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

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Transportations <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 />

effective replacements for conventional gasol<strong>in</strong>e LDVs, now and <strong>in</strong>to the future.<br />

However, it is <strong>in</strong>structive to consider the cost-effectiveness of HEVs from the perspective<br />

of advanced gasol<strong>in</strong>e vehicle systems, above and beyond those assumed for the AEO<br />

Reference case basel<strong>in</strong>e vehicle. For example, one evaluation estimated the <strong>in</strong>cremental<br />

cost of full hybrids relative to “maximum ICE improvements” to be 22 percent, but the<br />

associated fuel consumption benefit was estimated to be only 5 percent beyond the<br />

maximum ICE level (McK<strong>in</strong>sey, 2009, page 97). As such, additional <strong>in</strong>vestments <strong>in</strong><br />

mov<strong>in</strong>g from advanced gasol<strong>in</strong>e vehicles (see Section 3.3) to HEVs will suffer from<br />

dim<strong>in</strong>ish<strong>in</strong>g returns as the potential for <strong>in</strong>cremental GHG reductions decreases.<br />

Cobenefits<br />

HEVs generally have lower criteria and toxic emissions than comparable conventional<br />

gasol<strong>in</strong>e LDVs, result<strong>in</strong>g from lower fuel consumption and eng<strong>in</strong>e-on time, better eng<strong>in</strong>e<br />

load management, and generally smaller eng<strong>in</strong>es, among other factors. HEVs may meet<br />

more str<strong>in</strong>gent emission standards than those currently required of conventional LDVs,<br />

particularly, California’s most str<strong>in</strong>gent Partial Zero Emission Vehicle (PZEV) standard<br />

(JDPower, 2009). Variation across the different available models make it difficult to<br />

quantify criteria pollutant reductions for HEVs as a whole, however.<br />

HEV brake ma<strong>in</strong>tenance costs for HEVs with regenerative brak<strong>in</strong>g are expected to be<br />

lower than conventional vehicles, about $400 to $500 over the vehicle life (EPA, 2005). The<br />

longer range of LDV HEVs results <strong>in</strong> decreased refuel<strong>in</strong>g times. Otherwise, performance<br />

characteristics of HEVs are generally similar to that of conventional gasol<strong>in</strong>e vehicles.<br />

Feasibility<br />

HEVs are now penetrat<strong>in</strong>g the LDV market, with the number of models <strong>in</strong>creas<strong>in</strong>g each<br />

year. Although <strong>in</strong>itial concerns regard<strong>in</strong>g battery life were expressed, current nickelmetal<br />

hydride (NiMH) batteries and other hybrid system components are commonly<br />

covered by 8-year/100,000 mile warranties, and 90 percent of HEV battery packs are<br />

anticipated to survive 14 years (EPA, 2005).<br />

The overrid<strong>in</strong>g issue fac<strong>in</strong>g HEVs today focuses on their cost, primarily battery costs. The<br />

literature on the subject assumes advancements will likely cont<strong>in</strong>ue to be made <strong>in</strong> terms of<br />

cost, size, weight, charge capacity, and longevity. Current HEVs use NiMH batteries,<br />

although research is be<strong>in</strong>g performed regard<strong>in</strong>g lithium ion (Li-ion) batteries because of<br />

their greater charge density (which can provide greater vehicle range per unit weight),<br />

and lower cost potential. Li-ion batteries currently are expected to enter production <strong>in</strong><br />

some HEVs over the next two years, although they are not yet as stable as current NiMH<br />

batteries, with some Li-ion systems <strong>in</strong>volved <strong>in</strong> recalls <strong>in</strong> the consumer electronics market.<br />

If overcharged or overheated, these batteries have been known to catch fire <strong>in</strong> the past<br />

(Kromer and Heywood, 2007). However, several researchers have concluded that the<br />

rema<strong>in</strong><strong>in</strong>g technical difficulties associated with Li-ion performance are likely to be solved<br />

3-43

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