Overhauling public transport to ‘spark’ the use of electric and low-emission vehicles

What is it about?

Petrol and diesel vehicles are known to contribute to air pollution and greenhouse emissions. Yet, many public transport vehicles run on these fuels. To reduce emissions, many cities have now introduced vehicles that operate on alternate fuels such as CNG or electricity. However, overhauling an entire sector of public transport is costly. To that effect, a 2021 case study looked at the efficiency and risk of fleet renewal in a public transport company, DPMK, which operates public buses and trams in Košice, Slovak Republic. The authors considered replacing DPMK buses older than 10 years with new CNG or electric ones. To assess the economic efficiency of the project, they derived its net present value (NPV) from simulations. They found that replacing old buses with a combination of CNG and electric vehicles rather than only electric vehicles was more cost-effective as it involved lesser initial capital, but less profitable in the long-term. However, the profitability of the project improved with financial support.

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Photo by Michael Marais on Unsplash

Photo by Michael Marais on Unsplash

Why is it important?

With the EU aiming to achieve net-zero greenhouse gas emissions by 2050, every effort to reduce carbon emissions is necessary. Public transport systems often have fleets that are old, inefficient, and, therefore, a burden on the environment, especially if they run on petrol or diesel. Renewing these fleets would contribute immensely to EU’s goal. With the European Green Deal supporting investments in green technologies and sustainable and economic forms of public transport, improved vehicles could be introduced in public transport systems with urban transport companies and local authorities working together for funding support. KEY TAKEAWAY Introducing environment-friendly means of public transport involves a substantial initial investment but is crucial to achieving climate neutrality. Funding for such projects could increase profitability and encourage local authorities and transport companies to renew their fleets by introducing low-emission vehicles.