EXTERNAL COSTS OF ROAD TRANSPORT IN FRAMES OF THE TRANSITION TO A LOW-CARBON ECONOMY

Abstract

In order to make the transition to a low-carbon economy and sustainable transport system and solve environmental and climate problems, many countries are replacing traditional cars that run on petroleum fuels with electric cars. Unlike vehicles with an internal combustion engine (ICE), electric vehicles` emissions from the operation phase are practically zero, but this is not the case if we consider the full life cycle. In this paper, we briefly describe the electric vehicle market, examine the life-cycle emissions of electric cars and ICE cars. The novelty of this study is in a methodological approach to the economic assessment of the negative impact of emissions from road transport and in a comparative assessment of the external costs of cars that run on traditional and alternative fuels. We applied the methodology of the Organization for Economic Cooperation and Development (OECD), which allows calculating country-specific and time-adjusted value of a statistical life. In this paper the characteristics of Russia`s energy balance and automotive market are considered. We came to results that, in general, in this country electric cars are more environmentally friendly and contribute less to climate change than cars with internal combustion engines. The external costs caused by life-cycle greenhouse gas emissions of an electric car are lower than similar emissions from a traditional car. The external costs caused by emissions of pollutants from the electric car operation phase are lower than external costs caused by emissions from an ICE car. The proposed study could be of interest for policymakers in other countries to develop measures for sustainable transport system.