Economic and Environmental Optimization of Vehicle Fleets: Impact of Policy, Market, Utilization, and Technological Factors
Published In
Transportation Research Record: Journal of the Transportation Research Board
Document Type
Article
Publication Date
2011
Subjects
Vehicle fleets, Optimization, Integer programming model, Incentives
Abstract
This paper focuses on the economic and environmental optimization of decisions about vehicle replacement from a fleet manager's perspective. An integer programming vehicle replacement model is used to evaluate environmental and policy issues such as greenhouse gas (GHG) taxes and fiscal incentives for purchasing electric vehicles (EVs). This research also analyzes the impacts of utilization (mileage per year per vehicle) and gasoline prices on vehicle-purchasing decisions. Energy and emissions reductions for a variety of scenarios using real-world data in the United States are presented as well as break-even points at which EVs are competitive. Findings include the following: (a) fuel-efficient vehicles such as hybrids and EVs are purchased only in scenarios with high gasoline prices or high utilization, (b) current European carbon dioxide cap-and-trade emissions price (around $18.70/ton) does not significantly alter fleet management decisions, and (c) incentives for using EVs (i.e., tax credits) increase the rate of purchase of hybrid and electric vehicles in scenarios with high gasoline prices and high vehicle utilization. This research indicates that the proposed model can be used effectively to inform environmental and fiscal policies on vehicle regulations, tax incentives, and GHG emissions.
DOI
10.3141/2252-01
Persistent Identifier
http://archives.pdx.edu/ds/psu/20805
Citation Details
Figliozzi, Miguel; Boudart, Jesse; and Feng, Wei, "Economic and Environmental Optimization of Vehicle Fleets: Impact of Policy, Market, Utilization, and Technological Factors" (2011). Civil and Environmental Engineering Faculty Publications and Presentations. 253.
http://archives.pdx.edu/ds/psu/20805
Description
Copyright, National Academy of Sciences. Posted with permission of the Transportation Research Board. None of this material may be presented to imply endorsement by TRB of a product, method, practice, or policy.