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

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Transportation’s <strong>Role</strong> <strong>in</strong> Reduc<strong>in</strong>g U.S. <strong>Greenhouse</strong> <strong>Gas</strong> <strong>Emissions</strong>: Volume 2<br />

short to mid-term. The general consensus is that, at least <strong>in</strong> the near term, HFCVs will not<br />

be cost-effective.<br />

Table 2.11 HFCV per Vehicle Cost and Cost-Effectiveness Ranges by<br />

Time Period<br />

Incremental<br />

Vehicle<br />

Fuel Sav<strong>in</strong>gs/ NPV Cost/<br />

Average<br />

GHG<br />

Reduction Dollars/Tonne<br />

Dollars Cost NPVa Sav<strong>in</strong>gs Tonnes/Year Calculated Literature<br />

2020 $10,000 -$3,500 to $4,400 $6,500 to $14,400 2.7 $151 to $333 N/A<br />

2030 to<br />

2050<br />

$1,500 to<br />

$5,300<br />

-$11,900 to -$8,300 -$10,300 to -$3,000 3.3 -$199 to -$57 -$194 to $275<br />

a Us<strong>in</strong>g pretax price projections for 2010 (near-term) and 2030 (long-term) – $3.00 to $7.00 and $2.10 to $4.50<br />

relative to AEO projections for gasol<strong>in</strong>e of $1.75 and $3.43, respectively.<br />

To put the results of Table 2.11 <strong>in</strong> context, other cost-effectiveness values found <strong>in</strong> the<br />

literature are reported here. For example, Bandivadekar et al. (2008) estimates a costeffectiveness<br />

between $132 and $163 per tonne CO2e <strong>in</strong> 2035, assum<strong>in</strong>g a gasol<strong>in</strong>e price of<br />

$2.50 per gallon. However, net cost sav<strong>in</strong>gs are projected at $5 per gallon <strong>in</strong> this same<br />

study, result<strong>in</strong>g <strong>in</strong> cost-effectiveness estimates between -$161 and -$194 per tonne. Keith<br />

and Farrell (2003) calculated a cost-effectiveness value of $275 per tonne CO2e for longterm<br />

HFCVs. However, that study also estimates that the cost-effectiveness could improve<br />

by a factor of 10 with successful development and application of CCS technologies<br />

associated with electricity production. Lastly, Fulton (2004) estimated the costeffectiveness<br />

<strong>in</strong> the range of $200 to $800 per tonne CO2e <strong>in</strong> 2030 with the caveat that this<br />

calculation will depend on the price of produc<strong>in</strong>g hydrogen through low-carbon<br />

pathways.<br />

Cobenefits<br />

HFCVs emit no pollutants at the po<strong>in</strong>t of service, with life-cycle emissions result<strong>in</strong>g<br />

exclusively from fuel production and transport. Atmospheric emissions from HFCVs are<br />

vastly different depend<strong>in</strong>g on the production pathway and feedstock. Table 2.12 shows<br />

GREET model estimates of life-cycle emissions for gaseous and liquid hydrogen<br />

production for two selected pathways: distributed natural gas reform<strong>in</strong>g and centralized<br />

nuclear plant production. The life-cycle analysis model<strong>in</strong>g estimates the emissions of<br />

VOC, CO, and NOx to be less compared to conventional gasol<strong>in</strong>e vehicles. Although PM10<br />

<strong>in</strong>creases for gaseous H2, the amount of these pollutants generated is still very small.<br />

2-59

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