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In a study published in the journal Energy Economics , MIT researchers have found that a fuel economy standard is at least six to fourteen times less cost effective than a fueltax when targeting an identical reduction in cumulative gasoline use (20% by 2050).
To that end, following on Biden’s campaign promise to “end fossil fuel,” policy and investment signals are being sent by various federal agencies and allied state governments to the market about the refining industry: EPA just finalized a light duty vehicle standard that incentivizes at least 17% electric vehicle sales by 2026.
A bi-partisan Congressionally-created commission has recommended a shift from motor fueltaxes to direct fees charged to transportation infrastructure users—i.e., The gas tax, which is not currently indexed to inflation, has lost 1/3 of its purchasing power since 1993, the last time the tax was increased.
Switching from the automotive standards to the trading scheme could save as much as €63 billion, says the study’s lead author Sergey Paltsev, deputy director at MIT’s Joint Program on the Science and Policy of Global Change and senior research scientist at the MIT Energy Initiative. —Sergey Paltsev.
Transport fuels will be excluded from the carbon pricing mechanism. However, where applicable, an equivalent carbon price will be applied through changes in fueltax credits or excise. A carbon price will be applied to domestic aviation, domestic shipping, rail transport, and non-transport use of fuels.
Among the transportation-related elements of US President Barack Obama’s new climate action plan, which he is outlining today in a speech at Georgetown University, is the development of new fuel economy standards for heavy-duty vehicles post-2018. New energy efficiency standards. Earlier post.).
measures such as standards, taxation or infrastructure development—consistent with the long-term objective. Key messages and findings for the report include: The key policy for reducing GHG emissions in road transport is the steady tightening of emissions standards in line with the technological frontier.
As sales of electric vehicles begin to reach significant numbers across the US, states are exploring approaches to replace lost tax revenue since EV drivers don’t pay fueltaxes as drivers of gas-powered cars do at gas stations. Unfortunately there is currently no simple and agreed upon best replacement for the fueltax.
The obvious one is increased fueltaxes, but somehow governments need to make sure the benefits of better technology aren’t wiped out by increased demand for lower-priced fuel. Click to enlarge. Jos Dings, T&E Director. The report only assesses the impact of European legislation.
There may be one negative knock-on effect of improving the fuel economy standards of our vehicles: fueltax revenues could slump massively. According to a report by the Congressional Budget Office (logo, pictured), fuel economy standards proposed for 2017-2025 would cut revenues from petrol tax by 21 per cent in 2040.
Direct transportation (fuel) taxes generate the greatest reductions in CO 2 emission from transportation, achieving CO 2 emissions at 86% of 2005 levels by about 2025. While CO 2 prices are equivalent to fueltaxes, CO 2 prices at their projected levels are far too small to create a significant incentive to drive less.
New propulsion systems requiring new fuels, such as plug-in electric vehicle systems and fuel cell systems, are beyond the scope of this technology roadmap and are treated in separate roadmaps. Fuel economy standards are in place in most OECD member countries and China, and are helping to make important progress in these countries.
All costs such as fuel, taxes, insurance and parking charges are already included in London as well. The standard one-off registration fee for London will be £29 ($45). Prices for the hourly packages vary from £35 ($55) for three hours, including 40 free miles, to £120 ($188) for 24 hours, including 125 free miles.
Increased sales of electric vehicles allow automakers to sell more low-fuel-economy vehicles and still comply with the federal standards that govern the average fuel economy of the vehicles they sell (known as CAFE standards). Cultivate local PEV clusters.
EVs will likely account for approximately 8% of new car sales in Europe by 2020, supported by consumers’ higher willingness to pay for green technologies, the region’s high emissions standards, and high gasoline and diesel fueltaxes.
Currently there are no fuel consumption standards for such vehicles, which account for about 26% of the transportation fuel used in the US. The report does not recommend a specific numerical standard. This is called load-specific fuel consumption (LSFC). The report urges Congress to consider this approach.
Consumers need additional information when new vehicle technologies are introduced to ensure that they work properly, provide performance similar to standard technologies, and provide the cost efficiency claimed. The report cites a number of policy options to support achieving the goal, including: Fuel economy or CO 2 emission standards.
Without any such policies, the market for alternative-fuel vehicles will remain very niche, with a market share hovering around 1% for the foreseeable future—in other words, hardly greater than today.
The ZEV regulations, which are now part of California’s comprehensive Advanced Clean Cars (ACC) program which also includes the LEV III tailpipe emissions standard, is the “technology-forcing piece” of the state’s regulatory package for light-duty vehicles. noted above. Section 177 pooling (the ZEV states).
The Fund is replenished by revenue collected from motor fueltaxes. The situation has worsened with decreasing fuel purchases; the advent of more fuel-efficient vehicles in the future would also further stress the existing funding mechanism. The Highway Trust Fund.
measures: • Stringent CO2 standards for cars. The most certain way to promote electric-powered transport is to tighten long-term CO2 standards for cars to 80 g/km by 2020 and 60 g/km by 2025 whilst at the same time increasing fueltaxes.
ISO/TS 16949 is the quality management system created by the International Organization of Standards to monitor the design, development, production and servicing of automotive components. Valence is strengthening its automotive accreditation by working towards TS 16949 accreditation in 2010.
The report calls for a 20-year “blueprint for action,” which includes creating an “Interstate Highway System Renewal and Modernization Program,” increasing the federal fueltax to help pay for it, and allowing tolls and per-mile-charges on more interstate routes. National Academy of Sciences.
However, production subsidies, import tariffs and sustainability standards do. Sustainability standards which set a maximum amount of CO 2 emissions per gallon are ineffective because of leakage to other sectors or countries not covered by the standard.
These provisions will ultimately strengthen the industries producing low carbon fuel alternatives and position the U.S. It is vitally important that the EPA continue to send strong market signals to the advanced biofuels industry by putting forward a strong, multi-year Renewable Volume Obligation (RVO) during its next round of RFS standards.
The car will be a “sporty sedan” that will set “new standards” in range and charging, as well as pioneer a new business model that charges customers to activate software-based features, VW said in a press release. – March 2, via TechCrunch. Legislation / Incentives / Policy.
Average on-road fuel consumptions (tank to wheels) of the different propulsion systems in an average light-duty vehicle: 2010, 2030, and 2050. Values normalized to standard naturally-aspirated gasoline engine vehicle. Market-based incentives should be implemented to support the US Corporate Average Fuel Economy (CAFE) LDV requirements.
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