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Abstract
Although stricter standards for vehicles will reduce emissions to air significantly by 2010, a number of problems will
remain, especially related to particulate concentrations in cities, ground-level ozone, and CO2. To evaluate the impacts of
new policy measures, tools need to be available that assess the potential benefits of these measures in terms of the
vehicle fleet, fuel choice, modal choice, kilometers driven, emissions, and the impacts on public health and related external
costs.
The ExternE accounting framework offers the most up to date and comprehensive methodology to assess marginal
external costs of energy-related pollutants. It combines emission models, air dispersion models at local and regional scales
with dose response functions and valuation rules. Vito has extended this accounting framework with data and models
related to the future composition of the vehicle fleet and transportation demand to evaluate the impact of new policy
proposals on air quality and aggregated (total) external costs by 2010.
Special attention was given to uncertainty analysis. The uncertainty for more than 100 different parameters was
combined in Monte Carlo simulations to assess the range of possible outcomes and the main drivers of these results.
Although the impacts from emission standards and total fleet mileage look dominant at first, a number of other factors
were found to be important as well. This includes the number of diesel vehicles, inspection and maintenance (high-emitter
cars), use of air conditioning, and heavy duty transit traffic.
D 2004 Elsevier B.V. All rights reserved.
Keywords: Environmental external costs; Monte Carlo; Uncertainty analysis; Modal split; Air pollution impacts; Scenario
1. Introduction
In the most recent ExternE project, the impact
pathway methodology for the calculation of energyrelated externalities was updated and extended spe-
cifically for the application to transportation problems (Friedrich and Bickel, 2001; Int Panis and De
Nocker, 2001). Several studies have already used
this new framework for the calculation of marginal
costs of air pollution for different transportation
modes and vehicles (e.g. Int Panis et al., in
press,2000b, 2001a,b). Studies of marginal externalities (on a per kilometre or per litre of fuel basis),
have provided information that proved useful to
specific policy options (fuel choice, technological
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2. Methodology
2.1. The ExternE methodology
The European ExternE project provides an accounting framework based on an impact pathway
methodology. It basically follows a pollutant from its
emission until it causes an impact or damage. It
allows monetization of environmental damage costs
from air pollution for a specific technology and
trajectory. It estimates in detail the generation of
emissions, their atmospheric dispersion, the exposure
of man and environment to the pollutants, and the
resulting impacts on public health, agriculture, and
buildings. More detailed descriptions of this methodology can be found in Friedrich and Bickel
(2001).
Marginal externalities are dominated by the public
health impacts from emissions of PM2.5, especially
important for diesel-fuelled vehicles and in urban
traffic and from nitrate aerosols (following emissions
from NOx). There is a large uncertainty on these
results, as uncertainties in different steps are accumulated. This uncertainty is documented in Rabl and
Spadaro (1999, 2001) and studied in detail in Int
Panis et al. (2002) but is not further discussed here.
In this paper, we focus on the additional uncertainty
resulting from the aggregation of the site and trajectory specific data in a total air pollution cost for an
entire country.
2.2. Uncertainty calculations
Monte Carlo analysis is a common name for a
group of iterative statistical techniques. In this paper,
we study the propagation of errors through complex
calculations. The crisp estimates of every parameter
in the calculation are replaced by a probability
distribution that describes the range of values that
the parameter can take, as well as the probability
that a certain value will actually occur. This procedure is then repeated a large number of times
(typically between 1000 and 10,000 trials) so that
a large number of combinations of different input
parameters occur. All calculations for this study
were performed with the commercially available
Crystal Balln software of Decisioneering on a
desktop computer.
L. Int Panis et al. / Science of the Total Environment 334 335 (2004) 287298
289
(De Vlieger I., personal communication). These distributions also reflect the business as usual scenario
which takes into account all policy options and
technical evolutions that had been decided on 1/1/
2002. Evidently, results can change significantly
when other scenarios are applied.
2.3.1. Fleet size of motorcycles
In the minimal scenario, we assume a yearly 10%
reduction of new motorcycles (this is an extrapolation
of the 1999 2000 evolution). The average scenario
keeps the number of new motorcycles sold constant at
the 2000 level. The maximal scenario extrapolates the
increase from the observed 1991 2000 trend.
2.3.2. Fleet size of mopeds (two-stroke engines)
The minimal scenario extrapolates the yearly decrease from the observed historical (1990 1998)
trend. The central estimate is an average growth equal
to the 1993 1998 average. The maximal scenario
assumes a continuous growth extrapolated from scooter sales in the 1990 1998 period.
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Table 1
The central estimate and distribution of all statistics used in the 2010 aggregation for motorcycles
Parameter
Estimate
Source
Distribution
Motivation
431.742
532.000
36%
[*]
[*]
[*]
300261 538981
350.874 750.988
23 44%
Triangular
Triangular
Custom
47%
17%
4%
14%
[*]
[*]
[**]
[**]
41 56%
15 20%
2 6% (90%-ile)
14 19% (90%-ile)
Custom
Custom
Normal
Uniform
35%
[**]
35 40% (Range)
Uniform
See text
See text
Survival curves compiled
from observations
0%
[*]
0.1% (S.D.)
Normal
4.580 km/year
5.176 km/year
[**]
[*], [**]
345 (S.D.)
3952 6400
Normal
Uniform
60%
[**], [***]
55 65%
Triangular
70%
[**], [***]
65 75%
Triangular
125%
[**], [***]
120 130%
Triangular
Cornelis 2002
Every expert opinion has the
same probability
No data sensitivity analysis,
max 5% deviation
No data sensitivity analysis,
max 5% deviation
No data sensitivity analysis,
max 5% deviation
50% Urban
[*],[**]
40 60% (Range)
Triangular
50% Rural
30% Urban
[*], [**]
20 35%
Triangular
50% Rural
0%
0%
0%
[*], [**]
[*], [**]
[*], [**]
40 60%
0 20%
0 10%
0 30%
Triangular
Triangular
Uniform
Emissions factors
CO
6%
[**]
94 106%
Normal
VOC
PM
NOx
Fuel consumption (CO2 SO2)
10%
15%
20%
8%
[**]
[**]
[**]
[**]
90 110%
85 115%
80 120%
92 108%
Normal
Normal
Normal
Normal
Fleet parameters
Fleet-size four-stroke vehicles
Fleet-size two-stroke vehicles
Fleet size uncontrolled
(scrappage of old vehicles)
Fleet size stage 1
Fleet size stage 2
Fraction of two-stroke >50 cc
Fraction < 250 cc
Fraction >750 cc
Mileage parameters
Average mileage growth
(individual motorcycle)
Average mileage of two strokes
Average mileage of four strokes
Two-stroke >50 cc mileage
fraction of average
Four-stroke < 250 cc mileage
fraction of average
Four-stroke >750% mileage
fraction of average
Mobility parameters
Geographical mileage distribution
two-stroke
Geographical mileage distribution
four-stroke
[*] Cornelis E., 2002, personal communication; [**] Cornelis (2001), Cornelis et al. (2002); [***] Andre, 1999.
L. Int Panis et al. / Science of the Total Environment 334 335 (2004) 287298
291
Table 2
The central estimate and distribution of all statistics used in the 2010 aggregation for buses
Parameter
Estimate
Source
Distribution
Motivation
Fleet parameters
Fleet-size city buses
Fleet-size coaches
8.306
5.962
[*]
[*]
208 (S.D.)
149 (S.D.)
Normal
Normal
Maximum deviation 5%
Maximum deviation 5%
Mileage parameters
Average mileage growth (per vehicle, city bus)
Average mileage growth (per vehicle, coach)
Yearly mileage of city bus (basis 1995)
Yearly mileage of coach (basis 1995)
0%
0.7%
46.240 km
23.750 km
[*]
[*]
[*]
[*]
0.1 % (S.D.)
0.1 % (S.D.)
45,315 47,165 km
22,563 24,938 km
Normal
Normal
Normal
Normal
Sensivity analysis
Sensivity analysis
Relative error 2%
Relative error 5%
Mobility parameters
Geographical mileage distribution (city bus)
61% Urban
[*], [**]
56.6 65%
Normal
[*], [**]
20 30%
Triangular
Sensitivity analysis
[*]
[*]
[*]
15 45%
10 30%
5 20%
Triangular
Triangular
Uniform
Sensitivity analysis
Sensitivity analysis
Sensitivity analysis
(same as PC)
Sensitivity analysis
(same as PC)
Sensitivity analysis
38% Rural
2% Highway
25% Urban
38% Rural
38% highway
30%
20%
12.5%
10%
[*]
2 10%
Uniform
Cold-start fraction
1%
[*]
5% 15%
Uniform
[*] De Vlieger and Cornelis TEMAT BeBAUHDP scenario, [**] Smer Trend HDP scenario.
3. Results
3.1. The total external cost per vehicle class
3.1.1. Motorcycles
The mean impact from mopeds and motorcycles is
estimated at 41.6 million Euro and 42.4 million Euro,
respectively, for the year 2000. The 95% confidence
interval for the total (84 million) is between 66 and
104 million Euro.
In 2010, this impact could rise to 102 (71 137)
million Euro. The result from the Monte Carlo procedure is shown in Fig. 1 and Table 4. This mode is
the only one in road transport for which externalities
are expected to increase. This increase suggests that
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Table 3
The central estimate and distribution of all statistics used in the 2010 aggregation for Heavy-duty vehicles (freight)
Parameter
Estimate
Fleet parameters
Fleet size
3.5 7.5
7.5 16
16 32
32 40
27,909
34,120
92,242
143
Mileage parameters
Average mileage growth
(per vehicle, until 2005)
Average mileage growth
(per vehicle, after 2005)
Fraction foreign trucks in
haulage on national roads
Yearly mileage (basis 1995)
3.5 7.5
7.5 16
16 32
32 40
Source
Distribution
[***]
90%-ile
26514 29304
32414 35826
85785 98699
133 153
Normal
Motivation
Maximum
Maximum
Maximum
Maximum
deviation
deviation
deviation
deviation
2.2984%
[*]
0.5 % (S.D.)
Normal
Sensitivity analysis
1.7984%
[*]
0.5 % (S.D.)
Normal
Sensitivity analysis
128%
[*]
99 156%
Normal
[*]
90%-ile
Normal
(10% deviation
possible but unlikely)
31.138 km
35.290 km
40.674 km
38957 km
29581 32695
33526 37055
38640 42708
37009 40905
km
km
km
km
Mobility parameters
Parameter
Estimate
Motivation
30%
7.5 16
16 32
32 40
Urban peak traffic (large cities)
20%
15%
10%
30%
[*]
5 30%
Triangular
20%
[*]
5 20%
Triangular
10%
[*]
2 10%
Triangular
4%
[*]
3 5%
Uniform
11%
2%
[*]
[*]
7 15%
0 3%
Uniform
Triangular
Sensitivity analysis
(same as PC)
Sensitivity analysis
(same as PC)
Sensitivity analysis
(same as PC)
Based on 10 20
km/working day
Sensitivity analysis
90%
0.1%
80 95%
0 0.1%
Triangular
Triangular
Sensitivity analysis
Sensitivity analysis
2.5%
0 5%
Triangular
Sensitivity analysis
10%
5 15%
Traingular
Sensitivity analysis
25%
20 30%
Triangular
Sensitivity analysis
Other parameters
Efficiency of PM filters
Penetration of advanced PM
reduction techniques in Euro2
Penetration of advanced PM
reduction techniques in Euro3
Penetration of advanced PM
reduction techniques in Euro4
Penetration of advanced PM
reduction techniques in Euro5
5%
5%
7%
7%
Normal
Sensitivity analysis
(cfr., passenger cars)
10% points
[*] De Vlieger and Cornelis, personal communication, [**] SMER, Trend scenario HDG, [***] TEMAT BeBAU HDG 2010.
L. Int Panis et al. / Science of the Total Environment 334 335 (2004) 287298
293
3.1.3. Buses
The total air pollution externalities amount to 39
million Euro for Belgian buses in the year 2010, which
is fairly small compared to other modes. The 95%
confidence interval on the calculation is very narrow at
36 43 million Euro. Most of the externalities (85%)
can be attributed to city buses. Externalities from
coaches are much lower, because they are used more
often on highways and even in rural areas where
exposure of people to their emissions is low. City buses
on the other hand have higher emissions because of
their highly dynamic driving pattern. They are mostly
used in urban or densely populated places so that their
effect on public health impacts is much larger.
We can compare the 2010 total with the estimate
for 2000 (138 million Euro) and calculations for
Table 4
External costs per vehicle class in million Euro
Vehicle class
2000
2010
95% Confidence
interval for 2010
Motorcycles
Passenger cars
Buses
Trucks
Total
84
1541
138
999
2821
102
721
39
603
1468
71 137
637 937
36 43
516 702
1340 1680
Change
2000/2010
+ 21%
53%
72%
40%
48%
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4. Discussion
To study which of the parameters are the most
important contributors to the variation, we have calculated rank correlations which are a measure of the
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The annual average mileages of the different vehicle classes, such as mopeds, motorcycles, small
trucks, and LPG passenger cars are generally thought
to be poorly known. But their contribution to air
pollution is low, either because of their low emissions
and/or marginal share in the (total) fleet of road
vehicles. A similar argument can be made for petrol
cars. Although they form a major part of the fleet, the
range of different mileage estimates from literature is
much smaller (typically less than 10%), and their
contribution to external costs is marginal compared
to diesel-fuelled vehicles.
4.3. Buses and coaches
Uncertainty in the estimate for buses is dominated
by lack of data on city bus traffic. The main factor is the
mileage fraction which is travelled in densely populated areas. There are no usable statistics available that
distinguish between public transport in rural or urban
areas. The second and third most important factors are
the uncertainty about the fleet size and mileage in 2010,
which clearly depend on policy decisions and are
therefore difficult to model. Finally, cold-start emissions prove to be especially important. On the other
hand, knowing the efficiency of particulate filters
precisely is not very important, because the introduction scenario for public buses is exactly known.
4.4. Trucks
Two parameters dominate the uncertainty on the
estimate for heavy-duty vehicles: the unknown growth
rate of the haulage industry and the contribution of
foreign trucks.
The expected increase in mileage by trucks is very
hard to predict, even from available historical data. It
was already demonstrated before that, even small,
differences in assumptions make international comparisons very difficult (Int Panis et al., in press). In
scenario analyses, this poses no problem because this
is usually one of the parameters that determine the
different policy options. The effect of foreign trucks
on the other hand is much harder to correct for. It is a
problem that is probably more important in the
Benelux region than in other European countries.
Despite the conservative assumptions, impacts may
be large. It is absolutely necessary that statistics are
collected on the use of Belgian roads by foreign
trucks, especially those that may not conform to
European emission legislation (cfr., the high emitter
argument made for passenger cars).
Fig. 3. Rank correlations between all parameters and the total external costs in a Monte Carlo run with 10,000 trials.
L. Int Panis et al. / Science of the Total Environment 334 335 (2004) 287298
5. Conclusions
Monte Carlo analysis is a convenient tool to
analyse the propagation of errors in the aggregation
of marginal impacts.
Even if accurate data are not available for the
construction of probability distributions, the analysis
reveals which estimates should preferably be improved
to obtain a better estimate of the dependant variable.
The most important factors that contribute to the
uncertainty of our estimate for 2010 are the fraction
high-emitter diesel passenger cars, the possible contribution of air conditioning, and the impacts of
foreign trucks. All three have been neglected in a
number of recent studies.
Additional studies that provide more accurate estimates for these parameters can reduce the uncertainty
of aggregated external cost estimates.
The additional uncertainty that arises from the
aggregation of marginal externalities seems small
when compared to the uncertainties associated with
emissions, atmospheric modelling, epidemiology, and
monetary valuation (Int Panis et al., 2002; Rabl and
Spadaro, 1999, 2001).
Additional uncertainty is large when compared to
the expected effect of local policies. Most of the
297
decreasing trend can be attributed to European standards adopted during the previous decade.
Despite the uncertainty of the value of environmental externalities, we conclude that the amount is high
and will remain significant in 2010. Reducing impacts
will therefore remain important to policy makers.
Acknowledgements
This paper is based on work cofinanced by the
Belgian Federal Office for Scientific, Technical and
Cultural Affairs (OSTC). The authors want to thank
Mrs. I. De Vlieger for commenting on an earlier
version of this paper.
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