Section 13: Sustainable Transportation

Question 1

What are the 2 market failures in transportation?

Answer 1

1. Negative environmental externalities: GHG emissions and air pollution
2. Common pool resources: Road access is rivalrous and non-excludable

Question 2

What are the three legs of the stool for transportation?

Answer 2

Refers to the 3 factors that result in GHG emissions from transportation:

1. Carbon intensity
2. Energy consumption
3. Vehicle travel demand

Question 3

How can we reduce GHG emissions from the carbon intensity leg of the transportation stool?

Answer 3

Switching to lower carbon fuels such as:

• Electricity
• Hydrogen
• Biofuels

Question 4

How can we reduce GHG emissions from the energy consumption leg of the transportation stool?

Answer 4

Improve vehicle efficiency by making vehicles:

• Lighter
• Smaller
• More efficient (hybrid)

Question 5

How can we reduce GHG emissions from the vehicle travel demand leg of the transportation stool?

Answer 5

Reduce vehicle kilometers traveled through:

• Mode switching: active travel, public transit, car-pooling
• Change built environment
• Other behavior changes

Question 6

What policy type is recommended to reduce GHG emissions in transportation according to Axsen et al. 2020?

Answer 6

Market-oriented regulations

Question 7

Evaluate the Vehicle Emissions Standard (VES) policy

Answer 7

Pros:
- Effective: channels innovation
- Cost-effective: "market-oriented"
- Supported by public
Cons:
- Administratively complicated
- Loopholes can be found
- Vulnerable to rebound effects
- Not transformative enough

Question 8

Evaluate the Zero Emissions Vehicle (ZEV) Mandate policy

Answer 8

Pros:
- Can channel innovation
- Some degree of efficiency
- Politically acceptable
Cons:
- Administratively complicated
- Only targets one solution of GHGs

Question 9

Evaluate the Low Carbon Fuel Standard (LCFS) policy

Answer 9

Pros:
- Has been effective
- Channels innovation
- Cost-effective
- Politically acceptable
Cons:
- Scientific uncertainty
- Administratively complicated
- Leakage effect: high carbon fuels sent to regions without policy
- Targets one solution

Question 10

Which nation has the highest percentage of EV sales

Answer 10

Norway

Question 11

Which policy does not cause a rebound effect?

Answer 11

Carbon taxes