Reducing CO2 from cars in the European Union
The European Union (EU) recently adopted CO2 emissions mandates for new passenger cars, requiring steady reductions to 95 gCO2/km in 2021. We use a multi-sector computable general equilibrium (CGE) model, which includes a private transportation sector with an empirically-based parameterization of th...
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| Format: | Article |
| Language: | English |
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Springer US
2018
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| Online Access: | http://hdl.handle.net/1721.1/116310 https://orcid.org/0000-0003-3287-0732 https://orcid.org/0000-0002-8578-753X https://orcid.org/0000-0001-5595-0968 |
| _version_ | 1811093103405170688 |
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| author | Löschel, Andreas von Graevenitz, Kathrine Koesler, Simon Paltsev, Sergey Chen, Yen-Heng Karplus, Valerie Jean Kishimoto, Paul Natsuo Reilly, John M |
| author2 | Massachusetts Institute of Technology. Engineering Systems Division |
| author_facet | Massachusetts Institute of Technology. Engineering Systems Division Löschel, Andreas von Graevenitz, Kathrine Koesler, Simon Paltsev, Sergey Chen, Yen-Heng Karplus, Valerie Jean Kishimoto, Paul Natsuo Reilly, John M |
| author_sort | Löschel, Andreas |
| collection | MIT |
| description | The European Union (EU) recently adopted CO2 emissions mandates for new passenger cars, requiring steady reductions to 95 gCO2/km in 2021. We use a multi-sector computable general equilibrium (CGE) model, which includes a private transportation sector with an empirically-based parameterization of the relationship between income growth and demand for vehicle miles traveled. The model also includes representation of fleet turnover, and opportunities for fuel use and emissions abatement, including representation of electric vehicles. We analyze the impact of the mandates on oil demand, CO2 emissions, and economic welfare, and compare the results to an emission trading scenario that achieves identical emissions reductions. We find that vehicle emission standards reduce CO2 emissions from transportation by about 50 MtCO2 and lower the oil expenditures by about €6 billion, but at a net added cost of €12 billion in 2020. Tightening CO2 standards further after 2021 would cost the EU economy an additional €24–63 billion in 2025, compared with an emission trading system that achieves the same economy-wide CO2 reduction. We offer a discussion of the design features for incorporating transport into the emission trading system. Keywords: emission trading, emission standards, European Union, carbon emissions, passenger cars |
| first_indexed | 2024-09-23T15:39:45Z |
| format | Article |
| id | mit-1721.1/116310 |
| institution | Massachusetts Institute of Technology |
| language | English |
| last_indexed | 2024-09-23T15:39:45Z |
| publishDate | 2018 |
| publisher | Springer US |
| record_format | dspace |
| spelling | mit-1721.1/1163102022-09-29T15:20:05Z Reducing CO2 from cars in the European Union Löschel, Andreas von Graevenitz, Kathrine Koesler, Simon Paltsev, Sergey Chen, Yen-Heng Karplus, Valerie Jean Kishimoto, Paul Natsuo Reilly, John M Massachusetts Institute of Technology. Engineering Systems Division Massachusetts Institute of Technology. Joint Program on the Science & Policy of Global Change MIT Energy Initiative Sloan School of Management Paltsev, Sergey Chen, Yen-Heng Karplus, Valerie Jean Kishimoto, Paul Natsuo Reilly, John M The European Union (EU) recently adopted CO2 emissions mandates for new passenger cars, requiring steady reductions to 95 gCO2/km in 2021. We use a multi-sector computable general equilibrium (CGE) model, which includes a private transportation sector with an empirically-based parameterization of the relationship between income growth and demand for vehicle miles traveled. The model also includes representation of fleet turnover, and opportunities for fuel use and emissions abatement, including representation of electric vehicles. We analyze the impact of the mandates on oil demand, CO2 emissions, and economic welfare, and compare the results to an emission trading scenario that achieves identical emissions reductions. We find that vehicle emission standards reduce CO2 emissions from transportation by about 50 MtCO2 and lower the oil expenditures by about €6 billion, but at a net added cost of €12 billion in 2020. Tightening CO2 standards further after 2021 would cost the EU economy an additional €24–63 billion in 2025, compared with an emission trading system that achieves the same economy-wide CO2 reduction. We offer a discussion of the design features for incorporating transport into the emission trading system. Keywords: emission trading, emission standards, European Union, carbon emissions, passenger cars United States. Department of Energy. Office of Science (DE-FG02-94ER61937) United States. Environmental Protection Agency (XA-83600001-1) 2018-06-14T15:19:23Z 2018-06-14T15:19:23Z 2016-10 2018-04-08T03:28:11Z Article http://purl.org/eprint/type/JournalArticle 0049-4488 1572-9435 http://hdl.handle.net/1721.1/116310 Paltsev, Sergey, et al. “Reducing CO2 from Cars in the European Union.” Transportation, vol. 45, no. 2, Mar. 2018, pp. 573–95. https://orcid.org/0000-0003-3287-0732 https://orcid.org/0000-0002-8578-753X https://orcid.org/0000-0001-5595-0968 en https://doi.org/10.1007/s11116-016-9741-3 Transportation Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. Springer Science+Business Media New York application/pdf Springer US Springer US |
| spellingShingle | Löschel, Andreas von Graevenitz, Kathrine Koesler, Simon Paltsev, Sergey Chen, Yen-Heng Karplus, Valerie Jean Kishimoto, Paul Natsuo Reilly, John M Reducing CO2 from cars in the European Union |
| title | Reducing CO2 from cars in the European Union |
| title_full | Reducing CO2 from cars in the European Union |
| title_fullStr | Reducing CO2 from cars in the European Union |
| title_full_unstemmed | Reducing CO2 from cars in the European Union |
| title_short | Reducing CO2 from cars in the European Union |
| title_sort | reducing co2 from cars in the european union |
| url | http://hdl.handle.net/1721.1/116310 https://orcid.org/0000-0003-3287-0732 https://orcid.org/0000-0002-8578-753X https://orcid.org/0000-0001-5595-0968 |
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