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Regulatory adaptation: Accommodating electric vehicles in a petroleum world

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  • Lutsey, Nicholas
  • Sperling, Daniel
Abstract
This paper addresses the policy challenges of adjusting established regulations to accommodate evolving and new technologies. We examine energy and emissions regulations for older petroleum powered vehicles and newer plug-in electric vehicles. Until now, vehicle regulations across the world have ignored energy consumption and emissions upstream of the vehicle (at refineries, pipelines, etc), largely because of the convenient fact that upstream emissions and energy use are nearly uniform across petroleum-fueled vehicles and play a relatively minor role in total lifecycle emissions. Including upstream impacts would greatly complicate the regulations. But because the vast majority of emissions and energy consumption for electric vehicles (and hydrogen and, to a lesser extent, biofuels) are upstream, the old regulatory design is no longer valid. The pressing regulatory question is whether to assign upstream GHG emissions to electric vehicles, or not, and if so, how. We find that assigning zero upstream emissions—as a way of incentivizing the production and sale of PEVs—would eventually lead to an erosion of 20% of the GHG emission benefits from new vehicles, assuming fixed vehicle standards. We suggest alternative policy mechanisms and strategies to account for upstream emissions and energy use.

Suggested Citation

  • Lutsey, Nicholas & Sperling, Daniel, 2012. "Regulatory adaptation: Accommodating electric vehicles in a petroleum world," Energy Policy, Elsevier, vol. 45(C), pages 308-316.
    • Handle: RePEc:eee:enepol:v:45:y:2012:i:c:p:308-316
    DOI: 10.1016/j.enpol.2012.02.038
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    References listed on IDEAS

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    1. Koomey, Jonathan G. & Mahler, Susan A. & Webber, Carrie A. & McMahon, James E., 1999. "Projected regional impacts of appliance efficiency standards for the US residential sector," Energy, Elsevier, vol. 24(1), pages 69-84.
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    Cited by:

    1. Giuliano Rolle, 2022. "Between and within vehicle models hedonic analyses of environmental attributes: the case of the Italian used-car market," SEEDS Working Papers 0822, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Aug 2022.
    2. Wang, Sinan & Zhao, Fuquan & Liu, Zongwei & Hao, Han, 2018. "Impacts of a super credit policy on electric vehicle penetration and compliance with China's Corporate Average Fuel Consumption regulation," Energy, Elsevier, vol. 155(C), pages 746-762.
    3. Abotalebi, Elnaz & Scott, Darren M. & Ferguson, Mark R., 2019. "Why is electric vehicle uptake low in Atlantic Canada? A comparison to leading adoption provinces," Journal of Transport Geography, Elsevier, vol. 74(C), pages 289-298.
    4. Raslavičius, Laurencas & Azzopardi, Brian & Keršys, Artūras & Starevičius, Martynas & Bazaras, Žilvinas & Makaras, Rolandas, 2015. "Electric vehicles challenges and opportunities: Lithuanian review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 786-800.
    5. Wang, Renjie & Wu, Ye & Ke, Wenwei & Zhang, Shaojun & Zhou, Boya & Hao, Jiming, 2015. "Can propulsion and fuel diversity for the bus fleet achieve the win–win strategy of energy conservation and environmental protection?," Applied Energy, Elsevier, vol. 147(C), pages 92-103.

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