Adoption of Electric Trucks in Freight Transportation

Transportation sector is the largest contributor of global greenhouse gas emissions in the USA. Disruptive technological changes in this sector, such as alternative fuel vehicles, are crucial for emission reduction. This report analyzes how a cost-minimizing strategic transition plan can be developed for a transportation firm that aims to adopt electric trucks in their fully diesel fleet, over time. The report considers the case in which the firm needs to invest in charging infrastructure required to support this transition, as the public charging infrastructure is currently inadequate. The congestion effect at the charging stations, the charging times, and the potential loss of productive driving time due to detours to reach charging stations are explicitly considered. The report’s results indicate that a transportation firm that operates with high demand density over a given service region significantly benefits from adoption of electric trucks, while also enjoying substantial carbon emissions savings. The analysis also offers insights for governments and regulators regarding the impact of several influential factors such as carbon cost, content of renewable energy in electricity mix, diesel engine efficiency, and subsidizing the charging infrastructure.