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Leveling the playing field of transportation fuels: Accounting for indirect emissions of natural gas

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  • Sexton, Steven
  • Eyer, Jonathan

Abstract

Natural gas transportation fuels are credited in prior studies with greenhouse gas emissions savings relative to petroleum-based fuels and relative to the total emissions of biofuels. These analyses, however, overlook a source of potentially large indirect emissions from natural gas transportation fuels, namely the emissions from incremental coal-fired generation caused by price-induced substitutions away from natural-gas-fired electricity generation. Because coal-fired generation emits substantially more greenhouse gases and criteria air pollutants than natural-gas-fired generation, this indirect coal-use change effect diminishes potential emissions savings from natural gas transportation fuels. Estimates from a parameterized multi-market model suggest the indirect coal-use change effect rivals in magnitude the indirect land-use change effect of biofuels and renders natural gas fuels as carbon intensive as petroleum fuels.

Suggested Citation

  • Sexton, Steven & Eyer, Jonathan, 2016. "Leveling the playing field of transportation fuels: Accounting for indirect emissions of natural gas," Energy Policy, Elsevier, vol. 95(C), pages 21-31.
    • Handle: RePEc:eee:enepol:v:95:y:2016:i:c:p:21-31
    DOI: 10.1016/j.enpol.2016.04.023
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