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Analysis of policies to reduce oil consumption and greenhouse-gas emissions from the US transportation sector

Listed author(s):
  • Ross Morrow, W.
  • Gallagher, Kelly Sims
  • Collantes, Gustavo
  • Lee, Henry
Registered author(s):

    Even as the US debates an economy-wide CO2 cap-and-trade policy the transportation sector remains a significant oil security and climate change concern. Transportation alone consumes the majority of the US's imported oil and produces a third of total US Greenhouse-Gas (GHG) emissions. This study examines different sector-specific policy scenarios for reducing GHG emissions and oil consumption in the US transportation sector under economy-wide CO2 prices. The 2009 version of the Energy Information Administration's (EIA) National Energy Modeling System (NEMS), a general equilibrium model of US energy markets, enables quantitative estimates of the impact of economy-wide CO2 prices and various transportation-specific policy options. We analyze fuel taxes, continued increases in fuel economy standards, and purchase tax credits for new vehicle purchases, as well as the impacts of combining these policies. All policy scenarios modeled fail to meet the Obama administration's goal of reducing GHG emissions 14% below 2005 levels by 2020. Purchase tax credits are expensive and ineffective at reducing emissions, while the largest reductions in GHG emissions result from increasing the cost of driving, thereby damping growth in vehicle miles traveled.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(09)00834-9
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    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 38 (2010)
    Issue (Month): 3 (March)
    Pages: 1305-1320

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    Handle: RePEc:eee:enepol:v:38:y:2010:i:3:p:1305-1320
    Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

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    1. Jonathan E. Hughes & Christopher R. Knittel & Daniel Sperling, 2008. "Evidence of a Shift in the Short-Run Price Elasticity of Gasoline Demand," The Energy Journal, International Association for Energy Economics, vol. 29(1), pages 113-134.
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    7. anonymous, 2009. "Atlanta Fed president: real estate recovery critical," Financial Update, Federal Reserve Bank of Atlanta.
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