Measure for Measure: Energy Utility Model for Standardized Evaluation of Transportation Efficiency Measures

As the environmental and financial costs of conventional gasoline become more apparent, interest in the concept of transportation efficiency is growing. Broadly, this concept involves using less energy to meet current travel demand and often uses a systems-level approach. The transportation sector has much to learn from the electric and thermal energy sectors, whose demand management strategies have used established screening tools to assess the environmental and financial benefits of efficiency measures for years. The adoption of such screening tools may be ideal for the transportation sector as electric vehicles (EVs) bring these two sectors together. An example discusses how the Vermont state screening tool can be used to evaluate a transportation measure: switching from a conventional vehicle to an EV. Screening tool results demonstrate that the estimated cost benefits of an EV vary from –$15,911 to $24,645, depending on the EV model, miles driven annually, and externalities considered, among other factors. The cost-effectiveness of EVs was improved by including avoided health costs because of reduced tailpipe emissions. More broadly, results showed that cost-effectiveness screening tools used in the electric and thermal energy sectors provided a meaningful way to assess potential gains in transportation efficiency and could be used to evaluate other transportation efficiency measures (e.g., bicycle and walking infrastructure, transit). The use of such screening tools will increase communication and collaboration between the energy and transportation sectors while facilitating a systems-based approach to transportation planning and demand management.