Comparing Carbon Dioxide Reduction Strategies in Iran and the European Union Transportation Sector

Abstract

The transportation sector represents a major proportion of the global greenhouse gases (GHGs) emissions. Fossil fuels supply over 95% of total energy used by the world transportation sector and this sector is responsible for 23% of the world energy related GHGs emissions. Factors such as number of mobile sources (vehicles), variety of technologies, many consumers with various driving behaviour, and variety of fuels (from conventional to alternative with different quality) have caused a more complicated situation for decision makers aiming to develop policies of CO₂ emissions reduction in this sector. This study compares European and Iranian experience in developing carbon dioxide-related policies in transportation sector. Vehicle production in Iran has grown dramatically during the last decade. But, due to the high energy subsidies on the local market, weak technical regulations, and low access to new technologies, Iranian automakers have not enhanced the fuel efficiency of new products as their global counterparts. It is expected that fuel demand in Iran will grow along with the growth of the motorization rate and fuel efficiency level of the road fleet.

Benchmarking with the European policies along with the SWOT analysis has concluded four strategies as the core concept of this analysis: mandatory regulation versus voluntary agreement, CO₂ emissions versus fuel consumption regulation, approaching efficient fiscal policies (taxes for conventional and subsidies for low carbon fuels), and dieselization of the LDVs fleet. The fifth strategy, as national fuel economy regulation, should be addressed to coordinate the others. In this regards, a set of policy packages should be developed relating to governmental institutions. It should be mentioned that increasing public awareness should be addressed as the basic approach of any strategic roadmap in the country.