How to achieve less air pollution and GHG emissions from long distance freight transport

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How to achieve less air pollution and GHG emissions from long distance freight transport Inge Vierth, Tobias Lindé and Rune Karlsson VTI, Swedish National Road and Transport Research Institute National conference in transport research, Göteborg, October 15, 2018

Tonne-km and emissions on Swedish territory i base line sceanrio 2016 Road Rail Sea Total Billion tonne-km 53 20 36 109 Emissions -CO2-equivalents (1000 tonnes) 3,333 29 1,247 4,609 -NOx (tonnes) 12,621 365 17,972 30,958 -SOx (tonnes) 8 0 709 718 -PM 2,5 (tonnes) 207 13 360 581 Sources: Transport Analysis, Statistics Sweden, Swedish Environmental Protection Agency and own assumptions

Approach Simulation of different policy instruments with Swedish transport model Model is based on minimization of logistics costs Constant freight transport demand Calculation of modal split in baseline and different scenarios Calculation of GHG and air pollution emissions in different scenarios External costs of GHG and air pollution emissions (based on Ricardo (2014))

Policy instruments in Sweden National taxes and fees 8% higher fairway dues and 5% higher pilot fees (implemented 2018-01-01) 40% higher rail track fees 2025 (decided) Km-tax: 0,06 /km for trucks < 40 ton and 0,11 /km for trucks => 40 ton (discussed) Hypothetical fees in ports Passage fee of 5,10, 20, 30, 50 och 100 /truck in all Swedish ports Passage fee of 5,10, 20, 30, 50 och 100 /truck in ports of Gothenburg, Trelleborg and Stockholm

Result in form of differences between scenarios that include policies and base in tonne-km per mode in Sweden

Calculated impact on tonne-km in Sweden compared to baseline Policy instrument(s) Road Rail Sea Total (1) Higher fairway dues and pilot fees 0,1% 0,1% -0,3% 0,0% (2) Higher rail track fees -0,1% -0,8% 1,1% 0,2% (3) Km-tax for trucks -4,7% 4,4% 2,8% 0,2% (1-3) Higher fairway dues/pilot fees, rail track fees and km-tax for trucks -4,6% 3,3% 3,6% -0,1% (4) Passage fee of 200 SEK/truck in all Swedish ports 0,6% 1,4% -2,2% -0,3% (5) Passage fee of 200 SEK/truck in Göteborg/Trelleborg/Stockholm ports -0,3% 0,8% 0,7% 0,3% (1-4) Higher fairway dues/pilot fees, rail track fees, km-tax for trucks and passage fee of 200 SEK/truck in all Swedish ports -4,1% 3,9% 1,1% -0,7%

Calculated impact of passage fee of 20 /truck in all Swedish ports compared to baseline (tonnes) Blue=sea Green=rail Red=road Dark colors=increases Bright colors=decreases

Calculated impact on tonne-km in Sweden for different levels of passage fee per truck (1 SEK = 0,1 ) 10% 5% 0% -5% 0 200 400 600 800 1000-10% -15% SEK Road Rail Sea Total

Result in form of differences between scenarios that include policies and base in tonnes throughput per coastal area in Sweden

Calculated impact of passage fee of 20 / truck on port throughput compared to baseline 25% 20% 15% 10% 5% 0% -5% -10% -15% Passage fee of 200 SEK/truck in all Swedish ports 25% 20% 15% 10% 5% 0% -5% -10% -15% Passage fee of 200 SEK/truck in ports of Göteborg, Trelleborg and Stockholm

Change in % STANcommodity Agriculture Timber Wood prod. Food Crude oil Oil prod Iron ore Metal prod Paper, pulp Sand etc Chemicals Industry prod. Total Calculated impact of gate fees of 20 /truck in all Swedish ports on throughput (in tonnes) in Swedish ports by STAN commodity (aggregated NSTR) -6,5-0,7-3,4-8,9 0-2,2-0,3-2,1-1,3-1,8-2,7-3,2-2,3

Result in form of differences between scenarios that include policies and base in tonnes emissions and logistics costs in Sweden

Calculated impact on GHG and air pollution in Sweden (compared to baseline) Policy instrument(s) CO2- equivalents (1000 tonnes) NOx (tonnes) SOx (tonnes) PM 2,5 (tonnes) (1) Higher fairway dues and pilot fees -41-2 -1 (2) Higher rail track fees 10 182 8 4 (3) Km-tax for trucks -120-74 20 1 (1-3) Higher fairway dues/pilot fees, rail track fees and km-tax for trucks -108 79 25 4 (4) Passage fee of 200 SEK/truck in all Swedish ports -7-315 -16-7 (5) Passage fee of 200 SEK/truck in Göteborg/Trelleborg/Stockholm ports -1 91 5 2 (1-4) Higher fairway dues/pilot fees, rail track fees, km-tax for trucks and passage fee of 200 SEK/truck in all Swedish ports -122-306 8-40

Calculated impact on air pollution, GHG and logistics costs in Sweden (million SEK) Policy instrument(s) Air pollution and GHG costs Logistics Costs (1) Higher fairway dues and pilot fees -2 6 (2) Higher rail track fees 18 30 (3) Km-tax for trucks (1-3) Higher fairway dues/pilot fees, rail track fees and km-tax -117 908-97 984 (4) Passage fee of 200 SEK/truck in all Swedish ports -22 104 (5) Passage fee of 200 SEK/truck in Göteborg, Trelleborg and Stockholm 4 55 (1-4) Higher fairway dues/pilot fees, rail track fees, km-tax and passage fee of 200 SEK/truck in all Swedish ports -129 1072

Conclusions Introduction of the km-tax for heavy trucks is calculated to have by far the largest individual impact on reducing the external costs of air pollution and GHG Impact increases slightly when the km-tax is combined with higher fees for sea and rail transports and/or passage fees for trucks in all Swedish ports Higher rail track fees and passage fees in the ports of Göteborg, Trelleborg and Stockholm are calculated to lead to slightly increased external costs of air pollution and GHG Passage fees in all Swedish ports are calculated to lead to small reductions of the throughput in Swedish ports and the sea tonne-km in Sweden and a reduction of the external costs of air pollution and GHG costs Firms increased logistics costs are calculated to be 3 to 10 times higher than the benefits of reduced air pollution and GHG emissions Other benefits to society need to be considered

Thank you for your attention inge.vierth@vti.se