Energy modeling on cleaner vehicles for reducing CO2 emissions in Japan

Abstract This study is to evaluate the impact of cleaner vehicles on energy systems and CO 2 emissions in the transportation sector in Japan. The transportation sector has the characteristic of spending petroleum. Even when the cost of petroleum rises, conventional vehicles cannot switch fuels to alternative energy right away. Cleaner vehicles, such as fuel cell vehicles, would be one of the alternative technologies in the transportation sector. It is supposed to have excellent performance in fuel efficiency and has strong possibility to reduce CO 2 drastically. This paper uses a multi-period market equilibrium model to explore the impacts of cleaner vehicles on the passenger transportation sector in Japanese energy system out to the year 2040. A Btu tax is tentatively imposed to evaluate the effect of fuel cost on energy consumption in the transportation sector. Financial parameters such as capital cost and operating cost are considered to summarize the profit in taxation case. The result of this study shows that fuel cell vehicles have a great effect on reducing CO 2 emissions especially when Btu taxes are imposed, which in turn has the advantage of encouraging a more diverse set of technologies and fuels. The analysis that petroleum consumption can be reduced using fuel cell vehicles will have effects on perspectives on energy systems in Japan.