Regional Credit Trading: Economic and GHG Impacts of a National Low Carbon Fuel Standard

This research examines the economic implications of different designs for a national low carbon fuel standard (NLCFS) for the road transportation sector based on the regional availability of low carbon fuels, carbon intensities and costs. A NLCFS based on the average carbon intensity (CI) of all fuels sold generates an incentive for fuel suppliers to reduce the measured CI of their fuels. A NLCFS will build on and encompass the existing and regional low carbon fuels standard in California and the proposed systems for the Northeast and Mid-Atlantic States. The economic impacts are determined by the availability of low carbon fuels, estimates of which can vary widely. Also important are the compliance path, reference level CI, and the design of the credit system, particularly the opportunities for trading and banking. To quantitatively examine the implications of a NLCFS, the project will adapt the Transportation Regulation and Credit Trading (TRACT) Model to allow for regional differences. TRACT models national-level low carbon credit trading among profit maximizing fuel suppliers for the United States light- and heavy-duty vehicle fuel use from 2015 - 2035. This research proposes to estimate the economic and greenhouse gas (GHG) impacts of regional factors on a NLCFS with a particular focus on low carbon fuel supply and carbon intensity in the New England region.

Language

  • English

Project

  • Status: Completed
  • Funding: $120067.00
  • Contract Numbers:

    DTRT12-G-UTC01

    UMER24-34

  • Sponsor Organizations:

    Research and Innovative Technology Administration

    Department of Transportation
    1200 New Jersey Avneue, SE
    Washington, DC  United States  20590
  • Performing Organizations:

    New England University Transportation Center

    Massachusetts Institute of Technology
    77 Massachusetts Avenue, Room 40-279
    Cambridge, MA  United States  01239
  • Start Date: 20120101
  • Expected Completion Date: 0
  • Actual Completion Date: 20160131
  • Source Data: RiP Project 33394

Subject/Index Terms

Filing Info

  • Accession Number: 01489778
  • Record Type: Research project
  • Source Agency: New England University Transportation Center
  • Contract Numbers: DTRT12-G-UTC01, UMER24-34
  • Files: UTC, RiP
  • Created Date: Aug 15 2013 1:01AM