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A Low Carbon Future of Transport: an
Integrated Transport Model Coupling with
Computable General Equilibrium Model
Shiyu Yan
(Economic and Social Research Institute, ESRI, Ireland)
Kelly de Bruin (ESRI), Emer Dennehy (SEAI)
ESRI-UCD energy research conference. 2019/09/17
Content
1. Introduction
2. Methods
3. Results
4. Conclusion
The importance of transport sector
3
IEA(2016)
1. Introduction
4
Total final energy consumption in Ireland by sector
1. Introduction
5
Energy-related CO2 emissions in Ireland by sector
1. Introduction
6
The project objective is to establish a integrated model of transport
demand, energy consumption and emission to improve decision making
in the sustainable transition of transport sector.
• quantify impacts of external socio-economic developments;
• evaluate effects of policy packages on transport and other economic activities;
• provide tools for decision makers to calculate transport energy and emission;
• present detailed transport energy scenarios in modal and technologies.
1. Introduction
- Macro-economic and energy system wide top down models – bottom up
approaches with sectoral details.
Global Change Assessment Model (GCAM) (Mishra et al., 2013)
UK transport carbon model (Brand et al., 2012)
- Panel data for parameter estimation and simulation
- Integration of behavioral realism (logit models)
- Link the transport (energy) model with a general equilibrium model (I3E)
7
Research contributions:
1. Introduction
An integrated modelling framework
• Transport activity, energy, and emission
• passenger (Car, bus, rail, air) and freight (LGV, HGV, rail, navigation and air)
• Freight transport demand (tkm) and freight vehicle stock
8
2. Methods
Vehicle Stock Module
(new sales, scrapped vehicles)
Transport Demand Module
(forecast and disaggregation)
Fuel Consumption Module
(aging, on-road and driving condition)
Emission Module
(GHG and other pollutants)
Scenario
variables
(e.g. GDP,
income,
demographics
, prices)
Policy variables
(e.g. vehicle taxes,
energy taxes, carbon
taxes, energy targets)
Number of
vehicles by
class and
technology
Transport
demand by
mode and
vehicle class
Energy use by
fuel type
In-use and life-
cycle emissions
by pollutants
Transport Model
I3E
Model
9
2.1 Freight Transport Demand Module
2.2 Freight Vehicle Stock Module
2.3 Freight Vehicle Fuel Consumption/Emission Module
2. Methods
Freight transport
RoadRail
Diesel Petrol
Weight band
LGV1
52 years of
registration
Weight band
HGV5
Discrete
choice model
Vintage
1999
Others
… … Weight band
LGV1
Weight band
HGV5
… …
Vintage
2050
… … … … … … …
10 weight
bands
Total transport
service demand
(tkm)
Generalized
price (euro/tkm)
Demand Share
2. Methods - Transport Demand Module (freight)
Total transport service demand (tkm) - Discrete choice model
t is year
𝛽 is estimated from regression
𝛼 is calibrated for the baseline year 2015
𝑠𝑡,𝑖 =
𝛼𝑖 × 𝑃𝑡,𝑖
𝛽𝑖
𝑗 𝛼𝑖 × 𝑃𝑡,𝑖
𝛽𝑖
Share of total transport
service demand (tkm) by
mode/technology, i.
Transport service price (euro/tkm)
2. Methods - Transport Demand Module (freight)
Generalized price
A generalized price is a share-weighted average price that is aggregated
from prices on the lower level, j, in the nested structure based on the
transport service demand share of vehicle technologies.
𝑃𝑡,𝑖 =
𝑗
𝑠𝑡,𝑖,𝑗 𝑃𝑡,𝑖,𝑗
Road - Vehicle price, vehicle taxes, fuel costs and other costs.
Rail – Revenue/distance
2. Methods - Transport Demand Module (freight)
Freight vehicle stock
Old vehicles
New vehicles
Transport service demand
by fuel, weight band and
year of registration
Survive rates by weight
band and age
2. Methods - Vehicle Stock Module (freight)
Energy efficiency by mode, fuel type, vehicle weight and year of registration
• Old vehicle energy efficiency (litre/km) increases along with
the age. (LGV and HGV)
• New vehicle energy efficiency decrease considering the euro
standard for vehicles. (LGV and HGV)
2. Methods - Vehicle Stock Module (freight)
2. Results (Preliminary) - Descriptive analysis
L1: <1017 kg
L2: 1017-1270
L3: 1271-1524
L4: 1525-1778
L5: 1779-2032
H1: 2033-5080
H2: 5081-7112
H3: 7113-10160
H4: 10161-12192
H5: >12193
2. Results (Preliminary) - Descriptive analysis
2. Results
(Preliminary)
- Descriptive
analysis
New vehicle survival rate
New vehicle energy efficiency
2. Results
(Preliminary)
- Descriptive
analysis
Base year
2. Results (Preliminary) - Projection
Total freight transport demand (tkm)
Total freight transport demand by transport mode (tkm)
2. Results (Preliminary) - Projection
Total freight transport demand by vehicle weight and fuel (tkm)
Year of 2016
Diesel
2. Results (Preliminary) - Projection
The number of goods vehicles by vehicle weight band and fuel
Year of 2016
Diesel
2. Results (Preliminary) - Projection
Business As Usual
• Fuel related taxes
(carbon tax, fuel taxes
and diesel rebate
scheme)
• Vehicle taxes
• Fuel
economy/emission
standard
2. Results (Preliminary) - Projection
Thanks!

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The impact of carbon tax on the Irish freight sector

  • 1. A Low Carbon Future of Transport: an Integrated Transport Model Coupling with Computable General Equilibrium Model Shiyu Yan (Economic and Social Research Institute, ESRI, Ireland) Kelly de Bruin (ESRI), Emer Dennehy (SEAI) ESRI-UCD energy research conference. 2019/09/17
  • 3. The importance of transport sector 3 IEA(2016) 1. Introduction
  • 4. 4 Total final energy consumption in Ireland by sector 1. Introduction
  • 5. 5 Energy-related CO2 emissions in Ireland by sector 1. Introduction
  • 6. 6 The project objective is to establish a integrated model of transport demand, energy consumption and emission to improve decision making in the sustainable transition of transport sector. • quantify impacts of external socio-economic developments; • evaluate effects of policy packages on transport and other economic activities; • provide tools for decision makers to calculate transport energy and emission; • present detailed transport energy scenarios in modal and technologies. 1. Introduction
  • 7. - Macro-economic and energy system wide top down models – bottom up approaches with sectoral details. Global Change Assessment Model (GCAM) (Mishra et al., 2013) UK transport carbon model (Brand et al., 2012) - Panel data for parameter estimation and simulation - Integration of behavioral realism (logit models) - Link the transport (energy) model with a general equilibrium model (I3E) 7 Research contributions: 1. Introduction
  • 8. An integrated modelling framework • Transport activity, energy, and emission • passenger (Car, bus, rail, air) and freight (LGV, HGV, rail, navigation and air) • Freight transport demand (tkm) and freight vehicle stock 8 2. Methods
  • 9. Vehicle Stock Module (new sales, scrapped vehicles) Transport Demand Module (forecast and disaggregation) Fuel Consumption Module (aging, on-road and driving condition) Emission Module (GHG and other pollutants) Scenario variables (e.g. GDP, income, demographics , prices) Policy variables (e.g. vehicle taxes, energy taxes, carbon taxes, energy targets) Number of vehicles by class and technology Transport demand by mode and vehicle class Energy use by fuel type In-use and life- cycle emissions by pollutants Transport Model I3E Model 9
  • 10. 2.1 Freight Transport Demand Module 2.2 Freight Vehicle Stock Module 2.3 Freight Vehicle Fuel Consumption/Emission Module 2. Methods
  • 11. Freight transport RoadRail Diesel Petrol Weight band LGV1 52 years of registration Weight band HGV5 Discrete choice model Vintage 1999 Others … … Weight band LGV1 Weight band HGV5 … … Vintage 2050 … … … … … … … 10 weight bands Total transport service demand (tkm) Generalized price (euro/tkm) Demand Share 2. Methods - Transport Demand Module (freight)
  • 12. Total transport service demand (tkm) - Discrete choice model t is year 𝛽 is estimated from regression 𝛼 is calibrated for the baseline year 2015 𝑠𝑡,𝑖 = 𝛼𝑖 × 𝑃𝑡,𝑖 𝛽𝑖 𝑗 𝛼𝑖 × 𝑃𝑡,𝑖 𝛽𝑖 Share of total transport service demand (tkm) by mode/technology, i. Transport service price (euro/tkm) 2. Methods - Transport Demand Module (freight)
  • 13. Generalized price A generalized price is a share-weighted average price that is aggregated from prices on the lower level, j, in the nested structure based on the transport service demand share of vehicle technologies. 𝑃𝑡,𝑖 = 𝑗 𝑠𝑡,𝑖,𝑗 𝑃𝑡,𝑖,𝑗 Road - Vehicle price, vehicle taxes, fuel costs and other costs. Rail – Revenue/distance 2. Methods - Transport Demand Module (freight)
  • 14. Freight vehicle stock Old vehicles New vehicles Transport service demand by fuel, weight band and year of registration Survive rates by weight band and age 2. Methods - Vehicle Stock Module (freight)
  • 15. Energy efficiency by mode, fuel type, vehicle weight and year of registration • Old vehicle energy efficiency (litre/km) increases along with the age. (LGV and HGV) • New vehicle energy efficiency decrease considering the euro standard for vehicles. (LGV and HGV) 2. Methods - Vehicle Stock Module (freight)
  • 16. 2. Results (Preliminary) - Descriptive analysis
  • 17. L1: <1017 kg L2: 1017-1270 L3: 1271-1524 L4: 1525-1778 L5: 1779-2032 H1: 2033-5080 H2: 5081-7112 H3: 7113-10160 H4: 10161-12192 H5: >12193 2. Results (Preliminary) - Descriptive analysis
  • 19. New vehicle energy efficiency 2. Results (Preliminary) - Descriptive analysis
  • 20. Base year 2. Results (Preliminary) - Projection Total freight transport demand (tkm)
  • 21. Total freight transport demand by transport mode (tkm) 2. Results (Preliminary) - Projection
  • 22. Total freight transport demand by vehicle weight and fuel (tkm) Year of 2016 Diesel 2. Results (Preliminary) - Projection
  • 23. The number of goods vehicles by vehicle weight band and fuel Year of 2016 Diesel 2. Results (Preliminary) - Projection
  • 24. Business As Usual • Fuel related taxes (carbon tax, fuel taxes and diesel rebate scheme) • Vehicle taxes • Fuel economy/emission standard 2. Results (Preliminary) - Projection