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Strategic insights: a system dynamics approach to analyse sustainability and cost efficiency in Indian freight transportation scenarios

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  • N. Firoz
  • Vinay V. Panicker

Abstract

Freight transportation decarbonising is one of the key challenges in climate change mitigation efforts. The modal shift is considered a widely accepted effective strategy towards reducing carbon emissions in transportation. The main focus of this paper is to analyse the modal shift policy towards freight transport decarbonisation in India. A carbon tax on road transport was proposed to promote the transport to low carbon transport modes. A system dynamics model was developed to analyse the time-dependent complex freight transportation system with the introduction of a carbon tax under three scenarios. The optimal modal share can be obtained in a fast-change scenario by 2042, with a significant reduction of 37% in carbon emission and 4% in logistics cost. The fast change scenario recommends the modal transition at a rate of 1-1.5%. These findings will support the government for proactive measures for a swift transition in line with the fast-change scenario. [Submitted: 12 October 2023; Accepted: 6 August 2024]

Suggested Citation

  • N. Firoz & Vinay V. Panicker, 2025. "Strategic insights: a system dynamics approach to analyse sustainability and cost efficiency in Indian freight transportation scenarios," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 20(3), pages 335-367.
    • Handle: RePEc:ids:eujine:v:20:y:2025:i:3:p:335-367
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