ABSTRACT
As the power sector decarbonizes, road transport is likely to become the single largest source of CO2 emissions globally. Road transport is therefore a high-priority sector to decarbonize. In this chapter, we apply the FTT:Transport technology diffusion model, linked to the E3ME macro-econometric model, to study possible future technological transitions in personal passenger transport.
Similarly to the other chapters in Part 2, we define a set of scenarios based on carbon taxes and a combination of other policies, here including fuel taxes and subsidies for electric vehicles. We find that although the uptake of low-carbon vehicles is already under way, it will need to speed up considerably to meet emission reduction targets through the widespread adoption of electric vehicles. A comprehensive set of policies will be required to make this happen and again, similarly to the findings of other chapters, the interaction of these policies is important.
