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INTERNATIONAL ENERGY AGENCY









TRANSPORTATION PROJECTIONS

IN OECD REGIONS

Detailed Report









May 2002









Michael Landwehr

Céline Marie-Lilliu

FOREWORD



Following the publication of the 2000 edition of World Energy Outlook, this report presents

additional details in IEA’s projected developments of energy use in the OECD from now to

year 2020, with a special focus on the transport sector.



A new methodology has been developed for this OECD Transportation Energy Outlook,

featuring a “bottom-up” analysis that incorporates explicit projections of transport activity,

structure, and energy intensity. It retains the basic approach used in the World Energy

Outlook, however, in that it does not try to predict the future, but to identify and analyse key

factors in transport energy consumption over the next two decades. It also provides a

quantification of the impact of a selection of transport energy policies in the context of the

World Energy Outlook projections. Policies to improve the fuel intensity of passenger

vehicles and the impact of the introduction of advanced vehicles and alternative fuels are

considered. A selection of measures that deal with demand are also examined in an attempt to

assess their impact.



Finally, the effect on transport energy demand of selected policies is presented for the OECD

area, pointing to the need for a package of measures to limit energy consumption and CO2

emissions.



This report is one of a growing series of International Energy Agency reports focusing on the

transport sector, identified by the IEA as the single most important sector accountable for

increasing oil demand and CO2 emissions in the OECD. The publication Saving Oil and

Reducing CO2 emissions in Transport Options and Strategies was released during 2001. It

identified in a more systematic way the potential of different strategies and options to improve

energy efficiency, reduce oil use and cut greenhouse gas emissions. This report focuses more

on providing a detailed structural assessment of potential future energy use in transport in

OECD countries, and estimates of how, and by how much, energy use may be reduced.

ACKNOWLEDGEMENTS



This study is the result of a collaborative work between two divisions of the Office of Energy

Efficiency, Technology and R&D and the Long-Term Office of the IEA: Michael Landwehr,

from the Energy Technology Policy Division (ETPD), designed the alternative transportation

cases, and drafted most of the material; Céline Marie-Lilliu, also from the ETPD, prepared the

base case model and was responsible for the preparation of the manuscript, and Laura Cozzi,

from the Economic Analysis Division, made important contributions throughout this analysis.



This work has been jointly supervised by Carmen Difiglio, Head of the Energy Technology

Policy Division, and Fatih Birol, Head of the Economic Analysis Division, that is responsible

for the publication of the World Energy Outlook.



The study also benefited from comments and suggestions of other colleagues from the IEA,

the European Conference of Ministers of Transport (ECMT) and the OECD: colleagues: Lew

Fulton, Lee Schipper, Clas-Otto Wene, François Cattier, Deborah White, Stephen Perkins and

Peter Wiederkehr.

TABLE OF CONTENTS

FOREWORD ............................................................................................................................2



ACKNOWLEDGEMENTS .....................................................................................................3



TABLE OF CONTENTS .........................................................................................................4



LIST OF ILLUSTRATIONS...................................................................................................6



EXECUTIVE SUMMARY ......................................................................................................9



CHAPTER 1. THE CONTEXT ............................................................................................16



ENERGY AND TRANSPORTATION .............................................................................................16

FROM ENERGY USE INDICATORS TO FUTURE ENERGY PROJECTIONS ........................................19

TERMINOLOGY, CONCEPTS AND MACRO-ECONOMIC ASSUMPTIONS ........................................21

CHAPTER 2. WHAT MAKES TRANSPORT ENERGY USE GROW?.........................25



A TRANSPORT SCENARIO FOR THE OECD TO 2020 ................................................................25

PASSENGER TRANSPORT ACTIVITY .........................................................................................27

FREIGHT TRANSPORT ACTIVITY ..............................................................................................32

REGIONAL TRANSPORT TRENDS ..............................................................................................37

HOW MUCH ENERGY TO MOVE A PASSENGER OR A TONNE OF GOODS?....................................46

SUMMING UP: TRANSPORT ENERGY PROJECTIONS FOR THE OECD .........................................53

CO2 EMISSION TRENDS IN THE BASELINE CASE .......................................................................60

CHAPTER 3. THE IMPACT OF SELECTED TRANSPORT ENERGY POLICIES ...63



POLICY PORTFOLIOS IN WESTERN EUROPE, JAPAN AND NORTH AMERICA.............................63

IMPROVING THE FUEL INTENSITY IN PASSENGER VEHICLES.....................................................69

MARKET INTRODUCTION OF ADVANCED VEHICLES AND FUELS ..............................................79

TRANSPORT DEMAND-SIDE POLICIES ......................................................................................90

FUEL TAXATION ...................................................................................................................101

CHAPTER 4. DEPARTURE FROM THE BASE TRENDS: WHAT DIFFERENCE DO

CURRENT AND NEAR-TERM TRANSPORT ENERGY POLICIES MAKE?..........104



THE COMBINED EFFECT OF THE REGIONAL POLICY PORTFOLIOS ...........................................104

TRANSPORT ENERGY TRENDS WITH “ADDITIONAL POLICIES” ...............................................105

CO2 EMISSION TRENDS WITH ADDITIONAL POLICIES .............................................................110

KEY FINDINGS – TRANSPORT ENERGY AND CO2 EMISSIONS TRENDS WITH ADDITIONAL

POLICIES ...............................................................................................................................113



REFERENCES .....................................................................................................................115

LITERATURE .........................................................................................................................115

LIST OF DATA SOURCES ........................................................................................................124

APPENDIX 1 DESCRIPTION OF THE FRAMEWORK ...............................................127



OBJECTIVES ..........................................................................................................................127

GENERAL DESCRIPTION OF THE FRAMEWORK .......................................................................128

GEOGRAPHIC BREAKDOWN...................................................................................................128

TRANSPORTATION MODE CONSIDERED .................................................................................128

THE GENERAL FRAMEWORK COMPONENT .............................................................................129

THE ESTIMATION OF ALTERNATIVE VEHICLE AND ALTERNATIVE FUEL INTRODUCTION ........134

A COMPONENT OF DEMAND POLICY IMPACT ESTIMATION .....................................................134

APPENDIX 2: MODELLING VEHICLE FLEET TURNOVER ...................................136



QUALITATIVE DESCRIPTION .................................................................................................136

MATHEMATICAL FORMULATION ..........................................................................................138

APPENDIX 3: TABLES FOR BASELINE AND SCENARIO PROJECTIONS...........141

LIST OF ILLUSTRATIONS

Executive Summary

Figure ES.1: OECD baseline energy demand by mode............................................................10

Figure ES.2: Driving factors to baseline energy demand growth.............................................10

Figure ES.3: Energy demand and policy impact in North America, Western Europe and Japan

(combined) .........................................................................................................................13

Figure ES.4: Incremental transport energy demand (1997-2020) by mode in the different

policy cases ........................................................................................................................14

Figure ES.5: Driving factors to demand growth in the different policy scenarios...................14



Chapter 1

Figure 1.1: Sectoral CO2 trends in Annex II countries (IEA 2000b) .......................................17

Figure 1.2: Accounting model framework ...............................................................................20

Table 1.1: Transport modes ......................................................................................................21

Table 1.2: Population growth and assumptions........................................................................23

Table 1.3: Economic growth and assumptions (Gross Domestic Product) ..............................24

Table 1.4: Fuel price assumptions ............................................................................................24



Chapter 2

Box 2.1: Factors affecting transport demand (Hecq 1995) ......................................................26

Figure 2.1: Passenger activity vs. income per capita (past trends 1970-1997, projections 1998-

2020) ..................................................................................................................................27

Table 2.1: Key parameters and projections of passenger transport activity.............................28

Table 2.2: Average price elasticity of modal activity...............................................................28

Table 2.3: Overview of aggregate growth trends and projections in passenger transport

activity................................................................................................................................29

Figure 2.2: Passenger vehicle ownership past trends and projections......................................31

Figure 2.3: Projections of aviation passenger activity..............................................................32

Figure 2.4: Freight activity vs. GDP.........................................................................................33

Table 2.4 Key parameters and projections of the freight transport activity .............................34

Table 2.5: Average fuel price elasticity of modal activity .......................................................34

Table 2.6: Overview of aggregate growth trends and projections in freight transport activity 35

Figure 2.5: Transport trends and projections –Western Europe...............................................37

Table 2.7: Transport activity growth trends and projections in Western Europe.....................38

Figure 2.6: Transport trends and projections –Central Europe and Turkey .............................39

Table 2.8: Transport activity growth trends and projections in Central Europe and Turkey ...40

Figure 2.7: Transport trends and projections –Japan................................................................40

Table 2.9: Transport activity growth trends and projections in Japan......................................41

Figure 2.8: Transport trends and projections –Australia and New Zealand.............................41

Table 2.10: Transport activity growth trends and projections in Australia and New Zealand.42

Figure 2.9: Transport trends and projections –North America.................................................44

Table 2.11: Transport activity growth trends and projections in North America.....................44

Figure 2.10: Fuel intensities of different modes over time (OECD average)...........................47

Table 2.12 Influences on modal energy intensity (MJ/passenger-km or tonne-km) ................48

Figure 2.11: Stylised behaviour of the energy intensity of new vehicles in a transport mode

and the corresponding fleet in the past ..............................................................................49

Table 2.13: Energy intensity trends and projections ................................................................50

Table 2.14: Average price elasticity of modal energy intensities.............................................50

Figure 2.12: OECD transport energy consumption by regions ................................................54

Figure 2.13: OECD transport energy consumption by transport mode ....................................54

Table 2.15: Energy growth in five OECD regions ...................................................................55

Figure 2.14: OECD incremental transport energy demand by mode .......................................56

Figure 2.15: Factors influencing transport energy use .............................................................58

Table 2.16: CO2 emissions trends and projections ...................................................................61



Chapter 3

Table 3.1: CO2 policies assessed for Western Europe..............................................................67

Table 3.2: CO2 policies assessed for Japan ..............................................................................68

Table 3.3: CO2 policies assessed for North America ...............................................................69

Table 3.4: Key assumptions on the fuel intensity of new cars and personal light trucks.........70

Figure 3.1: Test fuel intensity of new cars ...............................................................................71

Figure 3.2: Comparing the fuel intensity of new cars and the vehicle fleet (EU-9 countries) .73

Box 3.1: Estimating the test/on-road gap .................................................................................74

Table 3.5: Impact of fuel intensity policies in passenger vehicles: Reduction of energy

consumption compared to the base case ............................................................................76

Figure 3.3: Impact of fuel intensity improvement in new cars on energy consumption from

passenger cars ....................................................................................................................77

Box 3.2: The “learning curve”..................................................................................................80

Figure 3.5: The contribution of advanced vehicle technologies to tightened fuel intensity

standards in the aggressive production ramp-up scenario .................................................83

Figure 3.6: Cost reduction scenarios for the aggressive production ramp-up ..........................84

Figure 3.7: Production expansion scenario for low GHG-fuel.................................................86

Figure 3.8: Cost-reduction scenario for low-Greenhouse gas fuel...........................................88

Box 3.3: Policies favouring transport demand restraint and modal shift (extracted from IEA

2001, ECMT/OECD 1995, and EC 1999a) .......................................................................90

Table 3.6: Assumed demand-side measures and effects ..........................................................92

Figure 3.9: Modal structure and assumption on the intra-modal split for Western Europe

(1997).................................................................................................................................93

Figure 3.10: Differentiation of fuel intensities, Western Europe (base case, 2020).................94

Figure 3.11: Modal structure and assumption on the intra-modal split for Japan (1997) ........97

Figure 3.12: Differentiation of fuel intensities, Japan (base case, 2020) .................................98

Table 3.7: The effects of a carbon tax on transport-energy demand and activity compared with

the base case, 2020...........................................................................................................102



Chapter 4

Figure 4.1: Energy demand scenarios including the impact of the regional policy portfolios

..........................................................................................................................................107

Table 4.1: Transport energy trends and policy impact in three OECD regions .....................108

Figure 4.2: Policy impact of the different scenarios (North America, Japan and Western

Europe combined)............................................................................................................108

Figure 4.3: Modal breakdown of incremental energy demand in the different scenarios

between 1997-2020 (North America, Japan and Western Europe combined).................109

Figure 4.4: Factors contributing to energy demand growth: Comparison among the different

scenarios...........................................................................................................................110

Figure 4.5: CO2 scenarios including the impact of the regional policy portfolios .................111

EXECUTIVE SUMMARY



Transport energy demand is the single most important factor contributing to increases in oil

demand in the OECD over the past twenty years, and it is likely to continue to be so for the

next twenty. Transport policies already in place in IEA countries will not significantly

contribute to CO2 reduction efforts in the short term, and the transport sector is threatening to

offset any serious CO2 emissions reduction efforts in other economic sectors through its

emission increases. Hence, transportation is becoming central to the energy policy agenda,

with regard to oil security as well as climate change.



This study was first initiated to supplement the IEA's World Energy Outlook for its 2000

edition (IEA 2000b), which gave energy projections to 2020 and also presented alternative

cases in transportation and electricity generator sectors. The present analysis focuses on the

transport energy forecast to 2020 for OECD countries, and has two distinct objectives:

• Identifying the factors that shape transport energy demand, including the role of activity

growth, modal shifts and fuel intensity changes.

• Assessing and quantitatively estimating the impact of different policies and measures for

CO2 emissions reduction in transport either recently enacted or under consideration.



In order to maintain the objectives of this study, the IEA has developed a new framework

capable of describing energy use for transportation and estimating the impact of the measures

of interest in an OECD context: time series of detailed energy use indicators have been

assembled to address different aspects of energy demand growth. Each measure considered is

characterised and its impact is estimated. The macro-economic assumptions are similar to

those presented in IEA’s World Energy Outlook and have already complemented the World

Energy Outlook 2000 edition.



This study also draws on another recent IEA book, Saving Oil and Reducing CO2 Emissions

in Transport: Options and Strategies (2001), which assesses a variety of potential measures

for reducing oil use and CO2 emissions in transport. In Chapter 3 hereafter focusing on policy

impacts, a number of estimates are drawn from that volume.



A base case for transport energy demand until 2020 without policy action and stable fuel

prices



In the base case, total transport energy demand in the OECD is expected to grow by 44%

between 1997 and 2020 to a total of 1,519 Mtoe compared to 1,057 Mtoe in 1997 (Figure

ES.1). With a stable share of petroleum products in transport energy demand (at 97%), the

implications for supply dependency and CO2 emissions are quite clear. Transport baseline

trends are alarming.



The additional energy demand corresponds to an average growth rate of 1.6% p.a. until 2020

compared to an average of 2.2% p.a. between 1970 and 1997. This means some slackening in





Executive Summary 9

growth rates quite sharply in Europe, Japan and Australia & New Zealand, much less in North

America and Central Europe – but the growth in energy demand in transportation is still

substantial.



Figure ES.1: OECD baseline energy demand by mode









Note: other includes passenger and freight rail, bus and navigation transport





Figure ES.2: Driving factors to baseline energy demand growth

Passenger transport Freight transport









Executive Summary 10

Separating different drivers to energy demand growth (Figure ES.2) allows to weigh the

relative influence of the factors playing a role in the increases of total energy demand for

passenger and freight: transport activity growth, modal shifts and fuel intensity

improvements.



Activity growth has been and will remain the primordial factor to transport energy demand

increases. For passenger transport, growth rates are lower than in the past. Minor increases in

car use and massive expansion of aviation activity (40% of passenger activity increases until

2020) will drive this growth. In freight, trucking dominates the growth. Air freight volume

will triple over the projection period to represent over 5% of tonne-km transported in 2020.

Modal shifts, i.e. shifts towards more energy-intensive modes, have increased energy demand

significantly for freight, less so for passenger transport.



In the absence of significant fuel price increases and policy intervention, lower energy

intensity improvements are expected in the future. This is most pronounced for cars and light

trucks, where new technology would boost performance instead of improving intensity if

efficiency policies are not strengthened. As in the past, aviation remains the mode with the

strongest average energy intensity improvements, but the rate of improvement is also less

important than in the past. On average, fuel intensity improvements in passenger transport

will be negligible. In the case of freight transport, the importance of fuel intensity

improvements is expected to diminish compared to what was observed in the past.



Under the assumption of relatively stable fuel prices and no additional policy intervention in

the base case, fuel intensity improvements will not curb energy demand growth from activity

growth and modal shifts.



Transport energy demand and CO2 emissions with the impact of enacted measures and

climate change policies likely to be in place



Since the mid-1990s, some measures to tackle transport energy growth and CO2 emissions

have been enacted and others are under consideration. This study evaluates the impact of such

policies for North America, Western Europe and Japan1 (Box ES.1) reflecting the varying

level of policy implementation and debate in each region. The set of policies evaluated is not

meant to be exhaustive but covers the major measures in each region. The impact of each

policy is analysed and estimated relative to the baseline trends.









1

To make the study manageable, only Western Europe, Japan and OECD North America received detailed analysis.







Executive Summary 11

Box ES.1: Transport energy demand and CO2 emissions reduction: policies evaluated



Enacted policies

Western Europe:

Voluntary Agreement of European Automobile Manufacturers Association (ACEA VA)

(140g CO2/km in 2008).

Japan:

Top-Runner legislation for cars and small trucks (14.8 km/l in 2010).

North America:

Corporate Average Fuel Economy Standard (CAFE) legislation for cars and light trucks2.



Additional policies – likely to be enacted over the coming years

All regions:

Fuel tax increases equivalent to US$ 95 per tonne of carbon for all fuels.

Western Europe:

Further increased commitment until 2020 under the Voluntary Agreement of the European

Association Automobile Manufacturers Association.

Demand restraint and demand shift policies: urban car restraint; expansion of urban public

transport; high-speed rail expansion; and electronic charging of trucks per tonne-km.

Japan:

Sharpened requirements for car and light truck fuel efficiency under the Top-Runner

Programme until 2020.

Demand restraint and demand shift policies: urban road pricing and other car restraint

measures; improvement of public transport; mandatory city logistic schemes for small

commercial vans and trucks; and expansion of high-speed rail service.

North America:

Stricter fuel economy standards for cars and light trucks from 2005.

Introduction of “low-carbon” fuels after 2010 with widened regulation of alternative-fuelled

vehicle shares in fleets (“fleet mandates”) and fuel tax incentives.



The evaluation of current and likely near-term policies brings sobering results. Including

important policies not yet enacted (but under active consideration), further strong increases in

energy demand until 2010 have to be expected. After 2010, a stabilisation of energy demand

at its 2010 level appears in reach. In total, enacted policies (ACEA Voluntary Agreement in

Europe and Top-Runner regulation in Japan) are estimated to reduce energy demand in 2020

by 39 Mtoe (which represent 3% of the total transport energy demand in 2020). All additional

policies evaluated (enacted and envisaged) could curb demand from the base trends by 213

Mtoe or 15% in 2020. Compared to 1997, this still means an increase in transport energy

demand by 21% or 211 Mtoe for North America, Western Europe and Japan combined

(Figure ES.3). If one had as an objective to achieve energy demand and CO2 emission levels

similar to 1990, much stronger policy action would be required, and the stabilisation would

not be achieved by 2010.









2

The CAFE impact is not evaluated per se in this study, since it was chosen to focus on policy elements that were enacted recently. CAFE is

considered as a strong element of the base case. For the impact of CAFE, see especially Greene 1998







Executive Summary 12

Figure ES.3: Energy demand and policy impact in North America, Western Europe

and Japan (combined)









Three transportation modes account for the vast majority of energy consumption: cars, trucks

and aviation. However, only the car (light-duty vehicle) sector is seriously tackled by the

enacted and expected additional policies, which will serve to curb somewhat its expected

energy demand increases. No net reductions below 1997 levels are achieved in 2010 or 2020.

Stringent energy efficiency standards for cars and light trucks across OECD countries could

bring down car and light truck fuel consumption close to 1997 levels by 2020. New

technologies for vehicles (hybrids, fuel cell vehicles) and the introduction of alternative fuels

could also play a role in 2020, but the time needed for gaining further technological

experience, significant market penetration and finally stockturnover will limit their impact.

This issue is explored in some detail in IEA’s transport publication, Saving Oil (IEA 2001).



Other measures in the areas of reducing transport demand and encouraging modal shifts that

we consider likely to be implemented do not appreciably change the picture. In general, they

have a minor effect on the trends and will need time to take effect.



For freight and aviation, the enacted measures analysed have almost no impact on future

energy demand and CO2 emissions in these sectors (see Figure ES.4). With the additional

policy measures considered here, the energy demand in 2020 would be 30-40% below the

2020 base case – a substantial reduction – but still 20% above the 1997 level.









Executive Summary 13

Figure ES.4: Growth in transport energy demand (1997-2020) by mode

in the different policy cases









The set of measures evaluated here mostly provide reductions in energy intensity, especially

for passenger transport (Figure ES.5). The measures achieve the average pace of energy

intensity reduction experienced between 1970 and 1997, but not more. In this perspective, the

implementation of these additional policies is just "keeping up", but not going beyond the

pace of historical energy intensity progress in transport. This historical rate of improvement

typically has only been compensating about 20-30% of energy demand increases from activity

and shifts towards more energy-intensive modes. Only in the case of passenger transport

would our bundle of measures bring fuel intensity reductions at a faster rate than in the past,

but still not large enough to fully offset expected increases in activity. Modal shifts and

activity growth are relatively unaffected by these policy bundles.



Figure ES.5: Driving factors to demand growth in the different policy scenarios

Passenger transport Freight transport









Executive Summary 14

These findings are based on our analysis of a selection of the most prominent policies

currently under discussion. There are many other policies that are available and that could

provide much greater reductions in energy use than we consider here. In our conservative

approach, the difficulties to implement stringent measures widely are reflected, as

experienced in the past (IEA 2000d). Other effective policies for road freight and aviation

growth still need to be developed and implemented. Many potential options and strategies are

detailed in IEA’s Saving Oil book (IEA 2001). A more thorough debate within and between

countries on developing subsequent measures to decouple transport activity growth from

economic growth is strongly needed.









Chapter 1: The context 15

Chapter 1. The context



Energy and transportation



Transportation has long been associated with environmental and other problems: these include

safety, air, water and noise pollution, competition for urban space. From a perspective of

energy consumption and CO2 emissions, longer-term transportation trends and projections

give rise to serious concerns on how to ensure future economic and environmental

sustainability. A few key figures (IEA 2000b) may serve as illustration:

• With past average annual growth rates of 2.1% p.a. (1971-1997) and 1.5% in the future

(1997-2020), transport energy demand is growing significantly more than average energy

consumption. The share of OECD transport in final energy demand has been steadily

rising from 24% in 1971 to 33% in 1997 and is projected to account for 37% in 2020.

• CO2 emission trends follow the energy trends closely. Transportation emissions

(excluding upstream emissions from oil production and refining) accounted for 19% of

total OECD CO2 emissions in 1971 and for 27% in 1997. In 2020, they are expected to

reach 31%. Since 1971, CO2 emissions from transportation in the OECD have risen by

73%. Until 2020, they are expected to rise again by another 40% over 1997 levels.

• Transportation accounts for an increasing share in the total oil consumption of the OECD,

up from 61% in 1971 to 66% in 1997 and is projected to reach 69% in 2020. It is

responsible for all future increases in oil demand in the OECD. Despite two oil crises and

recurring government efforts to diversify energy supply, transportation relies to 97% on

petroleum products – a situation which has not changed and is not foreseen to change until

2020 under current policy conditions.



Hence, transportation has a large influence on oil dependence and oil supply security.

Transportation trends are decisive for the overall CO2 emissions reduction efforts, threatening

to “eat-up” reductions achieved in other economic sectors. Transportation is becoming central

to the energy policy agenda.









Chapter 1: The context 16

Figure 1.1: Sectoral CO2 trends in Annex II3 countries (IEA 2000c)



5





4

Gigatonnes of CO2









3





2





1





0

1971 1974 1977 1980 1983 1986 1989 1992 1995 1998



Electricity, CHP, heat Other energy industries Transport

Industry Other sectors







In a way, transportation has “successfully”’ resisted energy supply constraints and energy

policy efforts over the past decades. Transportation has gained a reputation as being rigid (in-

elastic) and difficult to be influenced by public policies – not only from the energy

perspective. With transport being closely linked to economic activity and life-style, almost

any private or public decision has implications for transportation and indirectly for its energy

demand, and any measure to change the transportation dimension in turn influences economic

activity and life-style.



While CO2 emissions reduction policies in transportation appear to become embedded in a

general framework for transport policy reform (IEA 2000d), energy policy’s direct influence

is (still) fostering efficiency, since measures geared to influence modal mix and activity

growth are in the realm of transport policy. What do energy policies achieve in this

framework and what roles have the other factors and the respective policies to play? In order

to understand the respective policy roles in transportation, a relatively detailed description of

the transport sector is needed beyond aggregate energy demand trends.









3

Annex II: countries that were OECD Members in 1992, i.e. Australia, Austria, Belgium, Canada, Denmark, the European Union, Finland,

France, Germany, Greece, Iceland, Ireland, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden,

Switzerland, Turkey, the United Kingdom of Great Britain and Northern Ireland, the United States of America







Chapter 1: The context 17

Box 1.1: The alternative transportation case in the World Energy Outlook

2000 edition

For IEA’s World Energy Outlook 2000 several new approaches and submodels were developed, one of which

was the transportation model used in the “alternative transportation case”. The present report develops in much

more detail the richness of findings of which WEO 2000 gives an abridged version. Both share the same study

framework, in particular macro-economic assumptions (economic growth, fuel prices, etc.). WEO 2000's

perspective is wider in terms of sector and regions considered: it comprises all the energy sector at a world-wide

level. It actually allows to embed the present study which is focused on OECD transportation in the wider energy

context of the other energy-consuming sectors as well as the world-wide context.

Yet, there are a few differences the careful reader should keep in mind:

• In order to fit the bottom-up transportation model into the framework of WEO’s world energy model

(WEM), the bottom results were scaled to aggregate energy demand projections in the WEM. Both models

were iterated in a “soft-linking” procedure until a small discrepancy in energy demand projections remained

(±2% in 2010 and 2020). Since in other parts of the WEM the aggregate transport energy projections were

used and a consistent data set was needed throughout the publication, the bottom-up model results were

finally scaled to this envelope. In the present study, the unscaled results are presented, implying that

quantitative figures differ slightly from those presented in WEO 2000.

• WEO’s main energy projection scenario (reference scenario) already includes the impact of policies enacted

by mid-2000, which makes it different from a baseline case without any specific policies (business as usual

or BAU). The WEO reference scenario corresponds to the case “with enacted policies” in chapter 4.

• WEO's transport sector include pipelines, which is not the case in this study. Therefore, the WEO reference

scenario and the scenario with enacted policies as defined here are not quite comparable.



Moreover, since WEO 2000 publication, a few refinements were added to the transportation submodel: (1) the

Eastern Europe and Australia/New Zealand regional models have been developed in similar detail as the other

regions, (2) the modelling of aviation activity growth and of its price responsiveness has been refined.





Analysing past trends in more detail may highlight where policy can find the right levers to

influence transport energy demand and CO2 emissions. It also teaches where efforts might

remain ineffective or might be eroded by counter-effects. Doing such an analysis on an

OECD-wide basis gives insights with regard to overall oil demand trends and allows to learn

from experiences in different OECD regions.



Two sets of questions are underlying to the present study:

• Which factors shape transport energy demand? What is the past and likely future role of

activity growth, modal shifts and fuel intensity changes?

• What will be the impact of different policy measures for CO2 reduction in transport either

recently enacted or under consideration? To what extent do they change the overall trends

in the future? Will they be more successful than past efforts?



This study is structured along these two focal areas. Chapter 2 develops a projection of

transport energy demand for the OECD. For each region it provides a base case built on a

modally disaggregated transportation activity outlook to 2020 complemented by detailed fuel

intensity projections. By comparing the past with the projections, future developments can be

identified that are expected to depart from past trends.





Chapter 1: The context 18

Chapter 3 looks at the policy impact of enacted and possible short-term policies. The choice

of policies examined is geared to reflect the policy preferences in different OECD regions. It

is not meant to look at all kinds of policies and their potential impact but rather tries to reflect

the reality of the slow implementation process occurring in this policy area.



Chapter 4, finally, puts together base trends with the estimated future policy impacts and puts

forward two scenarios – one including those policies which were enacted by 1998, the so-

called reference case, and one including likely near-term policies that appear to represent the

next stage of policy action towards CO2 emissions mitigation in the different regions, the

alternative case.



From energy use indicators to future energy projections



This transport outlook relies on two pillars:

• Time series of energy intensity and activity indicators for the different transportation

modes, which provide the historic database with data from 1970 to 1997;

• An accounting model, which computes estimates and aggregates projections of the modal

indicators up to 2020. It is enhanced by more specific models for specific purposes and

policy areas (e.g. fleetturnover modelling, demand-side modelling) .

In the respective chapters and in the appendices, the modelling approaches are further

detailed. At this stage, only a brief overview of the methodology is given.



IEA has been collecting similar time series, called energy efficiency and use indicators, going

back to 1970 for all end-use sectors for some IEA countries (IEA 1997a, IEA 1997b). In

transport, they allow to constitute energy use in each of the main transportation modes from

indicators of the physical activity (tonne-kilometres or passenger-kilometres, and vehicle-

kilometres) and the modal fuel intensity (average energy use per tonne-km or passenger-km).

These indicators have been frequently used in retrospect to distinguish the factors that shape

energy demand growth in the past, namely:

• The growth in transport activity.

• Changes in shares of different transportation modes (modal shift).

• Changes in fuel intensity, of which changes in technical efficiency are just a part.



These indicators are collected from diverse national or regional statistical sources on transport

and energy. They are then consolidated and allow to reconstitute total transport energy

demand as published in the official IEA statistics to a large extent. Still, some data gaps

remain and need to be filled with estimates and interpolations in order to cover the entire

OECD. The database used here typically includes a discrepancy of a few per cent to the IEA

energy statistics, largely sufficient for the modelling purposes here4.



These disaggregated indicators are the core and the memory of the modelling work in the

OECD. They allow to calibrate the model and to directly compare the projected changes to



4

Some caveats remain specifically for the Central and Eastern European countries and Turkey, and for aviation.







Chapter 1: The context 19

the past trends. In Appendix 3, time series of all major indicators used are given for the past

and the projection periods. The study focuses on the projections and analyses past trends

mostly for comparison5.



The projections are made for each transportation mode in the framework of an accounting

model developed for the purpose of this study: activity and fuel intensity indicators are

projected for each transportation mode using simple econometric techniques see Chapter 2 as

well as Appendix 1. In particular, the influence of fuel prices, rebound of activity and fleet

turnover modelling techniques are integrated in the projection method (see Figure 1.2). The

accounting framework allows to add specific analyses and submodels and has been adapted to

integrate:

• Fuel efficiency modelling of cars and light trucks to reflect regulatory pressure.

• Market introduction of new vehicles and fuels.

• A selection of demand-side policies.



Figure 1.2: Accounting model framework

Analysis of policies Analysis of policies

addressing demand growth to increase fuel efficiency

and modal shifts of new vehicles



Fuel price



Activity Energy Intensity Stock New vehicle

Base projections Rebound Base projections turnover fuel int.

effect



For cars and light trucks only

Fuel mix







Fuel demand

CO2 emissions Analysis of policies

to introduce (low-carbon) fuels









More details on the policy analyses and modelling are given in Chapter 2 and in Appendices 1

and 2. The approach is a convenient compromise between a more detailed modelling of the

transportation activity and fuel intensities as developed for narrower purposes (national

models or specific transportation modes) and the level of aggregation needed for the coverage

of five OECD regions, reducing data requirements and increasing transparency.









5

Detailed analyses of the same database focusing on past trends have been presented elsewhere for the most important OECD countries (IEA

1997a; Schipper and Marie-Lilliu, 1999a and 1999b).







Chapter 1: The context 20

Terminology, concepts and macro-economic assumptions



OECD regions



The study distinguishes five regions in the OECD:



The following two regions compose OECD Europe:

• Western Europe (European Union member states, Switzerland, Norway, Iceland).

• Central Europe and Turkey (Poland, the Czech Republic, Hungary and Turkey).

The following two regions compose OECD Pacific:

• Japan on the one side;

• Australia and New Zealand on the other.

OECD North America includes the United States and Canada.



In comparison with the regional breakdown available in the IEA's World Energy Outlook,

OECD Europe and OECD Pacific regions are disaggregated further, in order to reflect major

differences in the transport system and policy approaches. States with recent membership to

the OECD, such as Mexico and Korea, are not yet included, partly because of to the lack of

detailed transport data.



Transportation modes



The disaggregation of transportation modes used in this study depends primarily on the

availability of national/regional statistics (and hence indicators) for the different modes and is

not entirely homogeneous across the regions. Five or six modes are distinguished for

passenger transport, and four or five modes for freight. Light or small trucks can be separated

only in few regions (Table 1.1).



Table 1.1: Transportation modes

Modal

Passenger Freight

share

cars

light trucks for private heavier trucks

Road

use* small trucks and vans**

bus

100%









Rail passenger rail freight rail



Navigation freight navigation



intra-regional aviation

Aviation

international aviation freight aviation >100%

*Only for North America, Australia and New Zealand. For other regions, light trucks are included in “cars”.

**Only for North America and the Australia and New Zealand regions (light trucks in commercial use) and Japan (including

“Kei”-mini trucks), for other regions, included in heavier trucks (=trucks).









Chapter 1: The context 21

Some clarifications need to be given with regard to data quality and regional specifics of the

different modes:

• For North America and Japan, small/light trucks (below 2.5 tonnes) can be separated from

cars or trucks – though with some loss in data reliability, since their fuel consumption

cannot be easily separated from the other modes. Owing to their importance in the

respective regions, they are modelled separately.

• Bus transport includes scheduled bus services as well as chartered buses and school buses.

• Navigation freight transport only includes domestic or national transport, not trans-

boundary transport within one region.

• Aviation, often treated as a whole, is disaggregated into three categories, intra-regional

passenger transport, inter-regional passenger transport and freight transport. Such a

separation is convenient to describe the different trends in each mode, but requires certain

assumptions on the energy consumption side in order to derive an approximate database.

Intra-regional passenger aviation includes domestic flights and international flights within

each region. Inter-regional flights are mostly intercontinental. Freight aviation includes all

transport either within or between the regions. The activity data (passenger-kilometres or

tonne-kilometres) rely on statistics from the International Civil Aviation Organization

(source ICAO 1999), using the inter-regional activity of domestic carriers as a proxy for

the total inter-regional aviation activity of this region. On the other hand, the respective

regional energy consumption is derived from IEA statistics (IEA 2000f) without

distinguishing domestic and foreign carriers. Finally, since air freight is mostly carried in

passenger air-craft, 1 tonne-km is assumed to consume a similar amount of energy as 10

passenger-km (source ICAO 1999), which also serves as a basis for the splitting of energy

between freight and passenger aviation. With these assumptions and despite discrepancies

in conventions, an approximate picture of aviation fuel consumption can be drafted6.



Two transportation modes are not included in this study:

• Pipeline transport: the only region where pipeline fuel use is significant is North America

(3.8% of transport fuel demand in 1997); in the other regions, fuel use corresponds to less

than 1% of transport fuel use as described here.

• International maritime fuel use, or “international bunkers” (see IEA 2000f): in 1997, it

would have added about 6.5% of total fuel consumption to the transport energy use as

described here.



Convention on modal shares



Modal shares are defined as shares of each transportation mode in intra-regional transport, i.e.

excluding inter-regional aviation for passenger and for freight. This means that the total of

modal shares including these two modes is greater than 100%.



This seemingly odd convention has two reasons:



6

For a comparison of data sources and the problem with matching ICAO activity data with IEA fuel consumption, see Vedantham and

Oppenheimer 1998. The IEA statistics appear to offer the best fuel demand coverage for aviation.







Chapter 1: The context 22

• International aviation is rarely included in the national modal mix in most comparable

studies and statistics. Including these “within the 100%” would yield to very different

modal shares, making the data difficult to compare with other studies.

• The attribution of international (and inter-regional) passenger transport and freight

transport to a country is very approximate and the database is not as reliable as for the

other modes. Yet, international aviation shares in the modal mix is included in the factor

analysis and in the modal shifts component extracted there.



Macro-economic assumptions



Macro-economic inputs to the accounting model consist of population, gross domestic

product (GDP) and fuel prices. Population growth rates (Table 1.2), economic growth rates

(Table 1.3) and fuel price projections (Table 1.4) are those assumed in the IEA's World

Energy Outlook 2000 (see IEA 2000b for explanations). The assumptions for OECD Europe

and Pacific have been split into the respective sub-regions (Western Europe, Central Europe

and Turkey; Japan, Australia and New Zealand) according to different assumptions found in

the literature.



While crude oil prices are assumed homogeneous for all OECD States, end-use prices include

regional differences such as taxes, differing refining margins and transport costs. They are

expressed in a relevant currency for each region. Still, the comparison to prices experienced

by consumers is not straightforward. Values given are in 1990 currencies7 and represent a

sales-weighted mix of prices in the different countries in one region (IEA 2000b). Since the

model responds to price changes, only the relative changes in end-use prices have an

influence on energy demand, not the absolute price level.



Table 1.2: Population growth and assumptions

1997 1970-1986 1986-1997 1997-2010 2010-2020

[millions.] [% p.a.] [% p.a.] [% p.a.] [% p.a.]

Western Europe 386 0.3% 0.4% 0.2% 0.0%

Central Europe and

123 1.4% 1.0% 0.3% 0.3%

Turkey

Japan 126 1.0% 0.3% 0.1% -0.2%

Australia and New

22 1.3% 1.3% 1.0% 1.0%

Zealand

North America 297 1.0% 1.0% 0.7% 0.6%









7

Similarly to the WEO 2000 edition.







Chapter 1: The context 23

Table 1.3: Economic growth and assumptions (Gross Domestic Product)

1997 1970-1986 1986-1997 1997-2010 2010-2020

[bill. 1990

[%p.a.] [%p.a.] [%p.a.] [%p.a.]

US$ PPP]

Western Europe 6,767 2.5% 2.2% 2.2% 1.6%

Central Europeand

822 3.4% 2.3% 3.9% 2.8%

Turkey

Japan 2,613 4.0% 2.9% 1.6% 1.5%

Australia and New

402 3.1% 3.0% 2.2% 2.2%

Zealand

North America 7,222 2.7% 2.6% 2.3% 1.8%



PPP = purchasing power parity.



Table 1.4: Fuel price assumptions

Unit 1997 2000 2010 2020

IEA crude

US$ 1990 / barrel 16.0 13.9 16.5 22.5

import price

OECD Europe

Gasoline DM 1990/litre 1.41 1.55 1.55 1.68

Diesel DM 1990/litre 0.86 0.96 0.96 1.09

Kerosene DM 1990/litre 0.21 0.25 0.25 0.33

OECD Pacific

Gasoline Yen 1990/litre 121 125 123 147

Diesel Yen 1990/litre 67 77 76 91

Kerosene Yen 1990/litre 15 19 19 25

North America

Gasoline US$ 1990/gallon 1.19 1.46 1.46 1.88

Diesel US$ 1990/gallon 0.99 1.15 1.15 1.43

Kerosene US$ 1990/gallon 0.51 0.54 0.54 0.70









Chapter 1: The context 24

Chapter 2. What makes transport energy use grow?



This chapter focuses on the major trends in OECD transport energy demand and identifies

the major underlying drivers to its growth. It gives quantitative detail of a transportation

activity and fuel intensity “base case” up to 2020, which excludes major recent policy

initiatives departing from past trends. The chapter analyses the contribution of different

transportation modes to future growth of energy demand. It identifies in particular the role of

transport activity, modal shifts and energy intensity changes as drivers for transport energy

demand.



A transport scenario for the OECD to 2020



Over the last 25 years, the road vehicle stock grew by 130%, road vehicle-km grew by 160%,

passenger aviation increased more than four-fold and motorway infrastructure increased by

110% (OECD 1997c). Activity growth in passenger-km and tonne-km has been the key

constituent to the past energy demand growth in transportation. The role of other influences,

such as modal shifts and energy efficiency improvements, was much less important.

Projecting transport activity is therefore a key element to any future energy demand scenario

in transportation.



Projecting future transport activity



Forecasting transport levels is a complex task. Box 2.1 gives a qualitative overview of major

elements that play a role in shaping future transport activity. Few of these elements are easy to

capture, as data are sometimes unusable or inaccurate or even non-existent. Quantitative

models vary significantly depending on the purpose for which they are made8. As a result,

there are many transport scenarios for different countries and regions, established through

different methodologies and often leading to diverging results. Acknowledging these

variations, the transport activity projections made below are compared to results from major

regional studies, where possible.



In this study, the projections are obtained by prolonging the trends experienced in the past9.

The thus established base case serves as the backbone for the different scenario variations

analysed later on.









8

Transport models focusing on energy or greenhouse gas emissions usually differ significantly from transport models applied for transport

demand forecasting and infrastructure planning. A useful overview and categorisation of transport models with US examples can be found in

DoT 1999.

9

Where this method yields obviously misleading results compared to more elaborate studies, the modelling is adjusted.







Chapter 2: What makes transport energy use grow? 25

Box 2.1: Factors affecting transport demand (Hecq 1995)

From analysis performed on transport demand, a distinction has to be made between passenger transport and

freight transport. These two types of transport are not quite related to the same factors.

The factors that induce the passenger transport demand are numerous and relatively well known:

• Demography, age distribution, household composition (single-person family, family with children.);

• Economic factors: yearly growth rate of GNP, income or consumption; fuel and vehicle prices; public

transport prices; fiscal measures and structure of taxation...;

• Infrastructure facilities and spatial structure: road, geographical distribution of activities: school, stores,

public transport network, level of urbanisation...;

• Socio-cultural factors: car ownership, employment, part-time jobs, education level, recreation, foreign

trips...;

• Other: climatic conditions, technical and environmental concerns...

Factors related to freight transport can be summarised as follows:

• Demography, age,....;

• Economic factors: yearly GNP, income or consumption growth rate, fiscal measures and structure of

taxation, resources availability, internationalisation of trade...;

• Industrial structure and management: location of industries, division of production units, just-in-time

deliveries;

• Socio-cultural factors: labour mobility and availability...;

• Infrastructure facilities: road density and location...;

• Other: technical and environmental concerns...





Yet, like any model representing a complex reality, the approach neglects some, possibly

important, elements. Most notably, the complex link between infrastructure and transport

demand is not captured. No feedback, from e.g. increasing congestion on the transport activity

levels, is assumed. In other words, the predict and supply routine for planning and

constructing new infrastructure continues unchanged – an assumption not unlikely as a base

case.



The influence of fuel prices and transport cost changes is only captured in a simplified way

(see Appendix 2 for more details). Also, the competition between the different transportation

modes is not explicitly modelled.



Still, on the aggregate level of different OECD regions and compared to different national

studies, the model and its results serve well to describe and understand the current transport

activity trends.



In the following, transport trends are portrayed first by passenger and freight modes

neglecting regional differences, and specific features in the different regions are reviewed

afterwards.









Chapter 2: What makes transport energy use grow? 26

Passenger transport activity



Activity growth



Passenger transport measured in passenger-km has grown tremendously since 1970. In the

OECD it grew on average by 2.4% p.a. or 92% in total between 1970 and 1997. Figure 2.1

depicts the relationship between passenger-km and income on a per capita basis in the

different OECD regions. In 1997, passenger-km per capita are highest in North America at

24,400 km/cap, followed by Australia and New Zealand at 18,800 km/cap, Western Europe at

13,600 km/cap, Japan at 12,000 km/cap and Central Europe and Turkey at 4,400 km/cap. In

the past, most regions developed about parallel to the diagonal centreline, implying that per

capita growth of passenger transport is similar to the growth of income, with the exception of

North America where – a very high level of transport activity – this growth was lower. In

such an aggregate view, economic growth and population growth appear therefore to be key

determinants of total passenger transport activity. Also shown in Figure 2.1 are the

projections of total passenger– km until 2020. They imply that in most regions, future

transport growth per capita is expected to be significantly lower than over 1970-1997 – owing

to lower growth of per capita income, but also to a less strong link between transport growth

and income growth (see Table 2.1).



Figure 2.1: Passenger activity vs. income per capita

(past trends 1970-1997, projections 1998-2020)









Chapter 2: What makes transport energy use grow? 27

Table 2.1: Key parameters and projections of passenger transport activity

Average, aggregate

Passenger– km per capita

income elasticity*

1986-1997 1997-2020 1970 1997 2020

Western Europe 1.38 0.87 6,500 13,600 19,600

Central Europe + Turkey 1.17 0.85 2,600 4,400 8,100

Japan 1.29 0.91 6,600 11,900 16,700

Austr. + NZ. 1.26 0.72 11,100 18,900 23,000

North America 0.55 0.47 19,700 24,300 28,300

OECD average 0.99 0.72 10,000 15,700 20,800

Notes: Figures represent average across all passenger modes, * ratio of relative changes in passenger–km/cap and GDP/cap.



This feature of the projections coincides with a different outlook on demographics compared

to the past. The adult share of the population stagnates and the average age will be increasing

in many countries. Such factors have implications for a future transport demand growth in the

developed countries (TRB 1997, EIA/AEO 2000). In the model, the underlying economic

assumption of an increasing oil price after 2010 also contributes to a slower growth in

transport demand per capita.



In the base case projections, fuel price changes (after 2010) play a relatively minor role for the

growth trends in passenger activity. Table 2.2 gives the elasticities of modal activity to fuel

price changes. Combined with the price change assumptions in the base case (Table 1.4), they

lead to a small reduction in activity growth after 2010 (see regional trends, Figures 2.5-2.9).



Table 2.2: Average price elasticity of modal activity

Western Europe, North America,

Central Europe Australia and Japan

and Turkey New Zealand

Cars -0.15

-0.23 -0.12

Light trucks -0.19

Passenger rail 0 0 0

Bus 0 0 0

Intra-regional aviation -0.20 -0.19 -0.12

Inter-regional aviation -0.20 -0.23 -0.16

Notes: Each mode is being allocated one fuel, which serves as a reference for the calculation of the elasticities.

Price elasticities are subject to considerable uncertainties. The assumptions used here are consistent with the aggregate fuel

demand modelling in the World Energy Model (IEA 2000).



In terms of total passenger transport (passenger-km) in each, region, the assumptions on

population and economic growth add to the differences between past trends and the future

outlook (see macro-economic assumptions in Chapter 1). As a result, the future growth rates

of transport activity until 2020 are about half of the past growth rates since 1970 in Western

Europe and Japan, and 20% lower in North America. In OECD Central Europe and Turkey,

the average growth rate is expected to be more than twice as high as in the past. Table 2.3









Chapter 2: What makes transport energy use grow? 28

gives an overview of the aggregate activity trends and projections in each region10. Overall,

passenger transport activity will rise by more than 40% between 1997 and 2020 in the OECD.

Land transport will increase by about 30% as will the number of cars and light trucks.



Table 2.3: Overview of aggregate growth trends and projections

in passenger transport activity

Average annual growth rate of passenger-km [% p.a.]

1970-1986 1986-1997 1997-2010 2010-2020

Western Europe +3.3 +2.9 +1.8 +1.5

Central Europe and Turkey +3.8 +2.6 +3.8 +1.9

Japan +2.5 +3.7 +1.4 +1.4

Australia and New Zealand +3.3 +3.4 +1.9 +1.8

North America +1.8 +1.9 +1.5 +1.1

OECD average +2.4 +2.5 +1.7 +1.3

Note: Figures present averages across all transport modes. For underlying macro-economic assumptions, see Tables 1.2 – 1.4.





Modal shifts



With some regional differences – North America leading the trends, Western Europe and

Japan “lagging” somewhat – the past 25 years were characterised by the dominance of road

transport. Automobiles (cars and light trucks) command the largest share in passenger

transport with about 80% on average of the OECD total passenger-kilometres. Shares of

public transport modes such as bus and railways fell continuously. At the same time, domestic

and international passenger aviation has increased from very small levels in 1970 to now

accounting for 15% of passenger activity. Exceptions are the Central European countries as a

result of their different stage of economic development. Departing from a low activity level

and a still comparatively high share of public transport, they now follow rapidly the patterns

experienced elsewhere in the OECD in the past11.



Future modal shifts resulting from diverging growth trends in the different modes are unlikely

to be a simple extrapolation of what happened in the past. The modal share of automobiles

seems to stabilise and even diminish slightly in many OECD countries. Different long-term

analyses of modal shift patterns suggest a trend towards ever more rapid and comfortable

transport modes and longer distances. This implies that the past “dominance of automobiles”’

was just a phase. In the very long term, high-speed transportation modes such as aviation and

high-speed trains are expected to take the lead in shaping the next “growth wave’” of

transport infrastructures and equipment in the developed countries. Such broad conclusions

have been derived from different analytical approaches. From studying the long-term

evolution of transport technology and infrastructure, diffusion patterns of transportation

modes become apparent that show the introduction, expansion and saturation of a

transportation mode until it is superseded by a more performing one (Grübler and



10

While the total passenger-km are shown here, it should be kept in mind that all projections given are the sum of separate projections in

each of the passenger modes detailed further below.

11

Trends in this region will therefore be discussed separately further below and are neglected in the following discussion of modal trends

across the OECD.







Chapter 2: What makes transport energy use grow? 29

Nakicenovic et al. 1991). A different approach relies on the hypothesis of a fixed travel time

and travel money budget (Schafer and Victor 1997) over time. Assuming that per capita

transport demand grows roughly in line with per capita income12, the rising demand can only

be satisfied through the transition to ever-speedier transport means and allows to model

competition between modes and their shares in the very long term. How early and how

strongly this transition to high-speed modes takes place is difficult to foresee with precision.

The analytical approaches mentioned are generally too coarse and too long-term (2050) to

yield an outcome to 2020 consistent with the recent trends. Yet, the results from the model

approach do point to the same direction.



Trends by transportation mode



A major symptom from this transition is that automobiles (cars and light trucks) will no

longer take the lion’s share in the future growth of transport activity as in the past. The

projected growth rate of automobile passenger-km is lower than the average growth of

passenger transport in all regions (around 1% p.a.) implying that their modal share is

diminishing to about 76% on average in the OECD. The slowing growth is often identified

with the fact that ownership rates (vehicles per 1,000 inhabitants) follow an S-shaped curve

and many developed countries are now approaching a saturation level at the upper end of the

curve (Dargay and Gately 1999). Figure 2.2 shows the development of passenger vehicle

ownership in the different OECD regions. Owing to the paramount importance of the

automobile for passenger transport today, such a slowing ownership increase in the future is a

central hypothesis for the whole passenger transportation outlook.









12

A hypothesis which these projections depart from (see Table 2.1).







Chapter 2: What makes transport energy use grow? 30

Figure 2.2: Passenger vehicle ownership : past trends and projections









While the importance of bus and rail in passenger transport varies among the regions, their

modal shares have been continuously diminishing everywhere in competition with cars and

aviation. In North America, they now provide together less than 5% of total passenger-km. In

Western Europe, rail travel accounts for about 6% and bus travel for 10%. The shares in Japan

are respectively 24% and 6%. Rapidly expanding high-speed rail now accounts for 11% of

rail passenger-km in Western Europe and 19% in Japan taking some share from cars and

short-distance aviation. Yet, this regionally confined trend just compensates for reductions in

other rail segments and European regions. Over the outlook period, railways (high-speed and

conventional) and buses hold almost stable modal shares, growing just below average.



Air travel has more than quadrupled since 1970. Across the OECD, intra-regional travel

increased by about 5.3% annually; inter-regional travel by about 6%. In the projections, intra-

regional aviation increases by 3.0% p.a. and international by 4.3% p.a. with some regional

differences. North America, being the most mature market, shows slower growth than Europe

and Japan. Inter-regional aviation will reach a modal share of about 13% and interregional

aviation will attain a share of 12% in 2020, compared to 9% and 6% respectively today.

Figure 2.3 shows an index comparison of the projections with different studies. By 2020,

expectations are that activity will have increased by 220% to 260% over 1997, this outlook

being situated at the lower side of these projections, probably because of lower GDP growth

assumptions.









Chapter 2: What makes transport energy use grow? 31

Figure 2.3: Projections of passenger air travel



300%



250%

index 1997=100









200%



150%



100%



50%



0%

1970 1980 1990 2000 2010 2020



World Energy Outlook GDP growth 2.0% p.a.

Boeing GDP growth 2.3%p.a.

ANCAT 1998

OECD 1997



Freight transport activity



Activity growth



In the OECD, average freight activity – the movement of goods measured in tonne-km –

increased by 2.1% p.a. between 1970 and 1997. The absolute level of freight per unit of GDP

varies widely – depending on geography and industrial structure among other factors. Viewed

from an aggregate level, it follows closely GDP trends (Figure 2.4). The historical correlation

is actually strongest in Western Europe and Australia and New Zealand (elasticity close to 1),

and less so in Japan, North America and Australia and New Zealand (elasticity) 0.7 to 0.8,

Table 2.4).



Different factors play a role for shaping freight demand trends, mostly linked to structural

changes in the economy. The less material-intensive service sector has been growing more

than industrial production, leading to some “de-materialisation’” and less transport needs per

economic output. In other words, if this effect in the economic structure prevails, tonne-km

per unit of GDP would decline. On the other side, manufacturing production becomes more

vertically disintegrated and the sourcing and marketing of products is expanding

geographically. This translates into increases in the number of times that a (intermediary)

product is lifted and in the distance for which it is transported on each step in the transport

chain (McKinnon 1996, Schipper, Scholl and Price 1997, Vanek and Campbell 1999). This









Chapter 2: What makes transport energy use grow? 32

effect alone leads to increasing tonne-km per unit of GDP. All effects combined, the ratio of

tonne-km per unit of GDP has been slowly declining in all OECD regions since 198613.



Figure 2.4: Freight activity vs. GDP









Is the superposition of such effects in the future going to translate into less freight growth

relative to economic growth? Since freight activity is mostly a demand derived from

economic relations and activity, a pronounced slowing in freight growth trends would need to

be triggered by structural changes in the economy and the logistics chain. These could include

a “regionalisation” of demand and a supply for products instead of globalisation or a stronger

“de-materialisation” of economic activity than actually experienced. Few foresee such

developments – especially not as a base case. These projections of tonne-km are lower than in

the past mostly because of due to the lower economic growth assumptions. Depending on the

region, they include a decrease in tonne-km per unit of GDP but no trend-breaking “de-

coupling” of freight activity from economic growth (Table 2.4). The projections also include

the influence of the fuel price increase after 2010 via a set of modal elasticities (Table 2.5).

The price responsiveness of freight activity is usually lower than for passenger transport and

introduces a small dampening of activity growth in freight after 2010.



Table 2.6 gives an overview of trends and projections for total freight volume in the different

regions computed from the regional elasticities to domestic product and fuel prices. Compared

to the previous period 1986-1997, slower but still significant annual growth in freight tonne-

km is expected, between 1% and 2% p.a.





13

At the same time, it needs to be recognised that tonne-km are a very rough indicator for describing freight trends, especially when volume

becomes often more constraining to loading than weight.







Chapter 2: What makes transport energy use grow? 33

Table 2.4 : Key parameters and projections of the freight transport activity

Average, aggregate Tonne km per 1,000 US$

GDP elasticity 1990 PPP

1986-1997 1997-2020 1970 1997 2020

Western Europe 1.25 0.99 250 240 240

Central Europe and Turkey -0.10 0.77 650 400 340

Japan 0.80 0.72 340 210 190

Australia and New Zealand 0.67 0.66 870 850 720

North America 0.77 0.80 870 740 680

OECD average 0.83 0.85 540 460 430

Note: Figures represent average across all passenger modes,





Table 2.5: Average fuel price elasticity of modal activity

Western Europe, North America,

Central Europe Australia and Japan

and Turkey New Zealand

Heavier trucks -0.10 -0.14

-0.12

Small trucks and vans -0.05 -0.07

Freight rail 0 0 0

Navigation 0 0 0

Freight air -0.2 -0.17 -0.12

Note: Price elasticities are subject to considerable uncertainties. The assumptions used here are consistent with the aggregate fuel demand

modelling in the World Energy Model (IEA 2000);









Chapter 2: What makes transport energy use grow? 34

Table 2.6: Overview of aggregate growth trends and projections

in freight transport activity

Average annual growth rate of tonne-km [% p.a.]

1970-1986 1986-1997 1997-2010 2010-2020

Western Europe +2.0- +2.8 +2.1 +1.7

Central Europe and Turkey +2.1 -0.2 +2.8 +2.4

Japan +1.2 +2.3 +1.2 +1.1

Australia and New Zealand +3.6 +2.0 +1.3 +1.4

North America +2.1 +2.0 +1.8 +1.5

OECD average +2.1 +2.1 +1.9 +1.5

Note: Figures present averages across all transport modes. For underlying macro-economic assumptions, see Tables 1.2 –1.4.





Modal shifts



Modal shifts in freight from rail and navigation to trucking have been very pronounced

between 1970 and 1997 in all regions. Two factors are key to such shift: on the one hand,

there are changes in the mix and quality of the products transported (packaged and palleted

goods vs. bulk) and changes in the logistical features (lot size, short-term delivery, distance,

etc.) they require. Notably, bulk goods such as agricultural products and base materials have

lost in relative importance as a freight segment, and manufactured products have experienced

strong growth. On the other hand, there is the competitive situation of different freight modes

vis-à-vis the logistical requirements of the different product chains which is determined by

factors such as cost, speed, flexibility to adjust to changes and reliability. As a result, different

freight modes have characteristics that are best for a certain cargo. But also, changes in the

performance of each mode produce feedback on what logistic links become feasible and

competitive. Overall and similar to passenger transport, a trend towards more speedy and

flexible transportation means can be observed with the integration and globalisation of

different economies. As a result, road freight has gained significant modal shares. Freight

aviation – still at a very low absolute level – is expanding quickly. Carriers in trucking and

aviation can adapt quickly to changes in local demand, are less restrained by the

infrastructure than rail and waterways and are fast and reliable (McKinnon 1996, Komor

1995).



Trends by transportation mode



The strong growth in manufactured goods benefited most road freight i.e. trucking while rail

and waterways have kept their competitive advantage for bulk goods. Since the 1970s, the

activity of trucks has increased by 3%-4% annually and continuously gained market shares in

all regions. In Western Europe, road freight accounted for 76% in 1997. The values for Japan,

North America, Australia and New Zealand are respectively 47%, 43% and 37%. In the

projections, trucks are still growing at a faster pace than the total freight tonne-km, which

leads to further increases in modal shares, though at as lower pace than in the past.









Chapter 2: What makes transport energy use grow? 35

Although negligible from the point of view of tonne-km and hence accounting for a very

small modal share, smaller trucks and vans used in urban services and delivery have an

important share in vehicle-km and energy consumption. Data on small trucks and vans (also

mini-trucks in Japan) are not readily available in all regions and are often difficult to split

from passenger usage14. While the data do not cover all regions, this “freight” segment has

grown more than the heavier truck segment. The projections of vehicle-km show a

continuation of this trend and foresee higher growth than average freight - even higher than

heavier trucks.



Rail and navigation play different roles for freight transport in three regions. In North

America, rail shipping holds a 36% share in tonne-km and is projected to grow slightly faster

than average freight volume. This is due to the importance of agricultural, primary materials

and energy products and the very long distances (> 1,000 km) on which rail can compete well

with road freight (Komor 1995). In Japan, rail freight is marginal, accounting for only 5% of

tonne-km, and is projected to remain stable in share. In Western Europe, the railways have

continuously declined in share, from 33% of tonne-km in 1970 to 15% today. Old, slow-

rolling stock, inflexible service from segmented, state-owned national monopolies,

competition for infrastructure with passenger transport and a lack of modern freight terminals

have taken their toll. Within rail services, it is the inter-modal transport segment that is

growing most in all regions. This growth has compensated for some of the losses of rail in

other freight market segments. The outlook is uncertain. Market liberalisation and future

investment allocation in infrastructure allow some optimism European Environmental Agency

2000. The base case expects no further drop in this activity, but it will nonetheless suffer

further losses in market share.



Since the mid-1980s, navigation transport has fallen steeply in North America; it now

accounts for only 20% of total tonne-km. The projections assume a continued but slower

decline. Japanese coastal waterway transport is more significant with a 44% share owing to

the island geography but is slowly losing share. It shows a drop to 40% of tonne-km in 2020

from 44% in 1997. In Western Europe, navigation15 should remain relatively unimportant,

accounting for 5% of tonne-km in 2020.



Air freight has expanded very fast in the recent past – at close to 10% a year in some places,

on average 7.6% since 1970 in the OECD. It still claims under 2% of tonne-km in the OECD,

but, with projected growth at 5.5% per year, it will more than double its activity share to

around 5% by 2020. According to aircraft industry (Boeing 2000), inter-regional freight will

be outgrowing quickly domestic and intra-regional flows. For reasons of data availability (and

the difficulty to allocate energy consumption) the two parts are not separated, but projected

together16. The aircraft industry projects a world-wide average growth over the next 20 years

between 5.8% and 7.0% annually. Since more than 90% of the world-wide air freight is linked



14

In Western Europe and Central Europe and Turkey, small trucks and vans in commercial use are included in the heavier trucks category.

15

Excluding international sea transport within the region.

16

By convention, aviation tonne-km are not included in the intra-regional tonne-km total and are shown as a modal share above 100% in

each region.







Chapter 2: What makes transport energy use grow? 36

to OECD countries, these projections for the OECD can be compared and appear to be at the

lower boundary of the industry outlook.



Regional transport trends



Western Europe



Growth in passenger transport in Western Europe is expect to slow somewhat in the next two

decades to an average of 1.7% p.a. This implies that in 2020 (2010) travel activity will have

risen by 47% (27%). With a very low population growth, it is the growth in activity per capita

that expands. About 30% of the incremental passenger-km stem from intercontinental air

travel, another 20% from intra-European air travel, surface travel growing much more

modestly than in the past (+30% between 1997 and 2020). The modal share of cars has

peaked around 78% and is now retreating against aviation. Figure 2.5 and Table 2.7 give an

overview of the modal shifts in growth trends.



Freight in tonne-km is expected to grow at 2%, mostly driven by road freight. With a growth

rate of average 2.4%, trucking increases its share further. The relative role of rail and

navigation is expected to diminish respectively to 11% and 5% in 2020, with virtually no

growth projected in the base case for both modes. Air freight, though still very small, at 2% of

tonne-km today, doubles its share to 4% in 2020.



Figure 2.5: Transport trends and projections –Western Europe

Passenger transport activity Freight transport activity









Passenger transport modal shares Freight transport modal shares









Chapter 2: What makes transport energy use grow? 37

These projections are somewhat higher than similar projections by the European Commission

(EC 1999b, DRI&KU Leuven 1999)17. With higher economic growth assumptions (2.2% and

2.3% p.a.) than here (1.9%), the Commission projects a passenger-km growth of 1.7% and

1.5% p.a. respectively over the next 20 years. The respective values for tonne-km are 1.6%

p.a. in both studies.



Table 2.7: Transport activity growth trends and projections in Western Europe

1970 - 1997- 1970- 1997-

Passenger-km Tonne-km

1997 2020 1997 2020

All modes +3.2% +1.7% All modes +2.3% +2.0%

Cars* +3.4% +1.2% Trucks** +3.6% +2.4%

Pass. rail +1.0% +0.8% Freight rail -0.6% +0.1%

Bus +1.4% +1.0% Navigation +0.5% +0.1%

Intra-reg. aviation +4.8% +4.3% Freight air +11.5% +5.3%

Inter-reg. aviation +4.9% +4.4%

*incl. light trucks; **incl. small trucks and vans





Central Europe and Turkey



The level of economic development and development of the transport system varies

significantly between Central Europe and Turkey18. Per capita transport activity in Turkey is

low compared to the other countries in the group and its infrastructure, especially rail, is much

less developed (ECMT 1988a). There is great uncertainty in the projections of transport since

the speed of economic development in those countries and the speed of their transition

towards transport patterns similar to those in Western Europe are uncertain. A strong

restructuring of the Central European economies and extreme shifts in their transport system

marked the last ten years.



The projections show a rapid growth of passenger activity by an average of 3% p.a. (Table

2.8). Average per capita transport activity will have almost doubled to 8,200 km/cap in 2020

compared to 1997 - equivalent to a level reached in Western Europe in the late 1970s.

Following the patterns elsewhere, cars will be the winners. They expand strongly and gain

important shares from rail and bus. In 2020 the share of cars in passenger transport will reach

80% - up from 60% today and 36% in 1986. This reflects the continuing, rapid motorisation

and road infrastructure development experienced in the Central European countries and also

Turkey (Figure 2.6). On average, the modal structure in 2020 will have changed dramatically

and resemble that of Western Europe during the 1980s.



For freight, strong growth in tonne-km is projected (an average of 2.6% p.a.). The freight

intensity of the economies (tonne-km/GDP) is expect to decrease, but it will remain

significantly higher than in Western Europe (Table 2.4). In 2020, total tonne-km will have

roughly doubled compared to 1997. Road freight is leading this with a growth rate of 3.5%



17

Although comparing Business-as-Usual projections should always be done with caution.

18

In 1997, Turkey accounts for about 50% of the population, 30% of passenger-km and 38% of tonne-km in the whole group of countries.







Chapter 2: What makes transport energy use grow? 38

p.a. Navigation and air freight19 are marginal, and rail continues to lose market share to road

freight. Overall, the modal shift towards road freight continues the trend started during the last

decade where it already lost most of its importance in freight (Figure 2.6).



Figure 2.6: Transport trends and projections – Central Europe and Turkey

Passenger transport activity Freight transport activity









Passenger transport modal shares Freight transport modal shares









The projections were difficult to do for this region. Recent work (commissioned by the

European Commission) tries to address this situation for the Central European countries

(NEA, 1999) with an exhaustive scenario approach. Still, being limited to projections of

passengers and tonnes carried, this exercise cannot be directly compared to the projections

given here. No comparable projections for Turkey are available (see ECMT 1998a).









19

Data on air freight were not separately available for the countries in this region.









Chapter 2: What makes transport energy use grow? 39

Table 2.8: Transport activity growth trends and projections

in Central Europe and Turkey

1970 - 1997- 1970- 1997-

Passenger-km Tonne-km

1997 2020 1997 2020

All modes +3.3% +3.0% All modes +1.1% +2.6%

Cars* +5.7% +4.2% Trucks** +5.1% +3.5%

Pass. rail -2.2% -2.3% Freight rail -2.0% +0.0%

Bus +2.5% -0.7% Navigation -2.4% +0.1%

Intra-reg. aviation +10.0% +4.0% Freight air n.a. n.a.

Inter-reg. Aviation +7.1% +5.7%

*incl. light trucks; **incl. small trucks and vans, n.a.: not available.





Japan



Growth in Passenger-km is expected to be the lowest among all OECD regions, at 1.4% p.a.,

partly depending on the low economic growth assumptions and the stagnant population. Cars

and passenger rail both grow at 0.9%, bus transport being even lower at 0.5% p.a. Slow

growth and relatively small growth differences between modes, apart from aviation, lead to a

relatively stable modal structure. With 27% rail and 5% bus shares in passenger-km in 2020,

Japan has the highest share of public transport among all regions. Almost half of the growth

in passenger-km will occur in inter-regional and intra-regional (domestic) aviation. They are

expected to attain respectively 12% and 9% in modal share in 2020 (Figure 2.7 and Table

2.9).



A similar picture, low growth and little modal shifts, is projected for freight in Japan. Overall,

Japan has the lowest freight intensity of all regions. Total tonne-km will grow at an average of

1.1% p.a. Trucking is expected to gain some shares, from 48% in 1997 to 53% in 2020,

mostly at the expense of waterway transport. Small trucks and vans (including. “mini”-trucks)

have little importance in terms of modal shares, but account for almost 70% of vehicle-km

and hence have an important role for energy consumption (see Hattla 94, Kiang/and Schipper

1996). With almost 40% of tonne-km in 2020, waterway transport remains very important.



Figure 2.7: Transport trends and projections – Japan

Passenger transport activity 120%



100%



80%

Modal share









60%



40%



20%



0%

1970 1986 1997 2010 2020



Cars Personal light trucks

Passenger rail Bus

Intra-regional aviation + general Inter-regional aviation









Passenger transport modal shares







Chapter 2: What makes transport energy use grow? 40

Freight transport activity Freight transport modal shares









These projections are similar to those in the Japanese Long-term Energy Outlook (Kibune/and

Ishida 1999). Using a slightly higher assumption of growth in GDP (+2% p.a. until 2010),

passenger-km are projected to grow by +1.7% p.a. and tonne-km by +1.1% p.a. until 2010.

The respective values in this outlook to 2010 are +1.4% and +1.2% p.a.



Table 2.9: Transport activity growth trends and projections in Japan

1970 - 1997- 1970- 1997-

Passenger-km Tonne-km

1997 2020 1997 2020

All modes +3.0% +1.4% All modes +1.7% +1.1%

Cars* +4.4% +0.9% Trucks +3.4% +1.2%

Pass. rail +1.2% +0.9% Small trucks/vans -2.8% +0.3%

Bus -0.4% +0.5% Freight rail -3.4% +1.1%

Intra-reg. aviation +8.1% +4.1% Navigation +1.7% +0.9%

Inter-reg. aviation +7.3% +5.0% Freight air +12.4% +5.6%

*incl. light trucks.





Australia and New Zealand



The growth projections of passenger transport in this region (+2% p.a.) are partly driven by a

relatively important population growth of 1% p.a. Aviation is responsible for around 50% of

the incremental activity, all other modes losing shares.



Figure 2.8: Transport trends and projections –Australia and New Zealand

Passenger transport activity 140%



120%



100%

Modal share









80%



60%



40%



20%



0%

1970 1986 1997 2010 2020



Cars Personal light trucks

Passenger rail Bus

Intra-regional aviation + general Inter-regional aviation









Passenger transport modal shares







Chapter 2: What makes transport energy use grow? 41

Freight transport activity Freight transport modal shares









For freight, with an average growth of 1.4% p.a., the modal structure remains relatively

balanced despite the higher growth for road freight. Road, rail and coastal shipping each carry

around a third of the tonne-km, with road and rail gaining share over shipping (Figure 2.8 and

Table 2.10).



Table 2.10: Transport activity growth trends and projections

in Australia and New Zealand

1970 - 1997- 1970- 1997-

Passenger-km Tonne-km

1997 2020 1997 2020

All modes +3.3% +1.9% All modes +3.0% +1.4%

Cars +2.8% +1.4% Heavier trucks +4.8% +1.7%

Light trucks +4.1% +1.3% Small trucks/vans +5.7% +2.3%

Pass. rail -1.4% +0.6% Freight rail +3.5% +1.8%

Bus +2.7% +0.5% Navigation +1.4% +0.7%

Intra-reg. aviation +8.0% +2.7% Freight air +10.8% +4.8%

Inter-reg. aviation +7.0% +3.4%



North America



North America is the region with the highest level of mobility per capita and the lowest shares

of public transport (rail and bus) among all regions. Over the outlook period, passenger-km

are expected to grow at 1.4% p.a., lower than in the past (1.8% p.a.). Population growth at 0.6

to 0.7% p.a. plays a role in sustaining passenger activity growth. Cars and light trucks

(personal use) together hold today a share of 84% in passenger-km, which is slightly

diminishing (81 % in 2020) owing to the expansion of aviation shares. These projections

assume a stabilisation of the light truck market share in new registrations at around 40% and

together with the lower mileage per vehicle, the overall modal share of light trucks in

passenger-km remains at 22%. The projections show thus a halt of the increasing past

penetration of light trucks. More than 40% of the incremental passenger activity takes place in

aviation. Inter-regional aviation is expected to double its shares from 5% today to 10% in the

future, while intra-regional aviation will increase from 12% to 15% (Figure 2.9 and Table

2.11).







Chapter 2: What makes transport energy use grow? 42

Table 2.11: Transport activity growth trends and projections in North America

1970 - 1997- 1970- 1997-

Passenger-km Tonne-km

1997 2020 1997 2020

All modes +1.8% +1.4% All modes +2.0% +1.7%

Cars +0.5% +1.0% Heavier trucks +3.6% +2.0%

Light trucks +7.5% +1.2% Small trucks/vans +6.0% +2.8%

Pass. rail +0.2% +0.5% Freight rail +1.4% +1.8%

Bus +1.4% +1.4% Navigation +0.4% -0.6%

Intra-reg. aviation +5.1% +2.3% Freight air +6.7% +5.5%

Inter-reg. aviation +6.6% +4.0%









Chapter 2: What makes transport energy use grow? 43

Figure 2.9: Transport trends and projections – North America

Passenger transport activity Freight transport activity









Passenger transport modal shares Freight transport modal shares

120%



100%



80%

Modal share









60%



40%



20%



0%

1970 1986 1997 2010 2020



Cars Personal light trucks

Passenger rail Bus

Intra-regional aviation + general Inter-regional aviation









Tonne-km are projected to grow at 1.7% p.a. Trucking is the mode with strongest growth. It

will increase its modal shares over time, at the expense of waterway transport. In contrast to

the other regions, rail freight has a high market share, which is expected to increase slightly

from 36% in 1997 to 38% in 2020. Air freight grows strongly reaching a total tonne-km of

5.5% in 2020.



The recent Outlook by the US Department of Energy/Energy Information Administration

(USDoE 2001, horizon 2015) assumes a somewhat higher total freight transport growth at 3%

p.a. than this outlook, which accounts for the difference with the projections made here20:

Light duty vehicle21 vehicle-km are expected to grow by 2% p.a. (this outlook: 1.4%), heavy

duty vehicle-km by 2.6% p.a. (1.8%) and rail and marine tonne-km by 1.6% p.a. (1.1%).



Key findings – activity trends and projections



Projections of transport activity are difficult to integrate into the perspective of sustainable

development. By 2020, passenger transport and freight transport will have expanded by 44%

and 48% respectively compared to 1997 across the OECD. These projections are marked by a

slower growth in passenger vehicle ownership, relatively modest rates of aviation growth and



20

It should also be noted that Canada is not included in the US Department of Energy’s Outlook

21

Cars and light trucks, either in personal or commercial use.







Chapter 2: What makes transport energy use grow? 44

a mostly stable correlation of freight traffic volume with economic growth. Despite these

partly optimistic assumptions, the difficulty to sustain such growth in the context of

infrastructure capacity, negative environmental impacts22 or urban attractiveness becomes

obvious.



Growth in transport is slowing but still important. In all regions a slow-down in the growth of

passenger transport activity is projected. Average growth in the OECD is expected to be 1.6%

p.a. until 2020 compared to 2.4% in the past. Land-based transport is growing less, by 1.2%

on average, mainly due to modest assumptions on passenger vehicle ownership increases.

Intra- and inter-regional aviation makes up about 40% of future growth in passenger transport

activity.



Freight activity growth is slowing somewhat, mostly because of the lower economic growth

projected than experienced in the past. No significant “de-coupling” from economic growth is

assumed. Tonne-km are expected to grow by 1.7% p.a. on average until 2020 across the

OECD, compared to 2.1% p.a. in the past since 1970. Road freight comprising small trucks

and vans leads most of the growth and increases its modal share further. In terms of vehicle-

km, small trucks and vans show strong growth, even stronger than heavier trucks. Air freight

is growing more than three times as quickly as average freight, at 5.5% p.a. on OECD

average.



The patterns of modal shifts are changing. Modal shifts as depicted in the projections are the

result of long-term differences in growth rates of different transportation modes. In passenger

transport, the past rise of cars and light trucks in modal shares levels off and their modal

shares will be retreating in favour of aviation. Total passenger aviation will command a share

equivalent to 25% of transport activity23. For freight, further modal gains of trucks are

projected in all regions, but much less dramatic than in the past. Air freight will expand

quickly and will comprise between 4 and 5% of freight activity in 2020.



The projected developments in Central Europe and Turkey are an exception in the sense that

the trends experienced elsewhere in the OECD countries over the last 30 years are expected to

appear over the projection period, leading to a dominance of cars and trucks for passenger and

freight transport respectively at close to an 80% modal share. The speed at which such

changes have already started to occur puts the society and the environment under extreme

strain.









22

For a discussion on Environmentally Sustainable Transport, see http://www.oecd.org/env/ccst/est/estproj/estproj1.htm

23

In relation to intra-regional transport activity (see “Convention on modal shares” in Chapter 1).







Chapter 2: What makes transport energy use grow? 45

How much energy to move a passenger or a tonne of goods?



“Energy intensities”: energy use per service unit



In order to move from the transport scenario to an energy scenario, modal energy intensities

come into play. They describe the ratio of energy used per “service unit” in each mode24.

They are, first of all, a statistical measure derived from transport activity statistics and energy

consumption statistics in the different countries25. They provide an average across many

different transportation means and situations in each mode in each country. Owing to

differences in the definition and collection of statistics, their comparison across countries is

often not simple. Yet, with these caveats in mind, energy intensities allow to analyse

differences between modes and countries (see Chapter 3).



Figure 2.10 gives the average energy intensity in each mode across the whole OECD.

Concealing all regional differences, it gives a first impression of the order of magnitude of

energy use per passenger-km and tonne-km and the trends over time. It shows the relative

magnitude between the average modes where public transport (rail and bus) for passenger and

rail and waterways for freight transport require much less energy than the road-based

modes26. Aviation is the mode that has improved most in the past owing to a combination of

strong technological and load factor improvements.



There are different “real life” influences that shape the energy intensity changes over time in

each region, namely:

• Technology (including energy efficiency in a technical sense);

• Vehicle mix (size, power, age and stock turnover);

• Usage (load factor, speed, driving behaviour) and also

• External factors such as quality of infrastructure, congestion, geography, climate,

environmental regulation, etc.



The modal energy intensity defined as energy consumption per passenger-km or tonne-km

can be separated into a load factor component (passengers or tonnes per vehicle) and a vehicle

energy intensity component, defined as energy consumption per vehicle-km.









24

Again, this is described in terms of passenger-km for passenger transport and tonne-km for freight.

25

See IEA’s energy indicator effort: IEA 1997a

26

While this is true for the average mode, the situation can be very different in the specific country and transport situation. See Chapter 3,

section on “Transport demand policies”.







Chapter 2: What makes transport energy use grow? 46

Figure 2.10: Fuel intensities of different modes over time (OECD average)









In the case of cars, light trucks and trucks – encompassing the bulk of energy consumption

and activity – the load factor in the historical time series is actually singled out. Load factor

and vehicle energy intensity (per vehicle-km) are projected separately. In all other modes,

load factor changes are implicit and the modal energy intensity is used. Table 2.12 gives an

overview of some key factors independent from the price signal with regard to the modal

energy intensities in each transportation mode and the general direction of influence.



The time series of energy use indicators that are used here are the superposition of all these

different influences, few of which can be explicitly traced. For example, technological

(vehicle) efficiency is just one, though important, component which cannot always be

separated from other influences. In other words, a low modal energy intensity is not

synonymous with “high efficiency” in a technological sense (e.g. energy input into a car and

mechanical energy as an output). In a policy context that aims at the reduction of energy use

per unit of service provided, it is convenient to have such a broad measure. It encompasses

many different policy levers to reduce energy per unit of service provided, e.g. energy

efficiency improvements from technology and use changes, load factors, modal shifts. On the

other hand, many influences remain undiscovered under the surface27.









27

See IEA’s work on indicators of energy use and efficiency (IEA 1997a and 1997b) which attempts to explain more of the different

components and influences.







Chapter 2: What makes transport energy use grow? 47

Table 2.12: Influences on modal energy intensity (MJ/passenger-km or tonne-km)

! increasing, " decreasing energy intensity, ↨ depends on context

! increased size and power28, general decrease in load factor with increasing vehicle

Cars,

ownership, higher speed, congestion, air conditioning and other equipment

light trucks

" fuel-efficient technology

! Speed,

Rail ↕ load factor, share of urban, inter-city and high-speed rail

" electrification, efficient technology (but slow turnover), traffic flow

! increased power, load factor often decreasing

Bus ↕ share of charter (long-distance) and scheduled bus services (urban, low-speed)

" fuel efficient vehicle technology, efficient driver behaviour (training)

! air traffic congestion, hubbing and routing

↕ average trip length

Aviation

" fuel-efficient technology, increases in load factor and seating capacity, increased

aircraft size

! more power, acceleration and speed, vehicle mix with more small and mid-sized trucks,

additional equipment (cooling, etc.), increased highway speed (long-haul), congestion

(trucks and vans in urban areas)

Trucks ↕ load factor (“cubing out” or increased volume constraints lead to decrease), increased

empty running (has been reduced in the past in the course of deregulation)

" fuel-efficient vehicle technology, maximum size increases, increased trip length for

inter-city trips, driver monitoring and training, maintenance

! increased share of more energy-intensive combined rail, increased speed;

Rail freight " efficient technology (but slow stock turnover); improved routing and logistics, less

empty running, switch from diesel to electric traction, reduction in stops and starts,

increases in trip lengths

Navigation " efficient technology (but slow stock turnover)

Note: the tendencies given reflect past changes and do not necessarily apply in each country and region.





With regard to the technology component of energy intensity, a certain pattern can be

discerned over time in different modes. While the period 1970 to 1986 was characterised by

two oil price hikes and a subsequent push for energy-efficient technology, the period 1986 to

1997 was characterised by relatively low and stable fuel prices. During the second period,

technological changes in new vehicles were often directed less towards energy savings than

towards improving performance. As a result, the energy intensity improvements of new

vehicles were slowing or even negative. Yet, vehicle energy intensity improvements in the

fleet continue during this period as a result of stock turnover that introduced more efficient

technologies, the development of which was triggered in the previous high price period. At

the end of this phase, the improvements “inherited” from the high price period came to an end

and levelled out since energy efficiency of new technology often did not progress as quickly

as before in absence of strong price signals. This stylised behaviour of the vehicle technology

component is depicted in Figure 2.11 and generally holds for cars, trucks and aviation (IEA

1997, Greene 1992, Vedantham and Oppenheimer 1998) and is decisive for this fuel intensity

outlook.



28

In North America, the shift from cars to light trucks in personal use is captured as modal shift since light trucks constitute a separate mode.

In the other regions, where this shift is less pronounced, light trucks are included in the car category. Here, the increase in light truck use

leads there to increased average weight and power within the car category.







Chapter 2: What makes transport energy use grow? 48

Figure 2.11: Stylised behaviour of the energy intensity of new vehicles in a

transportation mode and the corresponding fleet in the past





Energy intensity

in a vehicle class







Fleet

(vehicle stock)



New

vehicles





?

1970's to mid

1980s mid 1980’s to late 1990’s

time







Energy intensity trends and base case projections until 2020



Table 2.13 gives an overview of the modal energy intensity in 1997 and the projected trends

for three regions. The trend of the modal energy intensity between 1986 and 1997 is shown

for comparison.



Different “techniques” are used to project modal trends. They include namely the

extrapolation of the long-term base trend (“autonomous improvement”) that is experienced in

each region and the responsiveness to price changes. The base trend is assumed equivalent to

a third of the improvement rate experienced between 1986 to 1997. In the case of cars and

light trucks, a separate fleet turnover model is used (see Appendix 2 for a description of the

model) replacing this aggregate base trend hypothesis. The second component of the energy

intensity improvement is considered energy price-related. For determining the price

responsiveness (elasticity), values similar to what can be found in the literature are applied in

the different regions (Table 2.13). This approach is of course only a rough proxy for different

elements shaping the modal energy intensity trends. Some of the assumptions (e.g. future load

factor trends) depend necessarily on expert judgement and the regional context.









Chapter 2: What makes transport energy use grow? 49

Table 2.13: Energy intensity trends and projections

Western Europe Japan North America

MJ per passenger-km and tonne-km

1986-97 1997 97-2020 86-97 1997 97-2020 86-97 1997 97-2020

[% p.a.] [% p.a.] [% p.a.] [% p.a.] [% p.a.] [% p.a.]

Cars -0.8% 1.54 0.1% 0.6% 2.27 0.1% -0.7% 2.26 0.1%

Light trucks -0.8% 3.16 0.1%

Rail -0.5% 0.50 -0.5% 0.6% 0.19 0.6% -1.7% 0.87 -1.7%

Bus 1.3% 0.96 0.2% 1.9% 0.78 0.6% 0.3% 0.86 -0.1%

Intra-regional

-2.1% 2.42 -1.8% -1.4% 2.26 -0.7% -2.0% 2.54 -1.1%

aviation

Inter-regional

-2.5% 1.22 -0.8% -3.0% 1.75 -1.4% -3.8% 2.14 -1.7%

aviation

Heavier trucks 0.0% 3.22 -0.3% -1.7% 2.68 -0.2% -2.3% 1.81 -0.9%

Small trucks

n.a. 40.81 1.4% -3.7% 15.10 -0.1%

and vans

Rail -0.6% 0.41 -0.6% -0.6% 0.21 -0.6% -1.6% 0.27 -1.6%

Navigation -0.3% 2.25 -0.3% 0.9% 0.93 0.9% 0.9% 0.53 0.9%

Freight

-2.1% 17.19 -1.2% -2.8% 19.79 -1.3% -2.1% 8.33 -1.1%

aviation

Western Europe Japan North America

MJ per vehicle-km

86-97 1997 97-20 86-97 1997 97-20 86-97 1997 97-20

[% p.a.] [% p.a.] [% p.a.] [% p.a.] [% p.a.] [% p.a.]

Cars -1.0% 2.53 0.0% 1.0% 4.06 0.0% -1.3% 3.50 -0.1%

Light trucks -2.8% 4.92 -0.2%

Heavier trucks -0.2% 8.67 -0.1% -1.7% 8.44 0.0% -1.5% 12.33 -0.7%

Small trucks

n.a. 2.96 0.0% -2.1% 4.53 0.0%

and vans

Notes: large variations for energy intensities of one mode between the regions can be the result of varying definition and quality of data with

regard to passenger-km and energy consumption in each region.





Table 2.14: Average price elasticity of modal energy intensities

Passenger modes Freight modes

Heavier trucks, small

Cars and light trucks -0.2 to -0.3 -0.15

trucks and vans

Passenger rail 0 Freight rail 0

Bus -0.1 Navigation 0

Intra-regional aviation -0.3 Freight air -0.3

Inter-regional aviation -0.3

Note: price elasticities are subject to considerable uncertainties. The assumptions used here are consistent with the aggregate fuel demand

modelling in the World Energy Model (IEA 2000);





For the baseline case outlook, this implies that vehicle energy intensity improvements in the

fleet are expected to be generally lower than experienced since 1986 owing to relatively stable

prices and little policy intervention that could trigger strong improvements in new technology.

Later on, a different case is designed where certain already enacted energy efficiency policies







Chapter 2: What makes transport energy use grow? 50

are included (see Chapter 4, Figure 4.4). The impact of such policies is readily discernible in

comparison to this base case.



Cars and light trucks



The energy intensity of new cars improved between the mid 1970s and mid 1980s in all

regions triggered by high oil prices and fuel efficiency regulations, most markedly in North

America. Since 1986, new car energy intensity has been almost flat in Europe and North

America29. Power and weight increases counterbalanced the impact of technological

improvements on energy intensity (in MJ/vehicle-km). In Japan, new car energy intensity has

even deteriorated significantly since 1986. The fleet has followed with some time lag as a

result of gradual stock turnover and achieved significant improvements since 1986, except in

Japan. With unchanged new car energy intensity, the improvements of the fleet in Europe and

North America have levelled off in the mid 1990s – new cars are no longer more efficient

than the average fleet vehicle. Assuming no major policy initiatives in the base case and only

limited fuel price increases after 2010, the fuel intensity of new cars is projected to improve

only because of a small response to increasing fuel prices after 2010. Technological progress

continues to be translated into performance instead of fuel efficiency despite the cost-

effectiveness of various fuel efficiency improvements (IEA 2001). At the same time, the load

factor (passenger per vehicle or “occupancy rate”) is slowly decreasing along with increasing

car ownership in all regions. The on-road performance of vehicles is expected to deteriorate

slowly – a trend already experienced in the past. Both elements result in less improvement in

energy consumption per passenger-km than visible on a per vehicle-km basis. The fleet

energy intensity (per passenger-km) is therefore projected to stay flat through the outlook

period. A more detailed discussion (by region) is given in Chapter 3 where the detailed stock

modelling is presented (Figures 3.2 and 3.3).



Rail (passenger and freight) and waterways



The slow turnover of stock is limiting the rate of technological improvement. Load factor and

other influences (speed, vehicle mix, etc.) are difficult to extract and result in diverging trends

in the different regions. In the base case, the autonomous trend since 1986 is assumed to

proceed independently of fuel prices. Fuel intensity in buses often deteriorated in the past

owing to decreasing load factors. This trend is projected to continue countered only by a small

reaction to fuel price increases.



Aviation (passenger and freight)



Aviation is the mode with the strongest historical energy intensity improvements – on average

by 2 to 3% p.a. Only a small part of air freight is actually carried in dedicated freight planes,

and most of it uses spare capacity in passenger aircraft, which makes energy use difficult to

allocate. In terms of energy required, 1 tonne-km is considered equivalent to 11 passenger-km

(convention used by the International Civil Aviation Organization; ICAO 1992). Fuel

29

It has started to improve again only recently in Europe and Japan, at least partly as a result of the policies adopted since 1998.







Chapter 2: What makes transport energy use grow? 51

intensity projections are made using this convention and similar assumptions as for passenger

aviation. In Figure 2.10 it is striking that the average aviation passenger-km has improved to

the extent that an average aviation passenger-km now requires an amount of energy similar to

an average car30. Greene (1992) estimates that about a third of past improvements is due to

increases in load factor, the rest to technological improvements that enter the rapidly growing

fleet during stock turnover. In the future, further load factor improvements are becoming more

difficult to achieve and autonomous improvements are estimated in the range of 1 to 1.3% p.a.

up to 2020. At the same time, the technological improvement potential remains significant

and improvement rates higher than those observed are technologically feasible if sufficient

economic incentives exist (OECD 1997a). Reflecting this situation, the assumed price

responsiveness of the aviation energy intensity is the highest of all modes. The overall energy

intensity improvements projected are lower than in the past but still significant (1 to 2% p.a.).



Trucks



Energy intensity data for larger trucks are the most difficult to interpret. The truck category is

very diverse, ranging from smaller (2.5 tonnes) and medium-sized (10-20 tonnes) to large

trucks. The maximum size varies in each region from 27 tonnes in Japan to 44 in Europe and

varies by state in North America, being 120,000 lbs. (54 tonnes) in Florida, for example.

Changes in the vehicle class mix, additional vehicle equipment (e.g. cooling), different trunk

and trailer categories are an important factor in determining fuel intensity. The load factor

changes also. It depends on the vehicle mix and is not consistent over time. In general,

improvements in the load factor are expected because of improved logistics and the use of

information technologies. For the projections, load factors (including empty running) are

assumed to improve autonomously at about 0.25% p.a., which implies that over the coming

20 years, 30% to 50% of the technological potential as perceived today (10 to 15%) will be

autonomously realised. For the energy intensity (energy per vehicle-km) only North America

shows a clear trend over the last 20 years; in the other regions the energy intensity is basically

flat. In the projections, a significant autonomous change is assumed only in North America

(1/3 of past change rate) and a limited price responsiveness (see Tables 2.13 and 2.14).



For Japan (after 1992), Australia and New Zealand, and North America, small trucks and vans

can be separated from the general truck category. Their activity is best described by vehicle-

km because of the diverse nature of their use, which is not exclusively linked to goods

transport but rather to different services provided31. Their vehicle energy intensity improved

in the past following to some extent the technology trends in cars. Increased weight and

power as well as changes in the vehicle mix eroded some of the gains. The projections are

made with the same technique and assumptions as cars, assuming no autonomous

improvement and only a limited response to fuel price changes.







30

At the same time, this shows the limitations of such a comparison based on a homogeneous service unit “passenger-km” across all modes,

since air travel is not substitutable for car travel.

31

For convenience and to allow comparison, a fixed load factor has been assumed in each region in order to calculate a tonne-km value.







Chapter 2: What makes transport energy use grow? 52

Key findings – fuel intensity trends and projections



In the absence of significant fuel price increases and policy intervention, the trucking energy

intensity is expected to improve at a slower rate than in the past. This trend is expected to be

most pronounced for cars and light trucks, where new technology is assumed to boost vehicle

performance instead of efficiency. As in the past, aviation remains the mode with the

strongest average energy intensity improvements, even if slowing.



Summing up: transport energy projections for the OECD



From the projections made on transport activity demand and energy intensity in each

transportation mode, the total transport energy demand in each region can be computed. In the

following paragraphs the results are interpreted in different ways by looking at:

• future energy demand vs. past trends;

• transportation modes that contribute most to growth in energy demand, i.e. the additional

energy demand in each time period;

• different factors (activity growth, modal shift, energy intensity changes) that underlie the

energy growth patterns described.



Projections of transport energy demand are described here for a base case excluding the effect

of major policies recently enacted or potentially to be introduced in the future. It is thus a

theoretical case against which other scenarios will be compared. In particular, a reference

scenario is defined in Chapter 4, which includes certain policy measures enacted in 1998 – the

historical data set reaching only 1997.



Transport energy use in 2020 if trends persist



In the base case, total transport energy demand in the OECD is expected to grow by 44%

between 1997 and 2020, to a total of 1,519 Mtoe compared to 1,057 in 1997. Table 2.15 gives

an overview of the changes in each region, whereas Figures 2.12 and 2.13 give an overall

picture of energy projections, giving first a breakdown by region, then a decomposition by

transportation mode.









Chapter 2: What makes transport energy use grow? 53

Figure 2.12: OECD transport energy consumption by region









Figure 2.13: OECD transport energy consumption by transportation mode









Transport energy consumption is expected to grow at a much slower rate than in the past but

still significant compared to oil demand in other sectors of the economies. On average a

growth of 1.6% p.a. (1.9% until 2010, and 1.2% afterwards) is expected compared to an

average of 2.2% p.a. between 1970 and 1997. In all regions, growth rates are slackening, quite





Chapter 2: What makes transport energy use grow? 54

sharply in Europe, Japan, Australia and New Zealand, much less in North America, Central

Europe and Turkey.



Table 2.15: Energy growth in five OECD regions

Increase (%) Change rate (% p.a.)

1970-1997 1997-2020 1970-1997 1997-2020

Western Europe +114 +48 +2.9 +1.7

Central Europe and Turkey +145 +94 +3.4 +2.9

Japan +186 +42 +4.0 +1.6

Australia and New Zealand +105 +43 +2.7 +1.6

North America +58 +39 +1.7 +1.4



In terms of energy consumption, the share of cars and light trucks is slowly decreasing from

52% in 1997 to 48% in 2020 but remains by far the largest part of transport energy demand.

The growth rate of energy demand from these modes is estimated at 1.3% p.a. to 2020 (all

OECD), compared to 2% between 1970 and 1997. Road freight will account for a constant

share of around 27% in total transport energy consumption, growing at a rate of 1.7% p.a. to

2020 (1970 to 1997: 3.0% p.a.). In those regions where data allow to separate small trucks

and vans from heavier trucks, the small truck category stands for about 40% of the total road

freight energy demand in 2020 compared to around 30% today. The share of passenger and

freight aviation in energy consumption will increase from 14% in 1997 to 20% in 2020. By

that time more than 30% of the OECD aviation energy consumption will derive from air

freight. The future growth rate of energy demand in aviation is estimated at 3% p.a., very

close to the past. The importance of all other modes (bus, passenger and freight rail,

navigation) in terms of energy demand is expected to decrease from 6% today to 5% in 2020.



Which transportation modes contribute most to energy demand increases?



The total energy demand will increase by 462 Mtoe between 1997 and 2020, which compares

to a very similar value of the past 30 years (466 Mtoe). Identifying transportation modes that

contribute the most to the increase provides an interesting perspective. As shown in Figure

2.14, this allows to compare past (first bar) and future (second bar) trends.



The modal breakdown of additional energy demand reveals that the importance of passenger

cars and light trucks for energy demand growth is decreasing, except for North America and

Central Europe and Turkey, where passenger vehicles remain the main driver for energy

demand growth. In North America, which experienced the strongest energy intensity

improvements in passenger cars of all regions in the past, a continuation of this positive trend

is not expected under base case conditions, i.e. without policy intervention. Even with

slowing activity growth from cars and light trucks, energy demand growth remains therefore

strong. In Central Europe and Turkey, the dramatic increase in car activity is responsible for

the strong growth of energy demand in this mode. In all other regions, the slowing growth in

car activity translates into a slowing growth in energy demand despite stagnant fuel

intensities.





Chapter 2: What makes transport energy use grow? 55

Figure 2.14: OECD incremental transport energy demand by mode



250

1970-1997

200

1997-2020

150

Mtoe









100



50



0 y









nd

e









th

rn



pe









an









d









a

ke

op









ic

an









or

te









a

ro









p









er

r

ur









al

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N

es









Tu









lia

Eu









Am

Ze

lE

W









ra

d

tra









st

an









ew

Au

en









N

C









Cars and personal light trucks Heavier trucks

Small trucks and vans Aviation (intra- and interregional, freight)

Other



The rest of the energy demand growth is equally shared between road freight and aviation.

Within the additional energy demand from road freight, as much as 50% could stem from

small trucks and vans. Aviation incremental fuel demand is massive, accounting for 146 Mtoe

between 1997 and 2020 in the OECD. It represents 30% of the energy demand increase in the

OECD. One-fourth of the additional energy demand in aviation is due to freight carried.



Factors driving growth in energy use



Figure 2.15 shows the decomposition of energy growth trends for the five OECD regions into

three basic constituents (“factors”): activity growth, structural change (i.e. in the case of

transport, modal shift) and energy intensity changes. Decomposing a variable into these

constituents is a technique widely used in many areas, including energy. Different

methodologies are used, which show some divergence in the result depending on how a

residual is treated that is not directly attributable to the three basic factors. The method used

here32 has the advantage of leaving a very small residual, i.e. the attribution is complete and

the three different factors almost add up to the total energy demand change.



The magnitude of each of the three decomposition factors denotes a hypothetical energy

demand growth rate which would have been experienced if the two other factors had

remained unchanged during that period. Each factor combines all modes in either passenger





32

The Adaptive Weighted Divisia (AWD) method used here. For a comprehensive overview and methodology of index decomposition

analysis, see Ang and Zhang 2000. Cross-country comparisons of transport trends can be found in Scholl, Schipper, Kiang 1995 (passenger),

Schipper, Scholl, Price 1997 and Greening, Ting, Davis 1999 (freight).









Chapter 2: What makes transport energy use grow? 56

or freight, weighted by their relative importance for energy demand. It therefore aggregates

and summarises effectively many of the trends observed before separately.



It is convenient to distinguish four periods:

• 1970-1986: including the two oil price shocks and the implementation of different policies

for improved energy efficiency;

• 1986-1997: the period after the counter shock of oil prices with generally stable energy

prices and slackening policy interest in energy efficiency;

• 1997-2010: continuing stable oil prices (at 17 US$1990/barrel or 21 US$2000/barrel);

• 2010-2020: gradual, limited increase in crude oil prices to 22.5 US$1990/barrel or 28 US$

2000/barrel



Figure 2.15 puts the magnitude of future activity changes, modal shifts and energy intensity

changes into the perspective of past trends and in relation to each other.









Chapter 2: What makes transport energy use grow? 57

Figure 2.15: Factors influencing transport energy use, 1970 to 2020

Passenger transport Freight Transport









Western

Europe









Central

Europe

and

Turkey









Japan









Australia

and New

Zealand









North

America









Chapter 2: What makes transport energy use grow? 58

Passenger transport



The projections show in all regions a gradual slowdown of activity growth, but activity will

remain the major constituent of energy demand increases in virtually all regions.



Modal shifts will play a minor role in energy demand, the major change occurring in

passenger transport. The increase in modal shares of aviation at the expense of cars does not

show up strongly, since the energy intensities are relatively similar (see Figure 2.10).



Energy intensity changes are unimportant over the projection period. Even during the phase

with the strongest energy intensity improvements (1986-1997), the change only compensated

for around 30% of the activity increases in Western Europe and about 50% in North America.

In the projections, a slight deterioration of car and light truck fuel intensity (per passenger-

km) will be balanced out by strong improvements in passenger aviation.



Freight transport



As is the case for passenger transport, the projections for freight show a slowing activity

increases in line with the underlying, lower economic growth rate.



For freight, gains in modal shares of small and heavier trucks are expected to continue, but at

a slower rate than in the past. The gains in modal shares by freight aviation, which has a much

lower fuel intensity than trucks, will become the most important component of energy

demand increase from modal shifts in the future.



The improvement of energy intensity (measured as energy per tonne-km) in trucks will

account for most of the increase in energy demand. Strong fuel intensity improvements in the

freight aviation segment will also play a role. After 2010, gradually increasing fuel prices will

lead to a slight reduction of fuel intensities for passenger and freight modes.



A few particularities in the different regions merit an additional explanation. In the Central

Europe and Turkey region, the 1986-1997 period was very disruptive for the formerly planned

economies in Central Europe. This is depicted by the strong modal shift effect towards cars

and trucks. For freight, total activity stagnated while it grew dramatically for passenger

transport. In the case of freight, the modal shift contribution to growth in energy demand is

partly balanced by reduced energy intensity from improved technology – mostly in trucks. In

North America and Australia and New Zealand, fuel intensity improvements in freight have

been particularly strong in the past. They stem to a large extent from fuel intensity

improvements in small and heavier trucks during a time of market deregulation, leading to

improved load factors and efficiency. At the same time, these improvements were balanced by

modal shifts towards road freight and aviation. The decomposition of energy demand

increases in Japan explains why the outlook shows energy demand increases much lower than

in the past: activity growth lower than in the past, linked to slow economic growth









Chapter 2: What makes transport energy use grow? 59

assumptions, will lead to lower energy demand projections in the future compared to past

trends.



Despite some slowing-down in transport activity compared to the past, the growth in energy

demand in North America is expected to remain rather strong, for passenger transport similar

to the past, for freight slightly below. The reason is the breakdown in fuel intensity

improvement in passenger transport and smaller fuel intensity improvements also in freight in

the absence of any policy action and with only small price signals. The factor balance is

shifting: in the past, high activity growth was at least partly compensated by fuel intensity

improvements. In the future, minor activity growth is expected but also less important fuel

intensity improvements – leading to total energy demand growth similar to the past.



CO2 emission trends in the baseline case



In 1997, gasoline, diesel and kerosene accounted for about 97% of all transport energy

consumption in Europe and Japan. This share is around 99% for North America. The rest is

mostly made up of liquified petroleum gas and electricity, other alternative fuels, such as

grain ethanol in North America (0.4% in 1997). There are few fuel substitution possibilities in

transportation, especially under the assumption of limited crude oil price increases. The fuel

mix does change in the base case since fuel demand is the result of changes in modal mix

(with different modes using different but stable mixes of fuels). But overall the fuel mix in

transportation remains quite stable over the projection period in the base case. Hence, CO2

emission trends follow closely the above-mentioned energy trends.



In the emission calculations, the focus is put on “tailpipe” emission neglecting the greenhouse

gas (GHG) emissions “overhead” from crude oil production, refinery and transport33.

Emissions from electricity production are therefore not included in the transportation

emissions total (IPCC 1996).



Table 2.16 gives the projected base case emissions in million tonnes of CO2 and relative to

the 1990 CO2 emissions level, the base year for the Kyoto GHG reduction target. Already by

1997, CO2 emissions had increased by 15%, 29% and 11% for Western Europe, Japan and

North America respectively (+14% for the OECD), compared to 1990. By 2010, the base case

projects a level of +50%, +60% and +40% respectively. Emissions are projected still

significantly higher by 2020. These levels provide a baseline for policy measures and

emissions reduction efforts. It becomes quite clear that under such growth dynamics, actual

reductions to or below 1990 levels, as the Kyoto Protocol prescribes them for the whole

economy34, would be particularly difficult to achieve in the case of transport, and that

transport will instead tend to off-set the CO2 reductions in other sectors of the economy.









33

Petroleum product emissions over the fuel life cycle are about 15 to 20% higher than tailpipe emissions (Delucchi 1997, IEA/AFIS 1999a).

34

Including effects from other mechanisms than domestic polices and measures.







Chapter 2: What makes transport energy use grow? 60

Table 2.16: CO2 emission trends and projections (megatonnes)

1990 1997 2010 2020

Western Europe 767 885 1154 1339

Central Europe and Turkey 65 84 130 157

Japan 214 277 343 384

Australia and New Zealand 73 84 106 125

North America 1593 1774 2225 2469

OECD 2714 3104 3957 4475

Changes over 1990 levels

1997 2010 2020

Western Europe +15% +50% +75%

Central Europe and Turkey +28% +93% +127%

Japan +29% +60% +79%

Australia and New Zealand +15% +45% +71%

North America +11% +40% +55%

OECD +14% +46% +65%

Note: tailpipe emissions according to IPCC guidelines (IPCC 1996).





Key findings – energy demand and CO2 emission projections in the base case



• Without policy intervention, total transport energy demand in the OECD is expected to

grow between 1997 and 2020 by 44% or 462 Mtoe to a total of 1,519 Mtoe.



• Passenger cars (and light trucks) will account for about half of total transport energy

demand in 2020, and road freight for more than a quarter. Aviation will consume about a

fifth of all transport energy demand by 2020.



• The importance of the different modes to energy demand increases will change. Aviation

is projected to drive almost 30% of all additional energy demand between 1997 and 2020.

Road freight and passenger cars account for about 30% and 40%.



• The separation of the factors activity, modal shift and fuel intensity shows that the

composition of energy demand growth is different in the base case projections compared

to the recent past. For passenger transport, activity growth rates are weakening, modal

shifts remain unimportant for energy demand, but fuel intensity changes are expected to

become almost negligible. For freight, activity growth is only slightly less than in the past,

modal shifts will continue to increase energy demand, and fuel intensity changes will be

rather small. The combination of these factors leads to projected energy demand growth

rates of 1.6% p.a. between 1997 and 2020.



• With only limited increase in crude oil price, the share of petroleum base fuels in total

transport energy consumption will remain around 98% over the projections period.

Alternative fuels are not expected to play a significant role in the base case.









Chapter 2: What makes transport energy use grow? 61

• Hence, CO2 emissions follow closely the energy demand trends. In 2010 and 2020, CO2

emission for the OECD will be higher by 46% and 65% respectively, compared to 1990

levels.









Chapter 2: What makes transport energy use grow? 62

Chapter 3. The impact of selected transport energy policies



This chapter provides the details of the impact analysis on energy and CO2 emissions for the

different policy bundles in the areas of fuel efficiency in passenger vehicles, alternative fuels,

transport demand management and fuel taxation. Only three regions have received a detailed

analysis: North America, Japan and Western Europe.



Policy portfolios in Western Europe, Japan and North America



During the 1990s, considerable research has been conducted on analysis of different policies

in response to rising oil use and greenhouse gas emissions in transport (e.g. OECD 1996). The

IEA recently published Saving Oil and Reducing CO2 Emissions in Transport: Options and

Strategies (IEA, 2001) which reviews the literature and provides a new assessment of a wide

range of potential options and strategies to improve vehicle fuel efficiency, reduce travel,

make greater use of alternative fuels, and move goods more efficiently. A variety of possible

instruments is at hand, using regulatory, economic/fiscal or public awareness measures as

well as the redirection of land use and urban planning. From these instruments, different

policy bundles can be designed to affect fuel demand and CO2 emissions, through:

• decreasing fuel intensity of vehicles (technology, operation);

• increasing the use of alternative fuels;

• decreasing transport demand levels and;

• modal shifts towards less energy-intensive transport means35.



OECD governments are gradually responding to the challenge of greenhouse gas emissions

reduction and have started to implement different policy instruments (IEA 2000d, ECMT

1998b). The goal here is not to evaluate all policies in terms of reduction potential, cost-

effectiveness, etc., but to estimate to what extent policies that are currently on some

governments' agenda will change the energy demand and CO2 emission trends portrayed in

the base case (see Chapter 2).



Quantifying the impact of diverse policies and measures enacted or about to be implemented

is not straightforward and requires a number of definitions, choices and simplifications.

1. Methodological issues. The variety of measures at hand requires a variety of approaches

in order to quantify their impact, especially when multiple measures are considered

together36. Many indirect effects can occur37. Measures taken together can reinforce or

hinder each other. Models to evaluate the measures comprehensively are very complex,

but the necessary data sets often do not exist to allow the quantification of policy bundles.



35

IEA 2000d (Table 2.1) gives a useful categorisation of instruments (energy intensity, modal structure, activity and fuel mix) and the way

they effect transport energy demand. IEA 2000b and 2000c give a succinct overview of the instruments and examples of their

implementation.

36

IEA 2001 provides estimates for many individual measures.

37

The debate around the impact of information technology in the transportation system can serve as an example. Certain telematics

technologies can help to keep traffic more fluid, avoid congestion and thus lower vehicle energy consumption. The side-effects on overall

energy consumption concern the effect of increased road capacity on transport activity or of additional traffic created, e.g. through alternative

routing.







Chapter 3: The impact of selected transport energy policies 63

As a result, sets of multiple measures to reduce emissions (e.g. in the national

communications to the UNFCCC) are very difficult to quantify reliably.

2. Selection of Policies. Policies can vary significantly from country to country and take

various forms. Some generalisation is required to evaluate policies at the OECD-region

level, but many questions remain. As virtually any transport policy has some impact on

energy consumption and CO2 emissions, which policies are representative of the whole

region? Which are those that can be considered a part of the base trend and those

significant for the climate change policy bundle? And, finally, how can those measures

“most likely” to be put in place in the near future be determined?



From these considerations, a relatively restrictive selection of policy measures emerges for

inclusion in our scenarios, in line with both the geographical approach by OECD region and

the required modelling capacity. Owing to uncertainties regarding both data and policy

impacts in many regions of the world, only Western Europe, Japan and North America

receive detailed study. Based on the policy debate in each region and relying on key policy

documents from different countries, a policy portfolio was developed and its direct effects

were estimated, reflecting regional circumstances. In particular:

• Attention was focused on those policies with potentially sizeable impact either already

enacted or on “top-of-the-list” for future implementation (“additional policies”). These

future measures are drawn from published government plans for CO2 emission mitigation

or appear to be a logical prolongation of policies already in place for this purpose.

• Isolated measures with locally confined effects are ignored (demonstration and pilot

schemes, policies in individual municipalities), even if they are significant to reduce local

pollution. General R&D support unconnected to particular market-deployment measures

is not taken into account. Awareness-raising measures trying to change behaviour are also

difficult to evaluate and are not explicitly included, although they could be an important

part of any policy package38.

• Some lead time for the implementation of additional policies is assumed, depending on

the type of measure.

• In line with the assumption of a carbon trading scheme among Annex-I countries as

simulated in the World Energy Outlook 2000 (IEA 2000b), a homogenous tax of US$95

per tonne of carbon phased in between 2001 and 2010 is applied to all fuels.

• Given the modelling approach used for the analysis (11 transportation modes and 5

regions), certain details of the transport system are not represented. Especially, spatial

transport patterns and vehicle usage (speed, urban/inter-city driving) for an individual

country or even a city are not depicted. Some measures would require such a detailed

approach for their evaluation, especially in the area of traffic and transport demand

management, that simplifying assumptions must be used to include these in this current

model. Relatively stringent restrictive measures are assumed (pricing, access restrictions)





38

Rather, R&D support and information campaigns are considered as a complementary part to measures with a more direct impact. For

example, labelling and fiscal incentives for low-consumption cars can be considered necessary ingredients to make the Voluntary Agreement

of the European Automobile Manufacturers Association (ACEA) successful.







Chapter 3: The impact of selected transport energy policies 64

since more modest changes are already occurring and can be considered part of the

baseline.



Tables 3.1 to 3.3 summarise these policy choices for the three OECD regions. Clearly, any

policy selection of this level of aggregation will be, to some extent, arbitrary. However,

quantitative analysis requires the definition of precise, quantitative measure levels (e.g. tested

fuel economy, in miles per gallon, of new cars in 2020), which can of course be debated. For

attaining the targets sketched out in Tables 3.1 to 3.3 (right column), many more supportive

measures (information, incentives, training, etc.), different from one region to another, are

needed. These are not exactly specified, but it is assumed that complementary measure

bundles are used to achieve these goals. Many different combinations of complementary

measures can be used.



These policy assumptions reflect political difficulties of achieving more ambitious goals

(IEA, 2000d). They draw a cautious, schematic picture of the most important measures.

Despite these restrictions, it should be noted that the policy selection made covers the bulk of

the currently envisaged emissions reduction policies in IEA Member countries39.



The European policy portfolio (Table 3.1, EC 2000a, EC 1998b as well as country policy

plans; see also IEA 2000d) features the strongest move towards fuel efficiency of passenger

cars compared to the other regions. This is the result of the Voluntary Agreement of the

European, Japanese and Korean Car Manufacturers. The agreement targets are assumed to be

reached and strengthened beyond 2008, supported by government measures that stimulate

demand for efficient vehicles (fiscal incentives, labelling). Demand-side policies play an

important role in European government plans. Modal shifts from road freight to rail are also

considered important and are expected to be triggered by km-charges for heavy trucks and

through the improvement and expansion of combined rail facilities. On the passenger side,

policies are less clear and often focused on the alleviation of (other) urban transport problems.

A proactive traffic restraining policy in the urban context (widespread parking and access

restrictions) is assumed, as well as substantial improvements in public transport. Regular

increases in fuel taxation have been occurring in a few European countries (for example in the

UK, Germany or Sweden) and may continue, although the scope for ongoing increases may

be limited (the UK recently suspended its automatic annual fuel tax increase). In this analysis

for Europe, as in other regions, increasing fuel taxation is assessed using a carbon value of

US$95 per tonne.



The Japanese policy portfolio (Table 3.2, MOT 1998 and 1999, Energy Conservation Center,

1999) features fuel efficiency regulation for cars and small trucks called “Top Runner”, since

today’s best performing vehicles set the standard for 2010. In addition, it relies heavily on

behavioural and organisational changes for which most triggering policy measures are yet to



39

At the same time, the impact of these measures on fuel demand and CO2 emissions from our independent analysis can depart significantly

from the effects projected by the governments.









Chapter 3: The impact of selected transport energy policies 65

be determined. For passenger transport, road pricing schemes are assumed in 30% of the

urban areas (which are currently covered by the NOx legislation) and the promotion of public

transportation and non-motorised transportation. Improving the physical distribution

efficiency of freight (higher load factor, optimised routing) is another focal point in the

Japanese approach. Mandatory urban logistic schemes bundling the goods distribution in

small trucks and improved load factors in larger trucks are assumed. The same amount of

carbon taxation as in other regions is also assumed.



In North America (Table 3.3, PDAC 1995 “Car talk” and Levelton, 1999), the policy debate

towards action to curb CO2 emissions is less advanced, and few measures explicitly designed

for GHG emissions abatement are visible. The current focus lies on R&D funding and

pollutant emissions abatement rather than proactive CO2 mitigation. A general move towards

transport demand-side measures with significant transport reducing and shifting effects, at

least from the national government, is considered unlikely in the North American policy

context. The retained portfolio is therefore mostly focused on technology improvements. As

additional measures in the future, a continuous tightening of fuel intensity standards for cars

and light trucks between 2004 and 2020 is assessed. Market introduction of low-carbon

biofuels after 2010 is also considered, once the production technology has been proven and

scaled up. Demand for efficient vehicles and low-carbon fuels is supported by fuel taxation in

line with the carbon value defined in the emissions trading scheme.









Chapter 3: The impact of selected transport energy policies 66

Table 3.1: CO2 policies assessed for Western Europe

Enacted by 1998 Additional (assumed)

Examples of measures Policy effect taken into account

Fuel efficiency of vehicles

− The Voluntary Agreement (VA) − Fuel intensity reduction − Further tightened VA: fuel

by the European Automobile Car of 25% by 2008 compared to intensity improvement by 46% by 2020

Manufacturer Association (and 1995, no change after 2008 compared to 1995

similarly the Japanese and Korean

Association)

− Support measures to the VA such

as the labelling scheme and fiscal

incentives for fuel-efficient cars, in

order to stimulate demand

Demand-side policies

Freight: modal shift towards rail Modal shifts freight

− Road pricing as part of the − Truck load-factor improvement by

internalisation strategy (see EC 1998c) 6% in 2020

− Expansion of combined rail − 5% of long-haul truck tonne-km

transport (railway reform, support to shift to combined rail by 2020

infrastructure and interoperability of − 3% of long-haul trucking is

different modes) suppressed by 2020



Passenger: modal shift towards non-

motorised and public transport Modal shifts passenger

− Urban car restraint: parking and − 3% of the urban car activity shifts

access restrictions, traffic calming to public modes (urban bus, urban rail)

− Improvements in public and non- − 4% is suppressed or shifts to non-

motorised transport motorised modes, ride-sharing, etc.

− High-speed rail (HSR) services are − HSR expansion after 2010 is twice

expanded as fast as in reference scenario; 30% of

additional high-speed rail activity shifts

from domestic aviation, 40% shifts

from motorways, The rest is genuine

growth due to expanded capacity

Taxation of fuels

Increased taxation of energy products US$95/tonne carbon levied on all

(minimal levels) and aviation fuel in fuels*, phased in between 2001 and

particular 2010

Similarly, the individual states are

expected to further increase their

current taxation levels

*

Similar to other OECD regions, assimilated to the carbon value derived from the emissions trading case of the World Energy Outlook (IEA

2000b).

Note: A concerted introduction of alternative fuels such as natural gas, methanol, biodiesel is not considered as likely in the next 20 years in

Europe. New fuels with relevant CO2 benefits are considered a long-term (R&D) issue by the European Commission and member

governments and not likely to have more than a marginal CO2 impact in the European context by 2020 (EC 1998a).









Chapter 3: The impact of selected transport energy policies 67

Table 3.2: CO2 policies assessed for Japan

Enacted by 1998 Additional (assumed)

Examples of measures Policy effect taken into account

Fuel efficiency of vehicles

− Reinforcement of fuel economy − Fuel intensity − Further tightened Top Runner

standards for cars and small trucks improvement in new cars of regulation: fuel intensity improvement

(Top Runner efficiency regulation) 17% until 2010 compared to of 28% compared to 1995

− Promotion of clean energy 1995, no change afterwards

vehicles; improved energy efficiency

of transportation equipment,

technological development

Demand-side policies

Freight: efficiency of physical goods Modal shifts freight

distribution − In 2020, 6% of urban small van

− City logistics(applied to 30% of vehicle-km is bundled through city

urban areas): efficient loading of logistics systems and terminals and

trucks, usage of trailers and trains, replaced by mid-sized, urban trucks on

mandatory trip bundling for small optimised routes

commercial trucks



Passenger: traffic control and Modal shifts passenger

transport demand management − Urban car activity in the reference

− Urban road pricing (applied to scenario is reduced by 10% in 2020:

30% of urban areas*) 40% shifts to public modes (urban bus

− Promotion of public transportation and rail), 60% is suppressed or shifts to

and non-motorised transportation non-motorised modes, ride-sharing,

− Public transport and high-speed etc.

rail (HSR) services are improved and − HSR expansion after 2010 is twice

expanded as fast as in reference scenario; 30% of

the additional high-speed rail activity

shifts from domestic aviation, 40%

shifts from motorways, the rest is

genuine growth due to expanded

capacity

Taxation of fuels

− US$95/tonne carbon levied on all

fuels**, phased in between 2001 and

2010

*

Areas which are covered by “NOx-legislation” and therefore assumed subject to additional pricing schemes;

**

Similar to other OECD regions, assimilated to the carbon value derived from the emissions trading case of the World Energy Outlook (IEA

2000b);









Chapter 3: The impact of selected transport energy policies 68

Table 3.3: CO2 policies assessed for North America

Enacted by 1998 Additional (assumed)

Examples of measures Policy effect taken into account

Fuel efficiency of vehicles

− Increasing the Corporate Average Fuel − Starting in 2004, the fuel intensity will

Economy (CAFE) standards be continuously lowered by 2% p.a. until

2020 (total change 2004-2020: 28%)

Alternative fuels

− Further strengthened R&D for low- − Gasoline sales in cars and light trucks

carbon biofuel production are displaced from biofuel use in 2020

− Widened regulation of alternative

fuelled vehicle shares in fleets

− Production incentives for low-carbon

biofuels

Taxation of fuels

− US$95tonne carbon levied on all

fuels*, phased in between 2001 and

2010

*

Similar to other OECD regions, assimilated to the carbon value derived from the emissions trading case of the World Energy Outlook (IEA

2000b);







Improving the fuel intensity in passenger vehicles



Future fuel intensity targets for new vehicles



During the 1990s, many studies have scrutinised the potential and the cost of fuel intensity

improvements in passenger vehicles40. The IEA recently conducted its own study of light duty

vehicle fuel economy for three countries (Denmark, Germany and the United States), which is

presented in IEA 2001. This study estimates that a considerable amount of cost-effective fuel

economy technology exists and that low-cost fuel economy improvements are possible in

these three countries and probably in all IEA countries. Major new policies have been

implemented in Europe and Japan that target a reduction in fuel intensity of new cars. This

analysis assumes that the targets set in Europe and Japan are reached and further strengthened

beyond 2010 at a similar improvement rate as before. North America, which has had no

significant change to its fuel economy standards since the mid-1980s, is assumed to follow

with gradually tightening standards after 2004.



The definition and units of the policy targets differ in the different OECD regions. In order to

allow a comparison, they are translated into a common fuel intensity unit (MJ/km) for each

vintage of new cars. In order to do so, a number of specifications need to be given (Table 3.4).

These concern mainly the diesel shares and vehicle size mix. Figure 3.1 gives the trajectory of

future fuel intensities for new cars in each region41. In addition, the data points in Figure 3.1

denote the performance of different technology concepts of mid-sized cars taken from the







40

See for example OTA 1996, DeCicco and Ross 1996, US DoE 1997, Enquete Commission 1995. For an overview of earlier cost-

effectiveness studies, see OECD 1996 (Appendix A).

41

No influence of increasing fuel prices after 2010 on fuel intensities – as assumed in the base case – is shown.







Chapter 3: The impact of selected transport energy policies 69

literature. These were adjusted on the time scale to correspond to mass-market vehicles

comparable to the fuel intensities of a whole car vintage.



Table 3.4: Key assumptions on the fuel intensity of new cars

and personal light trucks42

Western Europe: The target value of the ACEA Voluntary Agreement is 140g CO2 per km in 2008 compared

to 186g/km today (EC 1998a). For 2012 and 2020, respectively 120 and 100g/km are assumed as sales

weighted average across all cars (see similar assumption in EC 2000b).

% change

19972 2008 20203

1997-2020

Gasoline cars [l/100km1] 7.3 5.8 4.1

Diesel cars [l/100km1] 6.1 4.6 3.3

Diesel share [%] 22% 36% 36%

Japan: The Top Runner fuel economy regulation fixes improvements for gasoline and diesel cars and small

gasoline and diesel trucks (2 tons) concerned is assumed to increase by 20%

(Taniguchi and van der Heijden 2000). In return, urban tonne-km in heavier trucks would

increase by 0.1% only.



Impact on energy: The impact of the shifts and load factor improvements amounts to 50 PJ

(1.2 Mtoe) or 1% of the base case emissions in 2020.







75

Not all light and mini trucks transport goods; they are also used by small businesses for services. The energy consumed through this use is

usually also credited to the light trucks category without contributing to the tonne-km.







Chapter 3: The impact of selected transport energy policies 99

The total effect of the Japanese demand-side measure bundle is therefore estimated at 216 PJ

(5.2 Mtoe) or 4% of the transport energy demand of the 2020 base case.



Key findings – demand-side policies



The above analysis should be taken as a rough estimate of the impact of some transport

demand policies, not as an exhaustive analysis. Yet, the approach taken yields some

interesting points to consider:



Demand-side policies can address a specific transport segment (urban, long distance); rarely

do they change the use of a transport mode as a whole. Such a segmentation was portrayed

here only in a summary fashion. In reality, the segmentation goes much further and the reach

of many instruments is reduced to a small fraction of transport uses where it changes

behaviour and transport patterns. Clarifying this segmentation can bring some realism into an

evaluation of what certain measure bundles can achieve. As a result, the importance of a

certain transport segment and a measure bundle is limited in relation to country or region-

wide energy consumption and CO2 emissions. Few target transport segments can yield

reductions higher than 1 or 2% of the total transport emissions76. To achieve a sizeable

impact, many measure bundles need to be implemented in a concerted fashion targeting many

different transport segments.



The changes that can be achieved in each transport segment should not be overestimated.

There are many limiting factors. Public transport services often cannot be expanded quickly

and drastically. The relative magnitude of modes to restrain (e.g. cars and trucks) vis-à-vis the

compensating modes (e.g. bus or rail) needs to be recognised. Individual trip behaviour or

logistic patterns of companies are the result of many different criteria often unrelated to

transport and therefore not easy to change. Such changes are possible, but they can involve

longer time periods than portrayed here. Long-term effects beyond 2020, e.g. from the

relocation of houses, services and supply patterns, could be significant. The assumptions on

the measure impact do not reflect such a profound change.



Implementing stringent measure bundles to limit transport volume and to shift it to other

modes is politically difficult and unpopular (IEA 2000d). A widespread implementation as

assumed here is a great simplification, especially since transport policy is driven by concerns

other than just energy and CO2 concerns.



Modal fuel intensities are an average across a large range of values. Calculating the gains

from modal shifts requires a detailed knowledge of the substituting modes and their usage

patterns (speed, load factor, etc.). Often, the energy savings from modal shifts are not as great

as expected from the comparison of the fuel intensities of the (average) modes (see e.g. long-

haul trucking vis-à-vis combined rail for Europe).







76

See also IEA 2001 for more policy examples and impact evaluations.







Chapter 3: The impact of selected transport energy policies 100

Overall, the authors believe that a cautious extrapolation of current policy-making as

portrayed could limit energy demand by 5% at maximum. The time frame, the often

unfavourable balance between public and private transport (or the difficulty to expand the

first), and a rather heterogeneous and uncoordinated policy intervention will limit the effects

on energy through transport demand-side measures, which remain mostly motivated by other

policy concerns.



Fuel taxation



Fuel taxation and, more broadly, the pricing of transportation plays an important role in all the

policy variants analysed so far. It provides a signal to consumers for purchasing more efficient

cars, it can counter the rebound in activity from fuel intensity improvements in cars. It is

relevant to the competitiveness of high-efficiency vehicles and alternative fuels and plays a

role for the transportation demand restraint and shift to non-road modes.



At the same time, the role of the fuel price signal in transportation should not be overstated,

especially as an isolated measure. The response to fuel price increases (only) is limited in the

short term, although somewhat greater in the long term. It is important to realise that fuel

prices are a relatively small share of total cost of road transport – in the order of 10 to 20%77,

one major reason why fuel price elasticities are usually relatively low. Increasingly, fuel

taxation is considered too blunt a measure to reflect e.g. the externalities from different

transport modes and to steer transport in an economically efficient fashion (ECMT 1998c).

Other, more differentiated forms of pricing (e.g. road charges differentiated by vehicle class)

are therefore likely to be introduced in the future. In this way, price signals can become a

more effective, complementary part of policy packages.



Despite these caveats, using price elasticities to calculate the reaction of fuel intensity and

activity to fuel price changes provides a simple way of modelling the aggregated transport and

energy demand response. When using such an approach, two aspects need to be considered:

• Considerable uncertainty surrounds long-term price elasticities as a measure of price

responsiveness (for overviews, see Oum et al. 1990, Dahl 1995). They depend strongly on

the specific situation (trip purpose, congestion, availability of alternatives, etc. (see e.g.

Hague Consulting Group, 1999). An aggregate elasticity calculation is therefore always a

rough approximation and simplification. The values used throughout this study (also in

the base case projections) are given in Chapter 2 (Table 2.278).

• The calculated impact – a price response – overlaps partly with those resulting from other

policy measures. The effects from fuel taxation cannot therefore be simply added to the

effects of other measures. Chapter 4 addresses this issue when the different policy

approaches are combined.







77

This is a rough order of magnitude for car use as well as truck transport. The share of fuel cost in variable cost is much higher, especially if

time cost is excluded.

78

No cross-elasticities between transportation modes are used..







Chapter 3: The impact of selected transport energy policies 101

The level of taxation assumed in this analysis is 1990US$95 per tonne of carbon or $26 per

tonne of carbon dioxide79. It is derived from the emissions-trading case in the World Energy

Outlook 2000 (IEA 2000b) which establishes a cost at which the Kyoto commitments for

GHG emissions reduction can be fulfilled by the Annex I countries. This carbon price level

would be imposed on transportation as a tax phased in progressively between 2001 and 2010.

In this way, transport would contribute to the economy-wide emissions reduction efforts. Due

to stock turnover, the full effect would only be seen somewhat later.



The relative fuel price change depends on the carbon content of the fuel and its base case

price level, including existing taxes in each region. The highest relative price change for

gasoline and diesel would occur in North America, where the base case prices are the lowest

owing to the low taxation. Kerosene is assumed untaxed in all regions and is therefore most

affected by the carbon tax adder. The resulting energy demand reduction of 5.7% is similar

for North America and Western Europe. Higher relative fuel price changes in North America

are balanced somewhat by lower assumed elasticities than in Western Europe. The price

response estimate of energy demand for Japan is somewhat lower, at 4.1%. The overall

reduction in energy demand is estimated at around 5.5% across the three OECD regions

(Table 3.7).



Table 3.7: The effects of a carbon tax on transport energy demand and activity

compared with the base case, 2020

a) Relative long-term change (elasticity a posteriori) due to a 1% fuel price increase*

Activity (passenger-km

Energy demand

or tonne-km)

Passenger (cars, light trucks) –0.35 to –0.55 –0.15 to –0.25

Freight (trucks) –0.25 to –0.3 –0.05 to –0.15

Aviation –0.4 to –0.7 –0.2 to –0.5

b) Relative change of fuel prices in 2020 due to a carbon tax of $95/tC

Gasoline Diesel Kerosene

Western Europe +7% +13% +40%

Japan +5% +9% +35%

North America +12% +18% +35%

c) Relative change of energy consumption and activity in 2020 as a result of the carbon

tax

Energy demand Activity

Total Pass. Freight Pass. Freight

Western Europe –5.7 –5.8 –5.6 –1.4 –1.2

Japan -4.1 -4.4 -3.6 -2.1 -0.6

North America -5.7 -6.0 -5.3 -1.9 1.2

* A range of elasticities is given to reflect the different values by region.





Due to the higher elasticity, energy demand from car passenger transport is generally more

reduced than road freight energy demand. The most affected sector is aviation because of





79

5.9 US cents per litre gasoline and 6.8 US cents per litre diesel or kerosene.







Chapter 3: The impact of selected transport energy policies 102

relatively high price elasticities (of fuel intensity and activity) and the relatively strong

kerosene price increases in the order of 35 to 40%.



Key findings – fuel price increases



A carbon tax would change the price of fuels differently depending on their carbon content

and their initial retail price (including taxation) in each region. The relative changes of

gasoline and diesel prices from a carbon tax of $95/tonne of carbon would amount to 5% and

9% respectively in Japan, 7% and 13% in Europe, and 12 % and 18% in North America.

Kerosene, so far exempted from fuel taxation, would increase most in relative terms, at about

35% in all regions.



Typical long-term elasticity assumptions imply that fuel use from cars is more elastic to price

changes than fuel use from trucks. The effect is usually considered to be about 60% due to the

change in fuel intensity (vehicle choice, improved technology, etc.) and 40% from a different

transport behaviour (suppressed traffic, mode shifting, ride-sharing or load factor changes).

Not surprisingly, because of its high price elasticity, the mode reacting the most to the price

changes is aviation. A carbon tax of $95 (1990) per tonne of carbon leads to a reduction in

fuel use of about 4-6% in transport. This is small compared to the expected growth of energy

demand of 1.6% p.a. (OECD average) over the next 20 years in the base case. This is the

typical result for fuel price changes as an isolated measure. The fuel price changes are

nevertheless an important part of transport policy portfolios where they can yield important

synergies together with other measures.









Chapter 3: The impact of selected transport energy policies 103

Chapter 4. Departure from the base trends: what difference do

current and near-term transport energy policies make?



This chapter summarises the combined impact on energy demand and CO2 emissions of the

different regional policy portfolios. It provides scenarios to 2020 under the assumption that

all additional policies analysed before were implemented. The results are evaluated in

comparison to the base case with focus on the changes in the different transportation modes

and the underlying driving factors, i.e. activity, fuel intensity and modal shifts.



The combined effect of the regional policy portfolios



The impact of each measure group (Chapter 3) has been estimated separately before with

reference to the transport energy base case (Chapter 2). In reality, measures are taken

simultaneously and interfere with each other. Below, possible overlaps and synergies between

the measure groups are described as they are apparent in the model. The need for a co-

ordinated policy approach is underlined with regard to fiscal and regulatory as well as

local/regional and country-wide measures. Fuel taxation, and more generally transport

pricing, has a central role in this context overlapping with all other policy areas. To estimate

the combined impact in each regional policy portfolio, some assumptions have to be made.



Interferences and synergies with policies improving vehicle fuel intensity



Fuel intensity policies for cars and personal light trucks and the assumed increases in fuel

taxation (carbon tax) act in parallel on the vehicle fuel intensity. They stimulate

simultaneously manufacturer’s efforts for offering, and customer’s preferences for choosing,

more fuel-efficient vehicles. The estimated changes in fuel intensity attributed to each single

measure cannot therefore be added up. For the combined policy effect, the measure with the

stronger impact has been chosen, in this case the agreements or regulation on fuel intensity

improvement.



Both measures also affect the activity (kilometres driven in cars) in parallel: improved fuel

intensity from regulation leads to a rebound in activity due to reduced fuel cost per km, while

increased fuel taxation forces less driving as a result of increases in fuel cost. Increased fuel

taxation can therefore limit (or outweigh) the rebound. As a consequence, their impact on

activity is superposed in the combined impact estimate.



Interferences and synergies with policies for the market introduction of advanced

vehicles and fuels



The introduction of high-efficiency vehicles through niche market regulation and purchase

subsidies is of course affected by the retail price of fuels and hence by fuel taxation80. The





80

Though the impact of relatively limited fuel tax changes assumed here might be more psychological than actually biasing markets

dramatically.







Chapter 4: Departure from the base trends 104

impact of fuel taxation, as portrayed in the previous chapter, is likely to be much smaller than

that of broader policy interventions across the whole new vehicle market. The effects of such

programmes are therefore not considered separately, but as flanking for a general

improvement in fuel efficiency standards, since it pushes the “best end” of the vehicle market.



For the alternative fuels, carbon taxation of gasoline and diesel plays an important role since it

affects the competitiveness of the different fuels. Yet, the absolute magnitude of the additional

fuel taxation on gasoline and diesel assumed in this case does not change the competitive

balance dramatically, it rather underpins the optimistic assumptions in the production

expansion scenario. The calculated life-cycle CO2-displacement impact is credited without

changes to the North American CO2 balance. In the energy balance, the fuel substitution

impact does not show.



Interferences and synergies with transport demand-side policies



In the description of the policy bundles for changing transport patterns, pricing (parking

charges, road pricing) has a central role to achieve significant impacts in a transport segment.

Fuel tax increases, while less selective, play a similar role and can change the competitive

situation between certain transportation modes and segments. Their increase is considered as a

crucial element to the demand packages, which allows them to achieve the estimated impact.

This restrictive impact assumption is conservative – in the best case, both measures could

have synergies and achieve more than assumed here.



Of course, future fuel intensity changes triggered by other policy measures have an impact on

the relative energy savings that can be achieved from mode switching. In the “isolated”

analysis (Figures 3.10 and 3.12) fuel intensities are assumed similar to the base case. For the

combined policy impact, the fuel intensity changes resulting from other policies are

superposed.



Transport energy trends with “additional policies”



Table 4.1 and Figure 4.1 give an overview of the transport energy demand and the combined

policy impact for Western Europe, Japan and North America81: the patterns are relatively

similar for the three regions. The case with enacted policies82 shows only a limited reduction

of 21 Mtoe and 39 Mtoe compared to the base case in 2010 and 2020 respectively. This

means no real change in trends; rather, without further policy action, energy demand increases

will grow at a slower rate. The average growth rates between 1997 and 2020 in Western

Europe and Japan are then 1.5% p.a. and 1.0% p.a. respectively compared to 1.8% p.a. and

1.5% p.a. in the base case.



With all additional policies, the reduction compared to the base trend amounts to 83 and 214

Mtoe in 2010 and 2020. The increase over 1997 is still 18 % in 2010 and 21 % in 2020 (or an



81

Eastern Europe, Australia and New Zealand are not examined here, since no specific policies were considered.

82

Equivalent to the reference case in the WEO 2000; for North America no measures were taken into account.







Chapter 4: Departure from the base trends 105

average of +0.8 % p.a. across the whole period), implying that most energy demand growth

occurs until 2010 and very little additional growth will occur during the second period, when

the policies will have sufficient time to take effect. Compared to the base case, this means a

reduction by 6 to 8% by 2010 and by 14 to 16 % by 2020 depending on the region.



Whereas there is a trend break for passenger energy demand by 2010 to 2015, when energy

demand stops growing and is even reduced in all three regions, freight energy trends are little

affected by the policy portfolio retained. The modal breakdown (Figure 4.3) shows that fuel

demand from passenger vehicles is affected most (a reduction of 20 % or 141 Mtoe compared

to the base case). This transportation mode is affected simultaneously by most measures

analysed, the dominant being voluntary or regulated fuel intensity reduction, but also by

demand policies and increased taxation. Aviation fuel demand in 2020 is reduced by 42 Mtoe

or 16% primarily because of the fuel (carbon) taxation. The reduction of trucking energy

demand is less important than for the other modes because of the limitations of the policy

portfolios, about 33 Mtoe or 8% in 2020. In North America and Japan, small trucks and vans

contribute most to the reductions in trucking compared to larger, long-distance trucking, since

they are affected by fuel intensity improvement policies, and in the case of Japan, by urban

logistic policies.









Chapter 4: Departure from the base trends 106

Figure 4.1: Energy demand scenarios including the impact of the regional policy

portfolios

Western Europe

500





400





300

Mtoe









200





100





0

1970 1980 1990 2000 2010 2020

Total transport sector Passenger transport Freight transport

Base case Base case Base case

Incl. enacted policies Incl. enacted policies Incl. enacted policies

Incl. additional policies Incl. additional policies Incl. additional policies

Japan

150









100

Mtoe









50









0

1970 1980 1990 2000 2010 2020

Total transport sector Passenger transport Freight transport

Base case Base case Base case

Incl. enacted policies Incl. enacted policies Incl. enacted policies

Incl. additional policies Incl. additional policies Incl. additional policies









Chapter 4: Departure from the base trends 107

North America



1000





800





600

Mtoe









400





200





0

1970 1980 1990 2000 2010 2020

Total transport sector Passenger transport Freight transport

Base case Base case Base case

Incl. enacted policies Incl. enacted policies Incl. enacted policies

Incl. additional policies Incl. additional policies Incl. additional policies





Table 4.1: Transport energy trends and policy impact in three OECD regions

Western Europe Japan North America

1997 2010 2020 1997 2010 2020 1997 2010 2020

Base case (Mtoe) 300 390 451 94 117 131 605 758 842

With enacted policies

375 422 111 121 no policies considered

(Mtoe)

Relative change to base

-4% -7% -5% -8%

case

With additional policies

363 380 108 110 711 720

(Mtoe)

Relative change to base

-7% -16% -8% -16% -6% -14%

case

Growth rate [% p.a.] 1.5% 0.5% 1.0% 0.2% 1.2% 0.1%



Figure 4.2: Policy impact of the different scenarios

(North America, Japan and Western Europe combined)

by region by mode

1600 1600



1400 131 1400 71 71

121

1200 110 1200 263 263 73

451 422 222

1000 94 1000 61

380 142 392 390

Mtoe

Mtoe









800 300 800

359

262

600 600



400 842 842 400

720 698 660

605 535 557

200 200



0 0

1997 2020, base case 2020, enacted 2020, additional 1997 2020, base case 2020, enacted 2020, additional

policies policies policies policies

Cars and light trucks Trucks (incl. small trucks and vans)

North America Western Europe

Aviation (intra- and inter-regional) Other

Japan









Chapter 4: Departure from the base trends 108

As a result, energy demand from cars in 2020 is almost brought back to 1997 levels (only

+4% between 1997 and 2020), while truck freight and aviation still experience substantial

increases under the additional policy case of +37 % and +56 % respectively. The other modes

(passenger and freight rail, bus and navigation), though very small in total, increase their

energy demand by 20 % or by about 2 Mtoe as a result of modal shifts.



Figure 4.3: Modal breakdown of incremental energy demand in the different scenarios

between 1997 and 2020 (North America, Japan and Western Europe combined)









A factor analysis of energy demand in the different regions (Figure 4.4) reveals the changes

induced by the regional policy portfolios. The average annual change rates of each factor

contributing to transport energy demand are shown over the whole projection period.



For passenger transport, the major change consists in higher fuel intensity reductions

compared to the base case, where these where almost nil. They stem primarily from passenger

vehicles but also from aviation in the combined policy case. Depending on the region, they

reach an average rate of –0.9 % p.a. to –1.3 % in the case of combined additional policies.

This compares to an average rate of –0.9 % p.a. in Europe and North America for the past and

reveals that substantial efforts will be needed to achieve energy intensity improvement rates

just similar or slightly superior to past trends. In Japan, where energy intensity improvements

were minor in the past, the policy impact assumptions are breaking with these trends and

actually do yield significant progress in energy intensity improvement rates compared to the

past83.



83

Major shifts towards larger cars were not taken into account, which could erode the gains per weight class prescribed in the Top Runner

legislation.







Chapter 4: Departure from the base trends 109

Figure 4.4: Factors contributing to energy demand growth:

Comparison among the different scenarios

Passenger Freight









Western

Europe









Japan









North

America









In Europe, the activity growth is slightly increased under the additional policy case. This

results from the rebound effect due to the relatively strong fuel efficiency improvements in

cars which are not fully compensated by the other measures considered. Modal shifts play a

very minor role in the change in energy demand from the policy scenarios, partly because of

the limited shifts assumed, partly because of the very similar fuel intensities of the competing

modes.



As for freight, the changes in the contributing factors are limited, as are the overall changes in

energy demand trends triggered by the assumed policy portfolios. Yet, some higher fuel

intensity improvements (especially in trucking and aviation) as well as lower energy demand

increases from modal shifts characterise the policy impact.



CO2 emission trends with additional policies



Similarly to the base case (see Chapter 2), no major changes in fuel mix are expected.

Alternative, low-carbon fuels could play a certain role with strong political support as

portrayed for North America. There, low-carbon fuels are estimated to account for 4.7% of







Chapter 4: Departure from the base trends 110

total transport fuel consumption in 2020. Otherwise, fuel mix is changing as a result of modal

shifts and the specific fuel share in each mode. Hence, in Europe, increased diesel share in

passenger cars (as a consequence of the ACEA Voluntary Agreement) and increased share of

kerosene due to the gains in modal shares in aviation play some role. Overall, the impact on

(tail-pipe) CO2 emissions is marginal, since the carbon content of the different petroleum

fuels is relatively similar84.



In Figure 4.5, the results are shown for the different cases in million tonnes of CO2 and

relative to the 1990 CO2 emissions, the base year for the Kyoto GHG reduction target.

Already by 1997, the latest year with actual data, CO2 emissions have increased compared to

1990 by 15%, 29% and 11% for Western Europe, Japan and North America. By 2010, the

base case expects a level of +50%, +60% and +40% respectively. In Western Europe and

Japan, the enacted fuel efficiency policies for cars will reduce this level somewhat to 45% and

52% respectively. The additional policies retained would change the situation significantly

only after 2010. Yet, the CO2 emissions increase by 2020 is still expected at +47%, +52% and

+27% over 1990 under the additional policy case, or about 30 percentage points under the

base case case at this time.



Figure 4.5: CO2 scenarios including the impact of the regional policy portfolios

Western Europe

1500



1250



1000

Mtoe









750



500



250



0

1970 1980 1990 2000 2010 2020



Total transport sector Base case

Incl. enacted policies Incl. additional policies









84

The discrepancy between diesel and gasoline per unit of final energy provided is around 7%.







Chapter 4: Departure from the base trends 111

Japan

500





400





300

Mtoe









200





100





0

1970 1980 1990 2000 2010 2020



Total transport sector Base case

Incl. enacted policies Incl. additional policies

North America

3000



2500



2000

Mtoe









1500



1000



500



0

1970 1980 1990 2000 2010 2020



Total transport sector Base case

Incl. enacted policies Incl. additional policies









Chapter 4: Departure from the base trends 112

Key findings – transport energy and CO2 emissions trends with additional

policies



The findings below need to be seen in relation with the policy portfolio retained in the

analysis, which tries to reflect current priorities in the different regions. Other, more stringent

policies would of course lead to different results.



The additional policies studied here can bring stabilisation of transport energy demand and

CO2 emissions after 2010 – but not before. Until 2010, they have no significant effect, rather

energy demand and CO2 emission will increase further significantly. This poses a real

challenge to the attainment of the Kyoto targets.



The policy measures currently in discussion appear insufficient to achieve actual reductions

back to the energy demand and CO2 emission levels of 1990 and below.



Growth in passenger and freight transport demand remains a long-term problem. It is

slowing, but it appears not feasible to compensate for its effect on energy demand with fuel

intensity improvements alone. Nor would this approach be sufficient to achieve significant

fuel demand reductions in the longer term.



Policies are available for containing passenger vehicle energy demand at today's level. If

measures to hasten fuel intensity improvements in cars and personal light trucks continue to

be tightened beyond what is enacted today, fuel demand from this mode after 1997 can be

stabilised until 2020 at current levels, despite significant activity increases. In the scenario

with additional policies, such policies yield the biggest impact compared to the base case.



Road freight, in small and large trucks, provides a large share of the increase in transport

energy demand under the combined policies in the alternative case. Strong economic and

regulatory measures beyond those assumed here might be necessary to contain its growth and

achieve actual reductions. Fuel intensity policies similar to those for cars applied to small

commercial trucks and vans can lead to significant fuel demand reductions, due to the

relatively high portion of this transport segment in energy demand.



Fuel intensity changes triggered by the policies analysed outweigh by far the effect of modal

shifts and activity restraint. This primarily reflects not only the choice of policies retained but

also the current thrust of policy-making on transport and CO2.



Growth in aviation fuel demand is a major concern. The fuel tax assumed here would not

significantly affect it, as the impact of an increase in price does not counterbalance the

increase in activity. A tougher burden could be needed and potentially justified by the greater

climate impact from greenhouse gases emitted by aircraft.









Chapter 4: Departure from the base trends 113

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Vanejk, F., Morlok, E., 2000: “Improving the Energy Efficiency of Freight in the United

States through Commodity Based Analysis: Justification and Implementation”, Transport

Research Part D, 5 (2000) 1-29

Vedantham, A., Oppenheimer, M., 1998: “Long-term Scenarios for Aviation: Demand and

Emissions of CO2 and NOx”, Energy Policy, Vol. 26, No. 8, pp. 625-641

Wang, M., 1996: Greet 1.0 – Transportation Fuel Cycles Model, Methodology and Use,

Arbonne National Laboratory, Argonne, IllinoisWang, M., et al, 1999: Fuel Cycle Energy

and Greenhouse Gas Emissions Effects of Fuel Ethanol, Center for Transportation

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25, No 14-15, pp 1109-1119









References 123

World Energy Council (WEC) 1995a: Global Energy Perspectives to 2050 and Beyond,

London

World Energy Council (WEC) 1995b: Global Transport Sector Energy Demand towards

2020, London

World Energy Council (WEC) 1998: Global Transport and Energy Development, the scope

for Change, London





List of data sources

Apelbaum Consulting Group: The Australian Transport Task: Primary Energy Consumed and

Greenhouse Gas Emissions, Canberra, 1997

Australian Bureau of Transport and Communications Economics: Greenhouse Gas Emissions

for Australia Transport, 1991

Australian Bureau of Transport and Communications Economics: Transport and Greenhouse

Gases: Costs and Options for Reducing Emissions, 1996

Beca Carter Hollings and Ferner Ltd: Changing Energy Efficiency of Petroleum Products in

the Transport Sector, 1994

Beca Carter Hollings and Ferner Ltd: Energy Use in Transport, 1977 and 1986

Bureau of Transportation Statistics: Transportation Statistics Annual Report, Washington

D.C. , various editions

European Commission: EU Transport in Figures, Directorate-General for Energy and

Transport, in co-operation with Eurostat, various editions

European Conference of Ministers of Transport (ECMT): Statistical Trends in Transport,

OECD/ECMT, various editions

Federal Highway Administration: Highway Statistics, Washington D.C., various editions

International Air Transport Association (IATA): World Air Transport Statistics, various

editions

International Energy Agency: CO2 Emissions from Fuel Combustion, OECD/IEA, various

editions

International Energy Agency: Energy Balances of OECD Countries, OECD/IEA, various

editions

International Road Federation (IRF): World Road Statistics, various editions

Laboratory of Applied Thermodynamics, Aristotle University, Thessaloniki, Institut für

Umweltschutz und Energietechnik, TÜV Rheinland, Cologne, Germany and Institute of

Transport Sciences Ltd., Budapest, Hungary: Study on Transport-related Parameters of the

European Road Vehicle Stock, 1999

Ministry of Transport (New Zealand): Vehicle Fleet Emissions Model: New Zealand Vehicle

Fleet Database and Model Development, A Technical Report compiled by the Ministry of

Transport in support of the Vehicle Fleet Emission Control Strategy, 1998





References 124

Ministry of Transportation (Japan): Automobile Transport Statistics Yearbook, various

editions

National Resources Canada (NR Can): Energy Efficiency Trends in Canada, various editions

Oak Ridge National Laboratory: Transportation Energy Databook, Oak Ridge National

Laboratory (U.S.), various editions

The Energy Conservation Center, Japan: Handbook of Energy and Economic Statistics in

Japan, various editions

The Institute of Energy Economics, Japan: Energy in Japan, 1999

The International Civil Aviation Organization (ICAO): Air Transportation Statistics, various

editions

Union Internationale des Chemins de Fer (UIC): International Railway Statistics, various

editions

United Nations (UN): Annual Bulletin of Transport Statistics for Europe and North America,

various editions









References 125

Appendices









Appendices 126

APPENDIX 1 Description of the framework



Objectives



Since 1993, the IEA has provided long-term energy projections using the World Energy

Model (WEM). The WEM analyses the global energy supply and demand prospects. Climate

change, and CO2 emissions especially, have become a focus of the analysis in recent years.



Since the 2000 edition of the IEA's World Energy Outlook (WEO 2000) was also meant to

include an analysis of the effects of policy actions or technological changes in the OECD in

the context of GHG mitigation. It was decided to develop a new framework that would allow

for this type of study to be performed for the transport sector, with the main objectives to:

• Identify the factors that shape transport energy demand, including the role of activity

growth, modal shifts and fuel intensity changes;

• Assess and "quantify" the impact of different policies and measures for CO2 reduction in

transport either recently enacted or under consideration.



The framework is based on standard economic concepts and relationships, and incorporates a

variety of policy "levers" to allow comparison of a base case scenario with other scenarios

that involve implementation of specific transportation policy measures. For cars and personal

light trucks, the framework is capable of tracing the effects on the total stock of vehicles, and

provides estimates of CO2 emissions reductions. The framework is thoroughly described

below.



In this framework, the analysis has proceeded in 5 general steps:

• Development of a baseline case for each OECD region, reflecting future transportation

trends and CO2 emission levels in the absence of any initiatives.

• Analysis of the enacted measure to improve the vehicle fuel efficiency in Western Europe

and Japan and quantification of their impacts on the baseline projections. This allows the

computation of a Reference Scenario, as defined in the 2000 edition of the IEA's World

Energy Outlook.

• Comparison between the results of the reference scenario and the projections of the WEM.

The results from the two models were adjusted in iterations to yield a consistent picture.

• Analysis of a number of additional policy measures and evaluation of their individual

impact. Four policy types are defined: efforts to improve fuel efficiency of vehicles,

programmes to increase the use of alternative fuels, strategies to induce change in

transport demand and pricing measures, such as a tax policy.

• Development of a combined scenario, taking into account a package of policies as studied

in step 4.









Appendices 127

General description of the framework

An analysis framework has been developed for this study that integrates the following specific

features:

• Separation of the transportation modes (cars, light-duty trucks, railways, buses and

aviation for passenger transport modes, heavy trucks, small trucks and vans, freight

shipping by rail, inland navigation and freight aviation for freight transport modes) with

the capability to aggregate results across these sub-sectors to obtain a full estimate of

transport activity, energy and CO2 emissions.

• The baseline projections of activity and fuel intensity of each mode are based on

projections of population, GDP and fuel prices

• The fuel intensity modelling of cars and personal light trucks is computed in a stock-

turnover model. The simulation consists of evaluating the impact of new vehicle features

via a stock model on the fleet average and total fuel use.

• A similar approach is used to simulate the introduction of advanced vehicles and fuels.

The initial assumptions of the market expansion are evaluated in their consistency through

experience curve calculations.

• The transport demand-side management policies are evaluated using the impact shown in

different studies in terms of reduction of activity and modal shift. Transport modes are

decomposed into several sub-categories to allow this quantification.

The policy modelling framework is broken into 3 distinct components: a general framework

component, that includes a stock adjustment model in the case of cars and lights trucks (see

appendix 2); a framework for alternative vehicle and alternative fuel introduction; and a

component of demand policy impact estimation.



Geographic breakdown



The framework was developed to cover three OECD regions.



OECD North America is composed of the United States and Canada.



OECD Europe has been split into two distinct regions for the need of this study. Western

Europe is composed of the Member countries of the European Union, Norway, Iceland,

Switzerland, and alternative scenarios have been developed. The Central Europe and Turkey

region groups Poland, Czech Republic, Hungary and Turkey.



OECD Pacific is composed of Japan on one hand and Australia and New Zealand on another

hand. Only Japan has received a more detailed treatment regarding the policy analysis.



Transportation mode considered



The total transport sector has been decomposed in order to look at each transport mode.









Appendices 128

The first level of disaggregation is to differentiate passenger transport from freight transport,

since the demand of these two types of transport are not influence by the same factors (see

box 2.1) and react differently to economic variables.



The second level of details needed is to decompose both freight and passenger transport into

road, rail, navigation and aviation85.



And, when, as described further below, data allows, road transport has been split further into

cars, personal light trucks, bus, heavier trucks, small trucks and vans.



The disaggregation is presented in table A1.1.



Table A1.1: Disaggregation of transportation modes

Passenger Freight

− cars

− heavier trucks

Road − personal light trucks

− small trucks and vans

− bus

Rail − passenger rail − freight rail

− freight waterway and

Navigation

short-sea transport

− intra-regional aviation

Aviation − freight aviation

− international aviation



This decomposition definition needs to be adjusted according to data availability and national

or regional statistics are originated from different sources, originally collected for different

purposes and are therefore not homogenous across regions.



The general framework component



The development of this framework was initiated with the idea that the WEM should contain

more details to allow better analysis of some specific policy elements. The simple model,

called accounting model, is mainly based on the ASIF approach (See Schipper and Marie-

Lilliu, 1999b), which allows the decomposition of the CO2 emissions of the transport sector

into:



• Activity, measured in terms of passenger-kilometres (pass-km) or tonne-kilometres

(tonne-km);



• Sectoral structure (sub-sectoral shares of activity), characterizing the passenger or the

freight transport sector by its transport modal shares;



85

Pipeline transport, although included in the World Energy Model, is not included in this study, since the parameters influencing its energy

use are very different from the other transport modes.







Appendices 129

• Energy Intensity (energy used for each unit of Activity); For passenger, the energy

intensity is measured in MJ/pass-km (or Mtoe/pass-km) and for freight transport in

MJ/tonne-km (or Mtoe/tonne-km);



• And the carbon content of each Fuel, equal to the weight of CO2 released per unit of

energy, measured in kg CO2/MJ or kg CO2/Mtoe.



Figure A1.1: ASIF formulation

(1) Gi = ∑ Ai * S i * I i * Fi

where:

Gi is CO2 emissions in the transport sector i

Ai represents the activity level

Si is defined as the sectoral structure (sub-sectoral shares of activity)

Ii is the energy intensity (energy per activity unit)

Fi represents the carbon content of fuel k used (CO2 per energy unit)





Database of time series (past trends)



Databases have been developed for each region that include the activity level, energy intensity

and energy consumption between 1970 and 1997 for each transport mode (1995 for aviation).



The level of activity can generally be described in terms of passenger-kilometres or tonnes-

kilometres. However, in some cases, some further decomposition has been made.



In the case of private passenger vehicles (cars and personal light trucks, when separated), the

passenger-km have been decomposed into vehicle-km and a load factor (also called

occupancy rate), which is the average number of people per car. The vehicle-km data have in

turn been decompose in a number of vehicles (representing the fleet) and an average mileage

per vehicle per year. Finally, the number of vehicles can be translated into a vehicle

ownership rate, which is a convenient way to describe the private car sector which is often

described “close to saturation” levels. This decomposition allows the connection with the

stock model, by using the total fleet number, and is also used in the projection methodology

described below.



(2) Pass − km = load _ factor * veh − km

= load _ factor * nb _ vehicles * average _ mileage _ per _ vehicle _ per _ year

= load _ factor * nb _ vehicles _ per _ 1000 _ inh. * population * average _ milage



In the case of road freight vehicles (trucks, or heavier and small trucks when available), a

similar decomposition is made, into load factor (average tonne per vehicle) and vehicles-

kilometres. For small trucks and vans, the data available are measured in vehicle-km, and an

“artificial” load factor is applied to allow the computation of total freight transport activity

measured in tonne-kilometres. In fact, the unit describing in the most “correct” way their







Appendices 130

activity is vehicle-km, since the purpose of use of this type of vehicles is mainly the

accomplishment of services and only marginally the transport of goods.



(3) Tonne − km = load _ factor * veh − km

= load _ factor * nb _ vehicles * average _ mileage _ per _ vehicle _ per _ year



The energy consumption data are both described in Joule (J) and in tonne of Oil equivalent

(toe), as this unit is the one chosen in the WEO.



The fuel intensity of each transport mode is obtained by dividing the activity level by the

energy consumption of each mode. It is expressed in terms of MJ/pass-km for the passenger

modes and MJ/tonne-km for the freight modes. Again, in the case of road transport modes

(except for buses), the fuel intensity can be more conveniently described in terms of

MJ/vehicle-km, which is obtained by simply using the load factor. This vehicle intensity is the

one used in the stock model to account for the effect of a policy of improvement of fuel

intensity of vehicle. It allows some comparison with the value of other major regional studies,

very often expressed on vehicle intensity if they are focusing on road transport only.



(4) MJ / pass − km = load _ factor * MJ / veh − km

or

(5) MJ / tonne − km = loadfactor * MJ / veh − km



These databases are the core of the methodology, and an enormous effort was put in building

them (choosing the data sources and filling in missing data) and checking them as much as

possible. The result is not meant to be perfect, but has been “validated” as representing the

transport sector in a real way, keeping in mind the objective of this study.



Methodology for projections



The framework developed in this study uses the past data to “project” the activity levels and

fuel intensity between 1998 and 2020, by using relationships with a few macro-economic

indicators: total population, gross domestic product (GDP) and fuel prices.



The macro-economic indicator assumptions are given in tables 1.2, 1.3 and 1.4. They are

identical to those taken for the WEO 2000. Since for OECD Europe and OECD Pacific the

regions have been further split, the macro economic data have been split into the different

sub-regions taking literature sources into account.



This aggregated methodology is developed to get base case trends, i.e. with no specific policy

influences. Still, these projections are very useful to identify the factors influencing the total

transport energy demand, and pointing to the modes that would increase the energy use and

CO2 emissions.









Appendices 131

Activity projections



For each transport mode, simple econometric relations are tested and applied to the past

activity level. Three types of models have been applied to the different activity variables.

Log-log model with income and with or without fuel prices



In short, the variation of the input variables explain the variation of the output variable, and

the coefficients obtained the take the form of “elasticities” or “partial elasticities”.

(6) log(activity) = a + b * log(income) + c * log(fuelprices)



Two variables representing the income have been applied: GDP per capita for the passenger

modes, and GDP for the freight transport modes.



When fuel price elasticities are applied, i.e. in the case of trucking and aviation, the fuel prices

are chosen according to the transportation mode: diesel in the case of trucking, kerosene for

aviation. For the other some sectors, it was felt that either the model could not capture the fuel

price effect or it was assumed that it could be neglected in this simple approach: for collective

modes of transport, bus and passenger train, or for navigation and freight train.

Time trend model



In some case, it was felt that no macro-economic variables could be used to describe the

evolution of the output, for example in the case of load factor. Since all variables need to be

projected separately, some simple growth rates have been used. This methodology was also

used when no satisfactory relation could be found using the log-log approach.

The case of car ownership



In the case of car ownership, the model used in the 5 regions takes the form of a semi-log

model. Following Dargay and Gately, 1999, the ownership rate follows a S-shaped curve, and

most of the OECD regions are at the upper end of the saturation level, which can be described

by a semi-log approach.



(7) car _ ownership = a + b * log(GDP _ per _ capita )



The case of private vehicle use



Activity of private cars activity is decomposed into load factor, car ownership and average

vehicle mileage, and these three elements are projected in a almost independent way. The

influence of GDP per capita on private car activity is best captured by the car ownership

variable. To capture the influence of transport cost changes, fuel prices are simply used as an

indicator and applied in the modelling of the private vehicle use, together with a time

influence. It can in fact be observed from the past trends (since beginning of the 1980s) that

without price shocks, the average mileage of a car has a “natural” tendency to increase (like in

Europe or in North America) or to decrease (like in Japan). Some other factors, like the spatial

structure or congestion, cannot be captured in this simple approach.





Appendices 132

(8) car _ mileage = 10^ (a + b * log(fuel _ price * fuel _ int ensity) * time _ trend



The fuel cost (fuel_price*fuel_intensity) is used here as an simple indicator for the total cost

of using a private vehicle, and elements like purchase cost, insurance, maintenance etc... are

neglected.



The following table summarises the different approach used for each transport mode.



Table A1.2: Activity projections model

fuel fuel

time income

prices intensity

Private cars and personal light

trucks

Log

Ownership rate

GDP/cap

Log

Gasoline

Vehicle mileage Trend

“Combined” as fuel

cost

Load factor Trend

Log

Bus Log

GDP

Log

Passenger rail Log

GDP

Aviation (both intra-regional and Log Log

Log

international) GDP/cap Kerosene

Log Log

Heavier trucks Log

GDP Diesel

Log Log

Small trucks and vans Log

GDP Diesel

Log

Freight rail Log

GDP

Log

Navigation Log

GDP

Log Log

Freight aviation Log

GDP Kerosene



Fuel intensity projections



The modal fuel intensity described as the ration of energy used per unit of service in each

mode (passenger -km or tonne-km) is influenced by many factors (see Table 2.12). As

explained in the main text, the fuel intensity is modelled using a time change influence and a

fuel price influence.



The model to project modal fuel intensity has the following form:



(9) fuel _ int ensity = 10^ (a + b * log(fuel _ price) * time _ trend







Appendices 133

The time trend component is calibrated according to past trends, and the fuel price coefficient,

b, is based on what can be found in the literature.



In the case of private cars and personal light trucks in North America, a separate stock

modelling exercise has been performed, due to data availability and the need to quantify the

impact of fuel intensity improvement policies enacted in Europe and in Japan (see Appendix

2).



Calculating the Energy Consumption and CO2 emissions



Once the projections of activity and fuel intensity are made for each mode, they can be

multiplied to obtain the energy consumption. The total energy of the transport sector can be

obtained by adding all modal energy consumption.



With assumptions of shares of the respective fuels in each transport mode (gasoline, diesel,

electricity), and with values of the carbon content coefficient of each fuel, CO2 emissions can

also be calculated by transport mode and aggregated to obtain the total CO2 emissions for the

transport sector.



The estimation of alternative vehicle and alternative fuel introduction



A phase-in of advanced vehicles (vehicle sales share over time) and, separately, advanced

fuels (blending share and/or alternatively alternative fuelled vehicle share over time) is

assumed. In each case, the vehicle parameters are used as input into the stock model in order

to estimate the total effect on the fleet over time. This allows to calculate fuel and CO2

savings for the advanced vehicle introduction and fuel replacement (as the sum of blending

and dedicated vehicle demand) in the alternative fuel case.



The assumptions on production quantities are used as input into the experience curve

calculation in order to evaluate how likely such a phase-in could be from an economic

perspective. Slow cost reduction and long-range need for subsidies makes a phase-in unlikely,

and allows to conclude the the production quantities initially assumed are too optimistic.

Rapid cost reduction and rapid diminishing of subsidies with the volumes assumed point

would point at a realistic or even too pessimistic phase-in.



A component of demand policy impact estimation



A selection of policy elements is assumed for each region. In order to evaluate the impact of

each policy, which aims at tackling a specific sub category of transport activity, each transport

mode is further decompose to allow a distinction of activity and fuel intensity for each sub

category. The hypotheses taken for the quantification of each policy impact are shown for

each region in the main text.









Appendices 134

Table A1.3: Modal subcategories

Transport mode Sub category

urban

Cars regional

motorway

intercity

Bus

urban

urban (metro)

Passenger Rail normal

high speed

long haul

Trucks

others

bulk

Freight rail

combined/container









Appendices 135

APPENDIX 2: Modelling vehicle fleet turnover



Qualitative Description

In order to simulate the impact of efficiency changes in cars and personal light trucks (chapter

3.2 and 3.3) fleet-turnover is explicitly modelled. Such stock models often require detailed

information on the vintage composition (survival rates over time) (see for example the NEMS

Transportation Demand Module,

http://www.eia.doe.gov/oiaf/aeo/assumption/transportation.html). With the limitations in data

availability for the large set of countries covered in this study, a simpler approach is chosen,

relying on:

• data on new vehicle registration (yearly sales weighted average),

• total vehicle stock and

• new vehicle test fuel intensity performance



to determine fleet average on-road fuel intensity from year to year (with the initial fleet fuel

intensity being known).



The missing “scrappage” quantity of vehicles can be deduced from the above data (figure

A2.1) and the fuel performance of scrapped cars is assumed to lag behind the average fleet

performance by about half the fleet turnover time. This approach thus allows achieving a

sufficiently “dynamic” and precise stock model for different regions with relatively little data

requirements (such as the age distribution etc.). With these approach sales weighted fuel

intensity based on test performance can be calculated for the entire fleet. Actual on-road fleet

fuel intensities includes also a weighing by vehicle mileage, which means they reflect the fact

that different car types drive different distances per year.









Appendices 136

Figure A2.1: Fleet turnover from year to year









Most importantly, new cars are driven much more than older models. This implies that

changes in new car performance show more quickly in the average (km-weighted) fleet

performance than the (only) sales-weighted average would imply. We adjust for the fact in the

stock model and thereby simulate a km-weighted performance level.



Finally, the test/on-road gap (see Box 3.1) needs to be accounted for in order to make the

simulation above comparable to actual on-road fleet fuel intensities derived from total fleet

fuel consumption and vehicle-km estimates.



In absence of a detailed model for estimating the gap, we compare the values calculated by

the procedure above with the on-road fleet fuel intensity based annual fleet fuel consumption

and total vehicle km. This comparison over the period 1980 to 1997 allows to deduce an

absolute gap level as well as a historical trend.



The approach was tested and validated for different countries in comparison to historical data

between 1970 and 1995. Due to a time lag in the model (phase-in) and the general poor data

qualities, the model performs well after 1980 (see Figure 3.2).









Appendices 137

Mathematical Formulation



The mathematical formulation is given in full length, since important policy conclusions are

drawn based on this model (chapter 3.2 and 3.3).



Basic equations



Vehicle number equation (VN): constitution of annual vehicle stock (ST) from three cohorts

between two subsequent years: Carry-over (CO), Scrappage (SC) and New registrations (NR)

in the year (k) and the year (k+1) (see Figure AX.1):



(1) VN kST = VN kSC + VN kCO and VN kST1 = VN kCO + VN kNR

+ +1







Past time series of total vehicle stock VNSC and new registrations VNNR are used to determine

an average scrappage factor RSC. This factor is used to project VNCO and VNNR, the total

vehicle stock being known from the activity (passenger-km) projections (via load factor and

average annual mileage per vehicle).



 VN SC   VN SC 

(2)  VN ST 

 k

 = const. = R = average 

SC



k



ST 

 k  k =1998...2020 k =1980...1997 VN k 







The average past scrappage rate RSC for Western Europe, Japan and North America are 5.5%,

7.5% and 7% respectively.



From (1) and (2)



(3) VN kNR = VN kST1 − VN kST (1 + R SC )

+1 +







Fuel consumption equation using fuel intensity (FI) and vehicle kilometers (VKM)



(4) FI kST ⋅ VKM kST = FI kSC ⋅ VKM kSC + FI kCO ⋅ VKM kCO and



FI kST1 ⋅ VKM kST1 = FI kCO ⋅ VKM kCO + FI kNR ⋅ VKM kNR

+ + +1 +1







A priory, the fuel intensity of the annually scrapped cars is unknown. We posit that the fuel

intensities of the scrapped cars lags by l years behind the average stock fuel intensity.



(5) FI kSC = FI kSTl









The time lag l is adjusted “manually” in order to achieve a sufficient fit of the model results

FIST to the past time series (from statistics). It is about equivalent to half the fleet turnover

time (=1/scrappage rate).









Appendices 138

Yearly vehicle kilometre equation using an average annual kilometrage per vehicle (AKV)

for the different cohorts.



(6) VKM kST =VN kSC ⋅ AKVkSC + VN kCO ⋅ AKVkCO and



VKM kST1 = VN kCO ⋅ AKVkCO + VN kNR ⋅ AKVkNR

+ +1 +1 +1







Since the AKV for the different vintages are unknown, constant vehicle kilometrage

ponderation factors (PF) for new cars and old cars are defined:



AKVkCO

(7) PFkCO = and similarly PFkSC , PFkNR

+1

AKVkST



with PFkNN = PFkNN = PF NN , NN ⊂ {SC , CO, NR

+1 }



Typical US values (1996) for the ponderation factors are used in all regions:.(Davis 1998):



PF SC = 0.87, PF NR = 1.25



Stock model:



By solving equation (3) for FISTk+1 and inserting (1), (3), (5) and (7) it can be shown that



 FI ST ⋅ VN kST − FI kSTl ⋅ R SC ⋅ VN kST ⋅ PF SC

(8) FI kST1 =  k

+



⋅ ...

 VN kST − VN kSC ⋅ PF SC





... + FI kNR ⋅ (VN kST1 − VN kST (1 + R SC )) ⋅ PF NR  ⋅ 1 ST

+1 +

 VN k +1



Equation (8) is the stock model that calculates the sales-weighted stock fuel intensity (based

on test performance) of a “target” year (k+1) after defining constant kilometrage weighing

factors and scrappage rates by using:

• fuel intensity values for the total vehicle stock of the previous year(s);

• fuel intensity values of the new registered vehicles of the “target” year (determined

exogenously, e.g. by policy measures); and

• total vehicle stock numbers.



Applying this model for the past and comparing the results between 1980 and 1997 to on-road

fuel intensity values derived from statistics allows to measure the test/on-road gap. The gap

for the year k is defined as



FI k ,or − FI k ,t

Gk =

FI k ,t





Appendices 139

In order to simulate an on-road equivalent fuel intensity, the gap factor is introduced in

  1 + Gk +1   1 + Gk 

  1 + G  ⋅ FI k − l ⋅ R ⋅ VN k ⋅ PF

 ⋅ FI kST ⋅ VN kST −  ST SC ST SC

 1+ G  

 k   l 

equation : (9) FI kST1

+ =  ⋅ ...

VN k − VN k ⋅ PF SC

ST SC









... ⋅ (VN kST1 − (VN kST1 − VN kST (1 + R SC )) ⋅ PF NR ) + ...

+ +











... + (1 + Gk +1 ) ⋅ FI kNR ⋅ (VN kST1 − VN kST (1 + R SC )) ⋅ PF NR

+1 +

 ⋅ 1 ST

 VN k +1







The results of model (8) and model (9) are shown in figure 3.2 (main text) as “fleet simulation

(test)” and “fleet simulation (on-road) after calibration” respectively.









Appendices 140

APPENDIX 3: Tables for baseline and scenario projections



General note to the tables



The analysis of energy demand in the transport sector is based on data up to 1997. Many

sources have been used in building the database containing past trends: a list of the

datasources is provided in the Reference section.



The tables in this section present detailed projections to 2020 of activity, energy intensity,

energy demand and CO2 emissions for the OECD regions.



The list of tables is as follows:



Baseline case:

OECD Europe

Western Europe

Central Europe and Turkey

OECD Pacific

Japan

Australia and New Zealand

North America



Comparison of cases

Western Europe

Japan

North America



Scenarios including all policies

Western Europe

Japan

North America



Both in the text and in the tables, rounding may cause some discrepancy between the total and

the sum of the individual components.









Appendices 141

Baseline case: OECD Europe



Shares (%)

Activity (pass-km) Growth rates (% per annum)

excluding inter-regional aviation

1970 1997 2010 2020 1970 1997 2010 2020 1970-1997 1997-2010 1997-2020

Total passenger transport 2498 5808 7430 8634 100 100 100 100 3.2 1.9 1.7

Cars

1656 4229 5210 5759 69 77 77 75 3.5 1.6 1.4

Personal light trucks

Bus 356 549 600 634 15 10 9 8 1.6 0.7 0.6

Passenger rail 299 337 362 381 12 6 5 5 0.4 0.6 0.5

Intra-regional aviation 93 349 602 917 4 6 9 12 5.0 4.3 4.3

Inter-regional aviation 93 344 656 943 5.0 5.1 4.5

Fuel intensity (MJ/pass-km) Growth rates (% per annum)

Average passenger transport 1.6 1.4 1.4 1.4 -0.5 0.0 -0.1

Cars

1.8 1.5 1.6 1.6 -0.7 0.2 0.1

Personal light trucks

Bus 0.6 0.9 1.0 1.0 1.4 0.4 0.3

Passenger rail 0.7 0.5 0.5 0.4 -1.0 -0.5 -0.6

Intra-regional aviation 4.2 2.4 2.0 1.6 -1.9 -1.7 -1.8

Inter-regional aviation 2.4 1.2 1.2 1.0 -2.5 -0.5 -0.8

Shares (%)

Energy consumption (Mtoe) Growth rates (% per annum)

excluding inter-regional aviation

Total passenger transport 97.4 199.9 256.1 289.9 100 100 100 100 2.7 1.9 1.6

Cars

72.8 153.7 192.4 213.4 79 81 81 80 2.8 1.7 1.4

Personal light trucks

Bus 5.3 11.9 13.5 14.7 6 6 6 6 3.0 1.0 0.9

Passenger rail 4.7 4.0 4.0 4.0 5 2 2 2 -0.5 0.0 0.0

Intra-regional aviation 9.2 20.3 28.1 34.8 10 11 12 13 3.0 2.6 2.4

Inter-regional aviation 5.3 10.0 18.1 22.9 2.4 4.6 3.7

Shares (%)

CO2 emissions (Mt) Growth rates (% per annum)

excluding inter-regional aviation

Total passenger transport 291 607 805 922 100 100 100 100 2.8 2.2 1.8

Cars

212 450 564 627 77 78 75 74 2.8 1.8 1.5

Personal light trucks

Bus 21 58 89 106 8 10 12 12 3.8 3.3 2.7

Passenger rail 14 8 14 16 5 1 2 2 -2.1 4.4 3.1

Intra-regional aviation 28 61 84 104 10 11 11 12 2.9 2.5 2.3

Inter-regional aviation 16 30 54 69 2.4 4.6 3.7







Appendices 142

Shares (%)

Activity (tonne-km) Growth rates (% per annum)

excluding freight air

1970 1997 2010 2020 1970 1997 2010 2020 1970-1997 1997-2010 1997-2020

Total freight transport 1124 1967 2663 3221 100 100 100 100 2.1 2.4 2.2

Small trucks and vans

530 1450 2114 2629 47 75 81 84 3.8 2.9 2.6

Heavy trucks

Freight rail 472 353 356 359 42 18 14 11 -1.1 0.1 0.1

Navigation 120 135 137 138 11 7 5 4 0.4 0.1 0.1

Freight air 2 29 56 95 10.4 5.2 5.3

Fuel intensity (MJ/tonne-km) Growth rates (% per annum)

Average freight transport 2.0 2.7 2.8 2.8 1.1 0.1 0.1

Small trucks and vans

3.2 3.1 2.9 2.8 -0.1 -0.5 -0.4

Heavy trucks

Freight rail 0.5 0.4 0.4 0.4 -0.8 0.0 0.0

Navigation 2.3 2.2 2.2 2.1 -0.2 0.0 -0.2

Freight air 31.7 17.2 15.2 13.2 -2.2 -0.9 -1.1

Shares (%)

Energy consumption (Mtoe) Growth rates (% per annum)

excluding freight air

Total freight transport 54.5 129.0 177.5 214.3 100 100 100 100 3.2 2.5 2.2

Small trucks and vans

41.1 106.7 146.8 174.5 77 91 93 95 3.6 2.5 2.2

Heavy trucks

Freight rail 5.6 3.4 3.2 3.0 11 3 2 2 -1.9 -0.4 -0.5

Navigation 6.6 7.2 7.1 7.0 12 6 5 4 0.3 -0.1 -0.1

Freight air 1.2 11.8 20.4 29.8 8.9 4.3 4.1

Shares (%)

CO2 emissions (Mt) Growth rates (% per annum)

excluding freight air

Total freight transport 169 427 620 751 100 100 100 100 3.5 2.9 2.5

Small trucks and vans

122 319 446 530 73 81 80 80 3.6 2.6 2.2

Heavy trucks

Freight rail 16 21 35 42 10 5 6 6 1.0 4.0 3.1

Navigation 28 52 78 90 17 13 14 14 2.3 3.2 2.4

Freight air 3 35 61 89 9.5 4.4 4.1









Appendices 143

Baseline case: Western Europe



Shares (%)

Activity (pass-km) Growth rates (% per annum)

excluding inter-regional aviation

1970 1997 2010 2020 1970 1997 2010 2020 1970-1997 1997-2010 1997-2020

Total passenger transport 2272 5263 6614 7670 100 100 100 100 3.2 1.8 1.7

Cars

1585 3912 4632 5050 73 79 77 75 3.4 1.3 1.1

Personal light trucks

Bus 277 397 462 504 13 8 8 7 1.3 1.2 1.0

Passenger rail 227 297 334 358 10 6 6 5 1.0 0.9 0.8

Intra-regional aviation 92 326 563 862 4 7 9 13 4.8 4.3 4.3

Inter-regional aviation 91 331 623 896 4.9 5.0 4.4

Fuel intensity (MJ/pass-km) Growth rates (% per annum)

Average passenger transport 1.7 1.5 1.5 1.4 -0.5 0.0 -0.1

Cars

1.9 1.5 1.6 1.6 -0.9 0.5 0.3

Personal light trucks

Bus 0.6 1.0 1.0 1.0 1.9 0.0 0.0

Passenger rail 0.7 0.5 0.5 0.4 -1.2 0.0 -1.0

Intra-regional aviation 4.2 2.4 1.9 1.6 -2.1 -1.8 -1.7

Inter-regional aviation 2.4 1.2 1.2 1.0 -2.5 0.0 -0.8

Shares (%)

Energy consumption (Mtoe) Growth rates (% per annum)

excluding inter-regional aviation

Total passenger transport 92.2 185.1 232.3 261.4 100 100 100 100 2.6 1.8 1.5

Cars

70.1 144.0 174.3 191.1 81 82 81 80 2.7 1.5 1.2

Personal light trucks

Bus 4.3 9.1 10.9 12.2 5 5 5 5 2.8 1.4 1.3

Passenger rail 3.5 3.6 3.7 3.8 4 2 2 2 0.1 0.4 0.3

Intra-regional aviation 9.1 18.9 26.2 32.5 10 11 12 14 2.7 2.6 2.4

Inter-regional aviation 5.2 9.6 17.1 21.8 2.3 4.5 3.6

Shares (%)

CO2 emissions (Mt) Growth rates (% per annum)

excluding inter-regional aviation

Total passenger transport 268 536 676 763 100 100 100 100 2.6 1.8 1.5

Cars

204 421 511 561 81 83 82 80 2.7 1.5 1.3

Personal light trucks

Bus 13 28 34 38 5 6 5 5 2.9 1.5 1.3

Passenger rail 8 2 2 2 3 0 0 0 -5.0 0.0 0.0

Intra-regional aviation 27 56 78 97 11 11 12 14 2.7 2.6 2.4

Inter-regional aviation 16 29 51 65 2.2 4.4 3.6







Appendices 144

Shares (%)

Activity (tonne-km) Growth rates (% per annum)

excluding freight air

1970 1997 2010 2020 1970 1997 2010 2020 1970-1997 1997-2010 1997-2020

Total freight transport 879 1633 2180 2608 100 100 100 100 2.3 2.2 2.1

Small trucks and vans

472 1224 1738 2124 54 76 82 85 3.6 2.7 2.4

Heavy trucks

Freight rail 291 248 252 254 33 15 12 10 -0.6 0.1 0.1

Navigation 114 132 134 135 13 8 6 5 0.5 0.1 0.1

Freight air 2 29 56 95 10.4 5.2 5.3

Fuel intensity (MJ/tonne-km) Growth rates (% per annum)

Average freight transport 2.3 3.0 3.0 3.1 1.0 0.2 0.1

Small trucks and vans

3.3 3.2 3.1 3 -0.1 -0.2 -0.3

Heavy trucks

Freight rail 0.5 0.4 0.4 0.4 -0.8 0.0 0.0

Navigation 2.3 2.2 2.2 2.1 -0.2 0.0 -0.2

Freight air 31.7 17.2 15.2 13.2 -2.2 -0.9 -1.1

Shares (%)

Energy consumption (PJ) Growth rates (% per annum)

excluding freight air

Total freight transport 48.0 115.2 157.5 190.0 100 100 100 100 3.3 2.4 2.2

Small trucks and vans

37.0 94.1 127.9 151.2 79 91 93 94 3.5 2.4 2.1

Heavy trucks

Freight rail 3.5 2.4 2.3 2.2 7 2 2 1 -1.4 -0.3 -0.4

Navigation 6.3 7.0 6.9 6.8 13 7 5 4 0.4 -0.1 -0.1

Freight air 1.2 11.8 20.4 29.8 8.9 4.3 4.1

Shares (%)

CO2 emissions (Mt) Growth rates (% per annum)

excluding freight air

Total freight transport 144 348 476 575 100 100 100 100 3.3 2.4 2.2

Small trucks and vans

113 287 390 461 80 92 94 95 3.5 2.4 2.1

Heavy trucks

Freight rail 9 4 4 4 6 1 1 1 -3.0 0.0 0.0

Navigation 19 22 21 21 13 7 5 4 0.5 -0.4 -0.2

Freight air 3 35 61 89 9.5 4.4 4.1









Appendices 145

Baseline case: Central Europe and Turkey



Shares (%)

Activity (pass-km) Growth rates (% per annum)

excluding inter-regional aviation

1970 1997 2010 2020 1970 1997 2010 2020 1970-1997 1997-2010 1997-2020

Total passenger transport 226 544 815 965 100 100 100 100 3.3 3.2 2.5

Cars

71 317 578 709 32 60 74 77 5.7 4.7 3.6

Personal light trucks

Bus 79 152 137 130 35 29 18 14 2.5 -0.8 -0.7

Passenger rail 73 40 28 23 32 8 4 3 -2.2 -2.7 -2.3

Intra-regional aviation 2 23 38 55 1 4 5 6 10.0 4.2 4.0

Inter-regional aviation 2 13 33 47 7.1 7.2 5.7

Fuel intensity (MJ/pass-km) Growth rates (% per annum)

Average passenger transport 0.9 1.1 1.2 1.2 0.7 0.6 0.4

Cars

1.6 1.3 1.3 1.3 -0.8 0.2 0.1

Personal light trucks

Bus 0.5 0.8 0.8 0.8 1.4 0.3 0.3

Passenger rail 0.7 0.5 0.5 0.4 -1.0 -0.5 -0.5

Intra-regional aviation 4.0 2.6 2.1 1.7 -1.5 -1.7 -1.8

Inter-regional aviation 2.4 1.2 1.2 1.0 -2.5 -0.4 -0.8

Shares (%)

Energy consumption (Mtoe) Growth rates (% per annum)

excluding inter-regional aviation

Total passenger transport 5.1 14.8 23.9 28.5 100 100 100 100 4.0 3.8 2.9

Cars

2.7 9.7 18.1 22.3 55 68 79 81 4.8 4.9 3.7

Personal light trucks

Bus 1.0 2.8 2.6 2.6 20 19 11 9 3.9 -0.4 -0.3

Passenger rail 1.1 0.5 0.3 0.2 22 3 1 1 -3.1 -3.2 -2.8

Intra-regional aviation 0.2 1.4 1.9 2.3 3 10 8 8 8.4 2.4 2.0

Inter-regional aviation 0.1 0.4 0.9 1.1 4.5 6.7 4.8

Shares (%)

CO2 emissions (Mt) Growth rates (% per annum)

excluding inter-regional aviation

Total passenger transport 23 70 128 158 100 100 100 100 4.2 4.8 3.6

Cars

8 29 53 66 36 42 42 43 4.8 4.9 3.7

Personal light trucks

Bus 8 30 55 68 35 43 44 44 5.0 4.9 3.7

Passenger rail 6 6 11 14 27 9 9 9 0.0 4.9 3.7

Intra-regional aviation 0.5 4 6 7 2 6 5 4 8.4 2.4 2.0

Inter-regional aviation 0.4 1 3 3 4.5 6.7 4.8







Appendices 146

Shares (%)

Activity (tonne-km) Growth rates (% per annum)

excluding freight air

1970 1997 2010 2020 1970 1997 2010 2020 1970-1997 1997-2010 1997-2020

Total freight transport 246 333 484 613 100 100 100 100 1.1 2.9 2.7

Small trucks and vans

58 225 376 505 24 68 78 82 5.1 4.0 3.6

Heavy trucks

Freight rail 181 104 105 105 74 31 22 17 -2.0 0.0 0.0

Navigation 6 3 3 3 3 1 1 1 -2.4 0.1 0.1

Freight air ND ND ND ND

Fuel intensity (MJ/tonne-km) Growth rates (% per annum)

Average freight transport 1.1 1.7 1.7 1.7 1.7 0.0 -0.2

Small trucks and vans

2.9 2.3 2.1 1.9 -0.8 -0.8 -0.8

Heavy trucks

Freight rail 0.5 0.4 0.4 0.3 -0.8 -0.7 -0.7

Navigation 2.3 2.1 2.0 1.9 -0.3 -0.5 -0.5

Freight air ND ND ND ND

Shares (%)

Energy consumption (Mtoe) Growth rates (% per annum)

excluding freight air

Total freight transport 6.5 13.8 19.9 24.3 100 100 100 100 2.8 2.9 2.5

Small trucks and vans

4.0 12.6 18.9 23.3 62 92 95 96 4.3 3.1 2.7

Heavy trucks

Freight rail 2.2 1.0 0.9 0.8 33 7 5 3 -2.8 -0.7 -0.7

Navigation 0.4 0.2 0.2 0.2 5 1 1 1 -2.8 -0.4 -0.4

Freight air ND ND ND ND

Shares (%)

CO2 emissions (Mt) Growth rates (% per annum)

excluding freight air

Total freight transport 25 79 143 176 100 100 100 100 4.4 4.7 3.6

Small trucks and vans

9 32 56 69 38 40 39 39 4.7 4.4 3.4

Heavy trucks

Freight rail 7 17 31 38 28 21 22 22 3.3 4.9 3.7

Navigation 9 30 56 69 34 38 39 39 4.8 4.9 3.7

Freight air ND ND ND ND









Appendices 147

Baseline case: OECD Pacific



Shares (%)

Activity (pass-km) Growth rates (% per annum)

excluding inter-regional aviation

1970 1997 2010 2020 1970 1997 2010 2020 1970-1997 1997-2010 1997-2020

Total passenger transport 854 1918 2327 2694 100 100 100 100 3.0 1.5 1.5

Cars 395 1121 1306 1414 48 63 62 61 3.9 1.2 1.0

Personal light trucks 5 16 19 22 1 1 1 1 4.1 1.2 1.3

Bus 112 113 120 126 14 6 6 5 0.0 0.5 0.5

Passenger rail 304 405 454 495 36 23 22 21 1.1 0.9 0.9

Intra-regional aviation 15 124 197 274 2 7 9 12 8.0 3.6 3.5

Inter-regional aviation 22 138 232 364 7.0 4.0 4.3

Fuel intensity (MJ/pass-km) Growth rates (% per annum)

Average passenger transport 1.2 1.7 1.7 1.6 1.1 0.1 -0.1

Cars 2.0 2.3 2.3 2.3 0.5 0.2 0.1

Personal light trucks 1.9 2.1 2.2 2.2 0.4 0.3 0.1

Bus 0.6 0.8 0.8 0.9 1.1 0.5 0.5

Passenger rail 0.2 0.2 0.2 0.2 0.0 0.5 0.5

Intra-regional aviation 3.7 2.0 1.7 1.5 -2.3 -0.9 -1.1

Inter-regional aviation 3.3 1.5 1.3 1.1 -2.9 -1.3 -1.5

Shares (%)

Energy consumption (Mtoe) Growth rates (% per annum)

excluding inter-regional aviation

Total passenger transport 25.1 76.5 94.0 103.9 100 100 100 100 4.2 1.6 1.3

Cars 18.6 60.7 73.0 78.1 80 85 84 82 4.5 1.4 1.1

Personal light trucks 0.3 0.8 1.0 1.1 1 1 1 1 4.5 1.5 1.4

Bus 1.5 2.1 2.3 2.6 7 3 3 3 1.1 1.0 1.0

Passenger rail 1.6 2.1 2.5 2.9 7 3 3 3 1.1 1.4 1.4

Intra-regional aviation 1.4 5.9 8.2 10.1 6 8 9 11 5.5 2.6 2.4

Inter-regional aviation 1.8 4.9 7.0 9.2 3.9 2.7 2.7

Shares (%)

CO2 emissions (Mt) Growth rates (% per annum)

excluding inter-regional aviation

Total passenger transport 66 211 248 288 100 100 100 100 4.4 1.2 1.3

Cars 49 169 191 217 80 86 84 84 4.7 1.0 1.1

Personal light trucks 0.7 2 3 3 1 1 1 1 4.5 1.5 1.4

Bus 5 6 7 8 8 3 3 3 1.1 1.0 1.0

Passenger rail 2 1 1 1 4 0 1 1 -3.3 1.4 1.4

Intra-regional aviation 4 18 25 30 7 9 11 12 5.5 2.6 2.4

Inter-regional aviation 5 15 21 28 3.9 2.7 2.7







Appendices 148

Shares (%)

Activity (tonne-km) Growth rates (% per annum)

excluding freight air

1970 1997 2010 2020 1970 1997 2010 2020 1970-1997 1997-2010 1997-2020

Total freight transport 500 879 1035 1174 95 98 98 98 2.1 1.3 1.3

Small trucks and vans 27 16 17 18 5 2 2 2 -1.8 0.5 0.5

Heavy trucks 136 368 440 498 27 42 44 44 3.8 1.4 1.3

Freight rail 104 128 158 187 21 15 16 17 0.8 1.7 1.7

Navigation 233 355 395 427 47 41 39 38 1.6 0.8 0.8

Freight air 1 12 26 44 11.9 5.9 5.7

Fuel intensity (MJ/tonne-km) Growth rates (% per annum)

Average freight transport 1.9 2.2 2.4 2.5 0.6 0.6 0.5

Small trucks and vans 35.4 40.7 44.6 1.1 1.0

4.2

Heavy trucks 2.4 2.3 2.2 -0.3 -0.3

Freight rail 0.2 0.2 0.2 0.2 0.0 -1.6 -1.8

Navigation 0.9 0.7 0.8 0.8 -1.1 0.9 0.8

Freight air 39.4 19.8 17.0 14.5 -2.5 -1.2 -1.3

Shares (%)

Energy consumption (Mtoe) Growth rates (% per annum)

excluding freight air

Total freight transport 22.7 46.8 59.3 69.9 100 100 100 100 2.7 1.8 1.8

Small trucks and vans 13.6 16.8 19.2 33 34 35 1.6 1.5

16.4 74 2.8

Heavy trucks 20.9 24.2 26.4 51 49 48 1.1 1.0

Freight rail 0.6 0.7 0.7 0.7 3 2 1 1 0.8 0.0 -0.1

Navigation 5.2 5.8 7.2 8.4 23 14 15 15 0.4 1.7 1.6

Freight air 0.5 5.7 10.4 15.2 9.1 4.7 4.3

Shares (%)

CO2 emissions (Mt) Growth rates (% per annum)

excluding freight air

Total freight transport 66 142 180 212 100 100 100 100 2.9 1.8 1.8

Small trucks and vans 41 50 57 33 34 35 1.6 1.5

47 3.0

Heavy trucks 65 75 81 73 52 50 49 1.1 1.0

Freight rail 1 1 1 1 2 1 1 1 1.0 -0.1 -0.2

Navigation 16 18 22 26 25 14 15 16 0.4 1.7 1.6

Freight air 2 17 31 45 9.1 4.7 4.3









Appendices 149

Baseline case: Australia and New Zealand



Shares (%)

Activity (pass-km) Growth rates (% per annum)

excluding inter-regional aviation

1970 1997 2010 2020 1970 1997 2010 2020 1970-1997 1997-2010 1997-2020

Total passenger transport 174 422 560 698 100 100 100 100 3.3 2.2 2.2

Cars 129 269 329 374 78 73 71 68 2.8 1.6 1.4

Personal light trucks 5 16 19 22 3 4 4 4 4.1 1.2 1.3

Bus 10 20 21 22 6 5 5 4 2.7 0.5 0.5

Passenger rail 15 10 11 12 9 3 2 2 -1.4 0.6 0.6

Intra-regional aviation 6 51 84 117 4 14 18 21 8.2 4.0 3.7

Inter-regional aviation 9 57 96 152 7.0 4.1 4.4

Fuel intensity (MJ/pass-km) Growth rates (% per annum)

Average passenger transport 2.3 1.9 1.8 1.7 -0.6 -0.4 -0.6

Cars 2.4 2.3 2.3 2.3 -0.2 0.1 0.0

Personal light trucks 1.9 2.1 2.2 2.2 0.4 0.3 0.1

Bus 0.7 0.7 0.7 0.7 -0.2 0.0 0.0

Passenger rail 1.3 1.3 1.3 1.3 0.0 0.2 0.2

Intra-regional aviation 3.5 1.6 1.3 1.1 -2.9 -1.3 -1.6

Inter-regional aviation 2.9 1.1 0.9 0.8 -3.5 -1.3 -1.6

Shares (%)

Energy consumption (Mtoe) Growth rates (% per annum)

excluding inter-regional aviation

Total passenger transport 9.4 19.5 24.5 28.1 100 100 100 100 2.7 1.8 1.6

Cars 7.4 14.6 18.0 20.4 84 81 81 81 2.5 1.6 1.5

Personal light trucks 0.3 0.8 1.0 1.1 3 5 4 5 4.5 1.5 1.4

Bus 0.2 0.3 0.3 0.4 2 2 2 1 2.5 0.5 0.5

Passenger rail 0.4 0.3 0.3 0.4 5 2 2 1 -1.4 0.7 0.7

Intra-regional aviation 0.5 1.9 2.7 3.0 6 11 12 12 5.1 2.6 2.1

Inter-regional aviation 0.6 1.5 2.2 2.8 3.2 2.8 2.7

Shares (%)

CO2 emissions (Mt) Growth rates (% per annum)

excluding inter-regional aviation

Total passenger transport 27 53 67 77 100 100 100 100 2.5 1.8 1.6

Cars 21 39 48 54 85 81 80 80 2.2 1.6 1.5

Personal light trucks 1 2 3 3 3 5 5 5 4.5 1.5 1.4

Bus 1 1 1 1 2 2 2 2 2.5 0.5 0.5

Passenger rail 1 0.2 0.2 0.2 4 0 0 0 -6.4 0.7 0.7

Intra-regional aviation 2 6 8 9 6 12 13 13 5.1 2.6 2.1

Inter-regional aviation 2 5 6 9 3.2 2.8 2.7







Appendices 150

Shares (%)

Activity (tonne-km) Growth rates (% per annum)

excluding freight air

1970 1997 2010 2020 1970 1997 2010 2020 1970-1997 1997-2010 1997-2020

Total freight transport 156 342 413 480 100 100 100 100 3.0 1.5 1.5

Small trucks and vans 1 4 5 6 1 1 1 1 5.7 1.3 1.3

Heavy trucks 32 114 142 166 21 34 35 36 4.8 1.7 1.7

Freight rail 41 103 130 155 26 30 32 33 3.5 1.8 1.8

Navigation 82 118 129 138 52 35 32 30 1.4 0.7 0.7

Freight air 0.2 4 7 14 11.0 5.6 6.2

Fuel intensity (MJ/tonne-km) Growth rates (% per annum)

Average freight transport 1.2 1.2 1.2 1.3 -0.3 0.4 0.5

Small trucks and vans 30.5 20.0 20.2 20.2 -1.6 0.1 0.0

Heavy trucks 3.0 1.7 1.6 1.5 -2.1 -0.4 -0.4

Freight rail 0.2 0.3 0.2 0.2 0.8 -2.2 -2.2

Navigation 0.6 0.2 0.2 0.1 -3.4 -2.4 -2.4

Freight air 39.4 19.8 17.0 14.2 -2.5 -1.2 -1.4

Shares (%)

Energy consumption (Mtoe) Growth rates (% per annum)

excluding freight air

Total freight transport 4.7 9.4 12.0 14.7 100 100 100 100 2.7 1.9 2.0

Small trucks and vans 0.7 2.0 2.4 2.7 16 26 26 28 4.0 1.3 1.3

Heavy trucks 2.3 4.6 5.5 6.1 52 60 61 62 2.6 1.3 1.2

Freight rail 0.2 0.6 0.6 0.6 5 8 7 6 4.1 -0.1 -0.2

Navigation 1.2 0.5 0.6 0.5 28 7 6 5 -3.1 0.5 -0.5

Freight air 0.2 1.7 2.9 4.8 8.2 4.4 4.7

Shares (%)

CO2 emissions (Mt) Growth rates (% per annum)

excluding freight air

Total freight transport 14 28 36 44 100 100 100 100 2.6 1.9 2.0

Small trucks and vans 2 6 7 8 15 26 26 27 11.0 1.3 1.3

Heavy trucks 7 14 17 19 52 61 62 63 4.0 1.3 1.2

Freight rail 1 1 1 1 4 6 5 4 3.1 -0.1 -0.2

Navigation 4 2 2 1 28 7 6 5 -3.1 0.5 -0.5

Freight air 1 5 9 14 8.2 4.4 4.7









Appendices 151

Baseline case: Japan



Shares (%)

Activity (pass-km) Growth rates (% per annum)

excluding inter-regional aviation

1970 1997 2010 2020 1970 1997 2010 2020 1970-1997 1997-2010 1997-2020

Total passenger transport 681 1496 1768 1996 100 100 100 100 3.0 1.3 1.3

Cars

267 853 977 1040 40 60 60 58 4.4 1.1 0.9

Personal light trucks

Bus 103 93 99 104 15 7 6 6 -0.4 0.5 0.5

Passenger rail 289 395 444 483 43 28 27 27 1.2 0.9 0.9

Intra-regional aviation 9 73 112 157 1 5 7 9 7.9 3.3 3.4

Inter-regional aviation 13 82 136 213 7.1 4.0 4.2

Fuel intensity (MJ/pass-km) Growth rates (% per annum)

Average passenger transport 1.0 1.6 1.6 1.6 1.9 0.2 0.0

Cars

1.8 2.3 2.4 2.3 0.9 0.3 0.1

Personal light trucks

Bus 0.6 0.8 0.8 0.9 1.3 0.6 0.6

Passenger rail 0.2 0.2 0.2 0.2 0.6 0.6 0.6

Intra-regional aviation 3.9 2.3 2.1 1.9 -2.0 -0.7 -0.8

Inter-regional aviation 3.6 1.7 1.5 1.3 -2.7 -1.3 -1.4

Shares (%)

Energy consumption (Mtoe) Growth rates (% per annum)

excluding inter-regional aviation

Total passenger transport 15.7 57.0 69.5 75.8 100 100 100 100 4.9 1.5 1.2

Cars

11.2 46.2 55.0 57.7 77 86 85 83 5.4 1.4 1.0

Personal light trucks

Bus 1.4 1.7 2.0 2.0 9 3 3 3 0.9 1.1 1.1

Passenger rail 1.1 1.8 2.2 2.5 8 3 3 4 1.8 1.5 1.5

Intra-regional aviation 0.9 3.9 5.6 7.0 6 7 9 10 5.8 2.7 2.5

Inter-regional aviation 1.1 3.4 4.8 6.4 4.2 2.7 2.8

Shares (%)

CO2 emissions (Mt) Growth rates (% per annum)

excluding inter-regional aviation

Total passenger transport 39 159 194 211 100 100 100 100 5.3 1.5 1.2

Cars

28 130 155 163 77 88 87 85 5.9 1.4 1.0

Personal light trucks

Bus 4 5 6 7 12 4 3 4 0.9 1.1 1.1

Passenger rail 1 1 1 1 4 1 1 1 -2.1 1.5 1.5

Intra-regional aviation 3 12 17 21 7 8 9 11 5.8 2.7 2.5

Inter-regional aviation 3 10 14 19 4.2 2.7 2.8







Appendices 152

Shares (%)

Activity (tonne-km) Growth rates (% per annum)

excluding freight air

1970 1997 2010 2020 1970 1997 2010 2020 1970-1997 1997-2010 1997-2020

Total freight transport 344 537 623 694 100 100 100 100 1.7 1.1 1.1

Small trucks and vans 26 12 12 12 7 2 2 2 -2.8 0.2 0.2

Heavy trucks 104 255 298 332 30 48 49 50 3.4 1.2 1.2

Freight rail 63 25 28 31 18 5 5 5 -3.4 1.1 1.1

Navigation 151 237 266 288 44 45 44 43 1.7 0.9 0.9

Freight air 0.4 9 18 30 12.4 6.0 5.5

Fuel intensity (MJ/tonne-km) Growth rates (% per annum)

Average freight transport 2.4 2.9 3.2 3.3 0.7 0.7 0.6

Small trucks and vans 40.8 49.0 55.7 1.4 1.4

4.9 -2.2

Heavy trucks 2.7 2.6 2.5 -0.2 -0.2

Freight rail 0.3 0.2 0.2 0.2 -0.8 -0.6 -0.6

Navigation 1.1 0.9 1.1 1.2 -0.6 0.9 0.9

Freight air 39.4 19.8 17.0 14.6 -2.5 -1.2 -1.3

Shares (%)

Energy consumption (Mtoe) Growth rates (% per annum)

excluding freight air

Total freight transport 19.7 37.4 47.3 55.1 100 100 100 100 3.4 1.8 1.7

Small trucks and vans 11.6 14.4 16.5 0 35 36 37 1.7 1.5

15.0 2.3

Heavy trucks 16.3 18.7 20.2 78 49 47 45 1.0 0.9

Freight rail 0.4 0.1 0.1 0.1 2 0 0 0 -4.2 0.4 0.4

Navigation 4.0 5.6 6.7 7.9 20 16 17 18 1.1 1.8 1.8

Freight air 0.3 4.1 7.4 10.3 9.6 4.8 4.2

Shares (%)

CO2 emissions (Mt) Growth rates (% per annum)

excluding freight air

Total freight transport 52 114 144 168 100 66 65 64 2.9 1.8 1.7

Small trucks and vans 35 43 49 34 35 36 1.7 1.5

38 75 3.0

Heavy trucks 51 58 63 50 48 46 1.0 0.9

Freight rail 0.5 0.1 0.1 0.1 1 0 0 0 -7.7 0.4 0.4

Navigation 12 16 21 25 24 16 17 18 1.1 1.8 1.8

Freight air 1 12 22 31 9.6 4.8 4.2









Appendices 153

Baseline case: North America



Shares (%)

Activity (pass-km) Growth rates (% per annum)

excluding inter-regional aviation

1970 1997 2010 2020 1970 1997 2010 2020 1970-1997 1997-2010 1997-2020

Total passenger transport 4456 7226 8908 9989 100 100 100 100 1.8 1.6 1.4

Cars 3776 4278 4949 5386 86 62 60 59 0.5 1.1 1.0

Personal light trucks 214 1507 1818 1992 5 22 22 22 7.5 1.5 1.2

Bus 147 214 262 296 3 3 3 3 1.4 1.6 1.4

Passenger rail 40 42 46 48 1 1 1 1 0.2 0.6 0.5

Intra-regional aviation 214 823 1168 1379 5 12 14 15 5.1 2.7 2.3

Inter-regional aviation 65 362 664 889 6.6 4.8 4.0

Fuel intensity (MJ/pass-km) Growth rates (% per annum)

Average passenger transport 2.7 2.4 2.4 2.3 -0.4 -0.1 -0.2

Cars 2.4 2.3 2.3 2.3 -0.3 0.0 0.0

Personal light trucks 3.9 3.2 3.3 3.3 -0.8 0.3 0.2

Bus 0.8 0.9 0.9 0.8 0.2 0.0 -0.1

Passenger rail 1.4 0.9 0.7 0.6 -1.7 -1.7 -1.7

Intra-regional aviation 6.7 2.5 2.3 2.0 -3.5 -0.8 -1.0

Inter-regional aviation 6.6 2.1 1.8 1.4 -4.1 -1.5 -1.7

Shares (%)

Energy consumption (Mtoe) Growth rates (% per annum)

excluding inter-regional aviation

Total passenger transport 288.7 418.4 509.2 552.2 100 100 100 100 1.4 1.5 1.2

Cars 220.3 231.0 268.3 292.2 79 58 56 56 0.2 1.2 1.0

Personal light trucks 19.9 113.6 142.6 157.0 7 28 30 30 6.7 1.8 1.4

Bus 2.9 4.4 5.4 6.0 1 1 1 1 1.6 1.5 1.4

Passenger rail 1.3 0.9 0.8 0.7 0 0 0 0 -1.5 -1.1 -1.2

Intra-regional aviation 34.1 50.0 64.1 65.8 12 13 13 13 1.4 1.9 1.2

Inter-regional aviation 10.2 18.5 28.1 30.5 2.2 3.3 2.2

Shares (%)

CO2 emissions (Mt) Growth rates (% per annum)

excluding inter-regional aviation

Total passenger transport 841 1221 1487 1613 100 100 100 100 1.4 1.5 1.2

Cars 639 671 780 849 79 58 56 56 0.2 1.2 1.0

Personal light trucks 58 330 414 455 7 28 29 30 6.7 1.8 1.4

Bus 9 13 16 18 1 1 1 1 1.6 1.5 1.4

Passenger rail 3 1 1 1 0 0 0 0 -2.9 -1.1 -1.2

Intra-regional aviation 102 150 192 197 13 13 14 13 1.4 1.9 1.2

Inter-regional aviation 31 55 84 91 2.2 3.3 2.2







Appendices 154

Shares (%)

Activity (tonne-km) Growth rates (% per annum)

excluding freight air

1970 1997 2010 2020 1970 1997 2010 2020 1970-1997 1997-2010 1997-2020

Total freight transport 3104 5368 6796 7857 100 100 100 100 2.0 1.8 1.7

Small trucks and vans 25 119 174 222 1 2 3 3 6.0 3.0 2.8

Heavy trucks 857 2249 2985 3512 28 43 46 47 3.6 2.2 2.0

Freight rail 1295 1880 2453 2859 42 36 37 38 1.4 2.1 1.8

Navigation 909 1011 937 883 29 19 14 12 0.4 -0.6 -0.6

Freight air 19.0 110 248 380 6.7 6.5 5.5

Fuel intensity (MJ/tonne-km) Growth rates (% per annum)

Average freight transport 1.4 1.5 1.5 1.5 0.2 0.4 0.2

Small trucks and vans 23.5 15.1 15.2 15.2 -1.6 0.1 0.0

Heavy trucks 1.9 1.8 1.6 1.5 -0.2 -0.9 -0.9

Freight rail 0.4 0.3 0.2 0.2 -1.9 -1.6 -1.6

Navigation 0.6 0.5 0.6 0.7 -0.5 0.9 0.9

Freight air 15.7 8.3 7.5 6.5 -2.3 -0.8 -1.1

Shares (%)

Energy consumption (Mtoe) Growth rates (% per annum)

excluding freight air

Total freight transport 103.5 186.8 249.0 289.3 100 100 100 100 2.2 2.2 1.9

Small trucks and vans 29.6 42.8 63.1 80.5 31 26 31 35 1.4 3.0 2.8

Heavy trucks 39.5 97.3 115.6 123.7 41 59 56 54 3.4 1.3 1.0

Freight rail 13.8 11.9 12.6 12.5 14 7 6 5 -0.5 0.4 0.2

Navigation 13.4 12.9 13.4 13.9 14 8 7 6 -0.2 0.3 0.3

Freight air 7.1 21.9 44.3 58.8 4.2 5.6 4.4

Shares (%)

CO2 emissions (Mt) Growth rates (% per annum)

excluding freight air

Total freight transport 280 566 753 873 100 100 100 100 2.6 2.2 1.9

Small trucks and vans 57 125 184 235 22 25 30 34 3.0 3.0 2.8

Heavy trucks 118 299 355 380 46 60 57 55 4.9 1.3 1.0

Freight rail 43 37 39 39 16 7 6 6 -0.5 0.4 0.2

Navigation 42 40 42 43 16 8 7 6 -0.2 0.3 0.3

Freight air 21 65 133 176 4.2 5.6 4.4









Appendices 155

Comparison of Cases: Western Europe



Passenger transport



Growth rates

Activity (pass-km)

(% per annum)

1997 2010 2020 1997-2010 1997-2020

Baseline 5263 6614 7670 1.8 1.7

Incl. enacted policies 6741 7929 1.9 1.8

Incl. Additional policies 6692 8035 1.9 1.9

Energy consumption Growth rates

(Mtoe) (% per annum)

Baseline 185.1 232.3 261.4 1.8 1.5

Incl. enacted policies 217.3 231.8 1.2 1.0

Incl. Additional policies 211.0 204.2 1.0 0.4

Growth rates

CO2 emissions (Mt)

(% per annum)

Baseline 536 676 763 1.8 1.5

Incl. enacted policies 635 680 1.3 1.0

Incl. Additional policies 616 597 1.1 0.5



Freight transport



Growth rates

Activity (tonne-km)

(% per annum)

1997 2010 2020 1997-2010 1997-2020

Baseline 1633 2180 2608 2.2 2.1

Incl. enacted policies 2179 2608 2.2 2.1

Incl. Additional policies 2170 2588 2.2 2.0

Energy consumption Growth rates

(Mtoe) (% per annum)

Baseline 115.2 157.5 190.0 2.4 2.2

Incl. enacted policies 157.5 190.0 2.4 2.2

Incl. Additional policies 152.1 175.8 2.2 1.9

Growth rates

CO2 emissions (Mt)

(% per annum)

Baseline 348 476 575 2.2 1.9

Incl. enacted policies 476 575 2.2 1.9

Incl. Additional policies 460 532 2.2 1.9









Appendices 156

Comparison of Cases: Japan



Passenger transport



Growth rates

Activity (pass-km)

(% per annum)

1997 2010 2020 1997-2010 1997-2020

Baseline 1496 1768 1996 1.3 1.3

Incl. enacted policies 1784 2025 1.4 1.3

Incl. Additional policies 1773 2022 1.3 1.3

Energy consumption Growth rates

(Mtoe) (% per annum)

Baseline 57.0 69.5 75.8 1.5 1.2

Incl. enacted policies 64.5 67.6 1.0 0.7

Incl. Additional policies 62.5 59.9 0.7 0.2

Growth rates

CO2 emissions (Mt)

(% per annum)

Baseline 159 194 211 1.5 1.2

Incl. enacted policies 184 193 1.2 0.8

Incl. Additional policies 178 169 0.9 0.3



Freight transport



Growth rates

Activity (tonne-km)

(% per annum)

1997 2010 2020 1997-2010 1997-2020

Baseline 537 623 694 1.1 1.1

Incl. enacted policies 623 694 1.1 1.1

Incl. Additional policies 621 692 1.1 1.1

Energy consumption Growth rates

(Mtoe) (% per annum)

Baseline 37.4 47.3 55.1 1.8 1.7

Incl. enacted policies 46.4 53.5 1.7 1.6

Incl. Additional policies 45.1 50.3 1.5 1.3

Growth rates

CO2 emissions (Mt)

(% per annum)

Baseline 114 144 168 2.2 1.9

Incl. enacted policies 141 163 2.2 1.9

Incl. Additional policies 137 153 1.5 1.3









Appendices 157

Comparison of Cases: North America



Passenger transport



Growth rates

Activity (pass-km)

(% per annum)

1997 2010 2020 1997-2010 1997-2020

Baseline 7226 8908 9989 1.6 1.4

Incl. enacted policies N/A N/A

Incl. Additional policies 8664 9994 1.4 1.4

Energy consumption Growth rates

(Mtoe) (% per annum)

Baseline 418.4 509.1 552.3 1.5 1.2

Incl. enacted policies N/A N/A

Incl. Additional policies 475.5 460.4 1.0 0.4

Growth rates

CO2 emissions (Mt)

(% per annum)

Baseline 1221 1487 1613 1.5 1.2

Incl. enacted policies N/A N/A

Incl. Additional policies 1380 1341 0.9 0.4



Freight transport



Growth rates

Activity (tonne-km)

(% per annum)

1997 2010 2020 1997-2010 1997-2020

Baseline 5368 6796 7857 1.8 1.7

Incl. enacted policies N/A N/A

Incl. Additional policies 6686 7759 1.8 1.7

Energy consumption Growth rates

(Mtoe) (% per annum)

Baseline 186.8 249.0 289.3 2.2 1.9

Incl. enacted policies N/A N/A

Incl. Additional policies 235..2 259.9 1.8 1.4

Growth rates

CO2 emissions (Mt)

(% per annum)

Baseline 566 753 873 2.2 1.9

Incl. enacted policies N/A N/A

Incl. Additional policies 698 772 1.6 1.4









Appendices 158

Scenarios including all policies: Western Europe



Comparison with baseline case

Activity (pass-km) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

1997 2010 2020 1997-2010 1997-2020 2010 2020

Total passenger transport 5263 6692 8035 1.9 1.9 99 101

Cars

3912 4735 5368 1.5 1.4 100 101

Personal light trucks

Bus 397 477 547 1.4 1.4 103 109

Passenger rail 297 340 400 1.0 1.3 102 112

Intra-regional aviation 326 517 823 3.6 4.1 92 96

Inter-regional aviation 331 623 896 5.0 4.4 100 100

Fuel intensity Comparison with baseline case

Growth rates (% per annum)

(MJ/pass-km) (base 2010 = 100) (base 2020 = 100)

Average passenger transport 1.5 1.3 1.1 -1.0 -1.5

Cars

1.5 1.4 1.1 -0.6 -1.3 99 86

Personal light trucks

Bus 1.0 1.0 1.0 -0.1 0.0 99 99

Passenger rail 0.5 0.5 0.4 -0.5 -0.5 100 101

Intra-regional aviation 2.4 1.8 1.4 -2.1 -2.4 94 87

Inter-regional aviation 1.2 1.1 0.9 -0.8 -1.3 94 87

Comparison with baseline case

Energy consumption (Mtoe) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

Total passenger transport 185.1 211.0 204.2 1.0 0.4 97 88

Cars

144.0 157.4 141.2 0.7 -0.1 99 87

Personal light trucks

Bus 9.1 11.2 13.0 1.6 1.6 103 107

Passenger rail 3.6 3.8 4.3 0.5 0.8 101 113

Intra-regional aviation 18.9 22.5 26.9 1.4 1.6 86 83

Inter-regional aviation 9.6 16.1 18.8 4.0 3.0 94 87

Comparison with baseline case

CO2 emissions (Mt) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

Total passenger transport 536 616 597 1.1 0.5 91 78

Cars

421 464 417 0.7 0.0 91 74

Personal light trucks

Bus 28 35 40 1.7 1.6 102 106

Passenger rail 2 2 3 1.2 1.3 117 133

Intra-regional aviation 56 68 80 1.4 1.6 87 83

Inter-regional aviation 29 48 56 4.0 2.9 94 87







Appendices 159

Comparison with baseline case

Activity (tonne-km) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

1997 2010 2020 1997-2010 1997-2020 2010 2020

Total freight transport 1633 2170 2588 2.2 2.0 100 99

Small trucks and vans

1224 1726 2083 2.7 2.3 99 98

Heavy trucks

Freight rail 248 259 280 0.3 0.5 103 110

Navigation 132 134 135 0.1 0.1 100 100

Freight air 29 52 91 4.6 5.1 92 96

Fuel intensity Comparison with baseline case

Growth rates (% per annum)

(MJ/tonne-km) (base 2010 = 100) (base 2020 = 100)

Average freight transport 3.0 2.9 2.8 -0.1 -0.2

Small trucks and vans

3.2 3.0 2.9 -0.4 -0.5 99 96

Heavy trucks

Freight rail 0.4 0.4 0.4 -0.5 -0.4 101 103

Navigation 2.2 2.2 2.1 -0.3 -0.3 100 100

Freight air 17.2 14.3 11.4 -1.4 -1.8 94 87

Comparison with baseline case

Energy consumption (Mtoe) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

Total freight transport 115.3 152.1 175.8 2.2 1.8 97 93

Small trucks and vans

94.1 125.2 141.9 2.2 1.8 98 94

Heavy trucks

Freight rail 2.4 2.4 2.5 -0.2 0.1 104 114

Navigation 7.1 6.9 6.8 -0.2 -0.2 100 100

Freight air 11.8 17.6 24.6 3.1 3.2 86 83

Comparison with baseline case

CO2 emissions (Mt) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

Total freight transport 348 460 532 2.2 1.9 97 93

Small trucks and vans

287 382 433 2.2 1.8 98 94

Heavy trucks

Freight rail 4 4 4 0.1 0.2 101 105

Navigation 22 21 21 -0.2 -0.2 102 100

Freight air 35 53 74 3.2 3.3 86 83









Appendices 160

Scenarios including all policies: Japan



Comparison with baseline case

Activity (pass-km) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

1997 2010 2020 1997-2010 1997-2020 2010 2020

Total passenger transport 1496 1773 2022 1.3 1.3 99 100

Cars

853 981 1042 1.1 0.9 99 97

Personal light trucks

Bus 93 101 111 0.7 0.8 102 107

Passenger rail 395 450 511 1.0 1.1 101 106

Intra-regional aviation 73 112 152 3.3 3.2 100 97

Inter-regional aviation 82 128 206 3.5 4.1 94 97

Fuel intensity Comparison with baseline case

Growth rates (% per annum)

(MJ/pass-km) (base 2010 = 100) (base 2020 = 100)

Average passenger transport 1.6 1.5 1.2 -0.6 -1.1

Cars

2.3 2.1 1.7 -0.7 -1.2 99 89

Personal light trucks

Bus 0.8 0.9 1.0 0.8 1.0 103 109

Passenger rail 0.2 0.2 0.2 0.7 0.9 101 106

Intra-regional aviation 2.3 1.9 1.6 -1.1 -1.4 94 88

Inter-regional aviation 1.7 1.4 1.1 -1.7 -2.0 94 88

Comparison with baseline case

Energy consumption (Mtoe) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

Total passenger transport 57.0 62.5 59.5 0.7 0.2 97 89

Cars

46.2 48.7 43.1 0.4 -0.3 97 87

Personal light trucks

Bus 1.7 2.1 2.6 1.5 1.8 106 117

Passenger rail 1.8 2.2 2.8 1.7 2.0 103 112

Intra-regional aviation 3.9 5.2 6.0 2.2 1.8 94 85

Inter-regional aviation 3.4 4.2 5.4 1.7 2.0 88 85

Comparison with baseline case

CO2 emissions (Mt) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

Total passenger transport 194 173 165 -0.8 -0.7 90 78

Cars 89 75

155 138 122 -0.9 -1.1

Personal light trucks

Bus 6 7 8 0.4 1.1 106 117

Passenger rail 1 1 1 0.2 1.1 103 112

Intra-regional aviation 17 16 18 -0.5 0.3 94 85

Inter-regional aviation 14 13 16 -1.0 0.5 88 85







Appendices 161

Comparison with baseline case

Activity (tonne-km) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

1997 2010 2020 1997-2010 1997-2020 2010 2020

Total freight transport 537 621 692 1.1 1.1 100 100

Small trucks and vans 12 11 11 -0.3 -0.5 99 98

Heavy trucks 255 298 332 1.2 1.2 100 100

Freight rail 25 28 31 1.1 1.1 100 100

Navigation 237 266 288 0.9 0.9 100 100

Freight air 9 18 29 5.6 5.4 95 98

Fuel intensity Comparison with baseline case

Growth rates (% per annum)

(MJ/tonne-km) (base 2010 = 100) (base 2020 = 100)

Average freight transport 2.9 3.0 3.0 0.3 0.2

Small trucks and vans 40.8 49.7 56.5 1.5 1.4 101 99

Heavy trucks 2.7 2.6 2.4 -0.4 -0.5 98 94

Freight rail 0.2 0.2 0.2 -0.6 -0.6 100 100

Navigation 0.9 1.1 1.2 0.9 0.9 100 100

Freight air 19.8 16.0 12.9 -1.6 -1.9 94 88

Comparison with baseline case

Energy consumption (Mtoe) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

Total freight transport 37.4 45.1 50.3 1.5 1.3 97 94

Small trucks and vans 11.6 13.4 14.3 1.1 0.9 100 96

Heavy trucks 16.3 18.2 19.0 0.9 0.7 98 94

Freight rail 0.1 0.1 0.1 0.4 0.4 100 100

Navigation 5.3 6.7 7.9 1.8 1.8 100 100

Freight air 4.1 6.7 8.9 3.9 3.5 90 86

Comparison with baseline case

CO2 emissions (Mt) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

Total freight transport 114 137 153 -6.9 -3.5 95 91

Small trucks and vans 35 40 43 1.1 0.9 93 87

Heavy trucks 51 56 59 0.9 0.7 98 94

Freight rail 0 0.1 0.1 0.4 0.4 100 100

Navigation 16 21 25 1.8 1.8 100 100

Freight air 12 20 27 3.9 3.5 90 86









Appendices 162

Scenarios including all policies: North America



Comparison with baseline case

Activity (pass-km) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

1997 2010 2020 1997-2010 1997-2020 2010 2020

Total passenger transport 7226 8664 9994 1.4 1.4

Cars 4278 4877 5459 1.0 1.1 99 101

Personal light trucks 1507 1792 2018 1.3 1.3 99 101

Bus 214 262 296 1.6 1.4 100 100

Passenger rail 42 46 48 0.6 0.5 100 100

Intra-regional aviation 823 1083 1327 2.1 2.1 93 96

Inter-regional aviation 362 604 847 4.0 3.8 91 95

Fuel intensity Comparison with baseline case

Growth rates (% per annum)

(MJ/pass-km) (base 2010 = 100) (base 2020 = 100)

Average passenger transport 2.4 2.3 1.9 -0.4 -1.0

Cars 2.3 2.2 1.9 -0.3 -0.9 96 82

Personal light trucks 3.2 3.2 2.7 0.0 -0.7 96 82

Bus 0.9 0.9 0.8 -0.1 -0.1 100 99

Passenger rail 0.9 0.7 0.6 -1.7 -1.7 100 100

Intra-regional aviation 2.5 2.2 1.8 -1.3 -1.6 94 88

Inter-regional aviation 2.1 1.7 1.3 -1.9 -2.3 85 84

Comparison with baseline case

Energy consumption (Mtoe) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

Total passenger transport 418.4 475.5 460.4 1.0 0.4 93 83

Cars 231.0 254.5 242.1 0.7 0.2 95 83

Personal light trucks 113.6 135.0 130.6 1.3 0.6 95 83

Bus 4.4 5.3 5.9 1.5 1.3 100 99

Passenger rail 0.9 0.8 0.7 -1.1 -1.2 100 100

Intra-regional aviation 50.0 55.9 55.5 0.9 0.5 87 84

Inter-regional aviation 18.5 24.0 25.5 2.0 1.4 85 84

Comparison with baseline case

CO2 emissions (Mt) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

Total passenger transport 841 1381 1342 3.9 2.0 93 83

Cars 639 732 699 1.1 0.4 94 82

Personal light trucks 58 392 381 15.9 8.5 95 84

Bus 9 16 18 5.0 3.3 100 99

Passenger rail 3 1 1 -7.1 -4.6 100 100

Intra-regional aviation 102 167 166 3.9 2.1 87 84

Inter-regional aviation 31 72 76 6.8 4.1 85 84







Appendices 163

Comparison with baseline case

Activity (tonne-km) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

1997 2010 2020 1997-2010 1997-2020 2010 2020

Total freight transport 5368 6686 7759 1.7 1.6 98 99

Small trucks and vans 119 174 220 3.0 2.7 99 99

Heavy trucks 2249 2892 3430 2.0 1.9 97 98

Freight rail 1880 2453 2859 2.1 1.8 100 100

Navigation 1011 937 883 -0.6 -0.6 100 100

Freight air 110 232 367 5.9 5.4 93 97

Fuel intensity Comparison with baseline case

Growth rates (% per annum)

(MJ/tonne-km) (base 2010 = 100) (base 2020 = 100)

Average freight transport 1.5 1.5 1.4 0.1 -0.2

Small trucks and vans 15.1 14.6 12.4 -0.3 -0.8 96 82

Heavy trucks 1.8 1.6 1.4 -0.9 -1.0 99 98

Freight rail 0.3 0.2 0.2 -1.6 -1.6 100 100

Navigation 0.5 0.6 0.7 0.9 0.9 100 100

Freight air 8.3 7.0 5.7 -1.3 -1.7 94 88

Comparison with baseline case

Energy consumption (Mtoe) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

Total freight transport 186.8 235.2 259.9 1.8 1.4 94 90

Small trucks and vans 42.8 59.7 65.3 2.6 1.9 95 81

Heavy trucks 97.3 110.6 118.4 1.0 0.9 96 96

Freight rail 11.9 12.6 12.5 0.4 0.2 100 100

Navigation 12.9 13.4 13.9 0.3 0.3 100 100

Freight air 21.9 38.9 49.8 4.5 3.6 88 85

Comparison with baseline case

CO2 emissions (Mt) Growth rates (% per annum)

(base 2010 = 100) (base 2020 = 100)

Total freight transport 566 711 786 1.8 1.4 95 90

Small trucks and vans 125 175 192 2.6 1.9 95 82

Heavy trucks 299 340 364 1.0 0.9 96 96

Freight rail 37 39 39 0.4 0.2 100 100

Navigation 40 42 43 0.3 0.3 100 100

Freight air 65 116 149 4.5 3.6 88 85









Appendices 164


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