How to road price in a world with electric vehicles and government budget constraints

Wangsness, Paal Brevik

doi:10.1016/j.trd.2018.10.002

Cited by 8 publications

(4 citation statements)

References 35 publications

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“…Several papers have documented that the CO 2 abatement costs from policies that promote a shift from conventional to electric cars are fairly large (see e.g., Bjertnaes, 2016;Fridstrøm & Østli, 2017;Wangsness, 2018;Wangsness, Proost, & Rødseth, 2018). These costs may come in the form of higher costs for a given quality level of the car stock, a loss in government revenue that has to be funded by distortionary taxes elsewhere, and higher congestion levels in cities because of low energy costs and low tolls.…”

Section: Discussionmentioning

confidence: 99%

“…As we discussed in the previous section we expect higher BEV density to drive up the cost for DSOs, but even if higher costs for DSOs would lead higher tariffs for their customers, dramatic price hikes would be needed to make noticeable changes in EV demand. In the calculations in Wangsness (2018), the cost of electricity comprises about 15 % of the distance-based cost for EVs. And grid rent makes up less than half of the total electricity bill before taxes.…”

Section: Fixed Effects Regressionmentioning

confidence: 99%

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The Impact of Electric Vehicle Density on Local Grid Costs: Empirical Evidence from Norway

Wangsness¹,

Halse²

2021

The Energy Journal

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While a rapid shift towards electric vehicles (EVs) will contribute to reducing carbon emissions from the transport sector, there are concerns that uncoordinated charging of EVs might impose challenges for the local electricity grid. Our study is the first to investigate this empirically in a country-wide analysis, using data from the country with the highest market share of EVs, namely Norway. We present the regulatory framework in which Norwegian grid companies operate and discuss the possible impact of EV charging. Using panel data on 107 grid companies over the period 2008-2017, we then estimate the effect of local growth in EVs on local grid costs. We find that increases in EV stock are associated with increases in costs which are both statistically and economically significant. However, there is a lot of heterogeneity in these results, where the effect on grid costs are higher for small grid companies in rural areas.

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Section: Discussionmentioning

confidence: 99%

Section: Fixed Effects Regressionmentioning

confidence: 99%

The Impact of Electric Vehicle Density on Local Grid Costs: Empirical Evidence from Norway

Wangsness¹,

Halse²

2021

The Energy Journal

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“…Parry and Small (2005) [8] Gasoline tax, Miles tax US, UK Santos (2017) [9] Gasoline tax, Diesel tax Various European countries Parry and Timilsina (2010) [40] Gasoline tax, Miles tax Mexico City Parry (2011) [41] Gasoline tax, Diesel tax (heavy-duty trucks) US Tscharaktschiew (2014) [42] Gasoline tax Germany Tscharaktschiew (2015) [43] Gasoline tax (with EV substitution) Germany Lin and Prince (2009) [44] Gasoline tax California Wangsness (2018) [45] Kilometer tax (peak, off-peak) Norway (urban, rural) West and Williams (2007) [46] Gasoline tax 1 US Hirte and Tscharaktschiew (2020) [47] Gasoline tax, Miles tax 1 US, UK Parry (2008) [48] Diesel tax (heavy-duty trucks) US Parry and Strand (2012) [49] Gasoline tax, Diesel tax (commercial trucks) Chile Antón-Sarabia and Hernández-Trillo (2014) [50] Gasoline tax Mexico 1 Focus on the role of labor supply.…”

Section: Study Instrument Regionmentioning

confidence: 99%

“…We adopt a microeconomics optimization framework in the tradition of [8], and followup studies like [9,[40][41][42][43][44][45][46][47][48][49][50]. These studies have been used to provide comprehensive insights regarding the appropriateness of the level of the energy tax (in particular gasoline and diesel) currently levied in various countries.…”

Section: Introductionmentioning

confidence: 99%

Optimal Transport Pricing in an Age of Fully Autonomous Vehicles: Is It Getting More Complicated?

Tscharaktschiew

Evangelinos

2022

Future Transportation

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Over the last several decades, transportation scientists have made substantial progress in identifying and tackling transport-related problems by elaborating sophisticated policy instruments. Originally, the policy instruments were developed and designed to tackle inefficiencies caused by conventional (human-driven) vehicles. However, questions remain regarding transportation policies, especially pricing instruments, in the future. With the advent of fully autonomous vehicles (driverless or self-driving cars), many of potentially disruptive changes to our transportation system are projected to occur. This gives rise to the question of how to adapt the existing, well established, policy instruments to make them applicable to a world of self-driving cars. The present paper utilizes one of the most widely deployed, most important (in terms of tax revenue), and most effective (in terms of carbon dioxide mitigation) current price-based policy instruments in the transport sector (i.e., the energy tax) to show how one of the most innovative features associated with fully autonomous vehicles (i.e., driverless vehicle relocation) affects the optimal design of a transportation tax. We adopt a microeconomics optimization framework and analytically derive the optimal energy tax under the assumption that driverless vehicle relocation is possible. Our main finding is that in a world of self-driving cars, the energy tax (likewise, a second-best miles tax) as a price-based policy instrument becomes more difficult to evaluate. With the capability of fully autonomous vehicles to relocate without passengers inside, the (analytical) expression for the optimal energy tax becomes more complex, and its (numerical) determination becomes more difficult since the feature of driverless vehicle repositioning imposes counteracting welfare effects as a response to a tax change. Policymakers and researches are encouraged to take on the challenge of increasing complexity to tackle transport-related inefficiencies in the era of self-driving cars.

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Assessing the emissions of short sea international shipping: a case study of the Mytilini–Ayvalik route

Kelmalis,

Lekkas,

Moustakas

et al. 2023

Environ Sci Pollut Res

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Short sea shipping involves transporting passengers and cargo between European ports and coastal countries bordering Europe on enclosed seas. Challenges include aging fleets and environmental concerns, but efforts to reduce emissions are in progress through the use of low-sulfur fuels, hybrid and electric vessels, and improved energy efficiency. This study focuses on emissions from international short shipping routes between Mytilini and Ayvalik, using standardized emission factors to calculate CO2, SO2, NOx, PM, and HC emissions. The research aims to bridge knowledge gaps and provide insights into these emissions, identifying the main commercial ships on the route, analyzing their emissions, and discussing the findings. Overall, six ships completed the route, consuming an average of 60 L of fuel per hour per 100 HP, depending on factors like speed and total load. Notably, NOx emissions are the highest, followed by sulfur oxides, with values exceeding 12.9 and 3.5 tons, respectively. As anticipated, cruising is the shipping practice with the highest energy footprint, amounting to 695 MWh. An essential discovery is that hoteling plays a significant role in energy consumption and emissions, accounting for 152 MWh out of the total 881 MWh consumed across all shipping practices. The potential adoption of hydrogen as a fuel holds the promise of substantial reductions in greenhouse gas emissions, enhancements in air quality, and noise pollution mitigation.

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How to road price in a world with electric vehicles and government budget constraints

Cited by 8 publications

References 35 publications

The Impact of Electric Vehicle Density on Local Grid Costs: Empirical Evidence from Norway

The Impact of Electric Vehicle Density on Local Grid Costs: Empirical Evidence from Norway

Optimal Transport Pricing in an Age of Fully Autonomous Vehicles: Is It Getting More Complicated?

Assessing the emissions of short sea international shipping: a case study of the Mytilini–Ayvalik route

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