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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 />

this analysis found that a GHG reduction <strong>in</strong> 2030 of 0.2 to 0.3 mmt CO2e could be<br />

achieved, depend<strong>in</strong>g upon the total number of regions where UCCs are applied.<br />

Assum<strong>in</strong>g that the UCC concept was proven viable <strong>in</strong> the U.S., UCCs could be<br />

implemented with<strong>in</strong> a few years. The primary requirements are to establish suitable sites<br />

as well as a revised distribution structure, work<strong>in</strong>g with private shippers.<br />

Cost-Effectiveness<br />

The general European consensus is that <strong>in</strong> the long-term UCCs must be f<strong>in</strong>ancially<br />

successful <strong>in</strong> their own right, and that subsidies are not a viable solution. This means they<br />

would pay for themselves through reductions <strong>in</strong> shippers’ operat<strong>in</strong>g costs, and therefore<br />

have zero (or negative) cost per tonne of GHG reduced. However, the European studies<br />

also recognize that without some <strong>in</strong>itial fund<strong>in</strong>g from central or local government to pay<br />

for research work and pilot studies, UCCs are unlikely to be developed, let alone succeed.<br />

The Mov<strong>in</strong>g Cooler study U.S. assumes development costs of $5 million per 1 million<br />

population. This results <strong>in</strong> a net cost-effectiveness of $30 to $60 per tonne CO2 reduced<br />

over the 2010 to 2050 period, <strong>in</strong>clud<strong>in</strong>g <strong>in</strong>vestment costs only, or sav<strong>in</strong>gs of about $300 per<br />

tonne CO2e, <strong>in</strong>clud<strong>in</strong>g reduced shipp<strong>in</strong>g costs (Cambridge Systematics, 2009).<br />

Cobenefits<br />

Consolidation of goods has additional economic and environmental benefits. From an<br />

economic perspective consolidation can help to <strong>in</strong>crease the volume of goods carried on<br />

vehicles enter<strong>in</strong>g a given urban area, thereby reduc<strong>in</strong>g the unit costs of transportation for<br />

the f<strong>in</strong>al delivery stage, as well as reduce the number of deliveries that have to be received<br />

at a location, thereby reduc<strong>in</strong>g the disruption and labor requirements associated with<br />

receiv<strong>in</strong>g multiple deliveries. From an environmental and quality of life perspective,<br />

consolidation can help to reduce fuel consumption and total truck volumes <strong>in</strong> urban areas,<br />

thereby reduc<strong>in</strong>g criteria air pollutant emissions, as well as improve quality of life <strong>in</strong><br />

urban areas by remov<strong>in</strong>g delivery trucks from city streets.<br />

Reductions <strong>in</strong> criteria pollutant emissions will depend upon the emissions characteristics<br />

and VMT of the specific types of vehicles utilized. Quantitative estimates of emissions<br />

reductions have not been developed. Some negative impacts may be realized <strong>in</strong> the<br />

immediate vic<strong>in</strong>ity of the center due to the <strong>in</strong>creased concentration of truck traffic at the<br />

center. Careful sit<strong>in</strong>g will be important to m<strong>in</strong>imize impacts on residential<br />

neighborhoods.<br />

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