Cost-efficient emission abatement of energy and transportation technologies: Mitigation costs and policy impacts

Abstract

This paper develops a framework to compare energy and transportation technologies in terms of cost-efficient GHG emission reduction. We conduct a simultaneous assessment of economic and environmental performances through life cycle costing and life cycle assessment. To calculate the GHG mitigation cost, we create reference systems within the base scenario. Further, we extend the concept of the mitigation cost, allowing to (i) compare technologies given a limited investment resource, and (ii) evaluate the impact of policy measures on the mitigation cost. The framework is illustrated by a case study of photovoltaics (PV), grid powered battery electric vehicles (BEVs), and solar powered BEVs for a Belgian SME. In terms of cost-efficient GHG emission reduction, grid powered BEVs obtain the best results, followed by solar powered BEVs and photovoltaic panels.