Transportation's Role in Reducing U.S. Greenhouse Gas Emissions ...

Transportation’s Role in Reducing U.S. Greenhouse Gas Emissions: Volume 2
cents per gallon for gasoline), the cost differential between the LPG and diesel comes to 50
cents per gge in 2010, and 41 cents per gge in 2030.
The negligible variance in fuel cost increase is to be expected, as the LPG market price
tracks very closely with oil and gasoline since much of it is produced as a byproduct of
crude-oil refining and it competes with crude-oil-based fuels in the market. The price
volatility of the two fuels is comparable, except that LPG also is susceptible to a wintertime
price peak. The supply of LPG is relatively constant as it is tied to crude oil and natural
gas production. As a result, when wintertime demand increases due to its use as a heating
source, there is no way to increase supply, so prices typically spike, as shown in the figure.
Incremental costs for light-duty OEM LPG vehicles ranged from $1,000 to $2,000, when
last produced in the early 2000s (Yacobucci, 2005). Light-duty vehicle conversions are
significantly more expensive, ranging from $4,000 to $12,000 (AFDC, 2009a). Much of the
costs to the vehicle owner may be defrayed through extensive tax credits, however.
Cobenefits
The GREET model estimates reduced emissions for LDV LPG use, for all criteria
pollutants, with the largest reductions found for VOC and PM. CO reductions are
negligible compared to gasoline, however (Table 2.7).
2-40