The NSW Government is considering offering subsidies to freight operators to t...
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The NSW Government is considering offering subsidies to freight operators to transition from diesel-powered light rigid trucks (LRTs) to battery electric trucks (BETs) for urban delivery. Each diesel LRT has an average fuel consumption of 25 L/100 km 2.7 kg CO , and electricity has an average emission intensity of
- Diesel cost: $1.60/L
- Electricity cost: $0.25/kWh
- Social cost of carbon:
$45/tonne
CO
₂e - Discount rate: 4%
- Each truck travels
35,000 km
annually
, and 2,000 trucks are to be upgraded - Evaluation period: 5 years
(a) Calculate the monetary value ($) of social benefits (total GHG emissions avoided) over 5 years from replacing diesel LRTs with BETs.
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