EXTERNAL COSTS OF ROAD TRANSPORTIN THE CONTEXT OF TRANSITION TO LOW-CARBON ECONOMY: RUSSIAN EXPERIENCE

Abstract

To make the transition to a low-carbon economy and sustainable transport system, to solve environmental and climate problems, many countries are replacing traditional cars that run on petroleum fuel with electric cars. Unlike vehicles with an internal combustion engine (ICE),electric vehicles` emission from operation phase are practically zero, but this is not the case if we consider a full life cycle. In this paper, we briefly describe the electric vehicle market, examine the life-cycle emissions of electric cars and ICE cars, propose a methodological approach to the economic assessment of negative impact of emissions from road transport, carry out a comparative assessment of external costs of cars that run on traditional and alternative fuel. To achieve these goals, we use the methodology of the Organization for Economic Cooperation and Development (OECD), which allows to calculate country-specific and time-adjusted value of a statistical life, and consider the characteristics of Russia`s energy balance and automotive market. The results demonstrate that, in general, under Russian conditions, 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 by about 70 rubles per 100 km. The external costs caused by emissions of pollutants from the electric car operationphase are lower than external costs caused by emissions from an ICE car by approximately20 rubles per 100 km.