How should federal, state, and local governments invest in charging infrastructure to support electric vehicle (EV) goals? Up until now, investments largely have taken the form of pilot projects that deploy tens to hundreds of stations in strategic locations.
Author: Joshua Linn
Congestion charges for Uber, Lyft?
Residents of many large cities endure oppressive levels of traffic congestion, and ample evidence suggests that the rise of Uber, Lyft, and other transportation network services (TNS) has exacerbated the problem. Policymakers can use congestion pricing to combat heavy traffic, where drivers pay a fee to enter a busy area, usually during rush hour. Although these fees have traditionally been levied on privately owned vehicles, cities are beginning to impose congestion charges on TNS rides. But how high should these charges be set? While it might seem obvious that TNS and private rides should face the same congestion charge, in a new job market paper, AREC PhD student Julian Gomez-Gelvez shows that when one or two TNS companies dominate the market, the optimal charge could be much lower.
Fuel Taxes and the Value of Fuel Economy in China
How much do consumers value fuel economy when buying new cars in China, the world’s largest new vehicle market? The answer to this question—at the heart of a job market paper by UMD PhD student Chang Shen—holds crucial implications for Chinese greenhouse gas (GHG) policy as the country sets its sights on peaking its emissions in 2030 and becoming carbon neutral by 2060.
Cash for Clunkers 2.0: Targeting Scrappage Subsidies to Cut Costs
Policymakers are showing renewed interest in subsidizing the scrappage of old, heavily polluting vehicles as a tool to combat climate change. At the federal level, Senator Chuck Schumer (D-NY) has proposed spending almost half a trillion dollars over 10 years to subsidize scrapping older vehicles and replacing them with electric vehicles. The incoming Biden administration and the US House Select Committee on the Climate Crisis have proposed similar ideas as part of comprehensive climate policy packages. Many states are considering scrappage programs, too.
The idea behind scrappage programs is to provide a financial incentive to nudge vehicle owners to retire old, gas-guzzling cars and trucks earlier than planned. Yet research shows that the environmental benefits of these programs are less than expected, while the costs of these programs are often much higher than other emissions reduction policies.
Moving the Needle on Electric Vehicle Market Shares
Based on recent headlines, the US electric vehicle (EV) market seems poised for explosive growth. During Tesla’s Battery Day event this September, CEO Elon Musk promised an electric car that would cost $25,000 within three years based on cost-cutting battery improvements. The next day, California joined several European countries in announcing future bans on the sale of new passenger vehicles that run on gasoline or diesel fuel. November’s victory for Joe Biden provides more good news: the president-elect has signaled his support for a massive scaling-up of EV sales by implementing tighter fuel economy standards, directing the federal procurement system toward zero-emissions vehicles, and deploying some 500,000 charging stations throughout the country over the next decade.
But an all-EV future faces many hurdles, including one basic problem: so far, all vehicle manufacturers except for Tesla have struggled to sell EVs. In this blog post, I’ll explore why consumer demand for EVs needs to take off soon, if we’re going to reach 100 percent market share within the next decade or two.
Welcome!
Welcome to the transportation economics and policy blog at the University of Maryland. There’s a lot going on in the transportation world these days. Technology offers new ways of getting around, but how can we use those technologies to provide efficient and equitable access to transportation, while managing air pollution, congestion, and safety? How does COVID affect the way people travel–both now and in the future–and how should policy makers respond? How can we reduce pollution, congestion, and accidents efficiently and equitably?
This blog will follow market and policy developments, drawing on economics, policy, and engineering research to share insights with policy makers, researchers, students, practitioners, and the broader public.
Special thanks to the Maryland Transportation Institute for providing funding to launch this blog.