Comparative Life-Cycle Assessment of Liquefied Natural Gas and Diesel Tractor-Trailer in China

Many countries, especially China, have extensively promoted liquefied natural gas (LNG) to replace diesel in heavy-duty vehicles for to achieve sustainable transport aims, including carbon peaks and neutrality. We developed a life-cycle calculation model for environmental load differences covering vehicle and fuel cycles to comprehensively compare the LNG tractor-trailer and its diesel counterpart in China on a full suite of environmental impacts. We found that the LNG tractor-trailer consumes less aluminum but more iron and energy; emits less nitrogen oxide, sulfur oxide, nonmethane volatile organic compounds, and particulate matter but more greenhouse gases (GHG) and carbon monoxide (CO); and causes less abiotic depletion potential, acidification potential, and human toxicity potential impacts but more global warming potential (GWP) and photooxidant creation potential (POCP) impacts. Poor fuel economy was found to largely drive the higher life-cycle GHG and CO emissions and GWP and POCP impacts of the LNG tractor-trailer. Switching to the LNG tractor-trailer could reduce carbon dioxide by 52.73%, GWP impact by 44.60% and POCP impact by 49.23% if it attains parity fuel economy with its diesel counterpart. Policymakers should modify the regulations on fuel tax and vehicle access, which discourage improvement in LNG engine efficiency and adopt incentive polices to develop the technologies.

Economic Impact of Eliminating the Fuel Tax Exemption in the EU Fishing Fleet

The EU-27 fishing fleet consumed 2.02 billion liters of fuel to catch 4.48 million tons of fish, valued at €6.7 billion in 2018. The profitability of the EU fishing fleet shows an increasing trend, partly due to the improvements in the energy efficiency and recovery of fish stocks in the North-east Atlantic. Fuel is one of the main expenses fishing fleets have, and therefore, their economic performance remains highly dependent on the fuel price, even if they benefit from a fuel tax exemption. The adoption of the European Green Deal, the revision of the Energy Taxation Directive (ETD), the ongoing World Trade Organization (WTO) negotiation to prohibit harmful fisheries subsidies, and general public opinion are putting pressure to eliminate this tax exemption. This analysis investigates the impacts of the potential elimination of the fuel tax exemption across the different EU fishing fleets and it is discussed to what extent the small-scale, large-scale and distant-water fleets could be affected. This analysis is useful to inform policy-makers and stakeholders on the consequences of the potential elimination of the fuel tax exemption, as well as to discuss potential measures to mitigate the socioeconomic impacts arising from this eventual change in the current regulatory framework.

Quantitative analysis of optimum corrective fuel tax for road vehicles in Bangladesh: achieving the greenhouse gas reduction goal

This study estimates optimum corrective fuel taxes for Bangladesh and correlates them with climate change policy. First, we use the European road transport emission model (COPERT IV) to precisely estimate the externalities. Second, using the same model, we also estimate the reduction in greenhouse gas emissions caused by the fuel tax. Finally, we develop a correlation between the fuel tax rate and emissions reduction. Our benchmark calculation of the optimum corrective tax is US$0.94 per gallon for gasoline and US$1.46 per gallon for diesel (in 2016 prices). We find that congestion and accident externalities are the two main fuel tax components for Bangladesh. We also find that the net social welfare gain per year is US$302.11 million and the net revenue gain per year is 3.59% of GDP. The corrective diesel tax reduces fuel consumption by 18.10% and increases fuel efficiency by 12.53%. In the benchmark case, corrective fuel taxes reduce GHG emissions by 5.77%. With the combination of the existing gasoline tax and a diesel tax of US$1.20 per gallon, the country’s greenhouse gas reduction goal can be achieved. Policymakers can use fuel taxes to support climate change policy.