Carbon allowance allocation in the transportation industry

Ching Chih Chang, Tin Chia Lai

Research output: Contribution to journalArticlepeer-review

19 Citations (Scopus)


This study proposes models for projecting reductions in CO2 emissions of 10%, 20%, 30%, and 40% compared to business as usual (BAU), using a carbon allowance allocation policy and both unimodal and intermodal modes of transportation. The results show that for 10% to 80% decreases in free carbon allowance, the intermodal ratio increased from 1.01% to 53.44%, which led to decreases in carbon emissions and demand ranging from 10.41% to 48.19% and 8.45% to 7.57%, respectively. When free carbon allowances are decreased, the demand for intermodal systems increases accordingly. These results suggest that a carbon allowance allocation policy could mitigate transportation carbon emissions with a relatively small negative impact on economic activity.

Original languageEnglish
Pages (from-to)1091-1097
Number of pages7
JournalEnergy Policy
Publication statusPublished - 2013 Dec

All Science Journal Classification (ASJC) codes

  • Energy(all)
  • Management, Monitoring, Policy and Law


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