The competitiveness of alternative transport fuels for CO2 emissions

This paper examines the potential role of hydrogen and electricity in reducing CO2 emissions from transport. First, we describe the main characteristics, costs and supporting policies of the two alternative fuels. Then we quantify and valuate economically the expected CO2 savings, examining the Italian province of South Tyrol a case study. Through the analysis of three alternative scenarios, results reveal a potential reduction of the Tank-To-Wheel emissions up to 59% in comparison to the do-nothing option, which corresponds to an economic saving of about €543M. These results constitute an instance of the effectiveness of alternative fuels for limiting the effects of climate change deriving from mobility. In terms of transport policy, the integrative approach of hydrogen and electricity, often seen in competitive terms, can indeed be fruitful, especially in a first penetration phase, provided that policy-makers have a long-term vision about future mobility. This should include not only issues related to the technological improvement, but also thoughtful and balanced measures for an efficient carbon policy.