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How to Be a Good Forerunner in Carbon Neutral Trucking

Author

Listed:
  • Christina Littlejohn
  • Stef Proost

Abstract

EU countries want to decarbonize their road freight transport quickly. Long-haul electric trucks are a promising technology. There are several competing designs but at present the trade-off is between e-trucks with very large batteries and e-trucks with a smaller battery but combined with motorways electrified via catenary lines. In the latter case a combination of public investment (catenary lines on major motorways) and private investment (electric trucks) is required. As long-haul truck transport is partly international this raises problems of coordination among countries. We study the possible pricing and investment strategy of one forerunner country that faces lagging neighbors. The forerunner can make the use of electric trucks mandatory on its own territory by using very high road charges for diesel trucks. If it has opted for a catenary system, it faces still the choice of how it will price the use of its electric motorways. International diesel trucks, when crossing the border of a forerunner country, have to choose between paying high charges and transferring the load into an e-truck. We study the outcome of this international coordination game exploring the non-cooperative outcome varying the relative size of the forerunner in international truck traffic and varying the cost of electric highways.

Suggested Citation

  • Christina Littlejohn & Stef Proost, 2021. "How to Be a Good Forerunner in Carbon Neutral Trucking," CESifo Working Paper Series 8876, CESifo.
    • Handle: RePEc:ces:ceswps:_8876
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp8876.pdf
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    References listed on IDEAS

    as
    1. Börjesson, Maria & Johansson, Magnus & Kågeson, Per, 2020. "The economics of electric roads," Papers 2020:1, Research Programme in Transport Economics.
    2. Mandell, Svante & Proost, Stef, 2016. "Why truck distance taxes are contagious and drive fuel taxes to the bottom," Journal of Urban Economics, Elsevier, vol. 93(C), pages 1-17.
    3. Liimatainen, Heikki & van Vliet, Oscar & Aplyn, David, 2019. "The potential of electric trucks – An international commodity-level analysis," Applied Energy, Elsevier, vol. 236(C), pages 804-814.
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    Cited by:

    1. Ovaere, Marten & Proost, Stef, 2022. "Cost-effective reduction of fossil energy use in the European transport sector: An assessment of the Fit for 55 Package," Energy Policy, Elsevier, vol. 168(C).

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    More about this item

    Keywords

    electric trucks; freight transport; climate policy; tax exporting; distance charging;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • 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

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