IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v190y2024ics0301421524001514.html
   My bibliography  Save this article

Future-proof rates for controlled electric vehicle charging: Comparing multi-year impacts of different emission factor signals

Author

Listed:
  • Powell, Siobhan
  • Martin, Sonia
  • Rajagopal, Ram
  • Azevedo, Inês M.L.
  • de Chalendar, Jacques

Abstract

Electricity pricing can be used to shift the timing of electricity demand, but the choice of price signals is highly constrained. Consumer rates are updated every few years and limited to simple daily profiles, yet must capture the complex dynamics of a changing electricity system. Emission factors (EFs) were developed as an evaluation tool, but are increasingly used as demand response (DR) signals. Given these constraints, can they be effective? We evaluate the emissions impact of EF-based electricity rates with and without supply-side emissions pricing. We study controlled electric vehicle (EV) charging in the Western U.S. up to 2037 by coupling an electricity system dispatch model and a data-driven EV charging model. We compare average and short-run marginal EFs with a new medium-run marginal EF that better matches the timeline of electricity rate updates. We find that a stable supply-side signal makes DR more valuable: DR reduces emissions by up to 6% with supply-side carbon pricing or just 2% without it. Medium-run marginal EFs yield the most consistent emission reductions, but constraints on charging flexibility limit their impact. We recommend policymakers base rates for DR on medium-run marginal emission factors and implement supply-side carbon pricing to facilitate greater emission reductions.

Suggested Citation

  • Powell, Siobhan & Martin, Sonia & Rajagopal, Ram & Azevedo, Inês M.L. & de Chalendar, Jacques, 2024. "Future-proof rates for controlled electric vehicle charging: Comparing multi-year impacts of different emission factor signals," Energy Policy, Elsevier, vol. 190(C).
    • Handle: RePEc:eee:enepol:v:190:y:2024:i:c:s0301421524001514
    DOI: 10.1016/j.enpol.2024.114131
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421524001514
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2024.114131?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. Siobhan Powell & Gustavo Vianna Cezar & Liang Min & Inês M. L. Azevedo & Ram Rajagopal, 2022. "Charging infrastructure access and operation to reduce the grid impacts of deep electric vehicle adoption," Nature Energy, Nature, vol. 7(10), pages 932-945, October.
    2. Hanemann, Philipp & Behnert, Marika & Bruckner, Thomas, 2017. "Effects of electric vehicle charging strategies on the German power system," Applied Energy, Elsevier, vol. 203(C), pages 608-622.
    3. Stephen P. Holland & Matthew J. Kotchen & Erin T. Mansur & Andrew J. Yates, 2022. "Why marginal CO 2 emissions are not decreasing for US electricity: Estimates and implications for climate policy," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 119(8), pages 2116632119-, February.
    4. Chen, Jiahui & Wang, Fang & He, Xiaoyi & Liang, Xinyu & Huang, Junling & Zhang, Shaojun & Wu, Ye, 2022. "Emission mitigation potential from coordinated charging schemes for future private electric vehicles," Applied Energy, Elsevier, vol. 308(C).
    5. 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.
    6. Florian van Triel & Timothy E. Lipman, 2020. "Modeling the Future California Electricity Grid and Renewable Energy Integration with Electric Vehicles," Energies, MDPI, vol. 13(20), pages 1-20, October.
    7. Hawkes, A.D., 2014. "Long-run marginal CO2 emissions factors in national electricity systems," Applied Energy, Elsevier, vol. 125(C), pages 197-205.
    8. Jochem, Patrick & Babrowski, Sonja & Fichtner, Wolf, 2015. "Assessing CO2 emissions of electric vehicles in Germany in 2030," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 68-83.
    9. Powell, Siobhan & Cezar, Gustavo Vianna & Rajagopal, Ram, 2022. "Scalable probabilistic estimates of electric vehicle charging given observed driver behavior," Applied Energy, Elsevier, vol. 309(C).
    10. Daneshzand, Farzaneh & Coker, Phil J & Potter, Ben & Smith, Stefan T, 2023. "EV smart charging: How tariff selection influences grid stress and carbon reduction," Applied Energy, Elsevier, vol. 348(C).
    11. 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.
    12. Kang, Zixuan & Ye, Zhongnan & Lam, Chor-Man & Hsu, Shu-Chien, 2023. "Sustainable electric vehicle charging coordination: Balancing CO2 emission reduction and peak power demand shaving," Applied Energy, Elsevier, vol. 349(C).
    13. Powell, Siobhan & Vianna Cezar, Gustavo & Apostolaki-Iosifidou, Elpiniki & Rajagopal, Ram, 2022. "Large-scale scenarios of electric vehicle charging with a data-driven model of control," Energy, Elsevier, vol. 248(C).
    14. John E. T. Bistline & Geoffrey Blanford & John Grant & Eladio Knipping & David L. McCollum & Uarporn Nopmongcol & Heidi Scarth & Tejas Shah & Greg Yarwood, 2022. "Economy-wide evaluation of CO2 and air quality impacts of electrification in the United States," Nature Communications, Nature, vol. 13(1), pages 1-12, December.
    15. Levin, Todd & Kwon, Jonghwan & Botterud, Audun, 2019. "The long-term impacts of carbon and variable renewable energy policies on electricity markets," Energy Policy, Elsevier, vol. 131(C), pages 53-71.
    16. Gumber, Anurag & Zana, Riccardo & Steffen, Bjarne, 2024. "A global analysis of renewable energy project commissioning timelines," Applied Energy, Elsevier, vol. 358(C).
    17. Tarroja, Brian & Shaffer, Brendan & Samuelsen, Scott, 2015. "The importance of grid integration for achievable greenhouse gas emissions reductions from alternative vehicle technologies," Energy, Elsevier, vol. 87(C), pages 504-519.
    18. Linn, Joshua & McConnell, Virginia, 2019. "Interactions between federal and state policies for reducing vehicle emissions," Energy Policy, Elsevier, vol. 126(C), pages 507-517.
    19. Bellocchi, Sara & Klöckner, Kai & Manno, Michele & Noussan, Michel & Vellini, Michela, 2019. "On the role of electric vehicles towards low-carbon energy systems: Italy and Germany in comparison," Applied Energy, Elsevier, vol. 255(C).
    20. Maxwell Woody & Gregory A. Keoleian & Parth Vaishnav, 2023. "Decarbonization potential of electrifying 50% of U.S. light-duty vehicle sales by 2030," Nature Communications, Nature, vol. 14(1), pages 1-12, December.
    21. Hoehne, Christopher G. & Chester, Mikhail V., 2016. "Optimizing plug-in electric vehicle and vehicle-to-grid charge scheduling to minimize carbon emissions," Energy, Elsevier, vol. 115(P1), pages 646-657.
    22. Hawkes, A.D., 2010. "Estimating marginal CO2 emissions rates for national electricity systems," Energy Policy, Elsevier, vol. 38(10), pages 5977-5987, October.
    Full references (including those not matched with items on IDEAS)

    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. Beltrami, Filippo & Burlinson, Andrew & Giulietti, Monica & Grossi, Luigi & Rowley, Paul & Wilson, Grant, 2020. "Where did the time (series) go? Estimation of marginal emission factors with autoregressive components," Energy Economics, Elsevier, vol. 91(C).
    2. Soomin Woo & Zhe Fu & Elpiniki Apostolaki-Iosifidou & Timothy E. Lipman, 2021. "Economic and Environmental Benefits for Electricity Grids from Spatiotemporal Optimization of Electric Vehicle Charging," Energies, MDPI, vol. 14(24), pages 1-22, December.
    3. Schwab, Julia & Sölch, Christian & Zöttl, Gregor, 2022. "Electric Vehicle Cost in 2035: The impact of market penetration and charging strategies," Energy Economics, Elsevier, vol. 114(C).
    4. Li, Mo & Yang, Yi & Smith, Timothy M. & Wilson, Elizabeth J., 2020. "Wind can reduce storage-induced emissions at grid scales," Applied Energy, Elsevier, vol. 276(C).
    5. Oliveira, Tiago & Varum, Celeste & Botelho, Anabela, 2019. "Econometric modeling of CO2 emissions abatement: Comparing alternative approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 105(C), pages 310-322.
    6. Rüdisüli, Martin & Romano, Elliot & Eggimann, Sven & Patel, Martin K., 2022. "Decarbonization strategies for Switzerland considering embedded greenhouse gas emissions in electricity imports," Energy Policy, Elsevier, vol. 162(C).
    7. Huang, Hai-chao & He, Hong-di & Peng, Zhong-ren, 2024. "Urban-scale estimation model of carbon emissions for ride-hailing electric vehicles during operational phase," Energy, Elsevier, vol. 293(C).
    8. Filippo Beltrami & Fulvio Fontini & Monica Giulietti & Luigi Grossi, 2022. "The Zonal and Seasonal CO2 Marginal Emissions Factors for the Italian Power Market," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(2), pages 381-411, October.
    9. Steven M. Smith, 2019. "The Relative Economic Merits of Alternative Water Rights," Working Papers 2019-08, Colorado School of Mines, Division of Economics and Business.
    10. Maxwell Woody & Michael T. Craig & Parth T. Vaishnav & Geoffrey M. Lewis & Gregory A. Keoleian, 2022. "Optimizing future cost and emissions of electric delivery vehicles," Journal of Industrial Ecology, Yale University, vol. 26(3), pages 1108-1122, June.
    11. Fleschutz, Markus & Bohlayer, Markus & Braun, Marco & Henze, Gregor & Murphy, Michael D., 2021. "The effect of price-based demand response on carbon emissions in European electricity markets: The importance of adequate carbon prices," Applied Energy, Elsevier, vol. 295(C).
    12. Pereira da Cunha, Jose & Eames, Philip, 2016. "Thermal energy storage for low and medium temperature applications using phase change materials – A review," Applied Energy, Elsevier, vol. 177(C), pages 227-238.
    13. Brittany Tarufelli & Ben Gilbert, 2019. "Leakage in Regional Climate Policy? Implications of Electricity Market Design," Working Papers 2019-07, Colorado School of Mines, Division of Economics and Business, revised Dec 2021.
    14. Doluweera, Ganesh & Hahn, Fabian & Bergerson, Joule & Pruckner, Marco, 2020. "A scenario-based study on the impacts of electric vehicles on energy consumption and sustainability in Alberta," Applied Energy, Elsevier, vol. 268(C).
    15. 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).
    16. Zhou, Yuekuan & Liu, Xiaohua & Zhao, Qianchuan, 2024. "A stochastic vehicle schedule model for demand response and grid flexibility in a renewable-building-e-transportation-microgrid," Renewable Energy, Elsevier, vol. 221(C).
    17. Xu, Q. & Hobbs, B., 2020. "Economic Efficiency of Alternative Border Carbon Adjustment Schemes: A Case Study of California Carbon Pricing and the Western North American Power Market," Cambridge Working Papers in Economics 20109, Faculty of Economics, University of Cambridge.
    18. Pimm, Andrew J. & Palczewski, Jan & Barbour, Edward R. & Cockerill, Tim T., 2021. "Using electricity storage to reduce greenhouse gas emissions," Applied Energy, Elsevier, vol. 282(PA).
    19. Li, Haoyang & Lin, Wen, 2023. "Cheaper solar, cleaner grid?," Energy Economics, Elsevier, vol. 127(PB).
    20. Rita Garcia & Fausto Freire, 2016. "Marginal Life-Cycle Greenhouse Gas Emissions of Electricity Generation in Portugal and Implications for Electric Vehicles," Resources, MDPI, vol. 5(4), pages 1-15, November.

    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:190:y:2024:i:c:s0301421524001514. 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.