Electric Road Systems: A No-Regret Investment with Policy Support

Abstract

This study addresses the pressing issue of reducing greenhouse gas (GHG) emissions in the road freight sector. We investigate whether Electric Road Systems (ERS) for heavy duty trucks are a viable solution for the European Union to align the sector with economy-wide GHG reduction targets. Results are based on simulations in MOSTACHI, a new model for studying interaction effects between competing charging infrastructure and cost-minimizing vehicle operators. ERS impact is assessed on transport cost, GHG emissions, resource demand, and competing charging infrastructure. We find that for ERS to be a no-regret investment, an accompanying policy is needed that penalizes non-participation. This ensures the economies of scale necessary for the ERS infrastructure’s viability and reduces transport cost on average. With policy, ERS increases battery-electric truck uptake and GHG reductions and reduces demand for batteries and fossil and renewable fuels, throughout the infrastructure lifetime.