Effectiveness of carbon pricing policies for promoting urban freight electrification: analysis of last mile delivery in
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Effectiveness of carbon pricing policies for promoting urban freight electrification: analysis of last mile delivery in Madrid Jose L. Arroyo1 · Ángel Felipe2 · M. Teresa Ortuño2,4 · Gregorio Tirado3,4
© Springer-Verlag GmbH Germany, part of Springer Nature 2019
Abstract This research analyzes the effect of carbon pricing policies in transport electrification. It combines a heuristic algorithm to solve the Green Vehicle Routing Problem with Multiple Technologies and Partial Recharges with an economic Total Cost of Ownership model. The paper compares the performance of battery electric (BEV) and internal combustion vehicles (ICEV) for last mile delivery, using real data of Madrid (Spain). The results show that carbon pricing is scarcely effective when daily mileage is low (precisely when BEVs require incentives), and its effectivity increases as mileage increases (precisely when it is not so necessary to incentivize BEVs). Hence, carbon pricing is not an effective tool for promoting electric vehicles in the short term, and as a result, any political decision to fix CO2 prices must be adopted with a longterm view in mind. Specifically for the case of Spain, this research shows that current aids to BEVs are insufficient, with the exception of some regions like Madrid, which complement national subsidies with regional ones. Keywords Carbon pricing · Electric vehicle · Transportation · Optimization
1 Introduction Decarbonization of road transportation is currently a relevant research topic, due to the fact that the transport sector is the second largest emitter of CO2 . It is responsible of 24% of CO2 emissions from fuel combustion (IEA 2017: 12), and the 68% increase in transport emissions since 1990 was led by the road sector, which represents three quarters of transport emissions (IEA 2017: 14). Recent work analyses the impact of carbon pricing in the road transport at regional level (typically at country level), such as the work of Johnston (2017) in Australia, Han et al. (2017) in China, or Liu
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Gregorio Tirado [email protected]
Extended author information available on the last page of the article
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and Santos (2015) in the US. However, given that there are significant differences between different cities and applications of the BEVs (Battery Electric Vehicles), general conclusions are difficult to translate into specific local policies, especially when it comes to establishing economic incentives. For this reason, it is of interest to analyze in detail more specific cases, such as the one we are considering in this work, which allows us to draw very concrete conclusions. In this respect, the main objective of this paper is to analyze the effect of carbon pricing policies in transport decarbonization using real data for a specific case, the city of Madrid, and a concrete application, last mile delivery. The research focus is the impact of potential carbon pricing policies, which would influence energy costs and subsidies to purchase price. Therefore, our starting point is aligned wi
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