminium Body Lightweight Chassis Aluminium Block Friction and Drag Reduction Engine friction reduction Aerodynamic Drag reduction Rolling resistance reduction Zero Brake Drag Page 50 % Reduction in CO2/ km Annualised Emissions Cost at 4% Reductions (€/yr) (t/yr) CostEffectiveness (€/t CO2) 6,9% 11,3% 5,1% 22 0 111 0,172 0,282 0,128 127 -1 870 20,0% 32,8% 11,0% 20,0% 42 543 39 46 0,498 0,816 0,274 0,498 84 665 143 93 1,2% 2,4% 6,4% 3,1% 1,2% 0,23 3 33 17 6 0,030 0,060 0,160 0,077 0,030 8 44 206 219 206 0,5% 0,5% 0,9% 1,1% 0,5 2 6,1 5 0,012 0,012 0,022 0,027 41 130 273 190 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment The Cost-effectiveness calculation of technical measures for passenger diesel cars is illustrated in Table 4-2: Table 4-2: CO2 reduction Cost-Effectiveness Analysis for technical measures; Diesel Cars (Excl. Taxes) Measure Engine Improvements CVT (Contin. Variable Transmission) Major Engine Changes Hybrid Power Train Vehicle Weight Reduction Lightweight Interior Components High strength steel body Aluminium Body Lightweight Chassis Aluminium Block Friction and Drag Reduction Engine friction reduction Aerodynamic Drag reduction Rolling resistance reduction (5%) Zero Brake Drag CO2 reduction per km Annualised cost at 4% (€/yr) Emission reductions (ton/yr) Costeffectiveness (€/t CO2) 5,1% 114 0,095 1203 32,8% 562 0,606 927 1,2% 2,4% 6,4% 3,1% 1,2% 1 4 37 19 7 0,022 0,045 0,119 0,057 0,022 41 89 308 325 308 0,5% 0,5% 0,9% 1,1% 1 2 7 6 0,009 0,009 0,016 0,020 85 205 398 287 From Table 4-1and Table 4-2 it is clear that a wide range of emission abatement costs exist in passenger transport, from less than 20 €/TCE up to over 1.200 €/TCE. This indicates some possibilities of cost-effective CO2 abatement, but clearly points out the risk of taking costineffective measures like passenger car standards that include lightweight car structures, CVT and Hybrid Power Train Vehicles. b) Freight transport The Cost-effectiveness calculation of technical measures for freight is illustrated in Table 4-3: Table 4-3: CO2 reduction Cost-Effectiveness Analysis for technical measures; Freight (Excl. Taxes) Reduction in CO2 per km Annualised Cost at 4% (€/yr) Emissions Reductions (t/yr) CostEffectiveness (€ /t CO2) Engine Improvements 5,7% -237 3,63 -65 Weight Reduction 0,4% 94,3 0,24 399 Aerodynamic Drag Reduction - Cab Roof Fairing 3,7% -125 2,37 -53 Aerodynamic Drag Reduction - Cab Roof Deflector 2,4% -76 1,54 -49 Rolling Resistance Reduction 3,8% -174,6 2,41 -73 Driver Training – HGV Drivers 5,0% 42 3,21 13 Measure Freight transport offers in general more cost-effective GHG reduction opportunities, especially in reducing vehicle aerodynamics. This is in part due to the higher use of freight vehicles, and to the higher fuel consumption in comparison with passenger vehicles. c) Summary and evaluation Table 4-4 summarises the costs and savings (excluding taxes) from different options, 15 assuming no interaction between measures . The identified emission reduction potential for improved vehicle technology in the EU15 Transport sector amounts to 116 MTCE per annum, some of which can be implemented at low or negative cost. Considerable savings at low cost 15 The source report provides cost-effectiveness tables including taxes. Note that, in view of the high EU fuel taxes, consumers may adopt fuel economising measures that imply cost savings at consumer prices, though from a social cost-effectiveness perspective net costs involved are substantial. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 51 SUstainable Mobility, policy Measures and Assessment SUMMA are concentrated in the freight transport sector and in the reduction of mobile air conditioning leakage. Table 4-4: GHG emission reduction options and costs in EU transport Name measure Sub sector Rolling Resistance Engine improvement Aerodynamics - Cab Roof Fairing Aerodynamics - Cab Roof Deflector Mobile air conditioning: leakage red. Lightweight Interior components - Petrol cars Variable Valve Lift Timing + Cylinder Deactivation Driver Training - Heavy Goods Vehicles (HGV) Drivers Transport refrigeration: leak reduction Mobile air conditioning: recovery Basic package - Diesel cars Lightweight Interior components - Diesel cars Petrol to Diesel shift Advanced Gasoline Direct Injection (advanced: "DISC") Basic package - Petrol cars Lightweight structure - Petrol cars Lightweight structure - Diesel cars Freight Freight Freight Freight Mob Airco Passenger cars Petrol EU15 Emission reduction potential kt CO2 10.882 3.733 2.682 1.739 6.627 1.128 Passenger cars Petrol 22.768 19 Specific costs €/tCO2 -72 -64 -51 -47 6 8 Freight 10.871 19 Refrigeration Mob Airco Passenger cars Diesel Passenger cars Diesel Passenger cars Petrol 2.787 3.534 1.603 198 7.803 29 31 41 81 82 Passenger cars Petrol 19.025 92 Passenger cars Petrol Passenger cars Petrol Passenger cars Diesel 9.119 9.906 1.736 116 122 217 327 Total technical emission reduction potential (Mt of CO2-eq.) In this bottom-up study, 73 MTCE of savings in passenger cars, 30 MTCE in freight and 13 MTCE from improvements in mobile air conditioning were identified compared to a “frozen technology” level. This amounts to 21% of the total CO2 emissions in transport. For cars, the reductions from the ACEA agreement are larger than the savings identified in this study. It is therefore assumed that the identified measures, together with others not identified, will be implemented as part of the agreement. Similarly, the remaining greenhouse gas reduction potential at low cost in the car segment after the ACEA agreement seems to be reduced. For freight, the relatively large potential for fuel efficiency at negative cost is primarily focused in improving aerodynamics and reducing rolling resistance. In view of the high degree of competition in the freight road transport sector, the available cost reductions should receive attention by firms in this sector, and hence these measures may have been implemented already. 4.1.1.2. The Hendricks (2001) report The Hendricks (2001) report contains a detailed bottom-up analysis, updated in 2001, on GHG emission reductions in the EU15 and covers all sectors. The study draws on the report of Bates (2001), and has been extended to a new database called GENESIS, to include nonCO2 GHG. Details about the report, the background, scope and baseline can be found in Annex 1. An overview of the specific transport emission reduction potential and costs in EU road transport in 2010 is displayed in the table below, and includes HFC leakages in mobile air conditioning systems. Page 52 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment Table 4-5: EU Transport emission reduction potential & costs in 2010 by cost bracket Emission reduction Measure CO2 Rolling Resistance Improvement Engine improvement Aerodynamics - Cab Roof Fairing Aerodynamics - Cab Roof Deflector Subtotal: Cost range for < 0 €/TCE Lightweight Interior components - Petrol cars Variable Valve Lift Timing + Cylinder Deactivation Driver Training - Heavy Goods Vehicles (HGV) Drivers Subtotal: Cost range for 0 < 20 €/TCE Basic package - Diesel cars Subtotal: Cost range for 20< 50 €/TCE Lightweight Interior components - Diesel cars Petrol to Diesel shift Advanced Gasoline Direct Injection (advanced: "DISC") Basic package - Petrol cars Lightweight structure - Petrol cars Lightweight structure - Diesel cars Subtotal: Cost range for > 50 €/TCE HFC Mobile air conditioning: leakage red. Subtotal: Cost range for 0 < 20 €/TCE Transport refrigeration: leakage reduction Mobile air conditioning: recovery of HFC Subtotal: Cost range for 20< 50 €/TCE CO2 + HFC Subtotal: Cost range for < 0 €/TCE Subtotal: Cost range for 0 < 20 €/TCE Subtotal: Cost range for 20< 50 €/TCE Subtotal: Cost range for > 50 €/TCE Total emission reduction Costs (€/TCE) at discount rate MTCE 2% 4% 6% sector specific 11 4 3 2 19 1 23 11 35 2 2 0,2 8 19 9 10 2 48 -72 -65 -54 -51 -72 -64 -51 -47 -72 -63 -48 -44 -72 -60 -37 -32 -2 8 19 8 19 19 18 30 19 84 105 19 28 41 55 145 63 65 74 100 184 282 81 82 92 122 217 327 100 101 112 145 252 375 228 226 246 303 485 695 5 6 7 13 29 31 29 31 30 32 32 39 7 7 3 4 6 19 41 8 48 116 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 53 SUstainable Mobility, policy Measures and Assessment SUMMA Table 4-5 indicates that there exist some 116 MTCE emission reductions in the road transport sector by 2010. Of this, only half can be achieved at costs below 20 €/TCE. Changes in discount rates from 2% to 6% do not affect the magnitude of the emission abatement costs. However, at a sector specific discount rate for policy measures, the potential for GHG reduction in transport is reduced to less than 26 MTCE p.a. for measures below 20 €/TCE. As is illustrated in the following Figure, at a discount rate of 4% the emission reduction potential at low cost is limited. Even if the high cost measures would be implemented, the reduction in the transport sector is limited in comparison to total transport GHG emissions, especially given the projections for high growth in transport. Note: 1990/1995 GHG emissions (left), 2010 frozen technology reference & reduction potential by cost bracket (right) Figure 4.1: Bottom-up GHG emission reduction in transport by cost bracket This bottom-up study repeated and extended the results of the bottom-up study for the transport sector, and highlighted the limited number of cheap GHG reduction opportunities by vehicle technology in transport. More importantly, the report indicated that some measures that are cost-effective from a societal point of view (at a discount rate of 4%), will not take place in the market at sector specific discount rates. Furthermore, the report indicates clearly that GHG abatement costs are reduced if non-CO2 GHG abatements are included in the framework. As the report does not include the ACEA agreement, currently remaining GHG reduction potential at low costs may be lower than estimated. 4.1.1.3. The Capros (2001) report The Capros (2001) report for EC DG Environment contains a detailed top-down analysis, updated in 2001, on GHG emission reductions in the EU15 and covers all sectors. The report is based on the PRIMES model to simulate EU energy demand, and includes the ACEA agreement to reduce CO2 emission levels for new cars. Details about the report, the background, scope and baseline can be found in Annex 1. Page 54 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA a) SUstainable Mobility, policy Measures and Assessment Passenger transport An overview of the specific passenger transport emission reduction potential and costs in the 16 EU in 2010 is displayed in the table below . Reduction potential does not take into account HFC leakages in mobile air conditioning systems. This table does not include the emission reduction implied in the ACEA agreement. The report does not contain specific abatement costs in €/TCE. Table 4-6: Impact of CO2 emission reduction targets to EU transport sector Travel per person (km/capita) Energy intensity (toe/M€90) Passenger transport –income related Passenger transport – GDP related Average efficiency passenger vehicles toe per Mpkm toe per Mvkm Energy demand in transport (Mtoe) CO2 emissions in transport (MTCE) CO2 emission reduction target for EU energy system small medium high % diff. from 2010 baseline -2% -4% -6% -10% -10% -20% -30% -40% -40% -9% -7% -10% -10% -20% -15% -25% -25% -40% -45% -40% -40% Mobility is rather rigid, as it is related to the welfare of consumers. However, this fact does not constrain the achievement of significant emission reductions. For example, a 40% emission reduction is possible while reducing mobility by only 6%. Improvement of energy intensity can reach up to 40% for both passenger and freight transport, over a period of 10 years without major technological breakthroughs or any major change in habits. Potential dynamics of passenger transport are quite significant as efficiency improvement of an average vehicle can reach up to 45% in terms of consumption per vehicle-kilometre travelled. The corresponding improvement in terms of passenger kilometres travelled can reach up to 40%. The results indicate that in collective transport modes better management (higher load factors, further use of information technology etc) is a cost-effective option and can contribute significantly to the improvement of efficiency in passenger transport. However, limitations exist and further improvements require additional effort at the level of vehicle technologies. b) Freight transport An overview of the specific freight transport emission reduction potential and costs in the EU in 2010 is displayed in the table below. Reduction potential does not take into account HFC leakages in mobile air conditioning systems. This Table does not include the emission reduction implied in the ACEA agreement. The report does not contain specific abatement costs in €/TCE. Table 4-7: Impact of CO2 emission reduction targets to EU transport sector Freight/GDP (tkm/000€90) Average efficiency freight vehicles toe per Mtkm toe per Mvkm Energy demand in transport (Mtoe) CO2 emissions in transport (MTCE) CO2 emission reduction target for EU energy system small medium high % diff. from 2010 baseline -5% -9% -12% -8% -1% -10% -10% -20% -10% -25% -25% -35% -20% -40% -40% 16 “Small” refers to a target of around –8% from 1990 levels, “medium” refers to a target of around –30% and “high” refers to a target of around –45% (i.e. exploiting sectoral potential) Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 55 SUstainable Mobility, policy Measures and Assessment SUMMA Activity in freight transport is more responsive to emissions reductions probably because of the better perception of costs by firms. According to the PRIMES model results there seems to be a large potential for improving management of freight transport while the technical potential for vehicle efficiency improvements seem difficult to approach even in the cases of strict emission reductions. Consequently, it is much easier and cost-effective to achieve an improvement of efficiency in terms of ton-kilometres travelled compared to vehicle kilometres travelled. c) Summary & conclusions Changes in terms of energy demand and CO2 emissions in the transport sector follow the same pattern due to rather limited potential for fuel substitution in the sector. The small horizon of the study, limits the potential for technological breakthroughs, regarding fuel cell or electric cars that could lead to the use of less carbon intensive fuels (bio-fuels, natural gas, etc.). Table 4-8: Vehicle improvement in EU road transport CO2 emission reduction target for EU energy system small medium high % diff. from 2010 baseline Average efficiency passenger vehicles (toe per Mpkm) public road transport private cars freight vehicles (toe per Mvkm) public road transport private cars -5% -2% -20% -8% -30% -30% -2% -1% -15% -5% -25% -30% Though explicit CO2 abatement costs have not been indicated in this study, the report does contain relevant information on the transport sub sectors where relatively cheap CO2 reductions remain possible. As Table 4-8 indicates, the technical opportunities to reduce carbon emission in passenger cars are limited after implementation of the ACEA agreement. For technical improvements, cost-effective opportunities to reduce GHG emissions in passenger transport are concentrated in train transport and aviation (see paragraphs 4.1.2 and 4.1.3). Only when target emission reductions are “high”, passenger cars can be replaced by more fuel-efficient cars –which undoubtedly will reduce average car size and comfort levels. For the Kyoto Protocol target (the “small” scenario) technical reductions will be accompanied by modal shifts that improve CO2 reductions. This is clear when comparing the toe per Mpkm numbers to the toe per Mvkm estimates. 4.1.1.4. Kleit (2002) report The report of Kleit (2002) discusses the societal costs of increasing Corporate Average Fuel Economy (CAFE) standards by 1 mile per gallon (mpg) in the short run and 3 miles per gallon in the long run. These standards are only imposed for the average sales of new vehicles and are enforced with a $ 55/mpg/car fine for car producers that not meet the standard. The model used incorporates major auto producers as agents and assesses impact of CAFE on their profits, as part of an economic welfare analysis. Kleit finds that a 1 mpg short run increase reduces profits in the car manufacturing industry and reduces consumer welfare because of higher transport costs. In response to this, fewer new cars are sold, but the remaining stock is more polluting because of increased economic lifetime. Furthermore, as the price per kilometre of new cars drops because of fuel efficiency, a rebound effect can be expected to occur resulting in higher car use. Page 56 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment Environmental effects of CAFE short run standards depend on the remaining car stock, which is heavily polluting. For several emissions, Kleit finds increases in emissions due to a longer economic lifetime of old vehicles and higher use of fuel-efficient cars. Moreover, the 17 associated costs are important, both for consumers and producers . Abatement costs are hence extremely high (because of high costs and very little abatement) or not relevant as emissions are increasing. Kleit compares the $ 4,1/gallon welfare cost to the $ 0,26/gallon gain in reduced environmental externalities (National Research Council estimates), to conclude that the short run CAFE is not beneficial. A long-run CAFE standard would reduce costs required to reach these standards as firms have more time to find suitable and cost-effective technology to reach fuel efficiency standards. Costs to producers and consumers are hence relatively low, but as marginal costs of driving are reduced, the rebound effect increases car use and offsets all emission abatement effects of increased fuel efficiency. The net effect is an increase in all reported emissions (air pollutants and greenhouse gases) Though this report does not specify abatement costs as such, it does offer important information on secondary effects that may offset initial technological gains up to the point that the initial goal of reducing fuel consumption and emissions may not be reached at all. Specifically, the secondary conclusion of Kleit is that in order to lower fuel dependency and reduce emissions, fuel efficiency standards are neither cost-effective nor cost-beneficial and could be replaced by efficient instruments as fuel taxes. The report indicates that fuel taxes that reduce oil dependency and emissions by an equivalent amount as the CAFE standards may reduce economic costs by a factor 16 to one (short term) or 4 to one (long term). 4.1.1.5. Auto-Oil (2000a) report The European Commission (2000a) report contains a social welfare analysis on air pollution emission reductions in the EU9 transport sector. The transport sector is modelled using TREMOVE, a European wide simulation model specifically designed to analyze impacts of policy measures. TREMOVE incorporates components of various models previously developed and used at European scale (TRENEN, EUCARS, FOREMOVE, COPERT-II). The cost and price data included in the road-transport base case are used to calculate generalised prices (and changes thereof), which is a common used concept in transport sector analysis. The generalised price is calculated per transport mode as the sum of three elements, i.e. resource costs (including vehicle purchase, maintenance, insurance and fuel cost, excluding taxes), taxes or subsidies, and travel time costs (including waiting and walking time for public transport). Cost data are all presented in constant €(1998). The report stresses the strong expected growth in base case CO2 emissions until 2010, some 15% over 1995 levels or 25% compared to 1990 levels), even though the base case takes into account the 1998 ACEA agreement to reduce CO2 emission levels of new cars. Moreover, the report clearly points out that car manufacturers argue they are unlikely to be able to hold the ACEA agreement since making gasoline vehicles meet the EURO-IV standards based on current –improved- technologies may prevent major fuel efficiency improvements. As both the ACEA agreement as the European vehicle standards (up to EURO-IV) are included in the baseline projections, the report investigates primarily reductions that induce 17 Kleit finds that non-US car producers would benefit from CAFE as they produce relatively fuel efficient cars. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 57 SUstainable Mobility, policy Measures and Assessment SUMMA faster acceptance of new technology (through scrappage programs, retrofitting programs and 18 EEV incentives ) Since the primary focus of AOP-II was not in GHG emissions, but in other pollutants, the report does not contain specific calculations for CO2 abatement costs. The case studies, especially for targeted scrappage and retrofitting of heavy duty vehicles in Lyon and Athens, indicates that –the early introduction of- selected technology for PM and NOX and VOC abatement offers little advantage in CO2 emission reductions. 4.1.2. Rail transport vehicle technology The Capros (2001) report for EC DG Environment contains a detailed top-down analysis, updated in 2001, on GHG emission reductions in the EU15 and covers all sectors. Details about the Capros report, the background, scope and baseline can be found in Annex 1. Potential dynamics of passenger rail transport are quite significant as efficiency improvement of an average vehicle can reach up to 45% in terms of consumption per vehicle-kilometre travelled. The corresponding improvement in terms of passenger kilometres travelled can reach up to 40%. The results indicate that in collective transport modes better management (higher load factors, further use of information technology etc) is a cost-effective option and can contribute significantly to the improvement of efficiency in passenger transport. However, limitations exist and further improvements require additional effort at the level of vehicle technologies. Changes in terms of energy demand and CO2 emissions in the transport sector follow the same pattern due to rather limited potential for fuel substitution in the sector. Table 4-9: Vehicle improvement in EU rail transport Average efficiency passenger vehicles (toe per Mpkm) railways freight vehicles (toe per Mvkm) railways CO2 emission reduction target for EU energy system small medium high % diff. from 2010 baseline -20% -30% -35% -15% -30% -30% Though explicit CO2 abatement costs have not been indicated in this study, the report does contain relevant information on the transport sub sectors where relatively cheap CO2 reductions remain possible. As Table 4-8 and Table 4-9 indicate, the technical opportunities to reduce carbon emission in passenger cars are limited after implementation of the ACEA agreement. For technical improvements, cost-effective opportunities to reduce GHG emissions in passenger transport are concentrated in train transport and aviation. For the Kyoto Protocol target (the “small” scenario) technical reductions will be accompanied by modal shifts that improve CO2 reductions. 18 EEV tax incentives are currently in place in Germany, Denmark, Sweden, Luxemburg and Austria (all related to fuel consumption ~ CO2 emissions) Page 58 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 4.1.3. Aviation vehicle technoloy 4.1.3.1. The Bates (2001) report In the Bates (2001) report, the baseline projection for aviation demand includes a 27% improvement in fuel consumption per vehicle kilometre between 1990 and 2010. It is considered, given the current rate of fleet renewals, that improvements beyond this could not be achieved by 2010. Details about the Bates report, the background, scope and baseline can be found in Annex 1. 4.1.3.2. The Capros (2001) report The Capros (2001) report for EC DG Environment contains a detailed top-down analysis, updated in 2001, on GHG emission reductions in the EU15 and covers all sectors. Details about the Capros report, the background, scope and baseline can be found in Annex 1. There is a rather small potential for changes in the structure of transport activity because of issues regarding the reason of travel, existing infrastructure and others. Air travel, which is to a large extent discretionary (a “luxury” good), is expected to be more affected as mobility decreases. Table 4-10: Vehicle improvement in EU air transport CO2 emission reduction target for EU energy system small medium high % diff. from 2010 baseline Average efficiency passenger vehicles (toe per Mpkm) aviation freight vehicles (toe per Mvkm) aviation -25% -40% -50% -15% -23% -28% As Table 4-8 and Table 4-10 indicate, the technical opportunities to reduce carbon emission in passenger cars are limited after implementation of the ACEA agreement. For technical improvements, cost-effective opportunities to reduce GHG emissions in passenger transport are concentrated in train transport and aviation. For the Kyoto Protocol target (the “small” scenario) technical reductions will be accompanied by modal shifts that improve CO2 reductions. This is clear when comparing the toe per Mpkm numbers to the toe per Mvkm estimates. For example, higher load factors and better traffic management to reduce carbon emissions up to 25% accompany technical emission reductions of -15% in aviation. This indicates that the 116 MTCE potential already includes nd “2 order effects” (e.g. modal shifts) and should not be considered as the result of vehicle technology improvement only. 4.1.4. Fuel technology With respect to fuel technology, only road transport is considered in this paragraph. 4.1.4.1. Auto-Oil II Program The European Commission (2000b) report on fuel technologies in the Auto-Oil II Program contains a social welfare analysis of European wide fuel scenarios in the EU9 transport sector. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 59 SUstainable Mobility, policy Measures and Assessment SUMMA The transport sector is modelled using TREMOVE and EPEFE and is based on the extensive “Alternative Fuels” report in AOP-II. The cost and price data included in the road-transport base case are used to calculate generalised prices. For these specific fuel scenarios, both European-wide investment costs for refineries and infrastructure costs for new technologies (like CNG distribution points) were taken into account. The welfare cost associated with policy measures is the net present value 2005-2020 of total additional costs. The fuel scenarios implied technical fuel changes for both diesel and gasoline fuels for all vehicles, however the EURO standards for fuels already decided on were assumed to be operational in baseline. Since the primary focus of AOP-II was not in GHG emissions, but in other pollutants, the report does not contain specific calculations for CO2 abatement costs. However, impacts on CO2 emissions were calculated for all scenarios. No diesel or gasoline fuel scenario had significant impact on CO2 emissions. Alternative fuels reviewed covered CNG, LPG, DME, bio-diesel and bio-ethanol blends. The report indicates that especially CNG and LPG fuels may technically contribute to CO2 emission reduction by 10% to 20% in comparison with conventional gasoline fuel vehicles and 19 may be available at low extra costs. However, no detailed data were reported . 4.1.4.2. EC report on fuel efficiency standards by Proost (1997) Proost (1997) calculates the welfare cost per kg abated CO2-emissions for a fuel efficiency standard that would reach the EC target of 120g/km. Abatement costs are calculated as the change in welfare caused for a car driver who is forced to purchase a fuel efficient small car, divided by the obtained reduction in CO2 emissions. The main cost parameters are displayed in Table 4-11 Table 4-11: Cost parameters in Proost (1997) EC report Gasoline price (excl. specific gasoline tax, incl. VAT) Specific gasoline tax Transport cost (excl. fuel) for a conventional car in 2005 (discount rate 20%, consumption 6,5l/100 km) Transport cost (excl. fuel) for a fuel efficient car in 2005 (discount rate 20%, consumption 5l/100 km) Elasticity of car usage vs. transport costs 0,406 €/litre 0,670 €/litre 0,245 €/km 0,271 €/km -0,5 The fuel efficiency standard increases transport cost (excl. fuel taxes) by € 0,0138/km, 20 calculated at a ‘social’ discount rate of 5% . In reality however, a car driver will take into account a discount rate of 20% when deciding on car use. As a consequence the car user takes into account an increase in transport costs (excl. fuel) of € 0,026/km and a decrease of 21 fuel costs (excl. taxes) of € 0,006/km. He will also pay € 0,010 less fuel taxes , totalling the increase in transport cost to € 0,010/km. As a consequence, the distance travelled will be 22 downsized by 234 km/year to 15.138 km/year . 19 It should be noted however that the TREMOVE simulations for promotion of LPG in France indicates no significant decrease in CO2 emissions, significant emission reductions in PM, NOX and SO2, but emission increases in CO, VOC and CH4. Since many of the vehicle stock changes would come from abandoning French LDV Diesel vehicles with low CO2 emission per vkm, this should not come as a surprise. 20 In 2005 the transport cost per km (excl. fuel and taxes) would increase by € 0,0198. Fuel costs (excl. taxes) would decrease by € 0,0060 per km. The costs would hence increase by € 0,0138 per km 21 Per km 0,015 litre of gasoline is saved, the tax on gasoline is € 0.670/litre 22 [Reduction in car usage (în %) / Increase transport cost (in %)] = Elasticity of car usage w.r.t. transport costs Page 60 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment The reduction of the consumer surplus and the fuel taxes paid in the simplified transport market for 2005 are calculated (as in Figure 2.6) in Table 3-13. Table 4-12: CO2 Abatement cost of a fuel efficiency standard, without external costs Changes in the costs of car usage (15.138 km per year) Increase transport cost (excl. fuel) Decrease fuel cost Decrease fuel tax Decrease consumer surplus (surface p2p1e2c) Changes through decrease in car usage (-234 km per year) Decrease consumer surplus (surface e2ce1) Decrease fuel tax Welfare cost of the fuel efficiency standard per vehicle Welfare cost of fuel efficiency standard per tCO2-reduction €/km €/year 0,0198 -0,006 -0,010 299,7 -90,8 -151,4 57,5 +1,223 - 10,224 210,1 363 €/tCO2 Assuming that the decrease in government income from fuel taxes is compensated by a reduction of government expenditures or an increase in taxes on other markets without further costs, we should not include the decrease in paid fuel taxes in the welfare cost. The welfare cost of a fuel efficiency standard can then be calculated to be to € 210,1 per year (i.e. 299,7 – 90,8 + 1,2). Using the fuel-efficient car, including the decrease in car usage, will result in a 25 decrease of CO2 emissions by approximately 577,7 kg per year . The welfare cost per ton abated CO2 emissions is therefore equal to € 363/tCO2. Car users take into account the reduction in fuel taxes. The cost for the car user is therefore only € 48,5/year (= 299,7 – 90,8 – 151,4 + 1,2 – 10,2) or € 84/tCOv. The policy measure thus seems to be less costly to a consumer than it is in reality, because the consumer takes into account that he saves tax payments. For society however this savings are no advantage as the decrease in government revenues must be compensated by cuts in government expenditures or increased taxation in other sectors. 4.1.4.3. Report by Van Herbruggen (2002) Van Herbruggen et al (2002) repeat the comparison of fuel efficiency standards and fuel taxes of Proost (1997) (see section 4.1.4.2) to include the beneficial side-effects of these measures (air pollution, accidents, noise and congestion). As such, this requires some estimate of these costs to take into account when calculating abatement costs, as is developed in the framework in sections 2.2 and 2.3. For € values of these benefits, values from Mayeres and Van Dender (2001) are used, as in Table 4-13. Note that congestion costs reported here represent the majority of external damages, especially in urban areas Table 4-13: External costs of transport excluding CO2 26 Marginal external cost of (€/km) Air pollution (excl. CO2) Accidents and noise Congestion Urban 0,005 0,043 0,558 Non-urban 0,001 0,057 0,123 Table 4-14 shows the extended calculation of carbon abatement costs of a fuel efficiency standard, including external effects. Next to the € 210/year welfare costs established in Table 4-12 the reduction in car use offers € 159/year benefits in reduced external effects in urban 23 Surface e2ce1 = ½ * 234 km * 0,0077 €/km = 1,2 Decrease fuel tax (234 km) = fuel consumption/km * #km/year * tax/litre = 0,065 * 234 * 0,670 = € 10,2 25 Fuel consumption drops by 227,07 litre (= 0,015 * 15.138) with a fuel-efficient car and by 15,21 litre (= 0,065 * 234) because of decrease in car usage. Per litre of gasoline 2,384 kg CO2 is emitted. The emissions avoided are equal to (227,07 + 15,21) * 2,384 kg CO2 = 577,7 kg CO2. 26 The external costs for urban areas are derived from calculations for Brussels. The assumptions for areas out of conurbations are based on calculations for Belgium 24 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 61 SUstainable Mobility, policy Measures and Assessment SUMMA areas (€46/year in non-urban areas). Reduction in congestion costs takes the bulk of the external benefits of reduced car use. Table 4-14: CO2 Abatement cost of fuel efficiency standard including external costs Fuel Efficiency standard (15.138 km/ year) 27 Decrease of air pollution costs Reduction in car usage (-234 km/year) Reduction of air pollution costs Reduction of costs of accidents and noise Reduction of congestion costs Total reduction of external costs Effect on welfare (without external costs) Effect on welfare (incl. external costs) Welfare cost of fuel efficiency standard per tCO2 reduction Urban €/year Non-Urban €/year 17,4 3,5 1,2 10,1 130,6 159,3 0,2 13,3 28,8 45,8 -210,1 -50,8 88 €/tCO2 -210,1 -164,3 284 €/tCO2 The net costs of a fuel efficiency standard then drop from € 210 per vehicle year to € 51 in large conurbations and to € 164 in non-urban areas. Abatement costs per ton of CO2 drop from € 363 to € 88 (urban) or € 284 (non-urban). As a consequence of including external effects of the fuel efficiency measure, the numbers for urban and non-urban are different (larger welfare gains in urban areas in other pollutants due to better fuel efficiency). If 15% of car use happens in conurbations, the fuel efficiency standard causes a welfare loss of € 28 147/year or € 255/tCO2. Note that this simple model abstracts from transport mode shifts that may occur as a consequence of the increased car costs. Therefore the obtained reduction of CO2 emissions and other external effects will, in reality, be below the numbers calculated. Moreover these calculations do not take into account the “rebound” effect of decreased car use via congestion; as trip time decreases because congestion drops, car use may become more attractive again, leading to a compensating move in external costs and carbon emissions abated. This would again have incremental effects on abatement costs per ton CO2. 29 A report from Proost and Van Dender (2001) uses the TRENEN model to incorporate both these effects. Assuming the fuel efficiency standard increases car ownership costs by 19,5% for gasoline cars and 17% for diesel cars, the welfare level of the Brussels inhabitants and commuters, expressed in monetary terms, would decrease by €15,4 per capita in 2005. 4.1.5. Summary discussion of technology options to reduce transport GHG emissions This section has provided an overview of technical options to reduce greenhouse gas emissions in transport. Sections 4.1.1 to 4.1.3 discussed several EC reports on improved vehicle technology. Bottom-up reports indicated some 116 MTCE emission reduction potential in EU15 road transport, some of which at a negative cost. Considerable savings at low cost are concentrated in the freight transport sector and in reducing mobile air conditioning leakage. However, as the ACEA agreement was included in this potential, the remaining options at costs lower than € 20/TCE seem limited. A top-down analysis using the PRIMES model indicated that in order to reach the targets in the Kyoto Protocol, most technical improvements would be required in train transport and 27 As fuel use drops by 0,015 litre/km (23%), emissions are assumed to decline by 23% too. 0.15 * € 50.8 + 0.85 * € 164.3 29 TRENEN is a static partial equilibrium model for the transport sector, developed under the Transport Research Program of the European Commission. 28 Page 62 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment aviation, and this would require modal shifts – or technical improvements – in both freight and passenger transport. A US report (Kleit, 2002) discusses the rebound effects of fuel efficiency standards. Though new cars show lower emissions per mile, they may be driven more, compensating for the technically acquired emission reduction. Moreover, as new vehicles get more expensive, the economic lifetime of old non fuel efficient vehicles is prolonged, so that in the short run emissions may be increased by the fuel efficiency standard, opposite to the policy intentions. Moreover the authors indicate that GHG emission reductions may be achieved more effectively and at far lower costs by using fuel taxes. In fuel technologies, CNG and LPG vehicles may be able to offer some 10% to 20% carbon emission reductions compared to conventional gasoline fuel vehicles at low costs, though no specific potential was reported. Compared to diesel vehicles, these alternative fuels offer much lower advantages in carbon emissions. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 63 SUstainable Mobility, policy Measures and Assessment SUMMA 4.2. PRICING MEASURES Fiscal measures to reduce greenhouse gas emission reductions include: • Circulations and registration taxes • Subsidising vehicle scrappage • Fuel taxes • Kilometre charging or road charging A last section is devoted to integrated pricing. Finally, the results are discussed. 4.2.1. Circulation and registration taxes The COWI report for DG Environment (European Commission 2002) assesses the extent to which vehicle related taxes (mainly acquisition taxes and ownership taxes) are effective means to reduce CO2 emissions from new cars. More specifically, the model calculations assess the ability of vehicle taxes to support the target to reduce average CO2 emissions from 30 new cars down to a level of 120 g/km . The extended COWI Car Choice Model is used for the model-based calculations. This model simulates the changes in car demand in response to changes in existing car tax systems. It does so for nine selected European countries, and assumes no influence of taxes on country car sales, limited substitution to diesel cars or small fuel-efficient cars, and budget neutrality for new cars between registration tax, circulation tax and fuel tax. As such, the model does not allow for second order effects. The scenarios contain different mixtures of “carbonisation” of new vehicle taxes (registration tax and circulation tax). As there is a budget neutrality constraint available, there is no resource cost for the available CO2 emission reduction potential. As there are no abatement costs in the redesign of a tax scheme, the following observations in the report should be noted: • • • • Current fiscal legislation does provide for some tax incentive to reduce average CO2/km for new cars Improving differentiation in registration tax or circulation taxes to reflect carbon efficiency reduces CO2/km emissions of new cars If national car tax structures are significantly modified to reflect carbon efficiency per km, new cars could achieve an average efficiency 5% closer to the 120 g/km target. An equivalent fuel efficiency improvement is required to reach the 120 g/km target. This needs to be handled with vehicle size reduction and increased gasoline to diesel switching. Fuel taxes do not affect the average carbon efficiency of new cars (in g CO2/km) substantially. They may however be effective means to control total CO2 emissions of 31 transport. 30 This is the agreed target of the Community Strategy to reduce CO2 emissions from passenger cars. Note that ACEA has agreed to the target of 120 g/km, but has not committed to it as it did to the 140 g/km target. 31 Note that car substitution in the COWI model is limited by diesel switch constraints and downsizing constraints. Moreover, fuel taxes are likely to affect car use and car renewal more than average new car choice if new cars do not show important differences in fuel efficiency. This effect is not taken up in the COWI model. Page 64 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 4.2.2. Subsidising vehicle scrappage As an alternative to imposing new standards for cars, subsidy schemes for scrappage of old vehicles are often proposed to tackle emission problems in problem areas. Such a subsidy can be considered as a subsidy related to the purchase of a new car that is purchased to replace a scrapped car. Thus the scrappage scheme would, on average, result in a lower cost of car transport to transport users, which might lead to an increase in car traffic. This idea is affirmed by a TREMOVE report in the Auto-Oil II Program (Part IV, Annex 4), in which the effect of a € 1.021 subsidy for the replacement of cars older than 10 years was simulated for Athens. These subsidies result in a lower use of public transport and higher car usage in 2010, with consequently 0,4% higher CO2-emissions. This subsidised scrappage scheme is shown to have important welfare costs (€ 34,1 per capita in 2010), due to higher congestion and accident costs. 4.2.3. Fuel taxes This section discusses the effects of a fuel taxes on transport market equilibrium, including second order effects. It does so by comparison with a fuel-efficiency standard (see section 4.1.4.2). The cost evaluation is made using the welfare economic framework developed in section 2.3. Proost (1997) calculates the welfare cost per kg abated CO2-emissions for a fuel efficiency standard that would reach the EC target of 120g/km. Abatement costs are calculated as the change in welfare caused for a car driver who is forced to purchase a fuel efficient small car, divided by the obtained reduction in CO2 emissions. The reduction of the consumer surplus and the fuel taxes paid in the simplified transport market for 2005 are calculated in Table 4-12 on page 61. a) Increase of fuel taxes in a simplified transport market As an alternative to a fuel-efficiency standard, the increase of fuel taxes might incite car drivers to reduce carbon emissions. Van Herbruggen et al (2002) calculates the welfare cost of a €1 tax increase in 2005 – doubling pump fuel prices- as Proost (1997) indicated that a tax increase of this order of magnitude would be needed to incite producers and consumers to produce and use 5 l/100km fuel efficient cars – the equivalent of the fuel efficiency standard in section 4.1.4.2. As already noted, the usage of such a car leads to an increase in transport costs (excl. taxes) 32 by € 0,0138/km. Fuel taxes hereby increase by € 0,040/km . The total transport cost therefore increase by € 0,054/km. A car driver that takes into account a discount rate of 20% 33 when making decisions will however observe an increase in transport cost by € 0,060 . This will incite him to reduce driving to 13.912 km/year, a decrease by 1.460 km/year. The resulting abatement costs of a € 1 increase in fuel taxes in the simplified transport market have been calculated in Table 4-15. Note that even when total costs are higher than with a fuel efficiency standard for cars, the increased incentive to car users to drive less produces a 34 higher CO2 emission reduction; 724 kg . As a consequence, abatement costs per ton CO2 are lower. 32 Original fuel tax/km = consumption/km*tax /litre = 0,065*0,670 = € 0,044/km New fuel tax/km = consumption/km*tax/litre = 0,050*1,670 = € 0,084/km 33 Increase in transport cost = 0,026 (excl. fuel) – 0,006 (decrease fuel cost) + 0,040 (increase fuel tax) 34 Fuel consumption drops by 208,68 litre (= 0,015 * 13.912) because of using a more fuel-efficient car and by 94.90 litre (= 0,065 * 1.460) because of the decrease in car usage. Per litre of gasoline 2,384 kg CO2 is emitted, hence emissions avoided are (208,68 + 94,90) * 2,384 kg CO2 = 723,7 kg CO2. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 65 SUstainable Mobility, policy Measures and Assessment SUMMA Table 4-15: CO2 Abatement cost of a €1 fuel tax increase, without external costs Changes in the costs of car usage (13.912 km/year) Increase transport cost (excl. fuel) Decrease fuel cost Increase fuel tax Decrease consumer surplus (surface p2p1e2c) Changes through decrease in car usage (-1.460 km/year Decrease consumer surplus (surface e2ce1) Decrease fuel tax Welfare cost of €1 fuel tax Welfare cost of €1 fuel tax per tCO2-reduction €/km €/year 0,0198 -0,006 0,040 275,5 -83,5 556,5 748,5 35 +43,8 36 - 63,6 235,8 326 €/tCO2 At the level of car users, however, the cost of the policy measure includes fuel taxes paid and rises up to € 729/year (i.e. 275,5 – 83,5 + 556,5 + 43,8 – 63,6) or € 1.006/tCO2. b) Extended evaluation, including external costs Integrated transport pricing policies take into account all costs (air pollution, carbon emissions, congestion) of transport to calculate the charge required to bring the user price of transport closer to societal costs. This section reviews the CO2 abatement cost estimates of previous sections, taking into account external costs of Table 4-13, to compare with the abatement costs of road charges, discussing the overall effects of fuel taxes. Table 4-16 shows the extended calculation of carbon abatement costs of a € 1 increase in fuel tax, including external effects. Next to the € 236/year welfare costs established in Table 4-15, the reduction in car use offers € 901/year benefits in reduced external effects in urban areas (€ 267/year in non-urban areas). Reductions in congestion costs take the bulk of the external benefits of reduced car use. Table 4-16: CO2 Abatement cost of €1 fuel tax increase, including external costs Urban €/year Non-Urban €/year €1 increase in fuel tax (13.912 km per year) Decrease of air pollution costs Reduction in car usage (-1.460 km per year) Reduction of air pollution costs Reduction of costs of accidents and noise Reduction of congestion costs Total reduction of external costs 16,0 3,2 7,3 62,8 814,7 900,8 1,5 83,2 179,6 267,5 Effect on welfare (without external costs) Effect on welfare (incl. External costs) Welfare gain of €1 fuel tax increase per tCO2 reduction -235,8 +665,0 € 919 235,8 +31,7 € 44 The net costs of a € 1 fuel tax increase drop from € 236 per vehicle year to a welfare benefit of € 665 in large conurbations and to € 32 in non-urban areas. Abatement costs per ton of CO2 drop from € 326 to abatement gains of € 919 (urban) and € 44 (non-urban). As a consequence of including external effects of the fuel efficiency measure, the numbers for urban and non-urban are different (larger welfare gains in urban areas in other pollutants due to better fuel efficiency). If 15% of car use happens in conurbations, the fuel tax increase causes a welfare gain of approximately € 127/year or € 175/tCO2. 35 36 Surface e2ce1 = ½ * 1.460 km * €0,060km = 43,8 Reduced fuel tax (1.460 km) = litre/km * km /yr *tax/litre= 0,065 * 1.460 * € 0,670 = € 63,6 Page 66 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment Again this result has to be considered cautiously as several side-effects (modal shifts and rebound) are not taken into consideration. However, more elaborate calculations confirm that increasing fuel taxes may lead to welfare gains in urban areas with significant congestion problems. The report from Proost and Van Dender (2001) using the TRENEN model to incorporate these effects finds an increase of € 4,7 per capita for Brussels commuters and inhabitants in 2005. Similar conclusions have been drawn from simulations with increased fuel taxes in the 37 Auto Oil II Program of the European Commission, using TREMOVE model . With respect to fuel taxes we can therefore conclude that urban areas with significant congestion problems are benefiting more from a significant fuel tax increase than an equivalent fuel efficiency standard, as the fuel tax will induce stronger incentives to reduce car use. As a result the costs of accidents, noise, pollution and most importantly congestion are significantly reduced. Note that at the high fuel tax levels in the EU a significant fuel tax increase will drive consumers to extra investments in new technologies reducing fuel consumption. This is cost-inefficient as in most cases the saved fuel costs and external costs do not compensate the additional costs of these technologies. Road pricing may avoid these inefficiencies while remaining effective in CO2 emission abatement. 4.2.4. Kilometre charging or road charging An extra € 1/litre fuel tax increases transport costs by € 0,065/km for car users with a conventional car. The consequence is that they will shift to more fuel efficient, but also more expensive cars, and will drive fewer kilometres. An equivalent road charge of € 0,065/km will not incite car users to shift to a more fuel-efficient car, but will still lead to 1.589 km lower car use. Calculations were done in an intergraded pricing scheme, taking into account all costs (air pollution, carbon emissions, congestion) of transport to calculate the charge required to bring the user price of transport closer to societal costs (see Table 4-13). The changes in consumer surplus, fuel taxes paid and external costs as a result of this road charge shown in Table 4-17 and Table 4-18. Table 4-17: CO2 Abatement cost of equivalent road pricing excluding external costs Changes in costs of car usage (13.783 km/year) Kilometre charge Decrease consumer surplus (surface p2p1e2c) Decrease in car usage (-1.589 km/year) 38 Decrease consumer surplus (surface e2ce1) 39 Decrease fuel tax Welfare cost of road charge Welfare cost of road charge per tCO2-reduction €/km €/year 0,065 895,9 895,9 51,6 - 69,2 51,6 € 210/tCO2 37 TREMOVE is a model based on TRENEN that, unlike TRENEN, includes modules that enable to calculate the composition of the vehicle stock, fuel consumption and emissions per pollutant in detail. TREMOVE has been developed during the Auto-Oil II Program of the European Commission. 38 Surface e2ce1 = ½ * 1.589 km * € 0,065/km= € 51,6 39 Drop in fuel tax (1.589 km) = fuel use * km/year * tax/litre = 0,065 * 1.589 * € 0,670 =€ 69,2 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 67 SUstainable Mobility, policy Measures and Assessment SUMMA Table 4-18: CO2 Abatement cost of equivalent road pricing including external costs Urban €/year Reduction in car usage (-1.589 km/year) Reduction in air pollution costs Reduction in costs of accidents and noise Reduction in congestion costs Total reduction of external costs Effect on welfare (without external costs) Welfare gain (incl. External costs) Welfare gain of road charge per tCO2-reduction Non-Urban €/year 7,9 68,3 886,7 962,9 1,6 90,6 195,4 287,6 -51,6 +911,3 € 3.700 -51,6 +236,0 € 958 As fuel taxes and road taxes are considered to be pure transfers of wealth, changes in either are not considered to be a welfare cost. The introduction of the road charge thus leads to a welfare gain of € 911/year in urban areas (€ 236 in non-urban areas). If 15% of car use happens in conurbations the average welfare gain would be € 337 per vehicle per year. As 40 lower car use will reduce CO2 emissions by 246 kg/year , welfare gains per kg CO2abatement amount to € 1.370/tCO2, which makes kilometre charging more than seven times as cost-effective as an equivalent fuel tax for CO2 abatement. The reason for this is that fuel taxes will incite consumers to purchase more fuel-efficient cars, which is too expensive given the level of fuel taxes in the EU. Road pricing will induce similar reductions in emissions and external costs without the extra costs of expensive fuel-efficient cars, and will reduce vehicle use and emission slightly more. Similar conclusions on peak road pricing have been drawn from simulations with increased fuel taxes in the Auto Oil II Program of the European Commission (2000c), using the TREMOVE model where considerable side effects are taken into account, and where the ACEA agreement is taken up in the baseline calculations. Specifically in the Annex discussing Non-Technical Measures the results of differentiated kilometre charges in Lyon and Athens have been simulated. The charge would amount up to € 0,31/km for cars and LDV in peak periods and would be € 0,05/km in off-peak hours. HDV road charges would be € 0,62/km and € 0,10/km respectively. Implementation costs of peak road pricing would amount to € 83,7 per vehicle and yearly operational cost (including enforcement) would be € 24,5 per vehicle, but are expected to be partly offset by revenues from fines. TREMOVE forecasts for Lyon indicate a 2% decrease in the number of passenger kilometres, being the net effect of a decrease in car usage (-14%) and an increase in the usage of other modes, i.e. public transport (+6%) and motorcycles (+0,5%). HDV freight transport would decrease (-5,5%), whereas no significant decrease in LDV freight transport is expected. Inhabitants and commuters would experience welfare gains of € 44,3 per capita in 2005, mainly through a reduction in congestion costs. An 8% reduction in CO2-emissions is expected. Note that by charging higher amounts in peak hours and lower amounts in off-peak hours, in which congestion problems are limited, attainable welfare gains per unit of CO2 reduction are even higher than with undifferentiated kilometre charges. 4.2.5. Integrated transport pricing In principle the governments have the option of introducing kilometre charges for all transport modes, replacing existing taxes and subsidy systems. De Borger and Proost (2001) assess such optimal transport charging policy in Brussels. Optimal pricing targets the government to make sure that the transport prices (incl. taxes) that are paid for each trip are equal to the costs caused by it. This way the trip price is sure to include –marginal- external costs of congestion, noise, pollution and accidents. Note that 40 Fuel use drops by 103,3 litre (= 0.065l/km * 1.589km) because lower car use. At 2,384kg CO2/litre emissions abatement equals 103,3l * 2,384 kg CO2 = 246,3kg CO2 Page 68 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment optimal pricing policies require the ability to price a single vehicle according to peak and offpeak hours, emission levels … It is clear that the implementation of such a pricing policy requires a sophisticated charging mechanism, but the availability of such technology is assumed. In such optimal pricing policy, De Borger and Proost (2001) assess that Brussels transport charges in 2005 would rise for all transport modes, with the largest increases for car transport in peak hours and a replacement of subsidies to public transport in off-peak hours by charges. The transport costs per km (incl. charges and congestion costs) increase less and even decrease for public transport in peak hours as the congestion costs drop significantly. Table 4-19 shows by way of illustration the changes in costs for transport by small gasoline cars and by bus. Table 4-19: Integrated optimal pricing policy for Brussels, 2005 Car peak Car off-peak Bus peak Bus off-peak Inhabitants +39% +18% -15% +53% Commuters +39% +17% -17% +62% The introduction of optimal charges results in an increase of the Brussels welfare level of 1.3% or €90 per capita. As a consequence of higher transport costs, total transport demand drops by 9.1%, primarily in peak. Moreover, there is a shift from car transport to public transport modes. For the transport sector, the decrease in congestion costs and costs of pollution, accidents and noise (-13,4% for the three latter effects) do not suffice to off-set the increase in taxations. The total welfare level over all sectors however increases as the extra government revenues from transport charges can be used for investments or expenses in other sectors. Simultaneously a 12% reduction in air pollution is obtained, mainly through a significant reduction in the car traffic. Proost and Van Regemorter (1999) assess the impacts of integrated optimal pricing for Belgium as a whole in 2005. Table 4-20 indicates the changes in transport volumes that would be caused by this charging policy. Table 4-20: Effects on transport volumes with optimal charges in Belgium, 2005 Passenger transport Cars (short distance) -0,7% Cars (long distance) -6,0% Bus +12,2% Rail +3,6% Freight transport Trucks -3,1% Rail +8,6% Waterways +26,3% The reduction of CO2-emissions that can be expected from this change in transport pricing policy is rather limited (-2,5 % relative to the emissions in 2005 without the measure). The low effects on carbon emissions are due to the low effect of these charges on total transport volume as they rather affect the distribution over peak and off-peak hours. Indeed, the congestion costs are reported to be the most important external costs and determine to a large extent the level of the optimal charges. The small emission reduction comes however together with a maximal welfare increase that cannot be obtained by other changes in transport taxation. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 69 SUstainable Mobility, policy Measures and Assessment 4.2.6. SUMMA Summary discussion of pricing measures to reduce transport GHG emissions Fiscal measures may target greenhouse gases by changing circulation or registration taxes of vehicles, or by imposing extra fuel taxes. As registration taxes only influence new car choice, and not car use, there seems to be only a limited potential in comparison to fuel taxes that directly influence vehicle use. This explains too why fuel taxes are found to be more costeffective in reducing carbon emissions than equivalent vehicle fuel efficiency standards. Integrated transport pricing policies take into account all external costs (air pollution, noise, carbon emissions, and congestion). In doing so, cost estimates for CO2 abatement are rewarded for their impact on other external effects. A road charge will show important effects on car use, and hence on emissions and congestion. Taking into account these effects, road charges have been reported to offer net benefits while reducing carbon emissions as well. Moreover road charges have been reported to be superior compared to fuel efficiency standards or fuel taxes because they achieve more at lower costs. These results are strongly influenced by the relevance of congestion costs in total travel costs. Page 70 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 4.3. OTHER NON-TECHNICAL OPTIONS This section provides an overview of reports that consider non-technical options to reduce greenhouse gases, and that allow comparing technical policy options to non-technical policy measures, including • Improving driving behaviour • Improving public transport • Freight logistics policy 4.3.1. Improving driving behaviour 4.3.1.1. Background, scope and baseline Belgian regional governments have some decentralised responsibilities in reducing the greenhouse gas emissions, such as setting up an emission inventory and policy implementation. The VITO (1999) report is the update of several reports that contain a selection of policy measures with high priority, based on the expected qualitative emission reductions and the difficulty of implementation. The report (known as VLIETbis report) offers a literature survey of policy measures with emission reduction potential and required investment costs to achieve emission abatements, including several solutions to influence fuel consumption via driving behaviour. Cost factors in this report use a 5% discount rate for investments in vehicle technology. Investment analysis was set up both at a social level (excluding taxes) and at the user level (including taxes) using 1999 prices and assuming a technical lifetime of investments of 10 years. Cost-effectiveness of emission abatement is displayed as annuities for investments in €/TCE. Baseline scenarios do not account for the ACEA agreement on fuel efficiency and hence may overstate currently available benefits of fuel efficiency investments. According to the report, the ACEA agreement may contribute to 11,3% lower CO2 emissions by 2010 at a cost of € 111/TCE for diesel cars and € 263 /TCE for gasoline cars. The report discusses abatement costs for; • speed limiters • cruise control • econometers • board computers • economic driving training courses 4.3.1.2. Speed delimiters Speed delimiters are expected to reduce fuel consumption by 2% for cars and by 6,2% for LDV, offering carbon reduction potential of 164 kTCE when introduced at all new vehicles in Flanders. The investment analysis for retrofitting at an investment cost of € 595 indicates a social cost of € 1550/TCE for gasoline cars, € 920/TCE for diesel cars and € 123/TCE for LDV, clearly indicating that retrofitting old vehicles may not be a cost-effective option, unless for LDV. However, as the extra cost of speed delimiters for new vehicles amounts to no more than €99, this option may be much more attractive. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 71 SUstainable Mobility, policy Measures and Assessment SUMMA Table 4-21: VLIETbis speed delimiter abatement costs Retrofit Investment Value of energy savings CO2 reduction Payback period Annuity (lifetime of 10 years 41 EYCF Cost-effectiveness New vehicles Investment: Value of energy savings: CO2 reduction: Payback period: Annuity (lifetime of 10 years): EYCF: Cost-effectiveness: 4.3.1.3. PC-petrol 595 6,37 0,046 93,5 77,05 -70,67 1550,15 PC-petrol 99,16 6,37 0,046 15,6 12,84 -6,47 142,09 PC-diesel 595 6,67 0,077 89,3 77,05 -70,38 918,99 PC-diesel 99,16 6,67 0,077 14,9 12,84 -6,17 80,64 LDV 595 31,88 0,366 18,7 77,05 -45,17 123,20 LDV 99,16 31,88 0,366 3,1 12,84 19,04 -51,98 € €/year TCE/year year €/year €/year €/TCE € €/year TCE/year year €/year €/year €/TCE Cruise control Cruise control instruments are reported to reduce fuel consumption by 7% for cars and LDV, offering carbon reduction potential of 445 kTCE when introduced at all new vehicles. The investment analysis for retrofitting at an investment cost of € 496 indicates a social cost of €263/TCE for gasoline cars, € 152/TCE for diesel cars and € 68/TCE for LDV. New vehicles are reported to show lower abatement costs, especially for LDV. Table 4-22: VLIETbis cruise control abatement costs Retrofit Investment Value of energy savings CO2 reduction Payback period Annuity (lifetime of 10 years) EYCF Cost-effectiveness New vehicles Investment Value of energy savings CO2 reduction Payback period Annuity (lifetime of 10 years) EYCF Cost-effectiveness 4.3.1.4. PC-petrol 495,78 22,24 0,159 22,3 64,20 -41,97 263,49 PC-petrol 371,84 22,24 0,159 16,7 48,17 -25,93 162,74 PC-diesel 495,78 23,33 0,268 21,2 64,20 -40,88 152,45 PC-diesel 371,84 23,33 0,268 15,9 48,17 -24,81 92,59 LDV 495,78 36,02 0,414 13,8 64,20 -28,19 68,12 LDV 371,84 36,02 0,414 10,3 48,17 -12,15 29,33 € €/year TCE/year year €/year €/year €/TCE € €/year TCE/year year €/year €/year €/TCE Board computer Board computers are reported to reduce fuel consumption by 10% for diesel cars and 5% for LDV, offering carbon reduction potential of 425 kTCE when introduced at all new vehicles. The investment analysis for retrofitting at an investment cost of € 496 indicates a social cost of € 81/TCE for diesel cars and € 130/TCE for LDV. New vehicles are reported to show lower abatement costs, especially for diesel cars where negative abatement costs could be obtained. 41 Equivalent Yearly Cash Flow: annuity for net investments. Page 72 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment Table 4-23: VLIETbis board computer abatement costs Retrofit Investment: Value of energy savings: CO2 reduction: Payback period: Annuity (lifetime of 10 years): EYCF: Cost-effectiveness: New vehicles Investment: Value of energy savings: CO2 reduction: Payback period: Annuity (lifetime of 10 years): EYCF: Cost-effectiveness: 4.3.1.5. PC-diesel 495,79 33,29 0,383 14,9 64,20 -30,91 80,74 PC-diesel 247,89 33,29 0,383 7,4 32,10 1,19 -3,12 LDV 495,79 25,71 0,296 19,3 64,20 -38,50 130,24 LDV 247,89 25,71 0,296 9,6 32,10 -6,40 21,62 € €/year TCE/year year €/year €/year €/TCE € €/year ton CO2/year year €/year €/year €/TCE Econometers Econometers are reported to reduce fuel consumption by 7.5% for gasoline and LPG cars, offering carbon reduction potential of 187 kTCE when introduced to 20% of vehicles. The investment analysis for retrofitting and new vehicles at an investment cost of € 74 indicates a social benefit of € 83/TCE. New vehicles are reported to show lower abatement costs, especially for diesel cars where negative abatement costs could be obtained. Table 4-24: VLIETbis econometers abatement costs Retrofit & New vehicles Investment: Value of energy savings: CO2 reduction: Payback period: Annuity (lifetime of 10 years): EYCF: Cost-effectiveness: 4.3.1.6. PC 74,37 23,82 0,171 3,1 9,64 14,18 -83,09 € €/year TCE/year year €/year €/year €/TCE Economic driving training course The training courses are reported to reduce fuel consumption by 10% for cars and LDV, and 8% for HDV-freight, offering carbon reduction potential of 280 kTCE when introduced at 20% of vehicle users. The investment analysis at an investment cost of € 74 (per year per person) indicates a social benefit of € 97/TCE for gasoline cars, € 62/TCE for diesel cars, € 71/TCE for LDV and 82 €/TCE for HDV-freight. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 73 SUstainable Mobility, policy Measures and Assessment SUMMA Table 4-25: VLIETbis eco-driver training abatement costs Investment: Value of energy savings: CO2 reduction: Payback period: Annuity (lifetime of 10 years): EYCF: Cost-effectiveness: Investment: Energy savings: Value of energy savings: CO2 reduction: Payback period: Annuity (lifetime of 10 years): EYCF: Cost-effectiveness: 4.3.1.7. PC-petrol 74,37 31,80 0,228 2,3 9,64 22,19 -97,27 LDV 74,37 7,98 51,44 0,591 1,4 9,64 41,79 -70,72 PC-diesel 74,37 33,32 0,383 2,2 9,64 23,70 -61,87 Freight transport 74,37 28,1 181,11 2,081 0,4 9,64 171,47 -82,40 € €/year TCE/year year €/year €/year €/TCE € GJ/year €/year TCE/year year €/year €/year €/TCE Evaluation Several of these findings have been confirmed in other studies, like the 2003 ECODRIVER report of VITO. In that report a 2% fuel reduction is reported for combined eco-driving training and on board computers. Taking into account other cost reductions (maintenance cost, insurance cost and accident costs) initial investments would have payback times ranging from 1,7 to 7 years, offering some emission reduction potential al low to negative cost. Experts in the March 2003 SUMMA workshop in Brussels have expressed serious doubts on the actual driving effects of on-board vehicle equipment that would influence driving behaviour, and specifically on the long-term effects of driver training. However, as the VLIETbis report suggests, some of the potential may be captured by information campaigns at relatively low cost, hence driving down emission levels with benefits on social, private and environmental levels. If the doubts of consulted experts are taken into account, total emission reduction potential of these measures should not be overstated. On the other hand, even if some reduction can be established at low cost, both to vehicle users as to society as a whole, these opportunities offer a great advantage over expensive reduction measures, such as the ACEA agreement, which is reported to show implicit carbon emission abatement costs of € 111-263/TCE. 4.3.2. Improving public transport Public transport is in general considered as an environmental friendly alternative for car transport. Policy measures that increase the share of public transport in total passenger transport and decrease the share of car transport are therefore to result in lower CO2 emissions. The attractiveness of public transport services can be increased by improving service quality and by a stimulating pricing policy. As to improving public transport quality a wide range of measures that increase frequency, speed and the punctuality of the services exist. Infrastructure investments in cities as the delineation of dedicated bus or tram lanes, or priority rules favouring public transport could contribute to these goals. Several sources indicate that potential increases of bus and trams speeds of 10% up to 20% and even higher increases in reliability are possible in European 42 cities . 42 London Transport Buses, the London Bus Priority Network, 1997; and DITS, TTR, Public transport prioritization, Transport Research APAS, Urban Transport, vol. 25, Luxembourg 1996 Page 74 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment This kind of infrastructure policies will however have important side effects as a drop in average speed of cars and trucks as fewer driving lanes are left for private transport. As a consequence, congestion costs for users of these modes will increase. These side effects can lead to significant welfare costs as an important share of car drivers and almost all freight transport in cities can not switch to public transport. The Auto-Oil II Part IV Annex 4 reports that average bus speed of in Athens could be increased by 15% by delineating dedicated bus lanes and giving buses unconditional priority at intersections. These measures would imply infrastructure investment costs of € 71.417.000 and an annual operational cost of € 9.189.000. In 2005 the improved infrastructure could lead to an increase in bus transport by 5,1%. Car transport (-1,1%) and truck transport (-0,1%) would decrease. The measure would result in a rather limited reduction in CO2 emissions of road transport in Athens (-0,3%) and a welfare cost of € 3,28 per capita in 2005. The decrease in pollution and accidents as well as the time savings for buses do not compensate the increase in congestion costs for cars and trucks and the infrastructure costs. Moreover the welfare cost of the measure increases over the years (e.g. € 9,63 per capita in 2010) as a positive trend in car and truck transport is forecasted and consequently the effect of increasing congestion costs gains importance. Next to improving public transport quality, pricing policies could make public transport more attractive. Such measures would reduce environmental issues and congestion costs, but require increased public transport subsidies. The simulations in Auto Oil II, Part IV, Annex 4 for Athens analyze a decrease of bus- and metro tariffs by 30% in 2005, resulting in a decrease of car transport by 3% and an increase in public transport usage by 15,3% for bus and 13,2% for metro. Total passenger-kilometres would increase 2,1% and transport CO2 emissions would drop by 1,2%. The reduction in fares and lowered congestion costs for passenger and freight transport would lead to an advantage for consumers sufficiently large to compensate the increase in public transport subsidies. This policy measure is reported to result in a welfare gain of € 23,23 per capita in 2005. However, on increasing public transport subsidies readers should be pointed out the following. Currently the European transport sector shows a cost advantage in favour of private transport relative to public transport modes as car drivers do not pay for the external cost of congestion, air pollution, noise and accidents they cause. From an economic point of view tax increases on car transport would better reflect resource and external costs of private transport. Lowering public transport fares may correct the relative cost advantage for cars, but will lead to public transport prices that are significantly below its real cost. Note that such subsidies will make public transport cheaper for certain population groups that, at this moment will not or seldom make use of cars and thus may create inefficient incentives for these people to start using public transport- giving rise to overextended use. 4.3.3. Freight logistics policy HDV and LDV trucks are major contributors to total transport emissions. Measures that lead to a decrease of truck transport therefore can have an important effect on the emissions of the transport sector. Truck vehicle kilometres could be reduced by improvements in the logistics of freight transport and by increasing the attractiveness of freight transport by train or ship. Logistic improving should focus at reducing the number of kilometres that are driven with empty or half-filled trucks. Some studies indicate that these reduction possibilities are very limited, as transport firms are already managed very efficiently in an increasingly efficient common market. Other studies however do see opportunities in improved collaborations between firms or investments in city terminals and distribution centres. The Auto-Oil II Program, Part IV, Annex 4 analyses on a 10% increased average load factor of trucks traffic in Athens with TREMOVE simulations. Initially required investments amount to € 67.386.000, and annual operating expenses are € 51.105.000. This improved efficiency Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 75 SUstainable Mobility, policy Measures and Assessment SUMMA would lead to a 2% increase in freight transport (expressed in ton-kilometres) and a 7% decrease of truck-kilometres. As a result congestion costs for all road traffic are reduced, leading to a 0,3% increase in car transport. Such policy measure reduces transport CO2 emissions by 2,6% and increases welfare by € 169 per capita in 2005. If comparable improvements in freight logistics are possible they may result in important cost reductions for freight companies, and in emission and congestion reductions. 4.3.4. Summary discussion of other non-technical options to reduce GHG emissions This section has provided an overview of reports that consider non-technical measures to reduce greenhouse gas emissions, excluding pricing measures. A first option is to influence driving behaviour, where some opportunities may exist to reduce greenhouse gas emissions or fuel consumption at low to negative cost. This may offer some cheap abatement potential, compared to expensive emission reduction measures, though this potential should not be overstated. Measures to improve public transport differ significantly in cost-effectiveness. Simulations with TREMOVE in the context of the Auto Oil II Program have illustrated that modal shift potential for peak road pricing and increasing public transport rides in e.g. Lyon could achieve an 8% reduction in CO2 emissions with a net benefit for inhabitants and commuters as congestion drops significantly. Other local traffic measures, like public transport prioritizing, are shown to offer less carbon reduction, and at a net cost to the city of Athens. Page 76 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 4.4. COMPARISON WITH OTHER SECTORS The primary aim of comparing abatement costs across sectors is to introduce economy wide cost-efficiency. This section provides an overview of reports that consider economy-wide cost-effective greenhouse gas abatement strategies and provide insight to which extent the transport sector can contribute to the Kyoto target. The section includes • Bottom-up analysis • Top-down analysis with PRIMES • Top-down analysis with MARKAL 4.4.1. Bottom-up analysis 4.4.1.1. Background, scope and baseline As discussed in section 4.1.1, the Hendricks (2001) report provides information on the costs and potential of measures to abate greenhouse gas emissions from the transport sector as well as the other relevant sectors. Table 4-4 indicated that there exists some 116 MTCE emission reduction potential in the road transport sector by 2010. Of this, only half can be achieved at costs below 20 €/TCE at a 4% discount rate. 4.4.1.2. Abatement costs Next to the transport sector, also the energy supply, industry and the household sectors are major contributors to the overall GHG emissions. In 2010, replacing (and adding) energy production capacity by renewables may contribute to an emission reduction of 229 MTCE, of which 144 MTCE can be achieved at costs below 20 €/TCE at 4% discount rate. Even more important emission reductions can be achieved by measures, which do not imply the use of renewables. 639 MTCE, of which 521 Mton at costs below 20 €/TCE, can be reduced by such measures. The major share of this important reduction potential can be achieved by replacing new capacity (to compensate for growth in production and decommissioned capacity) by efficient natural gas-fired combined cycle power plants (NGCC) and/or by combined heat power installations (CHP). The report also indicates the reduction potentials in all other sectors. Table 4-26 summarises the identified reduction potential for all sectors. It is important to note once again that a significant share of the transport reduction potential will already be implemented as a consequence of the ACEA agreement and proposed measures with respect to freight transport may have been implemented already. Table 4-26: Sectoral emission reduction potentials for all sectors Sector Energy Industry Households Services Transport Waste Agriculture Fossil fuel extraction, transport and distribution Total Total emission reduction potential [in MTCE] 868 533 190 126 116 67 21 Potential at cost below 20€/TCE [in MTCE] 631 493 145 80 60 26 26 34 9 1.955 1.470 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 77 SUstainable Mobility, policy Measures and Assessment SUMMA From the figures in Table 4-26 we can conclude that, when policy makers intend to reduce GHG emissions in a cost-effective way, they should primarily take measures in the energy, industry, household and services sectors, as there is a much larger potential at lower costs. There is a potential to reduce GHG emissions from the transport sector cost-effectively but this potential is very limited. 4.4.1.3. Evaluation The researchers working on the ‘bottom-up’ report affirmed the latter conclusion. The final objective of the ‘bottom-up’ study was to identify a least-cost-allocation of objectives for different sectors and GHG so that the EU would meet its Kyoto target of –8% in 2008-2012 compared with 1990. The researchers started from a 2000 frozen technology reference level (FTRL) in which no additional development to reduce emissions from 2000 onwards were included. Taking into account the FTRL they calculated that 2010 GHG emissions in the EU would be 4672 43 MTCE . To reach the 8% Kyoto target in 2010, a 1480 MTCE reduction in GHG emissions would be needed compared to the 2010 FTRL level. The results of the study show that the Kyoto target can be realised by a set of options with specific costs up to 20 €/TCE. The leastcost-allocation of reduction objectives for different sectors, as identified by the report, is shown in Table 4-27. Table 4-27 Cost-effective sectoral contribution to Kyoto target 44 Emissions 2010 FTRL Emissions 2010 Kyoto target Change from 2010 FTRL Direct emissions Energy supply - CO2 fuel related 1.551 1.298 -16% Direct and indirect emissions Energy supply - other emissions Fossil fuel emissions Industry Transport Households Services Agriculture Waste Total 42 43 1.623 1.114 759 560 407 124 4.672 42 51 1.113 1.069 567 434 382 144 3.801 0% 18% -31% -4% -25% -23% -6% 16% -19% Emission breakdown per sector MTCE The total GHG emission reduction in the scenario shown in Table 4-27 would be 871 MTCE compared to the 2010 FTRL emission level. Measures in the transport sector would contribute only 45 MTCE, whereas options in energy supply, industry, households and services sectors would each be responsible for a significantly larger share of the total emission reduction. The report also indicates that options implemented between 1990 and 1998/2000 have already led to a 20 MTCE reduction in the transport sector. Moreover, one needs to take into account that a significant share of the 45 MTCE transport reduction potential will certainly be implemented as a consequence of the ACEA agreement and proposed options with respect to freight transport may have been implemented already. These results tend to affirm our earlier conclusion, i.e. there is a potential to reduce GHG emissions from the transport sector cost-effectively but this potential is limited, especially after implementation of the ACEA agreement. 43 Note that this emission figure in the 2010 FTRL technology reference is not a forecast of 2010 emissions but indicate the amounts of GHG that would be emitted in 2010 if 1990 technologies would still be used in that year. 44 All options with specific costs of less than 20 €/TCE are taken into account. Page 78 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 4.4.2. Top-down analysis with PRIMES 4.4.2.1. Background, scope and baseline In view of a preliminary agreement upon the Kyoto protocol, the European Commission started a research program focusing on emission reduction options that show the lowest costs per unit of greenhouse gas avoided, disregarding the country, sector or the type of GHG. The Commission opted to study the issue from different points of view. Therefore, simultaneously with the bottom-up study a top-down study was performed (Capros, 2001). Thus two approaches were used: • An engineering-economic analysis of individual emission reduction options, based on sector studies performed by ECOFYS and AEA technology (i.e. the ‘bottom-up approach’ discussed in section 4.1) • An integrated modelling analysis of the energy system and the associated CO2 emissions with the PRIMES model developed by NTU Athens (i.e. the ’top-down approach’ discussed in this section). The PRIMES model is a modelling system that simulates a market equilibrium solution for energy supply and demand in the European Union member states. The model determines the equilibrium by finding the prices of each energy form such that the quantity producers find best to supply match the quantities consumers wish to use. The equilibrium is static (within each time period) but repeated in a time-forward path, under dynamic relationships. As the PRIMES model is only capable of modelling CO2 emissions, and not other GHG, in the ‘top-down’ study, the results obtained from PRIMES on CO2 have been combined with the results obtained from the ‘bottom-up’ analysis for the non-CO2 GHG. The bottom-up study used a 2010 FTRL technology scenario as a reference in which it is assumed that 1990 technologies would still be used in 2010. The top-down study uses a different 2010 reference. A 2010 “business as usual” emission forecast was constructed, in which the effects of the policies and measures that were in place at the end of 1997 and also the effects of the ACEA agreement where taken into account. Note however that both references (i.e. 2010 FTRL and 2010 business as usual) are consistent as they are based on the same assumptions of activity growth for each of the sectors. Next to the difference in baseline assumptions, there are a number of significant differences between the ’bottom-up’ and the ‘top-down’ approaches that may lead to different outcomes. These differences include: • There are modest differences in the definition of the sectors between both studies. • PRIMES is a full energy-economic model explicitly modelling interactions (thus second order effects) in the energy systems, whereas in the ‘bottom up’ approach these interactions are accounted for on an ad hoc basis. • The ‘bottom-up’ approach’ focuses on options that are generally considered as climate change response options (i.e. energy efficiency improvement, fuel shift, renewable energy, etc.), whereas PRIMES also allows other reactions of the energy-economic system, such as structural changes and substitutions. • The technology data differ between the two approaches. In general, the ‘bottomup’ approach is more detailed in emission reduction options, especially in the area of end-use energy efficiency, but is less detailed in the energy supply sectors. PRIMES also comprises technology information, but it is particularly detailed in the power and steam sector, but less detailed in the energy demand sectors. • In the ‘bottom-up’ approach – as a default – social discount rates (i.e. 4 % per year) are used whereas PRIMES simulated the behaviour of actors by using sector specific discount rates that reflect time preferences of these actors. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 79 SUstainable Mobility, policy Measures and Assessment • SUMMA Whereas the ‘bottom-up’ approach only included emission reduction options for road and air transport, the ‘top-down’ approach also considers opportunities wrt rail and inland waterway transport. 4.4.2.2. Abatement costs Despite these important differences between the ‘bottom-up’ and ‘top-down’ studies, the outcomes were generally consistent when it comes to the cost-effective GHG reduction potential in the transport sector vs. the other sectors. Indeed, as is indicated in Table 4-28, the contribution of the transport sector in the total GHG emission reduction effort needed to reach the Kyoto Protocol target is limited if one would select the emission reduction options that show the lowest costs per unit of greenhouse gas avoided. Thus the bottom-up study confirms the conclusion reported in the top-down study: when policy makers intend to reduce GHG emissions in a cost-effective way, they should primarily take measures with respect to the industry, household and services sectors, and the related energy production capacity. There is a potential to reduce GHG emissions from the transport sector cost-effectively but this potential is limited. Table 4-28: PRIMES top-down cost-effective Kyoto compliance Emissions (MTCE) Energy supply Fossil fuel extraction, transport and distribution Industry Transport 2010 2010 Change % change Emissions Emissions from from Baseline Kyoto target 2010 baseline 2010 baseline Direct and indirect emissions 45 43 -3 -5,6% 61 51 -10 -16,0% 1.282 1.019 1.125 975 -157 -44 -12,3% -4,3% Households Services 748 500 684 428 -64 -72 -8,6% -14,4% Agriculture Waste TOTAL 398 137 4.190 382 120 3.807 -16 -18 -383 -3,9% -13,0% 4.4.3. Top-down analysis with MARKAL 4.4.3.1. Background, scope and baseline The 1999 report of Proost and Van Regemorter assesses the cost-effective CO2 emission abatement options of new vehicle technologies and fuel types in the Belgian transport sector, taking into account the technological possibilities in the other sectors. The study offers substantial indication that, if the market inefficiencies on the Belgian transport market would be corrected by an optimal taxation policy (i.e. marginal social cost pricing), introductions of new technologies and fuel types in the transport sector are not cost-effective compared to technological improvements in other sectors. The researchers first estimate CO2 emission reduction potential of an optimal marginal social cost pricing policy that should optimise transport flows with current technologies. Using the 45 TRENEN model they show that such an optimal taxation policy would result in a reduction in CO2 emissions of the transport sector by 2,5%. 45 TRENEN is a partial equilibrium model for the transport sector developed by a consortium coordinated by the Catholic University of Leuven for the EU-Joule programme. Page 80 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment In a second phase, the authors assess whether on top of an optimal taxation policy further cost-effective CO2 emission reductions would be possible in the transport sector. To this 46 purpose the MARKAL model was re-established . MARKAL represents all demand- and supply processes for energy products (as PRIMES). All available and future technologies for all sectors in Belgium are represented in this model. 4.4.3.2. Abatement costs The authors identified which technologies would need to be introduced to reach different CO2 emission reduction goals by 2030. The report indicates that even if one would need to reduce CO2 emissions by 40% in 2030, an introduction of new technologies in the transport sector is not cost-effective. Reducing transport demand and introducing more efficient technologies in other sectors, primarily in the energy supply and industry sectors, would reach this goal most cost-effectively. The report displays different scenarios relative to a ‘business as usual’ scenario for the period 1990 – 2030. Table 4-29 shows the study outcomes for three of these scenarios. In each of these scenario’s it is assumed that the total CO2 emissions in 2000 would be limited to the 1990 level minus 5%. From there on, three future emission reduction objectives are calculated: a stabilization of CO2 emissions at their 2000 level up to 2030; a 20% reduction to be reached in 2030; a 60% reduction to be reached in 2030. Note that the two latter objectives are significantly more stringent than the Kyoto protocol. The first two columns in Table 4-29 show the share of different sectors in total CO2 emissions when no emission limit is imposed on the energy system (i.e. in the business as usual scenario). The next columns give the reduction in CO2 emission per sector compared to the reference scenario for each of the three scenarios. Table 4-29: MARKAL cost effective emission reduction scenarios BAU Share in % Electricity Industry Transport Domestic 2000 18,3 33,1 20,1 25,0 2030 21,4 34,4 22,9 17,7 Stabilization 20% reduction 60% reduction Emission reduction (%BAU) 2000 2030 -39 -39 -13 -9 -1 -1 -4 -8 Emission reduction (%BAU) 2000 2030 -39 -69 -14 -35 -1 -2 -5 -13 Emission reduction (%BAU) 2000 2030 -33 -89 -14 -77 -1 -25 -8 -76 From the table (and other reported scenario outcomes, not shown in this table) it is clear that the relative contribution of the transport sector to a cost-effective CO2 emission reduction policy is very limited. Up to a 40% reduction scenario there is no switch to more efficient technologies or technologies using less CO2 intensive fuels. The CO2 reductions in the transport sector are achieved by a reduction in transport demand rather than by a shift to new transport technologies. Only when a stringent 60% reduction is imposed, changes in 47 technology are cost-effective. Methanol cars and trucks, diesel cumulo buses and electric battery buses would then be introduced at the end of the horizon, i.e. after 2025. 4.4.3.3. Evaluation This study, although limited in scope to CO2 emissions, confirms conclusions from previous reports with different approaches (among which technical bottom-up reports). Cost-effective policy measures to reduce CO2-emissions in the transport have a limited potential. The 46 MARKAL is an energy optimisation model developed within ETSAP, an IEA implementing agreement. It was implemented for Belgium with support of the Belgian Science Policy Office, under the impulse program ‘Global Change’. 47 Diesel Cumulo Buses are buses that store energy from braking. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 81 SUstainable Mobility, policy Measures and Assessment SUMMA potential to reduce greenhouse gas emissions in a cost-effective way is much larger in some other sectors as energy supply and industry. 4.4.4. Summary discussion of the comparison with other sectors Both the bottom-up and the top-down EC reports on greenhouse gas emission reduction possibilities in transport point to limited cost-effective potential in technological innovation, as carbon emission abatement in other sectors is much cheaper than in transport. The bottom-up report indicated a 4% cost-effective reduction potential (compared to 31% in industry for example), before the ACEA agreement. This leaves little room for extra costeffective measures as from now. The top-down reports both indicated similar results (4% to 1% cost-effective emission reduction potential, compared to 13% in industry and 39% in electricity generation). To the extent that there is some cost-effective emission abatement potential remaining, it is relatively small. The environmental policy focus in the transport sector should therefore not focus on greenhouse gas emission reduction. Page 82 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 4.5. SUMMARY DISCUSSION OF REDUCING TRANSPORT GHG EMISSIONS Greenhouse gas emission abatement options are to be found in vehicle technology, fuel technology, and traffic management and road pricing options. Reports under survey include cost-effectiveness reports of the Auto-Oil II Program and EC Bottom-up and Top-down studies focusing on technological options and fuel switching, and EC and local reports on traffic management systems and fiscal measures stimulating the sales of fuel-efficient vehicles. The survey of these reports indicates some limited technical potential in transport to reduce CO2 emissions, but stresses that other sectors may provide these CO2 reductions at far lower costs. Moreover, as the baseline scenarios in these reports often do not take into account new legislation decided upon, and the voluntary ACEA agreement to reduce average fuel consumption of new cars, it is unclear whether technological vehicle innovation as such offers more unexploited potential to reduce carbon emissions below € 20/TCE. However, as an internal EC report and a US report point out, technological greenhouse gas abatement measures may not be cost-effective as they entail second-order effects that may annihilate emission abatement efforts, while still resulting in high extra costs. Moreover, similar abatement results can be obtained at much lower cost by using non-technical policy measures like increasing fuel taxes or exploiting road pricing options. The advantages of non-technical policies were elaborated further in sections 4.2 and 4.3. Reports of Proost (1997, 2001) indicate that a fuel-efficiency standard may represent social costs of € 363/TCE, while equivalent fuel taxes reduce the costs to € 326/TCE. Taking into account other external effects (reduced congestion and air pollution), the costs of a fuel efficiency standard would drop significantly to € 255/TCE, while a € 1 increase in fuel taxation may offer € 175/TCE net benefits while reducing CO2 as well. Equivalent road pricing would increase total benefits per carbon abatement four-fold compared to fuel taxes, as the reduction in congestion costs entails major societal benefits. Similar Auto Oil II reports confirm these suggestions in simulations for Athens and Lyon. Specific schemes that subsidise old vehicle scrappage and specific infrastructure investments for public transport are reported to show less favourable results. Vehicle scrappage may result in higher use of the replacement vehicles, annihilating primary emission reductions. Specific infrastructure for public transport, such as dedicated bus lanes, entail only limited CO2 emission reduction, show high infrastructure costs and may result in higher congestion for car users as less car infrastructure remains. Local reports offer some support for incentives toward eco-driving (driver training and onboard equipment) as some reductions may be available at zero or negative cost. The doubts of SUMMA experts on the potential of voluntary measures influencing driving behaviour should be noted. Also, carbonising registration or circulation taxes may increase incentives to choose fuel-efficient vehicles, but the net impact is restricted, as it does not influence vehicle kilometres. On the methodological level, some of the reports in this section include cost estimates that correct for the benefits of CO2 reducing policy measures in other fields like air pollution and congestion. As these secondary benefits may contribute significantly to the net cost of carbon emission reduction, they offer policy makers an integrated view of the effects of policy measures and should hence be preferred to single point cost-effectiveness estimations. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 83 SUstainable Mobility, policy Measures and Assessment SUMMA A summarising table with all the discussed options and abatement costs can be found below. Table 4-30: Summary: abatement costs for greenhouse gasses in the transport sector Reports Bates, Hendricks Options road vehicle technology (passenger cars): mostly engine improvements, lightweight body and block Bates road vehicle technology (freight): most cost effective measures are aerodynamics, weight reduction road transport, limited technical opportunities Capros PRIMES Kleit Auto-Oil II road transport ACEA agreement Capros PRIMES Bates rail transport, cost-effective options exist Capros aviation, options in load factors and traffic managment fuel-technology, emission reduction options to 1020% fuel-efficiency standard, without taking into account other external costs fuel efficiency standard, including welfare effects of other external costs car choice - circulation and registration taxes, 5% close to the 120 g/km target subsidising vehicle scrappage, leads to higher amount of CO2 due to increased traffic fuel-efficiency standard, including external costs flat road charging Auto-Oil II Proost Van Herbruggen COWI Auto-Oil II Proost Proost and Van Dender VLIETbis aviation, no options on the short run exists Auto-Oil II less fuel consumption by improved driving behaviour (not taking into account ACEA agreement), total emission reduction not very large improving public transport Auto-Oil II freight logistics improvement Page 84 Abatement costs from 20 to 1.200 €/ton CO2 most lay in the range 200-400 from –100 to 400 €/ton CO2 no abatement costs calculated “extremely high” no abatement costs calculated no abatement costs calculated no abatement costs calculated no abatement costs calculated no abatement costs calculated 369 €/ton CO2 88 to 284 €/ton CO2 no abatement costs calculated no abatement costs calculated 44 to 919 €/ton CO2 958 to 3.700 €/ton CO2 -50 to 160 €/ton CO2 no abatement costs reported, welfare gain in cities no abatement costs reported, welfare gain in cities Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 5. REDUCING TRANSPORT NOISE ANNOYANCE Noise annoyance reduction is “subjective” and therefore difficult to assess without properly defined tools. Reducing noise levels results in a reduction of noise annoyance, but this parameter is quite difficult to translate into “real” figures or values as the relationship between noise annoyance and noise may not be linear. However, within the scope of this task, the authors confined to “noise parameters” as dB(A), as the literature does not provide solid grounds to assess “noise annoyance parameters”. When aiming to reduce the effects of transport-originated noise on people, three levels of noise can be targeted: • Noise source The most common source of environmental noise is road traffic. Road traffic noise accounts for more than 90% of unacceptable noise levels (daytime LAeq> 65 dB(A)) in Europe. According to the European Environmental Agency (EEC, 2000) about 30% of the EU population are exposed to road traffic noise levels above 55 dB(A). The two main noise sources emitted by a road vehicle running at a constant speed are mechanically originated noise (engine, exhaust system) and rolling noise (tire-road noise). Acceleration increases noise annoyance from mechanical (motor) sources. Other sources of transportation noise such as train and aircraft noise constitute far more local problems but can still cause annoyance to many people. Other outdoor noise sources are industry, construction sites, concerts, exhibitions and sports arenas. Reduction of noise at the source is usually the most effective control, but may be costineffective. • Transmission path Outdoor noise levels usually decrease with increasing distance from the source because of geometrical spreading of the noise energy over a bigger surface and absorption of the noise by the atmosphere and by the ground. Barriers can achieve additional reduction of noise levels. • Buildings Sound insulation of buildings may prove to be the final barrier to the potentially intruding effects of environmental noise, but do not improve outdoor noise annoyance. It remains true however that transport noise is one of the least regulated external costs of transport, with the notable exception of air transport near large agglomerations. Incorporating these effects into the costs of transport may contribute largely to sustainable (i.e. balanced) transport growth. Many of the reports under survey do not display noise abatement costs as such. Moreover, most of the reports consider only noise reduction measures for road transport. However, as each study identifies to some extent possible noise reduction measures, with some indication of effectiveness, abatement potential or cost, all relevant results are displayed. Moreover, the reports under survey that do offer some indications on abatement costs often fail to take into account all relevant costs. Projects for government institutions do not attribute costs to more silent tires, and it is not clear that this reflects a true zero cost to society or more specifically reflects the assumption that will not influence investment costs paid by government institutions. Moreover, none of the reports under survey take into account that Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 85 SUstainable Mobility, policy Measures and Assessment SUMMA public spending on noise reduction or vehicle noise standards may reduce existing levels of noise abatement expenditures by local residents. As a consequence, they may overstate the total costs to reduce noise annoyance from transport. The remainder of section discusses • Technology options • Non-technical options 5.1. TECHNOLOGY OPTIONS Since 1966 automotive manufacturers have considerably contributed towering the noise burden on people. Thanks to the application of efficient traffic noise measurement procedures it has been possible to clearly reduce the contributions made by such partial driving-noise sources as the engine, the drive train as well as the exhaust and intake systems. Technologies that were used include multi-damper systems, optimised combustion conditions, precise tuning of running clearances, stiffness optimisation, reduction of noiseradiating surfaces, noise-damping material combinations, encapsulations etc. This noise reduction is particularly beneficial at high engine loads and speeds. Figure 5.1: Range of Variation of the Noise Sources with Future Trends 48 The automotive industry will continue refining the noise reducing technologies, partly triggered by noise limits (external noise) and certainly inspired by consumer comfort wishes (interior noise). It should be kept in mind that the acoustic performances of the complete drive train system are not so much dictated by legislation but rather by the customers’ own demands and available technology. To lower the exterior noise of a car to the current legal limit of 74 dB(A), more than 20 partial noise sources with levels ranging between 55 and 70 dB(A) need optimisation. One of the main contributing partial noise sources are tires - with a standard road surface according to ISO 10844 and under full-load pass-by conditions acc. to ISO 362, as indicated in Figure 5.1. As far as intake and exhaust systems are concerned, the noise-emission levels have reached extremely low levels already so that efforts for further reduction would not have great impact. 48 VDA (Verband der Automobielindustrie) memo March 17, 1999, VDA UAG Ad Hoc working group. Page 86 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment The rolling noise, in contrast, tends to increase, as is shown in Figure 5.1. This is due to the use of wider tires required to comply with the standard road surface according to ISO 10844, and to the sub-optimisation of tires to external noise effects. Figure 5.2: Noise source distribution of a 74 dB(A) vehicle in pass-by test Policy measure may focus on • Tire width • Body noise - commercial vehicles • Motor technology 5.1.1. Tire width Current generation car tires are much wider than when noise emissions were first measured 30 years ago. A study of tires fitted to cars in the UK in the past 15 years showed the average rate of increase to be about 2 mm per year. Generally speaking wider tires are noisier tires. Recent studies have established that car tire noise levels increase by between 0,2 and 0,4 dB(A) for each 10 mm increase in section width on a wide range of road surfaces. However, car tire width is regulated for safety reasons, indication possible trade-offs between noise and safety. 5.1.2. Body noise - commercial vehicles Body noise is primarily a problem associated with commercial vehicles and relates to noise generated by contact between various parts of the vehicle body, chassis and suspension. The forces in the vehicle structure causing these impacts occur principally when these vehicles travel on uneven road surfaces. Typical sources of body noise are: different suspension systems, movement of de-mountable containers, rattles caused by poorly fitting doors and locking mechanisms, lifting gear and hydraulic equipment, loose fittings and fastenings and unsecured chains and equipment and vibrating body panels. There are no sources indicating costs of lowering these noise annoyances. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 87 SUstainable Mobility, policy Measures and Assessment 5.1.3. SUMMA Motor technology The "pass-by" noise-rating limits have been reduced over the past 20 - 30 years by approximately 8 dB(A) for cars and 15 dB(A) for lorries. Costs for these noise reductions have not been found in the literature. 5.2. NON-TECHNICAL OPTIONS Non-technical options include • Traffic management • Infrastructure 5.2.1. Traffic management 5.2.1.1. Reducing traffic volumes To reduce the road traffic noise caused by an arterial road from 73 dB(A) to the alarm level of 70 dB(A), the volume of traffic has to be halved. To comply with the impact threshold of 60 dB(A), the level of traffic would have to be cut by no less than 95 percent. Traffic volume reduction has only limited potential to reduce noise annoyance as such drastic traffic reduction entails important economic effects. 5.2.1.2. Traffic calming and speed reduction An alternative is traffic-calming measures, i.e. reducing noise emissions by means of lower speeds (lowering speed limits). A 1999 study by Lelong and Michelet shows that the effect of small accelerations (i.e. lowsized engine load) on the noise emitted by a vehicle is negligible in comparison to the noise levels measured when the same vehicle is running at constant speed. On a test track in France, Lelong and Michelet performed measurements of acceleration pass-by noise from different types of vehicle, speed and used gear. For strong accelerations the noise increase reached 5 db(A) in the case of a passenger car and 7 db(A) for a commercial vehicle. Reducing the average speed of traffic should therefore be a more desirable area to reduce vehicle source noise. Traffic calming techniques, such as the installation of road humps and cushions in urban areas, were shown to be effective in reducing the speeds at which drivers choose to travel. The UK Department (DETR) commissioned studies into some possible causes of negative effects. These studies have shown that after the installation of road humps and speed cushions the maximum noise levels from cars are reduced. The overall traffic noise level is also reduced if the traffic stream is mostly cars. Typically the reductions achieved in an urban setting are in the range 4 – 7 dB(A). However, road humps and speed cushions have a more complex effect on noise from commercial vehicles. The net effect on overall traffic noise depends on the proportion of large 49 commercial vehicles in the traffic stream and on the type of road hump installed . 49 See Phillips and Abbott (2001) for this. Page 88 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 5.2.2. Infrastructure 5.2.2.1. Road surface Low-noise road surfacing materials (porous asphalt) is a relatively new technique allowing for reductions in noise. Porous asphalt and the newer "thin noise-reduced surfaces" have shown reductions of 2 – 6 dB(A). The UK Highways Agency claims to use low noise surfaces which typically reduce noise levels by 6 dB(A). 5.2.2.2. Barriers Where noise cannot be prevented at source, it can be controlled along the dispersal route with noise attenuation barriers. Noise wall materials include earth, concrete, steel and wood. Earthen walls are most effective in noise reduction and are reported to be least expensive. However the lack of available right-of-way usually makes other noise wall the most practical solution. Noise walls are generally designed to provide noise reductions of 8 dB(A) or more. However, a minimum reduction of at least 5 dB(A) is required in order for the noise wall to be considered minimally effective. The goal is usually a 10 dB(A) reduction in the average traffic noise levels for the majority of the first row of residences located directly behind the wall. Barrier heights for road traffic noise reduction are typically between 3 and 7 m with an average of 4 metre. Current construction costs are averaging 200 euro per square metre or 800.000 euro per 50 kilometre . 5.2.2.3. Sound insulation of buildings Alternative measures such as sound-insulating windows provide in-house noise reduction only. However, these measures are currently undertaken by inhabitants and are not reported. Note that as transport policy measures may reduce overall noise levels, these expenditures may be reduced as a consequence. Hence, the reduction in the noise reduction costs born by inhabitants should be deducted from costs born by car users or infrastructure budgets to reflect total abatement costs in net terms. 5.2.2.4. Rail traffic noise Railway noise can be reduced by the use of welded rail track laid on a concrete bed with elastic/resilient pads or mats. 5.2.3. Integrated Policy Package The National Institute of Public Health and the Environment in the Netherlands reports noise abatement cost estimates of a package of policy measures directed at reducing road and railway noise for urban and non-urban areas countrywide. These measures would be implemented in the period 2010-2030. 50 Calculated based on the costs of barriers in 6 USA States in 1995 (California, New Jersey, Virginia, Minnesota, New York, Pennsylvania). Source: US DOT. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 89 SUstainable Mobility, policy Measures and Assessment SUMMA The report is based on an acoustic model encompassing noise emissions from all roads, railways and major airports. The baseline scenario includes increased traffic flows in urban and non-urban areas. Cost-effectiveness is calculated as net present values in 2000 prices at a 4% discount rate to achieve a significant reduction of problem areas. These areas are defined as areas where noise levels are higher than threshold values. For living areas a threshold value of 55 dB(A) during 12 hours is used. Other areas (space areas, silent areas, nature) are defined with lower noise levels. Figure 5.3 illustrates the reduction in problem areas in the Netherlands in 2030 as a consequence of the proposed RIVM policy measures. The left pane illustrates problem areas as red and orange dots without policy measures. The right pane illustrates the situation with new policy measures, limiting red and orange dotted areas to some specific locations with high traffic volumes. Policy measures would thus reduce noise problems by 80% in urban areas and up to 55% in non-urban areas. Figure 5.3: RIVM effect of measures on noise problem areas in the Netherlands The policy measures for road traffic include noise reducing asphalt on all roads with intensive use, refurbishing existing roads with new asphalt, silent tires, and local traffic management interventions. Total effects of these measures on ambient noise levels in 2030 are indicated in Table 5-1 in dB(A). Note that silent tires are reported to be effective in all areas. Table 5-1: Noise reduction effectiveness in 2030 in dB(A) Silent asphalt Road refurbishment Silent tires Local traffic management Page 90 Highways -3 -5 -4 Regional roads -2 -4 -4 -12 -10 Urban area -3 -2 -5 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment For rail transport different measures are achievable, including silent passenger trains (-5 dB(A)), silent freight trains (-10 dB(A)), and silent rail infrastructure (-3 dB(A)). Air transport is regulated in baseline for noise annoyance according to a 1995 law. Costs estimates in net present value (2000) are € 6.900 million to € 9.500 million for the whole package of policy measures. Note that these estimates do not include costs for silent tires, though the report indicates that silent tires are important noise reducing instruments. A reduction in noise abatement expenditures by residents is not included as secondary impact reducing overall costs. Table 5-2: Cost estimates of noise annoyance reducing package in Netherlands Highways Regional Roads Urban area Rail transport low estimate 1.760 990 1.342 2.794 6.886 high estimate 2.926 1.628 1.342 2.794 9.548 5.3. SUMMARY DISCUSSION OF REDUCING TRANSPORT NOISE ANNOYANCE Noise reduction is a somewhat specific area of research as it entails more than emission abatement, but aims specifically at reducing multi-source noise annoyance in local areas. As such, no specific costs to reduce noise annoyance have been found in the survey, except for a report for the Netherlands indicating a total cost in net present value of € 7.000 to € 9.500 million to reduce country-wide problem areas by 80% in all cities and up to 55% in other remaining areas. As further research will be required in this field, some relevant abatement options haven been identified. With respect to road vehicles, the influence of tire width needs to be addressed as this may contribute largely to noise abatement. For infrastructure, road maintenance may be required to consider putting silent modes of road cover in place. For new roads in densely populated areas, noise assessment reports may help local authorities to decide upon noise reduction infrastructure. This is one of the objectives addressed by the Directive on 51 environmental noise , which requires competent authorities in Member States to produce strategic noise maps on the basis of harmonised indicators, to inform the public about noise exposure and its effects, and to draw up action plans to address noise issues. 51 DIRECTIVE 2002/49/EC of the European parliament and of the Council of 25 June 2002 relating to the assessment and management of environmental noise Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 91 SUstainable Mobility, policy Measures and Assessment Page 92 SUMMA Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 6. ABATEMENT OF ROAD ACCIDENTS Road safety refers to a reduction in road risk and crash costs. There are various ways to improve road safety: • Reduce total vehicle mileage; • Reduce per mile crash rates (more caution drivers, safer roads); • Use of day running lights; • Reduce traffic speeds; • Infrastructure investment; • Improved vehicle occupant protection (energy absorbing vehicle designs, seat belt use, helmet use, air bags); • Improve emergency response and trauma care; • Use of collision warning and cruise control systems; • Reduction of blood alcohol levels while driving; • Αwareness of the effects of drugs or medicines on driving; • Improve long-term medical treatment and rehabilitation for traffic victims; • Reduce vehicle repair costs; • Etc. There have been some studies with an overall assessment of a policy package of safety measures: • The SWOV study: a cost-effectiveness analysis of the roads safety measures in the Dutch national transport plan. • The study by Vahidnia and Walsh, UC Berkeley investigates the cost-effectiveness of traffic safety interventions in the United States. 6.1. SWOV STUDY In 2002, the Dutch SWOV has calculated the effects of the NVVP (national transport plan) measures, to be able to judge the achievability of the road safety targets in the Netherlands The NVVP aims about 300 fewer deaths in 2010 and a decrease in the number of in-patients by 4.600. The study consists of two parts (SWOV Reports D-2000-09-I and D-2000-09-II). In the first part, the effect of each measure separately was totalled to calculate their combined effect on the national casualty reduction. The second part examined the costs and cost-effectiveness of each measure. These were calculated to examine the costs of the total package of measures. The calculated cost-effectiveness gives for very measure insight in the costs needed to reduce the number of victims by 1. The aim was to rank the measures by efficiency, and by that to help the government choosing the right road safety policies. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 93 SUstainable Mobility, policy Measures and Assessment SUMMA Table 6-1: Cost-effectiveness of the Dutch NVVP measures, SWOV, 2000 measure 1. Redesign of 48.000 km urban roads into zone 30 and similar profiles 2. Redesign of 8.500 km urban roads into local arterials, including bicycle roads and roundabouts 3. Reformation of 47.000 rural roads into speed reducing profiles, mostly with road markings 4. Reformation of 7.300 rural roads into local arterials 5. Measures on 2.600 km of main 2x1 roads, e.g. building central reservation, changing intersections 10 Enforcement and education, e.g. speed control, seatbelts, alcohol. 12 Improved diving licence procdures 13 Safety culture in 70.000 freight transport companies 16 Introduction of a driving licence for mopeds 17 Obligation for day running lights 20 Bicycle reflector 23b Introduction of blind angle mirror for LDV’s 30 Closed side protection of 26.000 HDV’s 31 Open side protection of 26.000 HDV’s 37 Electronic tachograph / board computer in 550.000 LDV’s - 37 Electronic tachograph / board computer in 130.000 HDV’s Page 94 investment per year (million euro) reduction in victims in one year (# deads and in-patients) 58 duration total corrected reduction in victims cost per victim (million euro) 37 30 671 0,09 57 37 30 672 0,09 7 21 30 376 0,02 82 34 30 604 0,14 202 8 30 148 1,36 77 961 1 961 0,08 43 201 3 580 0,07 25 55 1 55 0,46 18 113 3 326 0,05 25 99 1 99 0,25 2 4 10 30 0,05 125 12 10 101 1,24 51 27 10 228 0,22 11 25 10 211 0,05 500 260 351 193 4,55 5 2961 1628 0,37 0,07 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 6.2. VAHIDNIA AND WALSH STUDY Vahidnia and Walsh (2002) conducted a comprehensive review of the literature on the results of all available studies on cost-effectiveness and traffic safety in the US. The relevant literature has been identified through the use of electronic databases, hand searching of journals, scanning reference lists, and consultation with corresponding authors and experts. In thee study, a detailed description of each intervention, the CE ratio, and their source was presented in a large table. CE ratio for identified traffic safety interventions has a wide range, varying between less than $0 to more than $8 million per for side door strength standard in light trucks to minimize back seat intrusion, or $450,000 per quality-adjusted life-year saved for shoulder belts in rear seat of passenger vehicles. Many of the interventions will save lives and prevent injuries at cost of less than $50,000 per life-year saved. In the study, Vahidnia and Walsh summarized a number of cost-saving interventions as the first priority for decision makers, see Table 6-2: First Priority. Table 6-2: First Priority Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 95 SUstainable Mobility, policy Measures and Assessment Page 96 SUMMA Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment 7. CONCLUSIONS AND FURTHER STEPS The current report has contributed to the SUMMA project in reviewing the potential and costs of different options to bring European mobility back in line with sustainable mobility, focusing on two main policy questions. • Should environmental problems be tackled in the transport sector or are there solutions in other sectors that provide cost advantages to do so? • Within the transport sector, what policies could support sustainable transport at low costs? In section 3 abatement options in air pollution have been tackled. The cross-sector comparison revealed that for PM, the technological abatement options for air pollution from transport are relatively expensive, especially if one takes into account the cheap PM reduction options in accessing countries. This is not the case for NOX, where the transport sector may be required to take technological options (DeNOX catalysts) to assist in reducing NOX emissions from some point on. However, the survey on non-technical measures to reduce air pollution indicated that these efforts may need to take place in local urban traffic management with parking charges and traffic control regulations as these strategies combined relatively low costs to high reduction potential of overall air pollution and congestion. Section 4 considered greenhouse gas abatement options for the transport sector. As to technological options, most reports indicated that CO2 abatement is achieved with less costs in industry and in power generation than in transport. Some low-cost potential may be achieved if policy measures are able to influence driving behaviour strongly. Non-technical policies including fuel taxes, peak road pricing and local traffic management have been reported to offer favourable emission reductions while at the same time reducing congestion costs by that much that it more than compensates for the extra costs born by transport users. Moreover, these policies can be optimised to introduce modal shifts, favouring public transport in urban areas. Section 5 considered noise abatement costs in transport. The survey pointed to some general options to reduce noise annoyance, especially in tire width and motor noise. However, specific research on noise annoyance abatement costs needs to be established. Section 6 considered abatement costs for road safety. The survey in this report revealed some important headlines for policy measures on a European level. A first headline points to the availability of non-technical measures such as road pricing and local traffic management interventions that may avoid using expensive vehicle or fuel technology standards. In particular, road pricing and local parking and traffic management regulations may contribute cost-effectively to the reduction of transport emissions. Taking into account reductions in congestion costs, these policy measures allow policy makers to reduce emissions without net costs to society. Increased fuel taxes do allow for market-based emission control as well, but have less impact on congestions and hence offer only a secondbest solution to an integrated transport policy. A second headline points to the availability of low-cost reduction potential in other sectors. Especially in greenhouse gas emission reduction and PM10 abatement the economical potential to switch technologies (not including non-technical measures) in transport is limited when compared to the potential in other sectors (mainly the energy sector and industry). This may be somewhat less the case for specific pollutants like NOX and VOC, where the contribution of transport to total emissions is important, and end-pipe technology for vehicles may become cost-effective if major reductions in these emissions need to be established. However, insisting on increasingly high technical standards in transport while not using low- Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 97 SUstainable Mobility, policy Measures and Assessment SUMMA cost opportunities in other sectors should be considered as a waste of valuable resources. Some available EC reports have pointed this out clearly. A third headline points to the scarcely available information on cost-effectiveness for measures that affect multiple sources of pollutions. Though technical estimates for vehicle and fuel improvement are becoming widely available, and indications of costs are becoming more reliable, only few reports consider the integrated cost-effectiveness of policy measures that tackle multiple emission sources. Currently such an approach is developed in the MERLIN project funded by the European Commission. As integrated reports become more available, policy maker may find that some policy measures may seem expensive with respect to single pollutant abatements, but prove to be least-cost alternatives in view of the many pollutants it may target. This leads us to a final headline on sustainability in transport. If sustainability is to be defined as relating the cost of scarce resources –including effects on others- to the use of these resources, optimal pricing policies may provide market-based solutions that combine costeffectiveness and sustainable development. Pricing policy frameworks can be developed by European institutions, to be filled in by national-, regional and local authorities to develop a level playing field. However, reports on such pricing mechanisms and effective implementation reports are scarce and scattered, and deserve more attention in future research programs. Further research should be aiming at providing decision makers with tools to support their decisions on emission abatement programs and transport restructuring efforts. As indicated in this report, comparability across currently available reports is limited due to different baseline assumptions, different calculation methodology, and different basic parametres and approaches (such as the single pollutant approach versus integrated abatement approaches). A general framework providing generally accepted estimates on external damages (such as ExternE) could provide a first step forward towards integrated policy assessment. These estimates could be used in cost-benefit assessments as well as in multi-point cost effectiveness assessments. As such efforts will be done later during the SUMMA project, this could offer major improvements in both methodology and results of integrated resource planning. 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(2000), Verkeersveiligheidsanalyse van het concept-NVVP, Deel 2: Kosten en kosteneffectiviteit, SWOV, Nederland Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 101 SUstainable Mobility, policy Measures and Assessment Page 102 SUMMA Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment GLOSSARY additive ambient noise background noise bio diesel catalyst CNG CO CO2 compression ignition engine cost-effectiveness crude; crude oil dB (decibel) db(A) diesel diesel engine Additives are added to the fuel in small amounts to improve the properties of the fuel. For instance, anti-sludge additives prevent the deposits of carbon and tar on the inlet valves and other engine parts. The total of all noise in the environment, other than the noise from the source of interest. This term is used interchangeably with background noise. The total of all noise in a system or situation, independent of the presence of the desired signal. In acoustical measurements, strictly speaking, the term "background noise" means electrical noise in the measurement system. However, in popular usage the term "background noise" is often used to mean the noise in the environment, other than the noise from the source of interest. Automotive fuel consisting of etherified vegetable oils like rapeseed methyl ester and soybean methyl ester. 1. Substance that influences the speed and direction of a chemical reaction without itself undergoing any significant change. 2. Catalytic reactor which reduces the emission of harmful exhaust gasses from combustion engines. Compressed Natural Gas. Carbon monoxide. Carbon dioxide. Internal combustion engine with an ignition caused by the heating of the fuel-air mixture in the cylinder by means of compression. This compression causes a rise in temperature and pressure, which make possible the spontaneous reaction between fuel and oxygen. Also called a diesel engine. The extent to which a policy achieves a given target at low cost. Crude mineral oil. Naturally occurring hydrocarbon fluid containing small amounts of nitrogen, sulfur, oxygen and other materials. Crude oils from different areas can vary enormously. A unit of sound pressure level, abbreviated dB. Unit of sound level. The weighted sound pressure level by the use of the A metreing characteristic and weighting specified in ANSI Specifications for Sound Level Metre, S1.4-1983. db(A) is used as a measure of human response to sound. Diesel is the most widely used off-grid electricity generation and water pumping fuel source in the world. Diesel gensets are found all over the developing world, and serve as back-ups in most urban and grid-connected settings for essential services (such as hospital operating theatres, important telecommunications complexes, etc.). 1. Combustion engine running on diesel oil; 2. The gasoline-engine (Otto-engine) wasn't very efficient, that is why 1892 Rudolf Diesel had developed the engine with great efficiency named after him. Diesel's goal was to create an engine that could compress air to temperatures high enough that selfignition would occur. This goal was not practical, but his design created an engine for which the choice of fuel is less demanding than that of the Otto engine. In the Diesel cycle, combustion occurs at constant pressure (as opposed to constant volume in the Otto cycle). A gasoline engine intakes a mixture of gas and air, Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 103 SUstainable Mobility, policy Measures and Assessment SUMMA compresses it and ignites the mixture with a spark. A diesel engine takes in just air, compresses it and then injects fuel into the compressed air. The heat of the compressed air lights the fuel spontaneously. diesel (oil) dual-fuel vehicle EEA EEV emission permit engine EU EUROSTAT ExternE evaporative emission fuel cell gasoline, gas Page 104 1. A mixture of different hydrocarbons with a boiling range between 250° and 350° C; 2. A fuel for compression ignition or diesel engines. Also called bi-fuel vehicle. Vehicle fitted with one engine and two fuel systems. The engine can operate on both fuels. An example is an LPG/Gasoline dual-fuel vehicle. European Environmental Agency Enhanced Environmentally Friendly Vehicle: permissive concept that allows Member States to promote EEV introduction through Tax Incentive Schemes based on Directive 1999/96/EC A document entitling the owner to emit one unit of pollution (where a unit is defined by the permit). From an economic and legal perspective, a permit assigns a property right—the right to emit a specified amount of pollution—to the owner of the permit. The main engines used for vehicles are the diesel engine and the gasoline engine (= Otto engine). Both gasoline and diesel automotive engines are classified as four-stroke reciprocating internal-combustion engines. Besides the diesel engine and the Otto engine, there is a third type of engine, known as a two-stroke engine. The engine in the Mazda Millennia uses a modification of the Otto cycle called the Miller cycle. Gas turbine engines use the Brayton cycle. Wankel rotary engines use the Otto cycle, but they do it in a very different way than four-stroke piston engines. European Union Statistical Office of the European Union Externalities of Energy; series of projects initiated and supported by the European Commission Emission of hydrocarbons of a vehicle from sources other than the exhaust pipe. Important sources are the venting of the fuel tank and the carburetor. Evaporative losses are subdivided into: – running losses – diurnal losses – hot soak losses An apparatus in which electricity is generated by a reaction between hydrogen and oxygen forming water. Water and electricity are produced after hydrogen and oxygen ions are exchanged via an electrolyte. 1. American name for petrol. 2.A mixture of more than 100 different hydrocarbons with a boiling range between 25o and 220o Celsius; 3. A fuel for ignition-compression or Otto engines. 4. A mixture of the lighter liquid hydrocarbons, used chiefly as a fuel for internal-combustion engines. It is produced by the fractional distillation of petroleum; by condensation or adsorption from natural gas; by thermal or catalytic decomposition of petroleum or its fractions; by the hydrogenation of producer gas or coal; or by the polymerization of hydrocarbons of lower molecular weight. Gasoline (petrol or benzene [not the chemical benzine, but the petroleum fraction benzene]) is widely used for small (less than 3 kVA) Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment generators, or gensets to produce electricity for commercial establishments, institutions and households. gasoline engine See Otto engine. GJ Gigajoule; unit of energy; 1 GJ = 1.109 Joule. HC Hydrocarbon(s). HDV Heavy-Duty Vehicle hydride Hydrogen chemically bound to a metallic material. IEA International Energy Agency. international emissions trading system A regulatory system that issues property rights (generally called permits) to national governments or firms and allows owners of permits to trade those permits in an international market. kerosene A light fraction petroleum product refined from the raw petroleum. Kerosene is one of the lighter "distillates" in a petroleum refinery, lighter than gasoil/diesel, and often in the same mix with jet fuel (e.g., Jet A1). It has been used for lighting, cooling and refrigeration for one hundred years. Kerosene is found throughout the world, and is one of the most common lighting fuels in the developing world. It is also often used for cooking, primarily in urban areas in the developing world. LDV Light-Duty Vehicle Leq (equivalent A-weighted sound level) The constant sound level that, in a given time period, would convey the same sound energy as the actual time-varying A-weighted sound level. LNG Liquefied Natural Gas; natural gas in a liquid state (only possible at temperatures below –161oC). LPG Liquefied petroleum gas which consists mainly of propane (C3H8) and/or butane(C4H10) and which can be stored as a liquid under relatively low pressure for use as a fuel. MC marginal cost of emissions reduction, or marginal cost of abatement. The cost incurred by a firm, individual or society to reduce (or abate) its current pollution level by one additional unit methanol MJ monetization noise annoyance noise barrier noise level NOX Alcohol; CH3OH; very toxic; highly inflammable. 6 MegaJoule; unit of energy; 1 MJ = 1.10 joule. Process of expressing in monetary values what is the cost (in case of adverse effects) or benefit (in case of positive effects) of an impact to create a basis for weighing different indicators. A term used to describe negative feelings about noise. Since noise annoyance can mean different things to different people at different times, it is not meaningful to define annoyance any more precisely. Reported annoyance is normally understood to mean annoyance reported using a particular scale and therefore has a precise meaning in terms of that scale. Any feature which blocks, prevents or diminishes the transmission of noise. An earth wall could serve this purpose. A large building could serve as a noise barrier to shield receptors further from the noise source. A dense growth of vegetation, if it were wide enough and dense enough, would be a noise barrier Unless specified to the contrary, it is the A-weighted sound level. 1. Collective noun for the nitrogen oxides NO and NO2 (N2O or nitrous oxide is not considered an NOX compound); 2. Description for a mixture of NO and NO2; Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 105 SUstainable Mobility, policy Measures and Assessment NVH OECD octane number Otto engine PAH petrol PM sound sound level sound power sound wall tailpipe emissions TCE TERM Page 106 SUMMA 3. Noxious exhaust component of combustion engines; formed under the influence of a high temperature of combustion by a direct reaction of oxygen and nitrogen present in the air. Part of the NO is further oxidised to NO2 in the exhaust flow. Noise, Vibration and Harshness. NVH is one of the main engineering and design attributes to be addressed in the course of developing new vehicle models. High standards of NVH performance are now expected or demanded by the consumer not only for luxury cars, but also large production volume models. Passby standards impose an exterior noise requirement on all road vehicle manufacturers. Organization for Economic Cooperation and Development A measure for the tendency of a fuel to detonate when combusted in the cylinder of a combustion engine. The higher the octane number, the lower the tendency to detonate and the better the quality of the fuel. According to the definition of octane number, iso octane (2.2.4-trimethyl-pentane) has an octane number of 100 and n-heptanes (C7H16) has an octane number of 0 The Otto cycle was invented by Beau de Rochas in 1862 and applied by Dr. Otto in 1877 in the Otto-Crossley gas engine, the first commercially successful internal-combustion engine made. The Otto cycle is also referred to as a spark-ignition engine because a spark ignites the combustion. An Otto engine needs to avoid selfignition, since the fuel is present in the combustion chamber during the compression phase. Self-ignition would be premature and give negative contribution to the engine. Thus, the compression ratio in an Otto engine has to be so low that self-ignition never occurs. Otto engines usually run on gasoline, but e.g. bio-ethanol can also be used. Polycyclic Aromatic Hydrocarbon(s). Aromatics of which the molecules contain several, linked benzene rings; in several cases carcinogenic See gasoline Particulate Matter. Particles emitted from the exhaust system of vehicles Physical vibrations transmitted through the air which are audible to people. The weighted sound pressure level obtained by the use of a sound level metre and frequency weighting network, such as A, B, or C as specified in ANSI specifications for sound level metres (ANSI Sl.41971, or the latest approved revision). If the frequency weighting employed is not indicated, the A-weighting is implied. The total sound energy radiated by a source per unit time. The unit of measurement is the Watt (W). A particular type of noise barrier. It is a wall, which may be constructed of concrete panels, masonry blocks, wood boards or panels, or a variety of other materials. Emissions of a combustion engine after the catalyst (as distinct from engine-out emissions which are measured before the catalytic converter) ton CO2 Equivalent Transport and Environmental Reporting Mechanism, the concept of an indicator-based transport and environment reporting mechanism (TERM) for the EU was initiated in early 1998. TERM is steered jointly by the European Commission and the EEA. The main output of TERM is a regular indicator-based report through which the Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA three-way catalyst SUstainable Mobility, policy Measures and Assessment effectiveness of transport and environment integration strategies is monitored. Catalytic reactor for combustion engines which oxidises volatile organic compounds (VOC) and CO, as well as reduces nitrogen oxides. two-stroke engine Besides the diesel engine and the Otto engine, there is a third type of engine, known as a two-stroke engine, that is commonly found in lower-power applications. Some of the devices that might have a two-stroke engine include: garden equipment, mopeds, jet skis. To use a two-stroke engine, you have to mix special two-stroke oil in with the gasoline. Generally, a two-stroke engine produces a lot of power for its size because there are twice as many combustion cycles occurring per rotation. However, a two-stroke engine uses more gasoline and burns lots of oil, so it is far more polluting. ULEV vkm VOC Ultra Low Emission Vehicle Vehicle kilometre Volatile Organic Compound(s). Collective noun for hydrocarbons, which are emitted in the volatile phase by vehicles. Usually described as HC-compounds. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 107 SUstainable Mobility, policy Measures and Assessment Page 108 SUMMA Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUMMA SUstainable Mobility, policy Measures and Assessment ANNEX 1: LITERATURE REVIEW The Bates (2001) report for EU DG Environment The Bates (2001) report for EU DG Environment contains a detailed bottom-up analysis, updated in 2001, on GHG emission reductions in the EU15 transport sector. This study 52 serves as input for the broader report of Hendriks (2001) of ECOFYS for DG Environment . Within this study, baseline projections of energy demand are taken from the PRIMES model baseline scenario defined for the ‘Shared Analysis’ project 1999, including all policy developments that were certain up to the end of 1997. It thus excluded the impacts of the voluntary agreement reached with European car manufacturers (ACEA) in 1999 to reduce the average CO2 emissions for all new cars to 170 g/km by 2003, and 140 g/km by 2008 (from an average of about 186 g/km). Selected operational or technological measures to improve vehicle energy use include: • Engine efficiency improvements • Major engine changes • Weight reduction • Friction & drag reduction Engine efficiency improvements include Hi-Speed Engines with variable Valve Lift, Cylinder deactivation and CVT transmissions. Major engine changes include Petrol to Diesel shifts, (advanced) GDI engines, Hybrid Power Train Vehicles, and Fuel Cell Electric Vehicles. It should be noted that the PRIMES baseline already includes endogenous technology improvements in all sectors and countries. It has no “frozen technology” baseline. Many of the costs are drawn from work carried out for the Canadian National Climate Change Process – Transportation Table Subgroup by Austin et al (1999) in the US. Additional information was obtained from the UK Energy Efficiency Best Practice Program (EEBPP) on aerodynamics and driver training. All costs have been converted to €(1990), using a methodology and currency conversion rates and ‘deflators’ defined for the study as a whole. In general terms the cost-effectiveness of the measure is calculated by annualizing the capital cost of the measure and annual savings (from improvements in fuel economy) and any additional annual costs (e.g. from additional maintenance) to calculate an annualised cost for the measure. The annualised cost is then divided by annual reduction in greenhouse gas emissions to give the costeffectiveness in €/TCE. A discount rate of 4% is used to calculate the annualised cost. The Hendricks (2001) report The Hendricks (2001) report contains a detailed bottom-up analysis, updated in 2001, on GHG emission reductions in the EU15 and covers all sectors. The study draws on the report of Bates (2001), and has been extended to a new database called GENESIS, to include nonCO2 GHG. The report stresses the high growth in transport demand; from 4,6 trillion passenger kilometres in 1995 to 5,8 trillion in 2010 (+26%). Transport of goods is projected to grow by over 30% from 1,6 trillion ton-km in 1995 to 2,1 trillion ton-km in 2010. Passenger cars and road freight vehicles account for over three-quarters of emissions. Rail, inland navigation and air transport are not extensively researched for abatement opportunities. 52 Bates (2001), Hendriks (2001) and Capros (2001) reports are available at the internet library of EU DG Environment; http://europa.eu.int/comm/environment/enveco/studies2.htm Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 109 SUstainable Mobility, policy Measures and Assessment SUMMA The voluntary agreements reached with European (ACEA), Japanese (JAMA) and Korean (KAMA) car manufacturers to reduce the average CO2 emissions for all new cars is not incorporated in the frozen technology reference level. The full implementation of these agreements would reduce CO2 emissions by about 75 Mt CO2 in 2010. This report analyses the abatement costs using sensitivity analysis for the discount rates, including a sector-specific discount rate. The Capros (2001) report The Capros (2001) report for EC DG Environment contains a detailed top-down analysis, updated in 2001, on GHG emission reductions in the EU15 and covers all sectors. The report is based on the PRIMES model to simulate EU energy demand, and includes the ACEA agreement to reduce CO2 emission levels for new cars. The ACEA agreement reduces CO2 emissions of new sold cars from 186 g/km to 170 g/km in 2003, further down to 140 g/km by 2008. It is assumed in the baseline that the ACEA agreement would involve no costs for consumers or manufacturers. The report stresses the high growth in transport demand, and the deterioration in passenger transport energy efficiency. The latter is reported to be due to an increase in air transport market share- which is relatively energy inefficient, and due to increasing car size, horsepower and comfort standards, overcompensating the significant technological improvement that occurred in car technologies in the nineties. Freight transport is reported to show improved energy efficiency due to increased rail electrification, and improvement of load factors. These improvements are believed to persist in the future. As the report recalls, energy demand in the sector seems to be rather insensitive to a number of policy instruments used in the past including very high taxation on fuels used for private transportation. However, further changes in the transportation sector may induce travellers to change driving habits, and purchase smaller and more fuel-efficient cars. Page 110 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUstainable Mobility, policy Measures and Assessment ANNEX 2: EXTENDED TABLES FOR AIR POLLUTION REDUCTION The tables included in the annex are the full output tables of RAINS A full explanation on the table setup is provided in section 3.1. Tables 1 and 2 give an overview of the ranges of marginal PM10 and NOX abatement costs for the road transport sector on one hand and for other sectors on the other hand. They have been summarized in section 3.1. These tables indicate the control options associated to the cost values and the total amount of emission that can be abated with all control options on top of measures required by the current legislation (CLE). Estimates cover the EU15 countries plus 8 of 10 future member states (for Cyprus and Malta no cost estimates are available). The range of abatement costs is based on marginal abatement cost curves given by IIASA (IIASA 2003 and Cofala and Syri 1998a). The abatement cost ranges are characterised by a low value, giving the cheapest measure on top of CLE. The “central” value gives the marginal costs of the measure with which 50% of the total reduction achieved in the sector (on top of CLE) is reached. This value provides an indication of the cost of an “average” abatement option in the respective sector and thus can be used for comparisons. The “high” value does not give the cost of the most expensive control option available, but gives the cost of the measure with which 98% of total amount abated (on top of CLE) is reached. This procedure is used to cut extreme values, which occur at the high end of the abatement cost curve. Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 111 SUstainable Mobility, policy Measures and Assessment SUMMA Table 0-1: Marginal PM10 abatement costs (€1990) in 2010 in road transport and other sectors -IIASA (2003) Country Austria low central high Belgium low central high Denmark low central high Finland low central high France Page 112 low Road transport Control option Motorcycles and mopeds 2stroke, stage 2 EURO V -diesel LDV and pass. cars, post-2005 St.1 EURO IV - 2005, heavy duty diesel vehicles total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO V -diesel LDV and pass. cars, post-2005 St.1 EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) EURO V -diesel LDV and pass. cars, post-2005 St.1 EURO IV - 2005, heavy duty diesel vehicles EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) EURO V -diesel LDV and pass. cars, post-2005 St.1 EURO V -diesel LDV and pass. cars, post-2005 St.1 EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) EURO V -diesel LDV and pass. cars, post-2005 St.1 Other sectors € / kg Activity 77,88 Derived coal briquettes) 101,39 No fuel use Sector (coke, Industry: Other combustion 121,70 Other solid-low S (biomass, waste, wood) 3,00 77,88 Derived coal (coke, briquettes) 109,87 No fuel use 324,50 No fuel use 4,90 103,53 Heavy fuel oil 156,51 No fuel use 262,84 Other solid-low S (biomass, waste, wood) 1,30 89,10 No fuel use 89,10 No fuel use 195,61 Other solid-low S (biomass, waste, wood) 1,8 73,31 No fuel use Control option € / kg Electrostatic precipitator: 2 11,39 fields - ind.comb. Ind. Process: Small industrial Good practice: ind.process - 30,42 and business facilities – fugitive stage 2 (fugitive) Residential-Commercial: Fireplaces, non-catalytic insert 566,73 Fireplaces 4,78 Industry: Other combustion Electrostatic precipitator: more 15,41 than 2 fields - ind.comb. Ind. Process: Small industrial Good practice: ind.process - 30,42 and business facilities – fugitive stage 2 (fugitive) Agriculture: Ploughing, tilling, Low-till farming, alternative 234,08 harvesting cereal harvesting 4,15 Combustion in residential- Good housekeeping: domestic 19,93 commercial sector (liquid fuels) oil boilers Agriculture: Livestock - pigs Feed modification (all 28,00 livestock) Residential-Commercial: Fireplaces, non-catalytic insert 566,73 Fireplaces 3,63 Ind. Process: Pig iron, blast Electrostatic precipitator: more 15,87 furnace than 2 fields - ind.process Ind. Process: Small industrial Good practice: ind.process - 30,42 and business facilities - fugitive stage 2 (fugitive) Residential-Commercial: Fireplaces, non-catalytic insert 566,73 Fireplaces 2,63 Ind. Process: Pig iron, blast Good practice: ind.process 9,41 furnace (fugitive) stage 2 (fugitive) Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUstainable Mobility, policy Measures and Assessment Country central high Germany low central high Greece low central high Ireland low central high Italy low central high Road transport Control option EURO V -diesel LDV and pass. cars, post-2005 St.1 EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO V -diesel LDV and pass. cars, post-2005 St.1 EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) EURO V -diesel LDV and pass. cars, post-2005 St.1 EURO IV - 2005, heavy duty diesel vehicles EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) EURO V -diesel LDV and pass. cars, post-2005 St.1 EURO IV - 2005, heavy duty diesel vehicles EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) EURO IV - 2005, heavy duty diesel vehicles EURO V -diesel LDV and pass. cars, post-2005 St.1 EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Other sectors € / kg Activity 73,31 No fuel use Sector Ind. Process: Small industrial and business facilities - fugitive 170,37 Other solid-low S Residential-Commercial: (biomass, waste, wood) Fireplaces 27,10 68,06 No fuel use Storage and handling: Coal 118,33 No fuel use 211,66 Medium distillates (diesel,light fuel oil) 23,40 25,72 No fuel use 199,74 Other solid-low S (biomass, waste, wood) 335,45 No fuel use 1,90 82,04 No fuel use 228,35 No fuel use 383,49 No fuel use 1,90 124,42 Derived coal briquettes) 126,71 No fuel use (coke, 208,96 Other solid-low S (biomass, waste, wood) 16,1 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Control option € / kg Good practice: ind.process - 30,42 stage 2 (fugitive) Fireplaces, non-catalytic insert 566,73 30,79 Good practice: storage and 24,74 handling Ind. Process: Small industrial Good practice: ind.process - 30,42 and business facilities - fugitive stage 2 (fugitive) Combustion in residential- Good housekeeping: domestic 540,88 commercial sector (liquid fuels) oil boilers 22,00 Ind. Process: Lime production Electrostatic precipitator: 1 field 0,21 - ind.process Residential-Commercial: Medi- Baghouse for medium (auto2,12 um boilers (<50MW) – automat. matic) boilers in domest. sector Agriculture: Ploughing, tilling, Low-till farming, alternative 234,08 harvesting cereal harvesting 13,74 Storage and handling: Coal Good practice: storage and 24,74 handling Ind. Process: Small industrial Good practice: ind.process - 30,42 and business facilities - fugitive stage 2 (fugitive) Agriculture: Ploughing, tilling, Low-till farming, alternative 234,08 harvesting cereal harvesting 2,02 Industry: Other combustion Electrostatic precipitator: more 15,41 than 2 fields - ind.comb. Ind. Process: Small industrial Good practice: ind.process - 30,42 and business facilities - fugitive stage 2 (fugitive) Residential-Commercial: Fireplaces, non-catalytic insert 566,73 Fireplaces 19,56 Page 113 SUstainable Mobility, policy Measures and Assessment Country Luxembo low urg central high Netherla nds low central high Portugal low central high Spain low central high Sweden low central high Page 114 Road transport Control option EURO V -diesel LDV and pass. cars, post-2005 St.1 EURO IV - 2005, heavy duty diesel vehicles EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) EURO V -diesel LDV and pass. cars, post-2005 St.1 Motorcycles and mopeds 2stroke, stage 2 EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO IV - 2005, heavy duty diesel vehicles EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO VI, heavy duty diesel vehicles, post-2008 EURO V -diesel LDV and pass. cars, post-2005 St.1 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO IV - 2005, heavy duty diesel vehicles EURO VI, heavy duty diesel SUMMA Other sectors € / kg Activity 99,33 No fuel use Sector Storage and handling: Other ind. products (cement, bauxite, coke) 120,32 No fuel use Ind. Process: Small industrial and business facilities - fugitive 202,08 Other solid-low S Residential-Commercial: Stoves (biomass, waste, wood) 0,2 82,65 Derived coal (coke, Industry: Other combustion briquettes) 88,63 No fuel use Agriculture: Livestock - other cattle 291,24 Other solid-low S Residential-Commercial: Stoves (biomass, waste, wood) 4,4 77,88 No fuel use Storage and handling: Iron ore 147,14 No fuel use 247,12 Other solid-low S (biomass, waste, wood) 2,7 52,79 Other solid-high S (incl. high S waste) 143,40 No fuel use 145,06 Other solid-low S (biomass, waste, wood) 16,5 77,88 Derived coal (coke, briquettes) 110,05 No fuel use 184,83 Other solid-low S Control option € / kg Good practice: storage and 24,55 handling Good practice: ind.process - 30,42 stage 2 (fugitive) New domestic stoves (wood): 138,05 non-catalytic 0,18 Electrostatic precipitator: more 15,41 than 2 fields - ind.comb. Feed modification (all 28,69 livestock) New domestic stoves (wood): 138,05 non-catalytic 6,94 Good practice: storage and 19,72 handling Ind. Process: Small industrial Good practice: ind.process - 30,42 and business facilities - fugitive stage 2 (fugitive) Residential-Commercial: Fireplaces, non-catalytic insert 566,73 Fireplaces 3,35 Industry: Combustion in boilers Electrostatic precipitator: 2 9,14 fields - ind.comb. Ind. Process: Small industrial Good practice: ind.process - 30,42 and business facilities - fugitive stage 2 (fugitive) Residential-Commercial: Fireplaces, non-catalytic insert 566,73 Fireplaces 15,42 Industry: Other combustion Electrostatic precipitator: more 15,41 than 2 fields - ind.comb. Ind. Process: Small industrial Good practice: ind.process - 30,42 and business facilities - fugitive stage 2 (fugitive) Residential-Commercial: Fireplaces, non-catalytic insert 566,73 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUstainable Mobility, policy Measures and Assessment Country UK low central high Czech low Republic central high Estonia low central high Hungary low central high Latvia low central Road transport Control option vehicles, post-2008 total abated (kt / a) EURO V -diesel LDV and pass. cars, post-2005 St.1 EURO IV - 2005, heavy duty diesel vehicles EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO IV - 2005, heavy duty diesel vehicles EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO IV - 2005, heavy duty diesel vehicles EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO IV - 2005, heavy duty diesel vehicles EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO IV - 2005, heavy Other sectors € / kg Activity Sector (biomass, waste, wood) Fireplaces 2,0 86,06 Heavy fuel oil Power & district heat plants: New 127,24 No fuel use Ind. Process: Small industrial and business facilities - fugitive 213,69 Other solid-low S Residential-Commercial: Stoves (biomass, waste, wood) 14,5 77,88 No fuel use Ind. Process: Basic oxygen furnace 151,82 No fuel use Ind. Process: Pig iron, blast furnace 254,96 Other solid-low S Residential-Commercial: Stoves (biomass, waste, wood) 1,6 77,88 Brown coal/lignite, high Power & district heat plants: grade Exist. other, fluidised bed 162,36 Brown coal/lignite, high Power & district heat plants: grade Exist. other, grate firing 272,67 Other solid-low S Residential-Commercial: Stoves (biomass, waste, wood) 0,2 77,88 No fuel use Ind. Process: Agglomeration plant - sinter 151,82 No fuel use Ind. Process: Pig iron, blast furnace (fugitive) 254,96 Other solid-low S Residential-Commercial: Stoves (biomass, waste, wood) 0,9 77,88 No fuel use Ind. Process: Lime production 162,36 Heavy fuel oil Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Control option € / kg Fabric filters - power plants 3,85 12,14 Good practice: ind.process - 30,42 stage 2 (fugitive) New domestic stoves (wood): 138,05 non-catalytic 16,65 Electrostatic precipitator: 2 1,30 fields - ind.process Electrostatic precipitator: 1 field 1,83 - ind.process New domestic stoves (wood): 92,03 non-catalytic 19,11 Electrostatic precipitator: more 0,10 than 2 fields - power plant Electrostatic precipitator: 2 0,13 fields - power plants New domestic stoves (wood): 92,03 non-catalytic 11,56 Electrostatic precipitator: 2 1,07 fields - ind.process Good practice: ind.process 9,41 stage 2 (fugitive) New domestic stoves (wood): 92,03 non-catalytic 9,86 Electrostatic precipitator: 1 field 0,21 - ind.process Power & district heat plants: Fabric filters - power plants 3,63 Page 115 SUstainable Mobility, policy Measures and Assessment Country high Lithuania low central high Poland low central high Slovakia low central high Slovenia low central high Page 116 Road transport Control option duty diesel vehicles EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO IV - 2005, heavy duty diesel vehicles EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO IV - 2005, heavy duty diesel vehicles EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO IV - 2005, heavy duty diesel vehicles EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO IV - 2005, heavy duty diesel vehicles EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) SUMMA Other sectors € / kg Activity Sector Exist. other 272,67 Other solid-low S Residential-Commercial: (biomass, waste, wood) Fireplaces 0,2 77,88 Other solid-low S Industry: Other combustion (biomass, waste, wood) 162,36 No fuel use Agriculture: Livestock - pigs 272,67 No fuel use 0,5 77,88 Hard coal, high quality 151,82 Other solid-low S (biomass, waste, wood) 254,96 Other solid-low S (biomass, waste, wood) 3,1 77,88 Hard coal, high quality 151,82 No fuel use 254,96 No fuel use 0,9 77,88 No fuel use 183,93 Other solid-low S (biomass, waste, wood) 308,90 Other solid-low S (biomass, waste, wood) 0,6 Control option Fireplaces, non-catalytic insert € / kg 566,73 2,51 Electrostatic precipitator: 1 field 0,24 - ind.comb. Feed modification (all 28,00 livestock) Agriculture: Ploughing, tilling, Low-till farming, alternative 234,08 harvesting cereal harvesting 3,35 Industry: Other combustion, Electrostatic precipitator: 2 0,62 grate firing fields - ind.comb. Residential-Commercial: Medi- Baghouse for med. (automatic) 2,12 um boilers (<50MW) - automatic boilers in domestic sector Residential-Commercial: Fireplaces, non-catalytic insert 566,73 Fireplaces 78,59 Power & district heat plants: Electrostatic precipitator: 2 0,41 Exist. other, grate firing fields - power plants Ind. Process: Agglomeration Good practice: ind.process 1,38 plant - sinter (fugitive) stage 2 (fugitive) Ind. Process: Small industrial Good practice: ind.process - 30,42 and business facilities - fugitive stage 2 (fugitive) 15,75 Ind. Process: Petroleum Electrostatic precipitator: 1 field 0,24 refineries - ind.process Residential-Commercial: Medi- Cyclone for medium boilers in 2,02 um boilers (<50MW) - automatic domestic sectors Residential-Commercial: Fireplaces, non-catalytic insert 566,73 Fireplaces 2,71 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUstainable Mobility, policy Measures and Assessment Table 0-2: Marginal PM2.5 abatement costs (€1990) in 2010 in road transport and other sectors -IIASA (2003) Country France low central high Germany low central high Greece low central high Italy low central high Spain low Road transport Control option EURO V -diesel l. duty and pass. cars, post-2005 St.1 EURO V -diesel l. duty and pass. cars, post-2005 St.1 EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO V -diesel l. duty and pass. cars, post-2005 St.1 EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) EURO V -diesel l. duty and pass. cars, post-2005 St.1 EURO V -diesel l. duty and pass. cars, post-2005 St.1 EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) EURO V -diesel l. duty and pass. cars, post-2005 St.1 EURO V -diesel l. duty and pass. cars, post-2005 St.1 EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 Other sectors € / kg Activity 88,35 Heavy fuel oil Sector Control option € / kg Power & district heat plants: Fabric filters - power plants 14,73 Exist. other 88,35 Other solid-low S Residential-Commercial: Stoves New domestic stoves (wood): 142,50 (biomass, waste, wood) non-catalytic 172,62 Other solid-low S Residential-Commercial: Stoves New domestic stoves (wood): 3020,6 (biomass, waste, wood) catalytic 18,8 13,1 145,64 Heavy fuel oil Combustion in residential- Good housekeeping: domestic 51,81 commercial sector (liquid fuels) oil boilers 163,72 No fuel use Ind. Process: Small industrial Good practice: ind.process - 91,27 and business facilities - fugitive stage 2 (fugitive) 290,14 Other solid-low S Residential-Commercial: Fireplaces, non-catalytic insert 2114,5 (biomass, waste, wood) Fireplaces 13,7 6,8 37,29 Brown coal/lignite, low Power & district heat plants: Electrostatic precipitator: more 0,47 grade New, fluidized bed than 2 fields - power plant 37,29 No fuel use Ind. Process: Lime production Electrostatic precipitator: 1 field 1,05 - ind.process 396,22 Other solid-low S Residential-Commercial: Fireplaces, non-catalytic insert 585,01 (biomass, waste, wood) Fireplaces 0,8 8,7 133,42 No fuel use Ind. Process: Pig iron, blast Good practice: ind.process - 15,69 furnace (fugitive) stage 2 (fugitive) 133,42 Other solid-low S Residential-Commercial: Stoves New domestic stoves (wood): 142,50 (biomass, waste, wood) non-catalytic 224,18 Medium distillates Combustion in residential- Good housekeeping: domestic 665,14 (diesel,light fuel oil) commercial sector (liquid fuels) oil boilers 9,4 8,2 89,41 Heavy fuel oil Power & district heat plants: Fabric filters - power plants 11,37 Exist. other Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Page 117 SUstainable Mobility, policy Measures and Assessment Country central high Sweden low central high UK low central high Czech low Republic central high Hungary low central high Page 118 Road transport Control option EURO V -diesel l. duty and pass. cars, post-2005 St.1 EURO V -diesel l. duty and pass. cars, post-2005 St.1 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO V -diesel l. duty and pass. cars, post-2005 St.1 EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) EURO V -diesel l. duty and pass. cars, post-2005 St.1 EURO V -diesel l. duty and pass. cars, post-2005 St.1 EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO V -diesel l. duty and pass. cars, post-2005 St.1 EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) Motorcycles and mopeds 2stroke, stage 2 EURO V -diesel l. duty and pass. cars, post-2005 St.1 EURO VI, heavy duty diesel vehicles, post-2008 total abated (kt / a) SUMMA Other sectors € / kg Activity 190,58 No fuel use Sector Ind. Process: Small industrial and business facilities - fugitive 190,58 Medium distillates Combustion in residential(diesel,light fuel oil) commercial sector (liquid fuels) 10,1 105,33 No fuel use Ind. Process: Pig iron, blast furnace (fugitive) 125,74 Other solid-low S Residential-Commercial: Stoves (biomass, waste, wood) 209,98 Medium distillates Combustion in residential(diesel,light fuel oil) commercial sector (liquid fuels) 1,0 124,54 Heavy fuel oil Power & district heat plants: Exist. other 124,54 No fuel use Ind. Process: Small industrial and business facilities - fugitive 254,17 Medium distillates Combustion in residential(diesel,light fuel oil) commercial sector (liquid fuels) 7,7 105,33 No fuel use Ind. Process: Basic oxygen furnace 132,76 No fuel use Ind. Process: Agglomeration plant - sinter 289,71 No fuel use Storage and handling: Iron ore 0,5 105,33 132,76 289,71 0,3 Control option € / kg Good practice: ind.process - 91,27 stage 2 (fugitive) Good housekeeping: domestic 665,14 oil boilers 4,8 Good practice: ind.process - 15,69 stage 2 (fugitive) New domestic stoves (wood): 142,50 non-catalytic Good housekeeping: domestic 665,14 oil boilers 1,9 Good housekeeping: industrial 23,24 oil boilers Good practice: ind.process - 91,27 stage 2 (fugitive) Good housekeeping: domestic 665,14 oil boilers 4,0 Electrostatic precipitator: more 1,87 than 2 fields - ind.process Electrostatic precipitator: more 2,79 than 2 fields - ind.process Good practice: storage and 443,75 handling 9,9 1,00 No fuel use Residential: Meat frying, food Filters in households (kitchen) preparation, BBQ 2,41 Other solid-low S Residential-Commercial: Medi- Baghouse for med. (automatic) (biomass, waste, wood) um boilers (<50MW) - automatic boilers in domestic sector No fuel use Storage and handling: Good practice: storage and 526,25 Agricultural products (crops) handling 5,6 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUstainable Mobility, policy Measures and Assessment Country Poland low central high Road transport Other sectors Control option € / kg Activity Motorcycles and mopeds 2- 105,33 Hard coal, high quality stroke, stage 2 EURO V -diesel l. duty and 132,76 Hard coal, high quality pass. cars, post-2005 St.1 solid-low S EURO VI, L. Duty, spark ig- 41819 Other (biomass, waste, wood) nition engines: 4-stroke, not DI total abated (kt / a) 1,0 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Sector Residential-Commercial: Medium boilers (<50MW) - automatic Residential-Commercial: Medium boilers (<50MW) - automatic Residential-Commercial: Fireplaces Control option € / kg Baghouse for med. (automatic) 1,40 boilers in domestic sector Baghouse for med. (automatic) 1,40 boilers in domestic sector Fireplaces, non-catalytic insert 585,01 68,5 Page 119 SUstainable Mobility, policy Measures and Assessment SUMMA Table 0-3: RAINS Marginal NOX abatement costs (€1990) in the year 2010 in road transport and other sectors (IIASA 2003) Country Austria low Road transport Control option Gasoline HDV: catalytic converter central Diesel HDV: EURO4 (NOX converter) high Belgium low Other sectors € / t Activity Sector 975 Diesel, light Industry - other combustion fuel oil 2049 Heavy fuel oil Industry - boilers Gasoline 4-stroke pass. cars and LDV: Adv. 18294 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 14,2 Gasoline HDV: catalytic converter 1114 Heavy fuel oil central Diesel HDV: EURO4 (NOX converter) 2637 Natural gas high Gasoline 4-stroke pass. cars and LDV: Adv. 17774 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 22,0 Denmark low Diesel HDV: EURO4 (NOX converter) 2404 Hard coal, grade 1 central Diesel HDV: EURO4 (NOX converter) 2404 Natural gas high Finland low France Page 120 2216 Hard coal, grade 1 high Gasoline 4-stroke pass. cars and LDV: Adv. 16928 No fuel use conv. with maint. schemes - post-2005 total abated (kt / a) 11,5 low Diesel HDV: EURO4 (NOX converter) 2047 Hard coal, grade 1 central Diesel HDV: EURO4 (NOX converter) 2047 Natural gas Power plants - existing boilers, dry bottom Domestic Oil & Gas - Comb. mod. existing plant Gas - Combustion modification, Commercial Fuel prod. & conversion (other Oil & Gas - Comb. mod. + than PPs) - combustion sel. cat. red. Industry - other combustion Power plants - new boilers Gasoline 4-stroke pass. cars and LDV: Adv. 18294 Heavy fuel oil conv. with maint. schemes - post-2005 total abated (kt / a) 6,3 Diesel HDV: EURO4 (NOX converter) 2216 Natural gas central Diesel HDV: EURO4 (NOX converter) Power plants - existing boilers, dry bottom Control option Oil & Gas - Combustion modification Solid fuels - Comb. mod. + sel. non-catal. reduction Oil & Gas - Comb. mod. + sel. cat. red - existing plant Power plants - existing boilers, dry bottom Power plants - existing boilers, dry bottom Industry - other combustion Industry - process emissions Solid fuels - Combustion modification Oil & Gas - selective catalytic reduction - new plant Oil & Gas - Comb. mod. + sel. cat. red - existing plant Oil & Gas - Comb. mod. existing plant Solid fuels - Comb. mod. + sel. non-catal. reduction Process emissions - stage 3 control Fuel prod. & conversion (other Solid fuels - Combustion than PPs) - combustion modification Power plants - new boilers Oil & Gas - selective catalytic €/t 303 3593 15079 19,3 168 2581 11976 72,2 216 1217 22014 38,7 133 1553 11000 59,9 216 3088 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUstainable Mobility, policy Measures and Assessment Country Road transport Control option Other sectors € / t Activity Sector high Gasoline 4-stroke pass. cars and LDV: Adv. 24152 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 95,8 Germany low Natural gas 4-stroke pass. cars and LDV: 1754 Heavy fuel oil 3-way catalytic converter central Diesel HDV: EURO4 (NOX converter) 3146 Brown coal/lignite, grade 2 high Gasoline 4-stroke pass. cars and LDV: Adv. 17349 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 160,1 Greece low Diesel HDV: EURO3 - EU2000 standards 2560 Heavy fuel oil with maint. schemes central Diesel HDV: EURO4 (NOX converter) 3772 No fuel use high Ireland Italy Industry - other combustion Power plants - existing boilers, dry bottom Industry - boilers Power plants - existing boilers, dry bottom Industry - process emissions Gasoline 4-stroke pass. cars and LDV: Adv. 21066 No fuel use conv. with maint. schemes - post-2005 total abated (kt / a) 55,9 low Gasoline HDV: catalytic converter 1738 Hard coal, grade 1 central Diesel HDV: EURO4 (NOX converter) 4019 Heavy fuel oil Power plants - existing boilers, dry bottom Power plants - new boilers high Domestic low Gasoline 4-stroke pass. cars and LDV: Adv. 16043 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 6,5 Gasoline HDV: catalytic converter 793 Heavy fuel oil central Diesel HDV: EURO4 (NOX converter) high Luxem- Domestic low 1746 Heavy fuel oil Gasoline 4-stroke pass. cars and LDV: Adv. 35711 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 72,0 Gasoline HDV: catalytic converter 1424 Heavy fuel oil Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Industry - process emissions Power plants - existing boilers, dry bottom Power plants - new boilers Domestic Industry - other combustion Control option reduction - new plant Gas - Comb. mod., Commercial and Residential Oil & Gas - Combustion modification Brown coal - Comb. mod. + sel. cat. red. - existing plant Oil & Gas - Comb. mod. + sel. cat. red. Oil & Gas - Comb. mod. existing plant Process emissions - stage 1 control Process emissions - stage 3 control Hard coal - Comb. mod. existing plant Oil & Gas - selective catalytic reduction - new plant Gas - Comb. mod., Commercial and Residential Oil & Gas - Comb. mod. existing plant Oil & Gas - selective catalytic reduction - new plant Gas - Comb. mod., Commercial and Residential Oil & Gas - Combustion €/t 17976 194,1 267 5506 20939 255,4 119 1000 11000 146,1 103 1519 11153 33,8 119 1105 11153 363,7 263 Page 121 SUstainable Mobility, policy Measures and Assessment Country Road transport Control option SUMMA Other sectors € / t Activity Sector bourg central Diesel HDV: EURO4 (NOX converter) 3371 No fuel use Industry - process emissions high Netherlands Portugal Spain Sweden Page 122 Gasoline 4-stroke pass. cars and LDV: Adv. 19601 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 1,0 low Gasoline HDV: catalytic converter 1203 Other solid low S central Diesel HDV: EURO4 (NOX converter) 2138 Natural gas Industry - other combustion Industry - boilers high Gasoline 4-stroke pass. cars and LDV: Adv. 19837 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 42,1 low Diesel HDV: EURO3 - EU2000 standards 4255 Hard coal, with maint. schemes grade 1 central Diesel HDV: EURO4 (NOX converter) 6268 Heavy fuel oil Industry - boilers high Industry - process emissions Industry - other combustion Power plants - existing boilers, dry bottom Power plants - new boilers Gasoline 4-stroke pass. cars and LDV: Adv. 41962 No fuel use conv. with maint. schemes - post-2005 total abated (kt / a) 36,3 low Gasoline HDV: catalytic converter 1088 Hard coal, grade 1 central Diesel HDV: EURO4 (NOX converter) 2374 No fuel use Power plants - existing boilers, dry bottom Industry - process emissions high Industry - process emissions Gasoline 4-stroke pass. cars and LDV: Adv. 35328 No fuel use conv. with maint. schemes - post-2005 total abated (kt / a) 47,4 low Diesel HDV: EURO4 (NOX converter) 2355 Hard coal, grade 1 central Diesel HDV: EURO4 (NOX converter) 2355 Hard coal, grade 1 high Gasoline 4-stroke pass. cars and LDV: Adv. 16684 Other solid conv. with maint. schemes - post-2005 high S Control option modification Process emissions - stage 2 control Oil & Gas - Comb. mod. + sel. cat. red. Solid fuels - Combustion modification Oil & Gas - Comb. mod. + sel. non-cat. red. Oil & Gas - Comb. mod. + sel. cat. red. Hard coal - Comb. mod. existing plant Oil & Gas - selective catalytic reduction - new plant Process emissions - stage 3 control Hard coal - Comb. mod. existing plant Process emissions - stage 1 control Process emissions - stage 3 control Fuel prod. & conversion (other Solid fuels - Combustion than PPs) - combustion modification Industry - other combustion Solid fuels - Comb. mod. + sel. non-catal. reduction Industry - other combustion Solid fuels - Comb. mod. + sel. cat. red. €/t 7000 11976 4,1 388 7106 18468 72,7 114 1193 11000 58,4 80 1000 11000 309,9 216 2043 11768 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 SUstainable Mobility, policy Measures and Assessment Country Road transport Control option total abated (kt / a) Diesel HDV: EURO4 (NOX converter) Other sectors € / t Activity 11,5 UK low 2976 Hard coal, grade 1 central Diesel HDV: EURO4 (NOX converter) 2976 Hard coal, grade 1 high Gasoline 4-stroke pass. cars and LDV: Adv. 16396 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 130,3 Czech low Diesel HDV: EURO3 - EU2000 standards 2927 Diesel, light Republic with maint. schemes fuel oil central Diesel HDV: EURO4 (NOX converter) 3424 Hard coal, grade 1 high Gasoline 4-stroke pass. cars and LDV: Adv. 40570 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 17,1 Estonia low Diesel HDV: EURO1 - 1993 standards 1806 Heavy fuel oil central Diesel HDV: EURO4 (NOX converter) 3179 No fuel use high Hungary Latvia Gasoline 4-stroke pass. cars and LDV: Adv. 27047 Brown coal/ligconv. with maint. schemes - post-2005 nite, grade 1 total abated (kt / a) 21,3 low Gasoline HDV: catalytic converter 1925 Hard coal, grade 1 central Diesel HDV: EURO4 (NOX converter) 3709 Hard coal, grade 1 high Gasoline 4-stroke pass. cars and LDV: Adv. 38380 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 26,4 low Diesel HDV: EURO1 - 1993 standards 1945 Hard coal, grade 1 central Diesel HDV: EURO4 (NOX converter) 3424 Natural gas Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003 Sector Control option Power plants - existing boilers, dry bottom Industry - boilers Hard coal - Comb. mod. existing plant Solid fuels - Comb. mod. + sel. non-catal. reduction Oil & Gas - Comb. mod. + sel. cat. red. Industry - boilers Industry - other combustion Power plants - existing boilers, dry bottom Domestic Power plants - existing boilers, dry bottom Industry - process emissions Power plants - existing boilers, dry bottom Power plants - existing boilers, dry bottom Power plants - new boilers Power plants - existing boilers, dry bottom Power plants - existing boilers, dry bottom Industry - other combustion Oil & Gas - Combustion modification Hard coal - Comb. mod. + sel. cat. red. - existing plant Gas - Comb. mod., Commercial and Residential Oil & Gas - Comb. mod. existing plant Process emissions - stage 1 control Brown coal - Comb. mod. + sel. cat. red. - existing plant Hard coal - Comb. mod. existing plant Hard coal - sel. cat. red. new plant Oil & Gas - Comb. mod. + sel. cat. red - existing plant Hard coal - Comb. mod. existing plant Oil & Gas - Combustion modification €/t 46,4 173 2831 18575 494,2 567 2623 11153 77,5 99 1000 14043 23,5 137 1238 17375 60,6 98 649 Page 123 SUstainable Mobility, policy Measures and Assessment SUMMA Country Road transport Other sectors Control option € / t Activity high Gasoline 4-stroke pass. cars and LDV: Adv. 27047 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 30,2 Lithuania low Diesel HDV: EURO1 - 1993 standards 1945 Hard coal, grade 1 central Diesel HDV: EURO4 (NOX converter) 3424 No fuel use high Poland Slovakia Gasoline 4-stroke pass. cars and LDV: Adv. 27047 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 37,9 low Diesel HDV: EURO2 - 1996 standards 4520 Other solid low S central Diesel HDV: EURO4 (NOX converter) 6087 Hard coal, grade 1 high Gasoline 4-stroke pass. cars and LDV: Adv. 37190 No fuel use conv. with maint. schemes - post-2005 total abated (kt / a) 70,4 low Diesel HDV: EURO3 - EU2000 standards 5091 Other solid with maint. schemes low S central Diesel HDV: EURO4 (NOX converter) 5955 Natural gas high Control option Oil & Gas - Comb. mod. + sel. cat. red - existing plant Power plants - existing boilers, dry bottom Industry - process emissions Hard coal - Comb. mod. existing plant Process emissions - stage 1 control Oil & Gas - Comb. mod. + sel. cat. red - existing plant Power plants - existing boilers, dry bottom Industry - other combustion Power plants - new boilers Industry - process emissions Industry - other combustion Solid fuels - Combustion modification Hard coal - sel. cat. red. new plant Process emissions - stage 3 control Power plants - existing boilers, dry bottom Solid fuels - Combustion modification Oil & Gas - selective catalytic reduction - new plant Oil & Gas - Comb. mod. + sel. cat. red - existing plant Power plants - existing boilers, dry bottom Brown coal - Comb. mod. existing plant Power plants - new boilers Brown coal - sel. cat. red. new plant Oil & Gas - Comb. mod. + sel. cat. red. Power plants - new boilers Gasoline 4-stroke pass. cars and LDV: Adv. 40570 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 11,3 Slovenia low Diesel HDV: EURO2 - 1996 standards 2543 Brown coal/lignite, grade 1 central Diesel HDV: EURO4 (NOX converter) 3424 Brown coal/lignite, grade 1 high Gasoline 4-stroke pass. cars and LDV: Adv. 27047 Natural gas conv. with maint. schemes - post-2005 total abated (kt / a) 5,7 Page 124 Sector Power plants - existing boilers, dry bottom Industry - other combustion €/t 15079 21,6 98 1000 15079 30,5 388 1286 11000 290,1 388 2863 15079 23,4 242 2651 11976 9,9 Marginal Costs of Abatement for Environmental Problems Caused by Transport Deliverable D9, version 3.0 July 2003
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