Explore policies to stimulate Bio LNG using a social cost benefit analysis

Explore policies to stimulate Bio LNG using a social cost benefit analysis

Van den Borne, B.

Herder, P.M.
Annema, J.A.
Stikkelman, R.M.

Technology, Policy and Management

Energy & Industry

2015-06-19

In the joint vision on the future energy mix LNG and bio LNG are being referred to as important opportunities for the Dutch economy to sustain heavy road transport fuels. New policies have to be developed to stimulate a transition to bio LNG in the Netherlands. The economic and societal effects of these new policies are unknown. This research will explore policy alternatives that will fit in the national and European context by a literature review and interviews. The effects of the policies will be examined by a social cost benefit analysis with a scope to 2050. Normally this method is used as a decision tool for infrastructure projects, in this research the value of the SCBA will be evaluated in more uncertain areas of energy transition to sustainable fuels. All the calculated alternatives score better than the reference diesel case, mainly because the forecasted increasing gap between diesel and LNG fuel prices. Different alternatives result in other distribution of effects for the stakeholders. The SCBA increases the insight in the usefulness and feasibility of policy alternatives to stimulate bio LNG. This prevents policies that have a negative effect on the welfare to be developed and. SCBA enhances discussions in the early stage of exploring policy alternatives by providing objective and independent information. Some input data for the SCBA are uncertain, further research on input variables and the connection with a transport model can make future analysis more robust.

Bio LNG
LBM
heavy duty trucks
social cost benefit analysis
alternative fuel
transport
policy analysis

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(c) 2015 Van den Borne, B.