Cost-efficient decarbonisation of Spanish private road transportation: biofuels vs. electric cars

Abstract

In order to address climate change threats, radical decarbonisation of the transportation sector is required. Within it, special emphasis must be put in cars, which account for a large share of emissions. This paper analyses which would be the most cost-efficient way of drastically reducing Spanish cars’ CO2 emissions in 2030: electric cars or biofuels. We do it using a partial-equilibrium, linear programming, static model of the complete Spanish energy sector, created specifically in the BP Chair on Energy and Sustainability for energy policy strategic evaluation. According to our preliminary results, biofuels seem to be preferable unless drastic reductions in electric cars extra-costs are achieved.