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Journal Article

Potential Natural Gas Impact on Cost Efficient Capacity Planning for Automakers and Electricity Generators in a Carbon Constrained World

2015-04-14
2015-01-0466
Greenhouse gas (GHG) emission targets are becoming more stringent for both automakers and electricity generators. With the introduction of plug-in hybrid and electric vehicles, transportation and electricity generation sectors become connected. This provides an opportunity for both sectors to work together to achieve the cost efficient reduction of CO2 emission. In addition, the abundant natural gas (NG) in USA is drawing increased attention from both policy makers and various industries due to its low cost and low carbon content. NG has the potential to ease the pressure from CO2 emission constraints for both the light duty vehicle (LDV) and the electricity generation sectors while simultaneously reducing their fuel costs. To quantify the benefit of this collaboration, an analytical model is developed to evaluate the total societal cost and CO2 emission for both sectors.
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