IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v148y2021ipas0301421520306327.html
   My bibliography  Save this article

The environmental benefits of transportation electrification: Urban buses

Author

Listed:
  • Holland, Stephen P.
  • Mansur, Erin T.
  • Muller, Nicholas Z.
  • Yates, Andrew J.

Abstract

Rapid technological change is opening new possibilities for electrification of the transportation sector. This paper offers novel empirical guidance to policymakers considering investments in electric urban buses. We determine the environmental benefit of using electric buses rather than diesel or Compressed Natural Gas (CNG) for urban transit. For diesel and CNG we calculate air pollution damages by combining emission rates with damage valuations from the AP3 integrated assessment model and the social cost of carbon. For electric buses we calculate air pollution damages by combining the damage valuations with estimates of the marginal increase in emissions from electricity usage. The environmental benefit is positive on average across all counties in the contiguous U.S. when comparing electric to either diesel or CNG. The environmental benefit of operating an electric bus fleet (rather than diesel) is about $65 million per year in Los Angeles and above $10 million per year in six other MSAs. Including the environmental benefit, we calculate the net present value (NPV) of bus investment. Relative to diesel, the NPV benefit of an electric bus is positive in about two thirds of urban counties. Relative to CNG, the NPV benefit is negative in all counties.

Suggested Citation

  • Holland, Stephen P. & Mansur, Erin T. & Muller, Nicholas Z. & Yates, Andrew J., 2021. "The environmental benefits of transportation electrification: Urban buses," Energy Policy, Elsevier, vol. 148(PA).
    • Handle: RePEc:eee:enepol:v:148:y:2021:i:pa:s0301421520306327
    DOI: 10.1016/j.enpol.2020.111921
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421520306327
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2020.111921?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Noel, Lance & McCormack, Regina, 2014. "A cost benefit analysis of a V2G-capable electric school bus compared to a traditional diesel school bus," Applied Energy, Elsevier, vol. 126(C), pages 246-255.
    2. Shanjun Li & Lang Tong & Jianwei Xing & Yiyi Zhou, 2017. "The Market for Electric Vehicles: Indirect Network Effects and Policy Design," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(1), pages 89-133.
    3. Stephen P. Holland & Erin T. Mansur & Nicholas Z. Muller & Andrew J. Yates, 2020. "Decompositions and Policy Consequences of an Extraordinary Decline in Air Pollution from Electricity Generation," American Economic Journal: Economic Policy, American Economic Association, vol. 12(4), pages 244-274, November.
    4. Duncan S. Callaway & Meredith Fowlie & Gavin McCormick, 2018. "Location, Location, Location: The Variable Value of Renewable Energy and Demand-Side Efficiency Resources," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(1), pages 39-75.
    5. Stephen P. Holland & Erin T. Mansur & Nicholas Z. Muller & Andrew J. Yates, 2016. "Are There Environmental Benefits from Driving Electric Vehicles? The Importance of Local Factors," American Economic Review, American Economic Association, vol. 106(12), pages 3700-3729, December.
    6. Lajunen, Antti & Lipman, Timothy, 2016. "Lifecycle cost assessment and carbon dioxide emissions of diesel, natural gas, hybrid electric, fuel cell hybrid and electric transit buses," Energy, Elsevier, vol. 106(C), pages 329-342.
    7. Graff Zivin, Joshua S. & Kotchen, Matthew J. & Mansur, Erin T., 2014. "Spatial and temporal heterogeneity of marginal emissions: Implications for electric cars and other electricity-shifting policies," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 248-268.
    8. Mahmoud, Moataz & Garnett, Ryan & Ferguson, Mark & Kanaroglou, Pavlos, 2016. "Electric buses: A review of alternative powertrains," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 673-684.
    9. Stephen P. Holland & Erin T. Mansur & Nicholas Z. Muller & Andrew J. Yates, 2019. "Distributional Effects of Air Pollution from Electric Vehicle Adoption," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(S1), pages 65-94.
    10. Karen Clay & Akshaya Jha & Nicholas Muller & Randall Walsh, 2019. "External Costs of Transporting Petroleum Products: Evidence from Shipments of Crude Oil from North Dakota by Pipelines and Rail," The Energy Journal, , vol. 40(1), pages 55-72, January.
    11. Shirazi, Yosef & Carr, Edward & Knapp, Lauren, 2015. "A cost-benefit analysis of alternatively fueled buses with special considerations for V2G technology," Energy Policy, Elsevier, vol. 87(C), pages 591-603.
    12. Archsmith, James & Kendall, Alissa & Rapson, David, 2015. "From Cradle to Junkyard: Assessing the Life Cycle Greenhouse Gas Benefits of Electric Vehicles," Research in Transportation Economics, Elsevier, vol. 52(C), pages 72-90.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Kaike & Yin, Ru & He, Qiang & Wang, Shuhong, 2024. "Transfer payments and carbon reduction in China: The effect of the national comprehensive demonstration city of energy saving and emission reduction fiscal policy," Energy, Elsevier, vol. 297(C).
    2. Robert Huang & Matthew E. Kahn, 2024. "Household carbon dioxide emissions Engel Curve dynamics," Contemporary Economic Policy, Western Economic Association International, vol. 42(3), pages 396-415, July.
    3. Cui, Yin & Li, Zhiyong & Sun, Yu & Sun, Weizheng, 2023. "Environmental performance of an urban passenger transport system and influencing factors: A case study of Tianjin, China," Utilities Policy, Elsevier, vol. 80(C).
    4. Huang, Robert & Kahn, Matthew E., 2024. "An economic analysis of United States public transit carbon emissions dynamics," Regional Science and Urban Economics, Elsevier, vol. 107(C).
    5. Peng, Zhenhan & Wang, Zhuowei & Wang, Shiqi & Chen, Anthony & Zhuge, Chengxiang, 2024. "Fuel and infrastructure options for electrifying public transit: A data-driven micro-simulation approach," Applied Energy, Elsevier, vol. 369(C).
    6. Krzysztof KRAWIEC, 2021. "Vehicle Cycle Hierarchization Model To Determine The Order Of Battery Electric Bus Deployment In Public Transport," Transport Problems, Silesian University of Technology, Faculty of Transport, vol. 16(1), pages 99-112, March.
    7. Avenali, Alessandro & Catalano, Giuseppe & Giagnorio, Mirko & Matteucci, Giorgio, 2024. "Factors influencing the adoption of zero-emission buses: A review-based framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 197(C).
    8. Maciej Dzikuć & Rafał Miśko & Szymon Szufa, 2021. "Modernization of the Public Transport Bus Fleet in the Context of Low-Carbon Development in Poland," Energies, MDPI, vol. 14(11), pages 1-12, June.
    9. Paulo J. G. Ribeiro & José F. G. Mendes, 2022. "Public Transport Decarbonization via Urban Bus Fleet Replacement in Portugal," Energies, MDPI, vol. 15(12), pages 1-16, June.
    10. Shilpa Dogra & Nicholas O’Rourke & Michael Jenkins & Daniel Hoornweg, 2021. "Integrated Urban Mobility for Our Health and the Climate: Recommended Approaches from an Interdisciplinary Consortium," Sustainability, MDPI, vol. 13(22), pages 1-12, November.
    11. Giagnorio, Mirko & Börjesson, Maria & D'Alfonso, Tiziana, 2024. "Introducing electric buses in urban areas: Effects on welfare, pricing, frequency, and public subsidies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 185(C).
    12. Li, Ping & Zhang, ZhongXiang, 2023. "The effects of new energy vehicle subsidies on air quality: Evidence from China," Energy Economics, Elsevier, vol. 120(C).
    13. Manzolli, Jônatas Augusto & Trovão, João Pedro & Antunes, Carlos Henggeler, 2022. "A review of electric bus vehicles research topics – Methods and trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephen P. Holland & Erin T. Mansur & Nicholas Z. Muller & Andrew J. Yates, 2020. "The Environmental Benefits from Transportation Electrification: Urban Buses," NBER Working Papers 27285, National Bureau of Economic Research, Inc.
    2. Kenneth Gillingham & Marten Ovaere & Stephanie Weber, 2021. "Carbon Policy and the Emissions Implications of Electric Vehicles," CESifo Working Paper Series 8974, CESifo.
    3. Stephen P. Holland & Erin T. Mansur & Andrew J. Yates, 2021. "The Electric Vehicle Transition and the Economics of Banning Gasoline Vehicles," American Economic Journal: Economic Policy, American Economic Association, vol. 13(3), pages 316-344, August.
    4. Harding, Matthew & Kettler, Kyle & Lamarche, Carlos & Ma, Lala, 2023. "The (alleged) environmental and social benefits of dynamic pricing," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 574-593.
    5. Li, Ping & Zhang, ZhongXiang, 2023. "The effects of new energy vehicle subsidies on air quality: Evidence from China," Energy Economics, Elsevier, vol. 120(C).
    6. Roberto Amaral-Santos & Ariaster Chimeli & Joao Paulo Pessoa, 2023. "Natural Gas Vehicles: Consequences to Fuel Markets and the Environment," Working Papers, Department of Economics 2023_07, University of São Paulo (FEA-USP).
    7. Leslie A. Martin, 2022. "Driving on Sunbeams: Interactions Between Price Incentives for Electric Vehicles, Residential Solar Photovoltaics and Household Battery Systems," Economic Papers, The Economic Society of Australia, vol. 41(4), pages 369-384, December.
    8. James Archsmith & Erich Muehlegger & David S. Rapson, 2022. "Future Paths of Electric Vehicle Adoption in the United States: Predictable Determinants, Obstacles, and Opportunities," Environmental and Energy Policy and the Economy, University of Chicago Press, vol. 3(1), pages 71-110.
    9. Stephen P. Holland & Erin T. Mansur & Nicholas Z. Muller & Andrew J. Yates, 2019. "Distributional Effects of Air Pollution from Electric Vehicle Adoption," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(S1), pages 65-94.
    10. Pessoa, Joao Paulo & Santos, Roberto Amaral & Chimeli, Ariaster, 2023. "Natural Gas Vehicles: Consequences to Fuel Markets and the Environment," SocArXiv 7tvgy, Center for Open Science.
    11. Xing, Jianwei & Leard, Benjamin & Li, Shanjun, 2021. "What does an electric vehicle replace?," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).
    12. Carley, Sanya & Zirogiannis, Nikolaos & Siddiki, Saba & Duncan, Denvil & Graham, John D., 2019. "Overcoming the shortcomings of U.S. plug-in electric vehicle policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    13. James Bushnell & David Rapson, 2022. "The Electric Ceiling: Limits and Costs of Full Electrification," Working Papers 2220, Federal Reserve Bank of Dallas.
    14. Sheldon, Tamara L. & Dua, Rubal, 2018. "Gasoline savings from clean vehicle adoption," Energy Policy, Elsevier, vol. 120(C), pages 418-424.
    15. Meunier, Guy & Ponssard, Jean-Pierre, 2020. "Optimal policy and network effects for the deployment of zero emission vehicles," European Economic Review, Elsevier, vol. 126(C).
    16. Zunian Luo, 2022. "Powering Up a Slow Charging Market: How Do Government Subsidies Affect Charging Station Supply?," Papers 2210.14908, arXiv.org, revised Jan 2023.
    17. Lucas W. Davis & James M. Sallee, 2020. "Should Electric Vehicle Drivers Pay a Mileage Tax?," Environmental and Energy Policy and the Economy, University of Chicago Press, vol. 1(1), pages 65-94.
    18. Stephen P. Holland & Erin T. Mansur & Nicholas Z. Muller & Andrew J. Yates, 2020. "Decompositions and Policy Consequences of an Extraordinary Decline in Air Pollution from Electricity Generation," American Economic Journal: Economic Policy, American Economic Association, vol. 12(4), pages 244-274, November.
    19. Andor, Mark A. & Gerster, Andreas & Peters, Jörg & Schmidt, Christoph M., 2020. "Social Norms and Energy Conservation Beyond the US," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    20. Jianwei Xing & Benjamin Leard & Shanjun Li, 2019. "What Does an Electric Vehicle Replace?," NBER Working Papers 25771, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Air pollution; Transit buses; Electricity; Environmental policy;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:148:y:2021:i:pa:s0301421520306327. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.