Areas of Focus / Research Topic

Transportation

A line of cars in bumper-to-bumper traffic, showcasing the transportation industry.Globally, transportation accounts for about a quarter of energy consumption, roughly equal to the energy consumed by industry and buildings. Yet unlike these sectors, which can derive their energy from natural gas, renewable energy, and other diverse fuel sources, transportation largely relies on petroleum. As a result, transportation uses nearly 60 percent of the oil consumed globally. Without significant changes in policy or technology, global transportation-related emissions could nearly double in the coming decades, growing faster than any other end-use sector.

EPIC scholars are studying various policies related to the vehicle market. They are evaluating the financial and policy tools that can help make vehicles more efficient, saving drivers money on fuel, reducing oil use, and cutting carbon emissions. For example, policymakers could eliminate both size and type distinctions, establish a transparent trading market, and bring emissions testing under the direct supervision of regulators.

While it is vital to improve the efficiency of cars already on the road, new policy efforts have also focused on boosting electric vehicle ownership. However, EPIC scholars have found that households may not yet view EVs as a perfect substitute for their gasoline-powered cars. Their study finds that households drive their EVs roughly half as far as regulators’ estimate, and only half as far as people on average drive their gas-powered cars.

Associated Scholars

EPIC Scholar

Fiona Burlig

Assistant Professor, Harris School of Public Policy
Scholar

Michael Greenstone

Founding Director, Institute for Climate and Sustainable Growth; Director, EPIC
EPIC Scholar

Ali Hortaçsu

Ralph and Mary Otis Isham Professor of Economics, Department of Economics
EPIC Scholar

Koichiro Ito

Professor, Harris School of Public Policy
EPIC Scholar

Ryan Kellogg

Ralph and Mary Otis Isham Professor and Deputy Dean for Academic Programs, Harris School of Public Policy; Executive Committee, Climate Systems Engineering initiative
EPIC Scholar

Hyuk-soo Kwon

Assistant Professor, Harris School of Public Policy
EPIC Scholar

John List

Homer J. Livingston Professor of Economics, Department of Economics; Chair, Department of Economics

Sam Ori

Executive Director, Institute for Climate and Sustainable Growth & EPIC
Visiting & Non-Resident Scholars

Anant Sudarshan

Faculty Member, Department of Economics at the University of Warwick; Non-Resident Scholar, EPIC
EPIC Scholar

Robert H. Topel

Founding Co-Director, EPIC; Isadore Brown and Gladys J. Brown Distinguished Service Professor, Booth School of Business

Associated Research

Working Paper·Dec 11, 2023

Impacts of the Jones Act on U.S. Petroleum Markets

Topics: Climate Change, Climate Economics, Climate Law & Policy, Energy Markets, Fossil Fuels, Transportation
Working Paper·Feb 8, 2021

Low Energy: Estimating Electric Vehicle Electricity Use

Topics: Energy Markets, Transportation