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Carbon allowance allocation in the transportation industry

Writer's picture: Team Veritread Team Veritread

In the article “Carbon allowance allocation in the transportation industry” the authors explain how carbon allowances can be used to fight carbon emissions. It mainly pertains to the transportation industry and the data shows that using inter modal transportation emits less carbon emissions than a long-haul truck transportation. The main effect that they were looking at was how to use carbon allowance to move more transportation companies to using inter modal transportation since it would reduce their carbon emissions by about 40%. From the data collection the authors did long-haul trucking only produces a higher amount of CO2 than other types of transportation.


The authors also identified a link between the carbon allowance and the use of long-haul only trucking and inter modal transportation. “As the carbon allowance decreases, the demand and CO2 emissions for inter modal transport systems move in opposite directions.” This shows us that as the allowance is reduced more companies move to inter modal transportation due the decrease in carbon emissions but increase in time it takes the product to get to its destination. This relates to our project through the green program that we are designing for Veritread. With the understanding that inter modal transport causes less CO2 and has increased carbon allowance around it, it would be in Veritread’s and the planets best interest to limit long-haul trucking transportation in favor of the less expensive and less destructive alternative.

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