Costs and benefits of using buses fuelled by natural gas in public transport

Abstract

The availability of alternative fuels for transportation means using renewable energy is an essential factor for achieving sustainable development. Natural gas use is increasing, and it ranks as one of the most often consumed alternative fuels for public transportation and is leading to improved air quality in urban areas, enabling cleaner production in the transport sector. The investment and maintenance costs for buses fuelled by compressed natural gas (CNG) are higher than for diesel buses. Notably, the use of CNG buses can reduce fuel costs. These factors have a significant influence on the financial effectiveness of deploying CNG buses for public transport. Replacing diesel buses with CNG buses in urban transport reduces the emission of toxic substances and greenhouse gases and contributes to reducing the negative impact from the transportation sector on the environment. Fuelling the buses with a renewable energy source also results in reduced external costs, a crucial factor in determining the economic effectiveness of investments in the transport sector. This paper considers the costs and benefits associated with the purchase and use of CNG buses for public transport and presents the results of an evaluation of their financial and economic effectiveness. Additionally, the benefits resulting from reducing the negative impacts of the public transport sector on the environment, which is a crucial factor for cleaner production in the transport sector and fulfilling the aims of the sustainable development strategy, are calculated. On this basis, economic policy recommendations were formulated.