An Approach to Study Impact of Public Policy, Exogenous Variables, and Vehicle Design on Greenhouse Gas Emission
The aim of this paper is to study the impact of public policies and uncontrollable (exogenous) variables as well as optimal vehicle design on greenhouse gas (GHG) emissions in the US transportation sector. The overall model is divided into the government model and an enterprise model. To examine the effect of GHG emissions and exogenous variables, the optimization model includes public policy, exogenous variables, and a market mix focusing on the GHG effects of four different types of vehicles, 1) gasoline-based 2) gasoline-electric hybrid or alternative-fuel vehicles (AFVs), 3) battery-electric (BEVs) and 4) fuel-cell vehicles (FCVs). The public policies taken into consideration are infrastructure investments for hydrogen fueling stations and subsidies for purchasing AFVs. An exogenous variable taken into consideration are gasoline prices. For each selection of public policy and exogenous variables in the government model, the enterprise model finds the optimum vehicle design that maximizes profit and updates the market mix, from which the government model can estimate GHG emissions for that selection and can choose a public policy accordingly to produce a desired effect. This paper demonstrates the model using FCV design as an illustrative example.
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The aim of this paper is to study the impact of public government policies, fuel cell cost, and battery cost on greenhouse gas (GHG) emissions in the US transportation sector. The model includes a government model and an enterprise model. To examine the effect on GHG emissions that fuel cell and battery cost has, the optimization model includes public policy, fuel cell and battery cost, and a market mix focusing on the GHG effects of four different types of vehicles, 1) gasoline-based 2) gasoline-electric hybrid or alternative-fuel vehicles (AFVs), 3) battery-electric (BEVs) and 4) fuel-cell vehicles (FCVs). The public policies taken into consideration are infrastructure investments for hydrogen fueling stations and subsidies for purchasing AFVs. For each selection of public policy, fuel cell cost and battery cost in the government model, the enterprise model finds the optimum vehicle design that maximizes profit and updates the market mix, from which the government model can estimate GHG emissions. This paper demonstrates the model using FCV design as an illustrative example.
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Plug-in hybrid electric vehicles (PHEVs) have potential to reduce greenhouse gas (GHG) emissions in the U.S. light-duty vehicle fleet. GHG emissions from PHEVs and other vehicles depend on both vehicle design and driver behavior. We pose a twice-differentiable, factorable mixed-integer nonlinear programming model utilizing vehicle physics simulation, battery degradation data, and U.S. driving data to determine optimal vehicle design and allocation for minimizing lifecycle greenhouse gas (GHG) emissions. The resulting nonconvex optimization problem is solved using a convexification-based branch-and-reduce algorithm, which achieves global solutions. In contrast, a randomized multistart approach with local search algorithms finds global solutions in 59% of trials for the two-vehicle case and 18% of trials for the three-vehicle case. Results indicate that minimum GHG emissions is achieved with a mix of PHEVs sized for around 35 miles of electric travel. Larger battery packs allow longer travel on electric power, but additional battery production and weight result in higher GHG emissions, unless significant grid decarbonization is achieved. PHEVs offer a nearly 50% reduction in life cycle GHG emissions relative to equivalent conventional vehicles and about 5% improvement over ordinary hybrid electric vehicles. Optimal allocation of different vehicles to different drivers turns out to be of second order importance for minimizing net life cycle GHGs.
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Plug-in hybrid electric vehicle (PHEV) technology has the potential to help address economic, environmental, and national security concerns in the United States by reducing operating cost, greenhouse gas (GHG) emissions and petroleum consumption from the transportation sector. However, the net effects of PHEVs depend critically on vehicle design, battery technology, and charging frequency. To examine these implications, we develop an integrated optimization model utilizing vehicle physics simulation, battery degradation data, and U.S. driving data to determine optimal vehicle design and allocation of vehicles to drivers for minimum life cycle cost, GHG emissions, and petroleum consumption. We find that, while PHEVs with large battery capacity minimize petroleum consumption, a mix of PHEVs sized for 25–40 miles of electric travel produces the greatest reduction in lifecycle GHG emissions. At today’s average US energy prices, battery pack cost must fall below $460/kWh (below $300/kWh for a 10% discount rate) for PHEVs to be cost competitive with ordinary hybrid electric vehicles (HEVs). Carbon allowance prices have marginal impact on optimal design or allocation of PHEVs even at $100/tonne. We find that the maximum battery swing should be utilized to achieve minimum life cycle cost, GHGs, and petroleum consumption. Increased swing enables greater all-electric range (AER) to be achieved with smaller battery packs, improving cost competitiveness of PHEVs. Hence, existing policies that subsidize battery cost for PHEVs would likely be better tied to AER, rather than total battery capacity.
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Taking Stock of Strategies on Climate Change and the Way Forward: A Strategic Climate Change Framework for Australia
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