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Carbon credits and urban freight consolidation: An experiment using agent based simulation

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  • Anand, Nilesh
  • van Duin, Ron
  • Tavasszy, Lorant

Abstract

Consolidation of goods is a promising strategy for reducing city logistics problems. For the last two decades, the concept of urban consolidation centres (UCCs) has been implemented in different cities. UCCs that were started for special subsectors (e.g. construction material handling) are relatively successful; however, general purpose UCCs are not performing well at all. Most UCCs are financially dependent on government support. The UCC concept can be successfully implemented by developing a consistent subsidy or tax scheme aiming to internalize the negative external effects of conventional urban goods distribution. In this paper, we describe and test such policy - a delivery cap and price (DCAP) scenario, combined with a subsidy for a UCC alternative – to reduce carbon emissions for urban goods delivery. The scenario introduces a cap on goods deliveries made to shopkeepers by conventional vehicles, using so-called carbon credit points (CCPs). We demonstrate this policy with a stylized implementation of a city logistics agent based model for the inner city of Rotterdam. The results indicate that this financial scheme could positively influences the use of UCC, ensures its financial viability and significantly reduce the external effects of urban freight transport.

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  • Anand, Nilesh & van Duin, Ron & Tavasszy, Lorant, 2021. "Carbon credits and urban freight consolidation: An experiment using agent based simulation," Research in Transportation Economics, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:retrec:v:85:y:2021:i:c:s0739885919303178
    DOI: 10.1016/j.retrec.2019.100797
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    References listed on IDEAS

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    Cited by:

    1. Athar Ajaz Khan & János Abonyi, 2022. "Simulation of Sustainable Manufacturing Solutions: Tools for Enabling Circular Economy," Sustainability, MDPI, vol. 14(15), pages 1-40, August.
    2. Giacomo Lozzi & Gabriele Iannaccone & Ila Maltese & Valerio Gatta & Edoardo Marcucci & Riccardo Lozzi, 2022. "On-Demand Logistics: Solutions, Barriers, and Enablers," Sustainability, MDPI, vol. 14(15), pages 1-21, August.
    3. Beckers, Joris & Cardenas, Ivan & Le Pira, Michela & Zhang, Jia, 2023. "Exploring Logistics-as-a-Service to integrate the consumer into urban freight," Research in Transportation Economics, Elsevier, vol. 101(C).

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    More about this item

    Keywords

    City logistics; Urban freight transport; Urban consolidation centre; Cap and trade; Carbon credit points; Agent-based modelling;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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