Abstract

This paper compares emissions from natural gas vehicles (NGVs) with those from vehicles using conventional fuels, and discusses the environmental and other external costs of road vehicle emissions. British Gas has taken the initiative in introducing NGVs in the UK, and has already invested about #10 million in NGV development. In the UK, there are over 300 vehicles running on natural gas, and eight fast-fill gas refuelling stations. The paper shows that NGVs have significant advantages over petrol and diesel engines, with respect to urban air quality and global warming impact. In particular, it shows that they have substantially reduced emissions of those pollutants that cause most concern, including: (1) nitrogen oxides (NOx); (2) fine particulates; and (3) pollutants with the potential to form ozone at ground level. Large reductions can be made in the social costs of transport, as a result of a shift from petrol and diesel to natural gas. In so far as these environmental advantages are not properly reflected in fuel prices, transport markets are inefficient, so that the environment suffers. Therefore, NGVs are a realistic alternative, that can make an important contribution to reducing the key environmental impacts of road vehicles.

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