Cost Effectiveness of CO2 Mitigation in Transport: An Outlook and Comparison with Measures in Other Sectors

The report analyzes the cost-effectiveness of carbon dioxide mitigation options in the transport sector and compares these with similar options in other sectors. The cost-effectiveness of an environmental measure is a comparison of the effects of a measure with the costs of implementing it. A more cost-effective measure will have achieved the desired results for less money or more results for the same amount of money. The mitigation options in the transport sector analyzed in this report are: Improved fuel economy of cars; Biofuels; Hydrogen. Hence, the report focuses on the cost effectiveness of technological improvements, i.e. on fuel efficient vehicle technologies and fuels. Measures that, for example, affect the demand for transport or modal split have not been examined. In each of these mitigation options, the following questions are addressed: (1) How does the cost effectiveness of carbon dioxide mitigation options in the transport sector compare with the cost effectiveness of measures in other sectors? (2) How will this relationship evolve in the future, in the time frame up to 2030? (3) How do costs of technology reduce over time?