Climate policies for road transport revisited (II): Closing the policy gap with cap-and-trade

Flachsland, Christian; Brunner, Steffen; Edenhofer, Ottmar; Creutzig, Felix

doi:10.1016/j.enpol.2011.01.053

Cited by 51 publications

(24 citation statements)

References 28 publications

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“…along with constraints (29)- (32), and the problem RS under the box uncertainty set is further equivalent to the following worst-case stochastic problem:…”

Section: Hybrid Model Under Box Uncertainty Setmentioning

confidence: 99%

“…along with constraints (29)- (32). The set U α is the projection of set U on the space of the data for constraint (40), which describes only uncertainty in α.…”

Section: Hybrid Modelmentioning

confidence: 99%

“…According to the U.S. Energy Information Administration (EIA), 33.2% of carbon emission are from the transportation sector [27]. Therefore, it is not surprising that several world regions including California and Canada are discussing cap-and-trade systems that would include the transportation sector [32]. These developments motivate industry to utilize integrated logistic solutions to reduce carbon footprint in critical areas such as network design, facilities and building use, and transportation [49].…”

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confidence: 99%

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Robust design of a closed-loop supply chain network for uncertain carbon regulations and random product flows

Gao

Ryan

2014

EURO Journal on Transportation and Logistics

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This paper addresses a multi-period capacitated closed-loop supply chain (CLSC) network design problem subject to uncertainties in the demands and returns as well as the potential carbon emission regulations. Two promising regulatory policy settings are considered: namely, (a) a carbon cap and trade system, or (b) a tax on the amount of carbon emissions. A traditional CLSC network design model using stochastic programming is extended to integrate robust optimization to account for regulations of the carbon emissions caused by transportation. We propose a hybrid model to account for both regulatory policies and derive tractable robust counterparts under box and ellipsoidal uncertainty sets. Implications for network configuration, product allocation and transportation configuration are obtained via a detailed case study. We also present computational results that illustrate how the problem formulation under an ellipsoidal uncertainty set allows the decision maker to balance the trade-off between robustness and performance. The proposed method yields solutions that provide protection against the worst-case scenario without being too conservative. Abstract This paper addresses a multi-period capacitated closed-loop supply chain (CLSC) network design problem subject to uncertainties in the demands and returns as well as the potential carbon emission regulations. Two promising regulatory policy settings are considered; namely, (a) a carbon cap and trade system, or (b) a tax on the amount of carbon emissions. A traditional CLSC network design model using stochastic programming is extended to integrate robust optimization to account for regulations of the carbon emissions caused by transportation. We propose a hybrid model to account for both regulatory policies and derive tractable robust counterparts under box and ellipsoidal uncertainty sets. Implications for network configuration, product allocation and transportation configuration are obtained via a detailed case study. We also present computational results that illustrate how the problem formulation under an ellipsoidal uncertainty set allows the decision maker to balance the trade-off between robustness and performance. The proposed method yields solutions that provide protection against the worst case scenario without being too conservative.

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“…along with constraints (29)- (32), and the problem RS under the box uncertainty set is further equivalent to the following worst-case stochastic problem:…”

Section: Hybrid Model Under Box Uncertainty Setmentioning

confidence: 99%

“…along with constraints (29)- (32). The set U α is the projection of set U on the space of the data for constraint (40), which describes only uncertainty in α.…”

Section: Hybrid Modelmentioning

confidence: 99%

mentioning

confidence: 99%

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Robust design of a closed-loop supply chain network for uncertain carbon regulations and random product flows

Gao

Ryan

2014

EURO Journal on Transportation and Logistics

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“…Nonetheless, addressing the market failures is also possible in the transport sector, and is already done successfully to some extent (see e.g. Creutzig et al, 2011;Flachsland et al, 2011). Third, this sector is systemically important to the decarbonisation of the broader economy, particularly transport and heating, via a switch to electricity use, so we must get its decarbonisation right.…”

Section: Translating Climate Justice Into European Climate Economicsmentioning

confidence: 99%

Challenging the European Climate Debate: Can Universal Climate Justice and Economics be Reconciled with Particularistic Politics?

Creutzig

Hedahl

Rydge³

et al. 2014

Global Policy

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Researchers from various disciplines have built impressive but distinct compendia on climate change; the defining challenge for humanity. In the spirit of Lord Dahrendorf, this paper represents the output of interdisciplinary collaboration and integrates state-of-the-art academic expertise from the fields of philosophy, economics and governance. Our focus is on Europe, which is widely perceived as a leader in climate change mitigation and adaptation. However, leadership weakness on climate over recent years, largely due to recession and political vacillation, is eroding this perception. What is needed is a firm justification for strong climate action, acknowledgement of the available tools, awareness of the reasons for our failures to date, and a realistic, but goal-oriented strategy for an integrated climate policy. We therefore present current normative insights from climate justice research highlighting the need to make institutions responsive to those most vulnerable; we discuss the economics of the transition to a low-carbon economy, pointing to key policy instruments and post-2020 climate targets for the EU; we contrast the normative and quantitative synoptic principles with the particularistic implementation schemes and politics of (not) implementing measures on the ground; and we suggest a careful coordination of European climate policies with acute challenges that could increase both climate justice and political feasibility. Policy Implications• Climate justice demonstrates that action on climate change is a moral imperative.• Modern public economics provides a rich framework for examining the climate change problem through the lens of imperfect economies with policy for market failures.• Politics remain inadequate, as specific implementation schemes follow rationales that are decoupled from synoptic moral and economic principles.

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“…As a result, pricing instruments can rarely be standalone options to support changes in transport demand, and thus create opportunities for sustainable transport infrastructure investments. They need to be embedded in a framework integrating command-and-control tools (Flachsland et al, 2011). Carbon pricing strategies need to be complemented by sustainable land use and transport planning strategies, since sustainable transport alternatives to road transportation need to be available to enable users to shift away from passenger vehicle use as a response to a new market price signal (see section II.1).…”

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confidence: 99%

Mobilising Private Investment in Sustainable Transport

2013

OECD Environment Working Papers

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Climate policies for road transport revisited (II): Closing the policy gap with cap-and-trade

Cited by 51 publications

References 28 publications

Robust design of a closed-loop supply chain network for uncertain carbon regulations and random product flows

Robust design of a closed-loop supply chain network for uncertain carbon regulations and random product flows

Challenging the European Climate Debate: Can Universal Climate Justice and Economics be Reconciled with Particularistic Politics?

Mobilising Private Investment in Sustainable Transport

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