Used Statistical Analysis in Excel to analyze hypotheses about fuel economy and annual fuel costs using data from the EPA. I created use friendly Dashboards in Excel and Tableau to assist the consumer in making decisions by car make.
This technical and macro-economic study focuses on light duty vehicles -- cars and vans. It has been advised by a broad group of stakeholders in the move to low-carbon transport, including auto producers, technology suppliers, labour groups, energy providers and environmental groups. The resulting fact-base is anticipated to serve as a reference point for discussions around the low-carbon transition.
The model results show that a shift to low-carbon cars and vans increases spending on vehicle technology, a sector in which Europe excels, therefore generating positive direct employment impacts. This shift will also reduce the total cost of running Europe’s auto fleet, leading to mildly positive economic impacts including indirect employment gains.
The analysis showed that a shift to low-carbon vehicles would increase spending on vehicle technology, therefore generating positive direct employment impacts, but potentially adding €1,000-€1,100 to the capital cost of the average new car in 2020. However, these additional technology costs would be offset by fuel savings of around €400 per year, indicating an effective break-even point for drivers of approximately three
years. At the EU level, the cost of running and maintaining the European car fleet would become €33-35 billion lower each year than in a “do nothing scenario” by 2030, leading to positive economic impacts including indirect employment gains.
Heavy-Duty Natural Gas Vehicle Roadmap September 2014CALSTART
Heavy-Duty Natural Gas Vehicle Roadmap September 2014 created by the California High-Efficiency Advanced Truck Research Center (CalHEAT) found NG a Significant Enabler for California and the SoCalGas region to enable a reduction in the use of petroleum as well as reduce criteria emissions in heavy duty vehicles
Used Statistical Analysis in Excel to analyze hypotheses about fuel economy and annual fuel costs using data from the EPA. I created use friendly Dashboards in Excel and Tableau to assist the consumer in making decisions by car make.
This technical and macro-economic study focuses on light duty vehicles -- cars and vans. It has been advised by a broad group of stakeholders in the move to low-carbon transport, including auto producers, technology suppliers, labour groups, energy providers and environmental groups. The resulting fact-base is anticipated to serve as a reference point for discussions around the low-carbon transition.
The model results show that a shift to low-carbon cars and vans increases spending on vehicle technology, a sector in which Europe excels, therefore generating positive direct employment impacts. This shift will also reduce the total cost of running Europe’s auto fleet, leading to mildly positive economic impacts including indirect employment gains.
The analysis showed that a shift to low-carbon vehicles would increase spending on vehicle technology, therefore generating positive direct employment impacts, but potentially adding €1,000-€1,100 to the capital cost of the average new car in 2020. However, these additional technology costs would be offset by fuel savings of around €400 per year, indicating an effective break-even point for drivers of approximately three
years. At the EU level, the cost of running and maintaining the European car fleet would become €33-35 billion lower each year than in a “do nothing scenario” by 2030, leading to positive economic impacts including indirect employment gains.
Heavy-Duty Natural Gas Vehicle Roadmap September 2014CALSTART
Heavy-Duty Natural Gas Vehicle Roadmap September 2014 created by the California High-Efficiency Advanced Truck Research Center (CalHEAT) found NG a Significant Enabler for California and the SoCalGas region to enable a reduction in the use of petroleum as well as reduce criteria emissions in heavy duty vehicles
The pre-Budget submission sent to government for consideration in Budget 2012. Subsequently sent through recommended channels for examination during 2012 for Budget 2013 motor tax system overhaul.
Preventing Mud Losses underbalanced drilling strenghtening wellbore stress cage theory depleted zones extended reach drilling lost circulation mixture of particulate materials to seal the micro-fractures increase fracture gradient both land offshore
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This presentation was uploaded with the author’s consent.
This presentation by Romania was prepared for the break-out Session 1, “Quantitative Evidence”, in the discussion “Economic Analysis in Merger Investigations” at the 19th OECD Global Forum on Competition on 9 December 2020. More papers and presentations on the topic can be found at http://oe.cd/eami.
This presentation was uploaded with the author’s consent.
Presentation to the IEA / Global Fuel Economy Initiative. This workshop debated the optimum methodology to calculate a clean vehicle score. The scoring system debated during this workshop is intended to be the backbone of the upcoming Green Global NCAP campaign. This campaign will help set an independent yet respected landmark for an agreed definition of what is a clean vehicle and how to classify clean vehicles, based on the vehicle efficiency and the tailpipe emissions. Presentation given by Gena Gibson, senior consultant at Ricardo-AEA
The pre-Budget submission sent to government for consideration in Budget 2012. Subsequently sent through recommended channels for examination during 2012 for Budget 2013 motor tax system overhaul.
Preventing Mud Losses underbalanced drilling strenghtening wellbore stress cage theory depleted zones extended reach drilling lost circulation mixture of particulate materials to seal the micro-fractures increase fracture gradient both land offshore
U.S. scrap tire recycling rebounded in 2013, with the tire-derived fuel sector returning to form but the recycling-related markets not faring as well. Michael Blumenthal talks about the regrowth of those markets.
This presentation by Spain was prepared for the break-out Session 1, “The role of economists in merger teams and qualitative evidence review”, in the discussion “Economic Analysis in Merger Investigations” at the 19th OECD Global Forum on Competition on 9 December 2020. More papers and presentations on the topic can be found at http://oe.cd/eami.
This presentation was uploaded with the author’s consent.
This presentation by Romania was prepared for the break-out Session 1, “Quantitative Evidence”, in the discussion “Economic Analysis in Merger Investigations” at the 19th OECD Global Forum on Competition on 9 December 2020. More papers and presentations on the topic can be found at http://oe.cd/eami.
This presentation was uploaded with the author’s consent.
Presentation to the IEA / Global Fuel Economy Initiative. This workshop debated the optimum methodology to calculate a clean vehicle score. The scoring system debated during this workshop is intended to be the backbone of the upcoming Green Global NCAP campaign. This campaign will help set an independent yet respected landmark for an agreed definition of what is a clean vehicle and how to classify clean vehicles, based on the vehicle efficiency and the tailpipe emissions. Presentation given by Gena Gibson, senior consultant at Ricardo-AEA
What does the future of automotive market hold? 2016 Presentation Yole Develo...Yole Developpement
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In this presentation, Norbert Ligterink (PhD), senior research scientist at TNO, guides you to understanding the complexity behind this broad and persistent problem.
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Mercedes cars have the biggest average gap between test and real-world performance, with real-world fuel consumption exceeding test results by nearly half. None of the improvement in emissions measured in tests of Opel/Vauxhall cars since 2008 has delivered improvement on the road, and their real-world fuel economy is actually getting worse. Just a fifth of the apparent improvement in emissions from the launch of the Mark 7 VW Golf (Europe’s best-selling car) have been achieved on the road.
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Source: European Federation for Transport and Environment AISBL
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Talk title: Measuring and monitoring emissions of nitrogen oxides from passenger cars. a 1200 vehicle case study
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Fuel Economy Trends and Tools, Rob de Jong, Head Transport Unit UN Environmen...FIA Foundation
Why Countries Improve Fuel Economy
• Reduce pollutant emissions
• Reduce oil dependence
• Improve balance of payments
• Reduce transport cost consumers and
companies
• Reduce cost public transport
• Reduce greenhouse gases
• Promote domestic economies/jobs
Fuel Economy Trends and Tools, Rob de Jong, Head Transport Unit UN Environment Programme
www.unep.org
Presented at the Global Fuel Economy Initiative ‘Accelerator Symposium’ on September 5th, ahead of the September 2014 UN Climate Summit.
The Symposium hosted by the French Government at the Ministry of Ecology Sustainable Development and Energy on 5th September, provided a forum for countries, experts, NGOs and the private sector to advance the agenda on fuel economy globally and prepare for the UN Secretary General Ban Ki-moon’s Climate Summit.
Government representatives from a wide range of countries working on fuel economy policies participated in the Symposium. Countries presenting at the Symposium included China, Georgia Kenya and Mauritius. There were more than 70 delegates attending the symposium from around the world with countries represented including Chile, Costa Rica, Hungary, Ivory Coast, Kosovo, Peru, Sri Lanka, St. Vincent and the Grenadines, the UAE, Uganda and Vietnam. Organisations included Transport & Environment, the FIA, ExxonMobil, Michelin, Renault, CEDARE, the OECD and the World Bank.
Read more: http://www.globalfueleconomy.org/updates/2014/Pages/GFEIAcceleratorbuildsmomentumforUNClimateSummit.aspx
1. Complying with the European Union car
CO2 emission regulation
1
Group 1
Elias ABOU KHALIL
Alexandre DUBOIS-NAKHLÉ
Ravi GAUTAM
Ojas KARANDIKAR
Laure LACHEVRE
Danielle XU
2. Executive summary :
Helping car manufacturers to Comply with the tight EU CO2 regulation
PROBLEMCONTEXT
OBJECTIVES
&RESULTS • The European Union has implemented a strict legislation to reduce car Co2 emissions in Europe.
• In 2015, car manufacturers fleet need to emit in average <130g of Co2/km
• In 2020, the cap will be reduced at 95g of Co2/km
+ The EU is likely to implement a new CO2 emission calculation method that will harden the blow
• Comment
• The EU regulation authorizes the creation of pools to help manufacturers reach their Co2 target.
-> The fleet Co2 would then be calculated at the pool level and not at manufacturer level.
2009 avg
emissions:
145g CO2/km
2015 Target:
130g/km
2020
Target: 95g
/km
“We are not talking about (…)
millions of euros. We are
talking about billions”
BMW CEO, July 2014
“New European CO2 rules
threaten car makers’ profits”
– Forbes, 27 Feb 2014
Manufacturers face ambitious CO2 targets and non compliance is not an option given the level of the fine.
Help the different manufacturers to minimize the fines paid to the EU
Comment
• To achieve this goal we have:
1. Cleaned and transformed European datasets gathering car sales, emissions and detailed characteristics
2. Forecasted the average CO2 emissions for each manufacturer for 2015 and 2020
3. Computed the optimal pooling strategy for each manufacturer
• By applying more optimal pooling strategies, manufacturers will be able to decrease the level of the fines paid to the EU.
3. The EU CO2 regulation is a real challenge for car manufacturers
World’s most constraining targets:
. 130g CO2/km by 2015
. 95g CO2/km by 2020
Progressive specific CO2 emission targets for each year
. Constraining targets set for 2012-14 and 2017-2020
. Calculated on the basis of the average mass of registered cars
Tougher CO2 measurements likely to be implemented in 2017:
. On road / laboratory conditions (WPT Method)
. Potential increase of CO2 recorded: 20 to 30%
High Penalties in case of non compliance:
. 5€ for the 1st g in excess, 15€ for the 2nd, 25€ for the 3rd
. 95€ per g of CO2 over the limit, beginning at the 4th one
POSSIBILITY TO CREATE POOLS
. Avg CO2 emissions will be calculated for the pool fleet and not at
the manucfacturer level
HARD
TARGETS
SOFT
TARGETS
POSSIBLE
CHANGE
FINES
POOLING
• « (CO2 regulations) could
prevent approximatively
210k premature mortalities
in urban areas in 2030 »
ICCT, October 2013
• “The German Association of
the Automotive Industry
warned that the deal would
require "enormous efforts"
on the part of car makers to
reach the "most severe
targets in the world.“
WSJ, February 2014
• « This is an herculean task
calling the best efforts of all
our 40k developpers. We
can do it »
Volkswagen Chairman, Avril
2014
The EU sets
mandatory CO2
standards of 130g
of CO2/km in 2015
Eur. Parliament
and EU Council
agree to set
2020 target at
95g
Manufacturers
are to comply
with the target
of 130g
CO2/km
From NEDC to
WLTP: change
in CO2 emission
calculation
2009 2013 2015 2017
Manufacturers
to comply
with target of
95g CO2/km
Talks to set a
new CO2
emission target
for 2025 and
2030
2014 2020
Chronology: EU CO2 regulation
Market Reactions
4. Our 3 Steps Approach to help the car manufacturers diminish their potential fines
DATA
• Identification of the Data needed:
. ≠ models of car sold in EU (2000-2013); number of models sold per year ; main characteristics of the model sold
• Data Research:
. Datasets from the EU and its member states, Car Manufacturer Annual Reports, Research Papers
• Data Cleaning :
. Data formatting and outlier detection
• Data Transformation:
. Pro Forma combination of the different datasets
FORECASTING
• Modelisation of Car Registrations and CO2 Emissions:
. Identification of the variables that explain the most CO2 emissions evolution and creation of clusters of cars
• Projection of CO2 Emissions and Number of Models sold:
. Forecasting of registrations and weighted average CO2 emissions using time serie analysis
• Calculation of potential Fines:
. Creation of an algorithm to compute the potential fines applied to non complying manufacturers
OPTIMIZING
• Compute optimal pooling strategies:
. Identification of three groups of manufacturers: highly probable non compliers that need to pool, higly probable
compliers that can pool without too much risks, manufacturers revolving around the target
. Identification of pooling* and depooling** possible strategies
. Computation of financial gains from the new pooling/depooling strategies
• Recommandations:
. Example of possible pooling and depooling strategy for the manufacturers that have the more to gain
6Weeks2Weeks1Week
*Pooling: Action of merging one or more manufacturers or pool / **Depooling: action of breaking a pool into one or more pools or manufacturers
5. • For 2010-2013: Sales and weighted average CO2 emissions, fuel type mass and engine capacity per model, brand & 2013 pool
• For 2000-2013: Sales and weighted average CO2 emissions, fuel type & mass distribution per year, brand & 2013 pool
Sales and weighted average CO2 emissions, fuel type & engine capacity distribution per year, brand & 2013 pool
• 2010-2013: Variables and rework:
. ≠ Pools, ≠ Brands, ≠ Unique Models, ≠ Countries
-> Cleaning + Pro Forma 2013
. CO2 Emissions/Model, Mass/Model, Engine
Capacity/Model, Engine Power/Model, Fuel Type/Model
-> Outlier Detection, Cleaning
• 2000-2009: Variables and rework:
. ≠ Brands, ≠ Countries
-> Pro Forma 2013, Pool 2013 Assignation
. Mass Distribution per Brand, Fuel Type and Country
Engine Capacity Distribution per Brand, Fuel Type and
Country
-> Outlier Detection, Cleaning
• Annual Reports of Car Maufacturers:
. Sales and sales prediction per Brand
-> Used to clean the main base and check the forecasts
. Qualitative Datas
-> Better understanding of the impact of the regulation on
each manufacturer
• Research Papers:
. Historic + Forecast Sales and Specific Emissions
-> Used to clean the main base and check the forecasts
Identifying, Collecting, Cleaning and Transforming the Data
Output
MAIN BASE
European Environment Agency, Member States Datasets
SANITY CHECK BASES
Manufacturer Annual Reports, Research Papers
6. Forecasting Sales, Emissions & Fines per Brand for 2015 and 2020: The Steps
1/ Running a PCA to find the variables that explain better the CO2 emissions of a car
• Outcome:
-> Fuel Type & Engine Capacity are the best variables at our disposal to forecast emissions per manufacturer car
2/ Clustering of Sales and Weighted Average Emissions
• Outcome:
-> Creation of 6 clusters/brand as a combination of the two main fuel types (diesel & petrol) and three levels of engine
capacity (high, medium and low)
(The data were not sufficient to create useful hybrid & electric clusters for the forecasting - <5% of the sales on the
period)
4/ Computing Potential Fines for each Brand/Pool for 2015 and 2020
• Outcome
-> Creation of an algorithm that uses EU calculation method on the values forecasted by the model
• Method Selection
◦ Initial graphical observations of data favored using Additive models with no seasonality ( Holt’s exponential
modeling with zero Gamma in our case)
• Accuracy of the forecast
◦ Autocorrelogram: No significant autocorrelations were found between the residual lags.
◦ Ljung box test: Sufficiently high p-value to not reject null hypothesis of no autocorrelation between the residuals.
◦ Scatter plot of residuals: Consistent variance and near zero mean
◦ Histogram of residuals: Near normal with mean zero
• Conclusion: The accuracy of forecast would not improve significantly just by using another forecasting method.
Therefore, we stick by this method.
3/ Forecasting Sales and Weighted Average Emissions per Cluster per Brand using Time Series
7. • In 2015, 15% of the
manufacturers will be above the
target paying a €148.5m fine
• In 2020, 3 groups can be
identified: 1 below the target, 1
far above and one revolving
around it.
The fines paid could amount to
€4737m
• The optimal strategy for the car
manufacturers would be to
constitute one unique pool.
• Smaller agreements are more
plausible and could lead to a
largely smaller level of fines.
• By taking out of their pools their
most polluting brands, existing
pools can also reduce their fines.
• On average cars sold in 2015 will
emit 117g of CO2, 13g below the
authorized emissions
• In 2020, according to our forecast
the average will be at 98.
(However, since we didn’t take
electric and hybrid cars into
account due to a lack of historical
datas, the real number should be
lower)
If on average car manufacturers will comply with the 2015 and 2020,
there’s important discrepancies between them
148
146
142
129
122
122
115
110
105
100
94
89
84
78
159
153
145
140
135
132
126
122
117
113
109
105
101
98
222
216
200
196
189
183
179
173
166
161
154
148
141
135
0
50
100
150
200
250
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
MIN AVERAGE MAX
Average, Minimum and Maximum Fleet CO2 Emissions
EU DATAS FORECASTS
CO2emissionsg/km
2015 cap:
130g/km
2015 cap:
95g/km
On Average Target will be met But Discrepancies are important So an optimal Pooling strategy exists
8. Result: Sales and CO2 Emissions Forecasts 2010-2020:
1/3rd of the manufacturers are likely to miss 2020 targets
CO2 emissions
in g/km
Bubble Size : number of registrations * Only the 11 first pools are displayed for clarity reasons
2015 Target
2020 Target
9. Singularization of High, Medium and Low Risk Players
9
. CO2 2015: 166
. Fine 2015: 41m
. CO2 2020: 135
. Fine 2020: 281m
Pool Main Brands Metrics
. CO2 2015: 123
. Fine 2015: 0
. CO2 2020: 113
. Fine 2020: 855m
Pool Main Brands Metrics
. CO2 2015: 125
. Fine 2015: 0
. CO2 2020: 108
. Fine 2020: 67m
Pool Main Brands Metrics
. CO2 2015: 119
. Fine 2015: 0
. CO2 2020: 106
. Fine 2020: 285m
Pool Main Brands Metrics
. CO2 2015: 123
. Fine 2015: 0
. CO2 2020: 104
. Fine 2020: 297m
Pool Main Brands Metrics
. CO2 2015: 122
. Fine 2015: 0
. CO2 2020: 100
. Fine 2020: 1.6bn
Pool Main Brands Metrics
. CO2 2015: 115
. Fine 2015: 0
. CO2 2020: 97
. Fine 2020: 555m
Pool Main Brands Metrics
. CO2 2015: 116
. Fine 2015: 0
. CO2 2020: 96
. Fine 2020: 111m
Pool Main Brands Metrics
. CO2 2015: 110
. Fine 2015: 0
. CO2 2020: 94
. Fine 2020: 0
Pool Main Brands Metrics
. CO2 2015: 122
. Fine 2015: 0
. CO2 2020: 91
. Fine 2020: 0
Pool Main Brands Metrics
. CO2 2015: 110
. Fine 2015: 0
. CO2 2020: 90
. Fine 2020: 0
Pool Main Brands Metrics
. CO2 2015: 106
. Fine 2015: 0
. CO2 2020: 85
. Fine 2020: 0
Pool Main Brands Metrics
. CO2 2015: 111
. Fine 2015: 0
. CO2 2020: 80
. Fine 2020: 0
Pool Main Brands Metrics
. CO2 2015: 105
. Fine 2015: 0
. CO2 2020: 78
. Fine 2020: 0
Pool Main Brands Metrics
. CO2 2015: 105
. Fine 2015: 0
. CO2 2020: 85
. Fine 2020: 0
Pool Main Brands Metrics
. CO2 2015: 116
. Fine 2015: 0
. CO2 2020: 93
. Fine 2020: 0
Pool Main Brands Metrics
Low Risk of Fine
Medium Risk of Fine
High Risk of Fine• Low Risk of Fine: <40% of chance to
pay a fine in 2020
-> Total forecasted 2020 fine: €0
• Medium Risk of Fine: ~ 50% of chance
to pay a fine in 2020
-> Total forecasted 2020 fine: €666m
• High Risk of Fine: >60% of chance to
pay a fine in 2020
-> Total forecasted 2020 fines: €3,385m
10. 5 on the7 pools above 2020 targets can meet them with simple pooling strategies
• Two or more constructors
can decide to form a pool
when their aggregated
weighted average fleet
CO2 emission is below the
EU 2020 target.
(Here two pools can
merge when the
intersection between them
is green)
• Nissan, Volvo, Tata,
Renault and Suzuki can
pool with at least 1 single
pool to pass the 2020
targets.
• BMW & Hyunday can only
pool in this set of
possibility with the
combination of Citroen &
Peugeot
• VW would need either to
form a larger alliance, by
grouping 2 other pools or
more or to try a mix
pooling depooling solution
Takeway
11. Other can use depooling strategies: Volkswagen example
New Pool 1 Main Brands Metrics
• New CO2: 101,9g/km
• Current Fine: €1.276bn
Current Pool Main Brands Current Metrics
• Current CO2 emissions: 100,1g/km
• Current Fine: €1.575bn
Current Pool Main Brands Current Metrics
• Current CO2: 94,8g/km
• Current Fine: €0bn
• By Creating two separate
pools Audi can manage to
save almost €300m
• BMW and Renault could
use the same types of
strategies
Takeway
12. Limits:
12
Limits Description Solution
. Only 14 years of historical data for the time series
analysis
. CO2 emission is difficult to predict due to low data
quality for 2000 / 2009
Lack of historical data
Benchmark expert views to
reach a consensus on what is the
most likely to happen
. Impossible to forecast the sales of electric vehicles
given the few numbers and irregularities of past
observations
Few or no historical
datas for electric and
hybrid vehicles
Use of the sole petrole and diesel
vehicles for the forecasting.
Upward bias on the CO2 emission
trends
. Fines have been calculated on clusters rather than
on each car model which makes the estimates
ballpark
Necessitity of large
clustering due to the
low quality of the
2000-09 data
Using databases on driving
behaviour will give us a better
idea of effective fines to be paid
. The crisis had an impact on the buying behavior of
the consumers, pushing them towards cheaper,
lighter and less powerful cars
. The EU regulation had an impact on the
manufacturers, pushing them toward taking rapidly
the quick wins in term of CO2 efficiency
Historical Bias in the
data
Downward bias on the CO2
emission trends
13. Wrap Up
13
Based on European Data and Reports
We have discovered that:
• The most part of the manufacturers will respect the 2015 target…
• … but will have difficulties to meet the 2020 one (projected fines paid for non compliant
manufacturers amount to €4.7 bn in 2020)
• The EU will harden the regulation in 2017 (new CO2 emission calculation will be based on real
driving conditions)
We have found insights by:
• Forecasting the Co2 emission thanks to fuel type and displacement based on historical data
• Using Time Series analysis to project Co2 emission and sales.
We have proposed:
• A model to estimate the most at-risk manufacturers in 2020 for not respecting the regulation (and
the fines paid if so).
• Two strategies for reducing the risk to pay fines (pooling optimization & de-pooling)
• WV could be able to reduce the cost by
Additional recommendation: Invest the saving costs to push electric cars and alternative fuel through
the market
15. A focus on the EU CO2 emission regulation (EC 443/2009)
Emission targets
Passenger cars have to comply with the following CO2 targets:
- 130g of CO2/ km in 2015, measured with the NEDC method
- 95g of CO2/ km in 2020, currently measured with NEDC method,
but the WLTP will probably be introduced in 2017
Specific emission
targets
Each manufacturer has a specific emission target per year. The
average of the pool or of the manufacturer’s fleet is taken into
account.
- Calculated on the basis of the average mass of registered cars.
- The reference mass and coefficient a are calculated so that the
global EU target is 130g/km. It is reviewed every 2 years.
Specific emissions of CO2 = 130 + a * (M - M0)
M: average mass of the manufacturer's fleet in kg
M0: reference mass (1372 kg)
a: 0.0457
Phasing out
The regulation is progressive:
- In 2012, 65% of the best performing cars are taken into account
- In 2013, 75%
- In 2014, 80% and in 2015, 100% of cars concerned 15
16. A focus on the EU CO2 emission regulation (EC 443/2009)
Pooling
A flexibility is given to car manufacturers, who are allowed to
regroup themselves in a pool. In that case, the pool average CO2
emission is taken into account for the calculation of CO2 emissions.
Fines
The excess emissions premium for failing to meet the specific CO2
emission target is based on the following criteria:
- the distance to the emission target in a given year (in g CO2/
km)
- the number of vehicles registered by the manufacturer during
that year
- the premium level as described in the table
Excess
emission
Fine Nb of
vehicles
Formula
5 15 25 95
0 - 1 (EE) - - - NV (EE * 5) * NV
1 - 2 1 (EE - 1) - - NV (1 * 5 + (EE - 1) * 15) * NV
2 - 3 1 1 (EE - 2) - NV (1 * 5 + 1 * 15 + (EE - 2) * 25) * NV
>3 1 1 1 (EE - 3) NV
(1 * 5 + 1 * 15 + 1 * 25 + (EE - 3) * 95)
* NV 16
17. Our car CO2 emissions are confirmed by the ICCT
In January 2014, the ICCT published a
report estimating the passenger car CO2
emissions for a selected number of
manufacturers in 2015 and 2020.
According to ICCT, most manufacturers will
reach the 2015 target. German
manufacturers are lagging a bit behind
Renault-Nissan, PSA, Ford and Fiat who are
very likely to reach the 2015 and 2020
targets.
The values presented in this table are
calculated according to the current
European CO2 emissions calculation
(NEDC). The new calculation method will
aim at reducing the CO2 emission gap
between laboratory and on-road
conditions.
Note: the ICCT (International Council on Clean Transportation) is a non profit organization that focuses on research and technical & scientific
analysis of environmental regulations.
Source: EU CO2 emission standards for passenger cars and light-commercial vehicles
http://www.theicct.org/sites/default/files/publications/ICCTupdate_EU-95gram_jan2014.pdf
17
18. The McKinsey penalty estimation is close from ours
In a study published in February
2012, McKinsey shows that the
potential fines in 2020 and 2525 are
quite important, due to the
ambitious target set by the EU. The
level of the target acts as a real
deterrent for car manufacturers.
According to McKinsey, the level of
the fine could even increase in the
next decade in order to force all car
manufacturers to comply with the
EU regulation.
It is worth noting that this graph
does not take into account the new
CO2 calculation method (WLPT).
This will increase the difficulty to
reach the 2020 target and therefore
will probably increase the potential
penalties.
Source: Lightweight, heavy impact - McKinsey, February 2012 18
19. Analysis -2: Using only Fuel Efficiency in city(Miles per Gallon) Based on Data in FPP package of R
19
Strong non-linear relationship between the size of
a car's carbon emission and its city-based fuel
economy
Vehicles with better fuel-economy have a smaller
carbon-footprint than vehicles that use a lot of fuel.
A scatter plot of Carbon emission versus City (fuel
economy in city driving conditions in miles per gallon)
Fitted regression line from regressing the
carbon footprint of cars versus their fuel
economy in city driving conditions.
Coefficients:
Estimate Std. Error t value Pr(>|t|)
(Intercept) 12.525647 0.199232 62.87 <2e-16 ***
City -0.220970 0.008878 -24.89 <2e-16 ***
---
Signif. codes: 0 *** 0.001 ** 0.01 * 0.05 . 0.1 1
Residual standard error: 0.4703 on 132 degrees of
freedom
Multiple R-squared: 0.8244, Adjusted R-squared: 0.823
F-statistic: 619.5 on 1 and 132 DF, p-value: < 2.2e-16
β^1=−0.22. For every extra mile per
gallon, a car’s carbon emission will
decrease on average by 0.22 tonnes per
year Example: For a car with City
driving fuel
economy x=30 mpg, the
average footprint forecasted
is y^=5.90 tons of CO2 per
year. The corresponding 95%
and 80% forecast intervals
are [4.95,6.84] and [5.28,6.51]
respectively (calculated using
R).
20. 20
Non-Linear Regression
Piecewise linear trend to fuel economy data.
Plot suggests that a change in slope occurs at
about 25mpg.
The resulting fitted values are shown
as the red line below
An example
of a cubic
regression
spline fitted
to the fuel
economy
data is
shown along
side with a
single knot
at c1=25
2.5 % 97.5 %
(Intercept) 12.1315464 12.9197478
City -0.2385315 -0.2034092
Confidence Interval
The interval [−0.239,−0.203] contains the slope
parameter, β1, with probability 95%
The slope of the fitted regression line using a log-log functional
form is non-constant.
Plots show the estimated relationship both in the original
and the logarithmic scales.