Transportation’s Role in the Climate ChallengeThe Climate ChallengeThe Climate ChallengeCan Transportation Help?Slide 5Transportation’s Role in the Climate IssueHow Can Policy HelpProgram in TransportationTransportation’s Role in the Climate ChallengeTransportation’s Role in the Climate ChallengeAlain L. KornhauserProfessor, Operations Research & Financial EngineeringDirector, Program in Transportation Princeton UniversityTRANSPORTATION & INFRASTRUCTURE ISSUES for the NEXT DECADE Princeton University, Woodrow Wilson SchoolMarch 6, 2009Program in TransportationThe Climate Challenge•It’s a global problem stemming from our fundamental way of life:–The size of our population–Our view on a “standard of living”–The economy that sustains both•Transportation is a intermediate good: –Its sole value is the creation of time and place utility while incurring costs for our standard of living–Thus some elements, such as land use, ride sharing, SUVs are primarily standard of living issues•Which have been facilitated by Transportation•Transportation serves many elements (people, goods) in many ways (modes)–Powered almost exclusively by an inexpensive, highly portable energy sourceProgram in TransportationThe Climate Challenge•It’s a global problem stemming from our fundamental way of life:–The size of our population–Our view on a “standard of living”–The economy that sustains bothProgram in TransportationCan Transportation Help?•Transportation is a intermediate good: –Its sole value is the creation of time and place utility while incurring costs for our standard of living–Thus some elements, such as land use, ride sharing, SUVs are primarily standard of living issues•Which have been facilitated by Transportation•Transportation serves many elements (people, goods) in many ways (modes)–Powered almost exclusively by an abundant, inexpensive, highly portable energy source•Transportation has helped with similar crises in the recent past:–Air Pollution (1970 Clean Air Act, etc.) •Catalytic converters (Legislative mandate)•CAFE standards •Lead-free gasoline•Cleaner engine designs, banning of 2-cycle engines–Essentially all transportation technology related, essentially no standard of living related (land-use, ride sharing)Program in Transportationhttp://www.eia.doe.gov/emeu/aer/pdf/aer.pdfhttp://www.eia.doe.gov/emeu/aer/pdf/aer.pdf(1015)Program in TransportationTransportation’s Role in the Climate Issue•Mostly about consumption of Petroleum–Which can’t be cleaned•Must Consume Less–Use more efficiently without reducing standard of living–Create a different abundant, inexpensive, highly portable energy source•Hydrogen•Clean Electricity (Nuclear, Clean Coal)Program in TransportationHow Can Policy Help •Creation of–Abundant: •Technology investment on Cleaning Coal;•Risk absorption with strict regulatory oversight on New Nuclear Power–Portable:•Technology investment in energy storage (batteries) –Inexpensive•Impose exorbitant Sin Tax on Petroleum•Treat it as we’ve treated cigarettes–>$2.575 per gallon ($2.575 per pack in NJ ; leading the nation)–Prohibit advertising of Petroleum powered automobiles–Place in large letters: “Hazardous to your Planet” across the side of every “Hummer”–Allow the parking of any gasoline powered vehicle only at the most distant outer fringes of any parking