Transitioning to sustainable freight transportation by integrating fleet replacement and charging infrastructure decisions

Osman Alp, Tarkan Tan and Maximiliano Udenio

Omega, 2022, vol. 109, issue C

Abstract: The transportation sector is the largest contributor to global greenhouse gas emissions. Disruptive technological changes in this sector, such as alternative fuel vehicles, are crucial for emission reduction. We show how a cost-minimizing strategic transition plan to adopt electric trucks over time can be developed for a firm that owns and operates a fleet of diesel trucks. We consider the case in which the firm decides to invest in the charging infrastructure required to support this transition, either because the public charging infrastructure is currently inadequate or for strategic reasons. The congestion effect at the charging stations, the charging times, and the potential loss of productive driving time due to detours to reach charging stations are explicitly considered. By developing an independence property, we are able to model this problem as a linear integer program without specifying origins and destinations. We illustrate the resulting transition plan with realistic parameter configurations. Our results indicate that a firm with high transportation demand density over a given service region significantly benefits from adoption of electric trucks, while also enjoying substantial carbon emissions savings. High demand density also favors smaller battery capacity with shorter ranges under the optimized charging network capacity, even though larger battery capacity would increase productivity with extended ranges. Our analysis also offers insights for governments and regulators regarding the impact of several influential factors such as carbon cost, content of renewable energy in electricity mix, diesel engine efficiency, and subsidizing the charging infrastructure. Additionally, we present an extension to the model that allows for different modalities of partnership in the infrastructure investment; notably public-private and private-private partnerships. While in general our results suggest that such partnerships are beneficial to all involved, the amount and relative distribution of the potential gains depend on the topography and on the density of charging infrastructure.

Keywords: Sustainability; Transportation; Investment decisions; Electric vehicles (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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DOI: 10.1016/j.omega.2022.102595

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