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The Role of Technologies and
Alternative FuelsDavid L. GreeneCorporate Fellow, Oak Ridge National Laboratory
Senior Fellow, Howard H. Baker, Jr. Center for Public Policy, The University of Tennessee
AASHTO/FHWA Climate Change Symposium
Washington, DC
August 5, 2010
What is transportation’s “fair share”?
• Wrong question?
• Equal reductions by all sectors?
• Equal marginal costs?▫ Just price carbon?
▫ Adapt policies to market realities?
Undervaluing energy efficiency
External costs
Co-benefits
Land use
Transportation infrastructure
Roads as public goods
Unpredictable evolution of technology
Requires comprehensive, realistic assessment, e.g., DOT, 2010, “Transportation’s Role in Reducing Greenhouse Gas Emissions”.
• My guess: 50% to 80% reduction over present levels by about 2050, and energy efficiency and alternative energy will carry most of the load.
Energy Information Administration Analysis of Alternative GHG
Reduction Policies ($30/tCO2 in 2010, $50/tCO2 in 2030)
0
500
1000
1500
2000
2500
3000
3500
2005 2010 2015 2020 2025 2030M
illio
n M
etr
ic T
on
s C
O2
Eq
uiv
ale
nt
Transportation Reference
Transportation $50/tCO2
Electric Power Reference
Electric Power $50/tCO2
The “energy paradox”: Markets appear to
undervalue future energy savings relative
to expected value.
• Inadequate information?• Bounded rationality?• Irrationality?• Unseen trade-offs?• Short pay-back periods?• Uncertainty/Loss-Aversion Bias?
▫ Future fuel savings uncertain▫ Benefit is fuel savings minus cost▫ Behavioral Economics: faced with risky bet,
consumers exaggerate probability of loss, count potential losses at 2-times potential gains.
Fuel economy standards work, which is why every
major auto manufacturing country has them.
0
25000
50000
75000
100000
125000
150000
175000
200000
225000
0
500000
1000000
1500000
2000000
2500000
3000000
1965 1970 1975 1980 1985 1990 1995 2000 2005
Ga
llo
ns
(m
illio
ns
)
Ve
hic
le M
ile
s (
millio
ns
)
Miles of Travel and Fuel Use by Light-duty Vehicles: 1965-2008
Vehicle Travel
Fuel Consumption
FHWA, Highway Statistics, table VM-1, various years.
IF we stop the horsepower and size race, MIT
researchers foresee gains of 80-85% for gasoline
passenger cars and light trucks (2-2.5%/yr.) by 2030.
Potential for Advanced Technologies to Increase Fuel Economy by 2030
31.2
49.9
58.2 56.8
90.8
25.5
42.1
51.5
46.4
86.0
20.4
32.0
40.637.9
58.6
0
10
20
30
40
50
60
70
80
90
100
2005 Base 2030 Adv. 2030 Diesel 2030 Turbo SI 2030 Hybrid
EP
A C
om
bin
ed
MP
G
Camry 2.5L
Camry 3.0
F-150 Pick-up
Kromer and Heywood, 2008. SAE Technical Paper Series, 2008-010459.
Beyond 2020: How quickly can we reduce the
costs of advanced automotive technologies?
y = 15498x2 + 4973.4x
y = 448.33x2 + 1677x
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
0% 100% 200% 300% 400% 500%
Incr
em
enta
l Re
tail
Pri
ce E
qu
ival
en
t
Percent Increase in Miles per Gallon Gasoline Equivalent Energy
Fuel Economy Cost CurvesMIT: On the Road in 2035
2005
2035
2005
2035
Battery EV
PHEV 30
Fuel Cell
Hybrid
Gasoline ICE Turbo
NRC Heavy Vehicle fuel economy report: 40% to 50%
increase with existing technologies. Then what?NRC, 2010, “Technologies and Approaches to Reducing the Fuel Consumption of Medium- and Heavy-
Duty Vehicles”, Figure S-1. Break-even fuel prices shown above bars.
$1.10
$4.20
$2.70
$5.40
$4.80
$1.70
$6.80
The RFS calls for 36 billion gallons of biofuel by 2022 but
the earliest cellulosic goal has already been missed. NRC
considers the long-term goal feasible, but….(NRC, Liquid Transportation Fuels from Coal and Biomass, 2010).
The premise of California’s Low Carbon Fuel Standard is
that a performance standard will lead to greater
innovation than mandating or subsidizing specific fuels.
6.7
2.82.3
-0.6 -0.8
-4.8
3.1
-1.3
2.6
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
Kilo
gram
s p
er L
iter
Lifetime CO2 Emissions of Several Alternative Fuels
National Research Council, 2010. Liquid Transportation Fuels from Coal and Biomass.
Which biofuels from which feedstocks
for which uses?
• Gasify biomass to produce electricity with carbon capture and storage (CCS)?
• Make synthetic jet fuel for aircraft or diesel fuel for heavy trucks via Fischer-Tropsch synthesis?
• Make synthetic jet or diesel fuel from algae?
• Make gasoline from coal and biomass with CCS?
• Make ethanol from cellulose via enzymatic production of sugar and fermentation?
• Gasify biomass to produce hydrogen?
To achieve GHG reductions of 50% to 80% by 2050, electric
vehicles will require a decarbonized utility sector and fuel
cell vehicles will require low GHG hydrogen.
And won’t energy efficiency and alternative fuels
decimate the motor fuel tax?
How could we finance surface transportation?
• Universal VMT tax?• According to the laws of physics, transportation is
“work”, and energy is necessary to do work.• Universal energy tax
▫ All forms of energy taxed equally▫ Indexed to average energy efficiency▫ Indexed to inflation▫ Equivalent impact on VMT to a universal VMT tax▫ In addition, encourages continued energy efficiency
improvement and favors more energy efficient technologies.
What will it take?
Technology, policy, planning and public will.
• Energy Efficiency▫ Passenger car and light truck standards to 2016▫ On beyond 2016▫ Heavy-duty vehicle efficiency
• Rethinking Renewable or Low-Carbon Fuels▫ The Renewable Fuels Standard▫ California’s Low-Carbon Fuels Standard▫ Future biofuels
• A Transition to Sustainable Energy▫ Electricity?▫ Hydrogen?▫ Electricity & Hydrogen?
Thank you.