Targeted electric vehicle procurement incentives facilitate efficient abatement cost outcomes

A Novel Approach to Identify Industrial Logistics Decarbonization Opportunities: Method Development and Preliminary Validation

“…The cross-sectoral study of Denmark's transition to fossil-free transportation revealed differences in abatement costs both within and between transport segments [13]. An analysis of American electric vehicle procurement incentives revealed that the utilization of electric vehicles influences the abatement costs related to them [33].…”

“…A study by [13] found that abatement costs vary among various truck classes, which implies that the reduction of transportation emissions of X and Z items differ in this case. Additionally, there is evidence that the cost of reducing emissions for electric vehicles depends on their utilization [33], which suggests that the abatement costs for smaller, high-priority deliveries may be higher due to the need for low-utilization transport. Another example is the shift to lower-carbon modes of transportation, i.e., rail freight, which implies longer lead times.…”

“…Inventory management and its ABC/XYZ analysis are frequently applied in practice and well-researched [16,34,35,[37][38][39][40][41] Inventory categories impact the selection of inventory strategies [16,35] Inventory strategies impact inventory cost [16,35,43] Inventory costs impact total logistics cost [44,45] Inventory strategies impact emissions [46,47] Implementing lower-carbon transportation technology, modes, or practices impacts total logistics cost [13][14][15]20,33,[48][49][50] Selecting transport decarbonization measures on the product level can optimize total abatement cost [37] Transportation abatement costs differ across inventory categories This study…”