Transportation on reducing emissions in transportation sector is

Transportationsector contributes to a considerable share of energy consumption and GreenhouseGas (GHG) emissions worldwide. In 2015, 50% of world oil consumption wasconsumed for road transportation 1.In 2014, 35% of energy was used in transportation sector (21% of world energyconsumption was used in passenger cars) 1.In 2010, about 14% of worldwide GHG emissions was from transportation sector 2.However, theshare of transportation sector in a country’s GHG emissions varies among thecountries all over the world.

For instance in the US, transportation sector ismajor contributor to GHG emissions and accounts for 27% of GHG emission in 20153.Out of that 27%, 60% of emission is from light-duty vehicles and 23% frommedium and heavy-duty vehicles 4.In China, this share is smaller and transportation sector accounted for 6% ofemissions in 2012 5.The importantissue regarding the emissions from transportation sector is that the GHGemission emitted from combustion in Internal Combustion Engine Vehicles (ICEVs)is emitted in urban areas where a considerable population lives. It should benoted that emission accompanied with ICEVs is not just limited to CO2emissions but these vehicles emit particulates and also NOx, CO andhydrocarbons which are considered as local pollutants 6.These emissions affect the local air pollution and may cause health issues inurban areas. Another reasonfor focus on reducing emissions in transportation sector is the potential available in transportation sector for reducing emissioncompared to potential in industrial and electricity sectors. The research andpolicies in support of renewable energy development in electricity sector andenergy conservation management in industrial sector have been in place for along time.

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This means that a considerable amount of potential in GHG emissionreduction in those sectors have been already captured.However, fossil fuels (petroleum and other liquid fuels such as natural gasplant liquids, biofuels, gas-to-liquids, and coal-to-liquids) account for 96 % of energy consumption in transportation sector 7.This is a notable point especially for countries that have a high percentof emission-free electricity generation capacity and can use that emission-freeelectricity to provide energy needed in transportation sector.To cut CO2 emissions by 80% by 2050 (as decided by G8leaders and the European Union in 2009), a 95% carbon emission reduction shouldhappen in transport sector 6. However, based on the expected number of passenger carsby 2050 and knowing the emissions and efficiency of ICEVs, the reduction targetfor transportation sector cannot be achieved through increase in efficiency ofICEVs alone. Knowing this limit, different countries/jurisdictions allover the world have invested on alternative fuel vehicles. As defined by the USDepartment of Energy, an alternative fuel vehicle is “a dedicated, flexible fuel, or dual-fuel vehicle designed to operate onat least one alternative fuel” 8.

Biodiesel, electricity, ethanol, hydrogen,natural gas, or propane are considered as alternative fuels 8. In this work,we are focusing on vehicles that operate on hydrogen and electricity as analternative fuel. We are not considering biodiesel and ethanol as there isuncertainty about the capability of biofuels to fuel the transportation sectorat large scale 6.We are not also considering natural gas and propane as they are considered asfossil fuels like gasoline and diesel although they may have lower emissions. The focus ofthis work is then on incentives allocated to electric vehicles (EVs). By EVs inthis work, we mean the vehicles that fully or partly move by an electric motor 9.

EVs have different technologies. In this work we are considering three EVtechnologies:


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