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Professor Hector R RodriguezSchool of BusinessMount Ida College
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Course Map – Topics Covered in Course• Society
– The Corporation and Its Stakeholders– People for the Ethical Treatment of Animals– Corporate Citizenship– The Social Responsibility of Business– The Shareholder Primacy Norm– CSR, Citizenship and Sustainability
Reporting– Responsible Investing– The Community and the Corporation– Taxation and Corporate Citizenship– Corporate Philanthropy Programs– Employees and the Corporation– Managing a Diverse Workforce
• Environment– A Balanced Look at Climate Change– Non-anthropogenic Causes of Climate
Change– Sulfates, Urban Warming and Permafrost– Conventional Energy– The Kyoto Protocol– Green Building– Green Information Technology– Transportation, Electric Vehicles and the
Environment– Geo-Engineering– Carbon Capture and Storage– Renewable Energy– Solid, Toxic and Hazardous Waste– Forests, Paper and Carbon Sinks– Life Cycle Analysis– Water Use and Management– Water Pollution
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Objectives
• Discuss transportation impacts on greenhouse gas emissions
• Review impacts and potential mitigations in some transportation sectors including:– Freight (trucking and rail)– Fleet, and– Employee Commuting
• Short overview of some alternatives– Telecommuting– Hybrid cars
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Transportation Emissions
Source: Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990 – 2006; EPA, 2008
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Transportation Emissions
Source: Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990 – 2006; EPA, 2008
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Transportation Emissions
Source: Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990 – 2006; EPA, 2008
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7Source: Center for Neighborhood Technology, www.cnt.org
A Matter of Perspective?
Emissions per Household are significantly Less In Urban (vs. Rural) areas… Why?
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GHG Emissions per Passenger Mile
Source: http://knowledge.allianz.com/nopi_downloads/images/co2_emissions_lb_1.gif
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Freight Impacts
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• Transportation is the second largest contributor to greenhouse gases (after electricity generation). It plays a significant role because the industry relies so heavily on oil.
• Moving freight in the U.S. accounts for 20 percent of energy consumed by the transportation sector
Freight Impacts
• The Department of Energy has set a goal of reducing petroleum use by 20 per cent in large trucks by 2050
• It expects weight reduction to be a big part of that effort as fleets deploy new trucks and trailers built with weigh saving materials.
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• Using Alternative Fuels• Driving Efficiently: Tire pressures and air conditioner• Reducing Packaging: It represents approximately 5% of the
shipping weight of consumer goods and an unknown but certainly significant amount of volume.
• Slowing Down: Slowing down 13 percent (from 75 mph to 65) will reduce fuel consumption by 27 percent.
• Consolidating: Increasing load capacity utilization is one of the most effective ways of reducing carbon caused by shipping.
• Optimizing Routes: Computer programs can help design the most efficient routes, taking into account traffic patterns and the likelihood of delays.
Source: EA Logistics," Get it There Green,”: (2009)
Making Freight Transport More Efficient
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• Low collaborative solution provide cost to visibility to Shippers and Carriers by identifying potential opportunities to reduce empty backhaul capacity.
• A web based Service to match carrier availability (empty miles) with transportation demand (loads) delivered through a members only internet portal.
• A toolset comprised of collaborative processes, cost and emissions savings Benefits calculator, negotiating
VICS Empty Miles
checklists, legal agreement templates, and standard data definitions to use the service.
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Current Subscribers
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Case Study: Coca Cola• Partnership with Eaton Corp developing Hybrid Diesel
Delivery Trucks• Currently, 170 Hybrid electric heavy delivery trucks in the
US and Canada– Decreased emissions by 37%– Increased mileage by 32%
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• Idle Time Reduction– Automatic shutoff installed on all tractors– 14% reduction in idle time– Estimated annual fuel savings – 75,000 gallons
• Collaborate to Eliminate Dead-head Miles– 5-7% reduction on line-haul loads– Estimated annual fuel savings – 53,000 gallons
• Equipment Efficiencies– Use of lightweight trailers– 42% of weekly orders moved with lightweight trailers– 12% fewer loads for equivalent # of cases– Estimated Fuel Savings – 9,500 gallons
Case Study: Coca Cola
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• Using friction reducers on the wheel-to-rail interface
• Improving trailer positioning on trains to reduce drag
Case Study: BNSF
• Using hybrid switch engines, such as the Green Goat, which use 40 to 70 percent less diesel fuel and reduce particulate emissions by 80 to 90 percent
• Adding idle control mechanisms that reduce fuel consumption and emissions
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Fleet Impacts
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• The nation’s corporate fleets drive about twice the rate of personal vehicles, representing a major opportunity for fuel efficiency efforts.
• Fluctuating gas prices, coupled with corporate sustainability commitments, have cast a spotlight on green fleet initiatives that can save money and boost reputations.
• Elements to consider include cost, alternative fuel infrastructure limitations, resale potential, and driver behavior, to name a few.
• Fleet management companies have stepped in the fill the demand with services including fleet greenhouse gas measurement and driver education.
Source: GreenBiz.com,“The State of Green Business,”: (2009)
Fleet Impacts
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• Still, cost is viewed as a major obstacle to reducing fleet impacts. – Newer technologies in passenger vehicles, such as gasoline-
electric hybrids, can carry a purchase price premium that may be difficult to recoup in the projected lifetime of some vehicles
– For some larger vehicles, such as cargo vans, hybrid technology is limited or nonexistent.
– Pushback from drivers and attractive manufacturer incentives for less-efficient vehicles can also slow the transition from larger trucks to greener fleets.
Source: GreenBiz.com,“The State of Green Business,”: (2009)
Fleet Impacts
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Employee Commuting
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21Source: GreenBiz.com,“The State of Green Business,”: (2009)
Employee Commuting
• Public transit systems, in many cases resembling a hub-and-spoke model don’t always offer a convenient alternative to workers who commute suburb to suburb.
• Overall commuting patterns in recent years have idled. • Workers value their cars because driving alone is perceived
to be the fastest way to get to work.
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• Interest in public transportation has grown as employers search for ways to ease their workers’ commutes. Some cities are concerned, borne of the need to ease congestion and pollution.
• Massachusetts for example, created a law requiring that employers offer workers transit benefits; other States and Countries have similar programs in place.
Employee Commuting
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Telecommuting
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• A “telecommuter” is defined as someone who works from home at least three days a month as part of an arrangement with an outside employer.
Source: GreenBiz.com,“The State of Green Business,”: (2009)
Telecommuting
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• Telecommuting programs – Employer-subsidized phone lines and furniture to boost work-life
balance and reduce commuting costs– Often leads to happier, more productive workers, too. – Can also save money for both workers and employers;
• A study found that individual workers save more than $1,700 in gasoline and vehicle wear and tear, while home office equipment typically consumes about half the energy as standard office equipment.
• Companies have also turned to telecommuting to trim their carbon footprints. – Cisco tested its telecommuting technology on about 20% of its
staff cutting GHG emissions by about 30,000 tons a year
Source: GreenBiz.com,“The State of Green Business,”: (2009)
Telecommuting
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Hybrids
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How do Hybrid Cars Work?• Gasoline Power vs. Electric Power
– The gasoline-electric hybrid car is just what it sounds like -- a cross between a gasoline-powered car and an electric car.
– A gas-powered car has a fuel tank, which supplies gasoline to the engine. The engine then turns a transmission, which turns the wheels.
Source: http://auto.howstuffworks.com/hybrid-car1.htm
– An electric car, on the other hand, has a set of batteries that provides electricity to an electric motor. The motor turns a transmission, and the transmission turns the wheels.
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• Produce 80% less• Toyota Prius produces 3.5 tons per year.
• H3 produces 12.2 tons per year
GHG Emissions Compared to Gas-Powered Car
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Advantages:• Lower emissions & better
mileage• Reduce the dependency
on fossil fuels• Money saved• Low maintenance• Better for environment
Disadvantages:• High cost• More weight due to battery
packs• Risky in accidents• Batteries are non-reusable• Acceleration• Disposal of batteries.
Advantages and Disadvantages
Interesting Variables to Consider Here…
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Electric
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2009
Alignment of new capabilities and market
forces
Promising EV programs succumb to market forces
1990’s
Electrics lose to Ford’s Model T and abundant gas
Early 1900’s
Electric Vehicles are Our Past and…
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Traditional and new OEMs introducing EVs to the market
With recyclable batteries by…
Renault ZE Fluence
… are the Future of Transportation
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• Instant and smooth acceleration• Quiet (inside and out)• Reduced maintenance• Efficient energy usage
EV’s Provide Solid Driving Experience
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Obstacle Solution
Upfront CostBetter Place pays for and owns the battery, charges for monthly services, lowering the initial cost of purchase
160 km RangeBattery switch stations provide fully charged batteries en route, providing unlimited range
Consumer Convenience
Better Place installs charge spots at home, work, and public places for convenient charging
Grid ScalabilityBetter Place Service & Control Center allows ‘smart’ charging, enabling mass EV adoption with existing utility grid infrastructure
“Better Place” Approach
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Driving Systems: “Old” v. “New”
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Charging• Personal and public charge spots• Battery switch stations
In-car support• Energy monitoring and management• Information and media services
Customer care• Mileage, time of day, location charging options
• Roadside and other assistanceEnergy management
• Power use, distribution and grid stability enabling
Comprehensive System
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• Full-size 5-seat passenger sedan with spacious interior
• ~24 kWh lithium ion battery allows for ~100 mile driving range on single charge
• Switchable battery provides infinite range extension; switch time < 5 minutes
• Regenerative braking increases energy efficiency and reduces brake maintenance
Some Options for Fleets Already Exist
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Battery
Charge spot
AutOS
Battery Switch Station
Control Center
• Personal charge spots at driver home or taxi depot• Battery exchange infrastructure throughout service
territory allows for 24/7 driving• System supports energy-aware navigation and energy
management for taxi driving
Taxi Systems
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• Japan’s Ministry of Economy, Trade, and Industry awarded Better Place grant to pilot EV taxi program in Tokyo
• While taxis comprise only 2% of vehicle population, they account for ~ 20% of all passenger vehicle emissions
First System Implemented in Tokyo Q1 ‘10
Multiple companies partnering in taxi demonstration:– BPLC will oversee project, and installed and will operate a
battery switch station in high-traffic location– Tokyo’s largest taxi operator will incorporate multiple
switchable battery EVs into its taxi fleet – Automotive engineering specialist will supply EVs, based on
commercially available vehicles
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Summary• Transportation accounts for approximately 25% of
greenhouse emissions.– This percentage is increasing
• Personal and freight use through vehicles and trucks account for over 80% of total emissions in the transportation sector
• There are several well established engineering and administrative controls which help mitigate transportation sector emissions, including:– Telecommuting– Fleet management (training, route planning, packaging)– Hybrids and electrical vehicles, alternative fuels and drag-
reducing designs