Impacts of Government Policies, Fuel Cell Cost, and Battery Cost on Greenhouse Gas Emission of Light-Duty Vehicles

The aim of this paper is to study the impact of public government policies, fuel cell cost, and battery cost on greenhouse gas (GHG) emissions in the US transportation sector. The model includes a government model and an enterprise model. To examine the effect on GHG emissions that fuel cell and battery cost has, the optimization model includes public policy, fuel cell and battery cost, and a market mix focusing on the GHG effects of four different types of vehicles, 1) gasoline-based 2) gasoline-electric hybrid or alternative-fuel vehicles (AFVs), 3) battery-electric (BEVs) and 4) fuel-cell vehicles (FCVs). The public policies taken into consideration are infrastructure investments for hydrogen fueling stations and subsidies for purchasing AFVs. For each selection of public policy, fuel cell cost and battery cost in the government model, the enterprise model finds the optimum vehicle design that maximizes profit and updates the market mix, from which the government model can estimate GHG emissions. This paper demonstrates the model using FCV design as an illustrative example. © 2013 by ASME