The Electric Slide Towards Net-Zero: Pinpointing the Conditions for Heavy-Duty Emission Reductions
(2025) In Master's Thesis in Mathematical Sciences FMSM01 20251Mathematical Statistics
- Abstract
- The road freight sector’s significant contribution to greenhouse gas emissions
necessitates emission mitigating strategies to meet climate targets, such as the
Paris Agreement’s goal of 43% emission reduction. While Battery Electric
Trucks (BETs) show great potential to reach these goals, their successful integration hinges on optimization and route planning. This thesis investigates the
conditions under which a heavy-duty freight fleet can achieve substantial emission reductions through a Total Cost of Ownership (TCO)-optimized Electric
Vehicle Routing Problem (EVRP), considering varying Internal Carbon Pricing
(ICP), electricity prices, and electricity carbon intensity.
Based on a case study of a German retail operator and an EVRP... (More) - The road freight sector’s significant contribution to greenhouse gas emissions
necessitates emission mitigating strategies to meet climate targets, such as the
Paris Agreement’s goal of 43% emission reduction. While Battery Electric
Trucks (BETs) show great potential to reach these goals, their successful integration hinges on optimization and route planning. This thesis investigates the
conditions under which a heavy-duty freight fleet can achieve substantial emission reductions through a Total Cost of Ownership (TCO)-optimized Electric
Vehicle Routing Problem (EVRP), considering varying Internal Carbon Pricing
(ICP), electricity prices, and electricity carbon intensity.
Based on a case study of a German retail operator and an EVRP software,
baseline scenarios (TCO-optimized diesel fleet, TCO-optimized mixed fleet, and
emission-optimized mixed fleet) with present-day input parameters were established. To investigate the conditions for favourable outcomes, 100 scenarios
were generated with Latin Hypercube Sampling of the three key parameters
(ICP, energy price, energy carbon intensity). These simulations were then analyzed using the Patient Rule Induction Method (PRIM) to identify critical input
parameter configurations leading to outcomes of interest.
The study found that achieving a 43% emission reduction compared to a dieselonly fleet is primarily dependent on utilizing electricity with low carbon intensity
(below 0.252 kgCO2e/kWh). This reduction is economically viable (meaning
not being more costly than today) if the low-emission electricity has a price
below e 0.256/kWh. The study also finds that there are 17 European countries
whose electricity satisfies both of these thresholds. Internal Carbon Pricing
demonstrated limited direct impact on achieving the emission target under these
favorable energy conditions. However, ICP proved of importance for avoiding
worst-case scenarios - where both costs and emissions increased - particularly
when electricity prices were high (above e 0.428/kWh), by enhancing BETs’
cost-competitiveness.
To summarize, this research demonstrates that the ambitious Paris Agreement
goal for emission reduction can be achieved for heavy-duty freight transport
through the adoption of BETs powered by low-emission and affordable electricity. While the energy carbon intensity is the primary driver for emission
reductions, ICP can serve as an instrument for mitigating risks associated with
energy price volatility and steering away from economically and environmentally
unfavorable outcomes. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9206452
- author
- Sandefeldt, Karl LU and Sandwall, Carl Fredrik Tore LU
- supervisor
- organization
- course
- FMSM01 20251
- year
- 2025
- type
- H2 - Master's Degree (Two Years)
- subject
- publication/series
- Master's Thesis in Mathematical Sciences
- report number
- LUTFMS-3537-2025
- ISSN
- 1404-6342
- other publication id
- 2025:E90
- language
- English
- id
- 9206452
- date added to LUP
- 2025-06-30 10:09:14
- date last changed
- 2025-06-30 10:09:14
@misc{9206452, abstract = {{The road freight sector’s significant contribution to greenhouse gas emissions necessitates emission mitigating strategies to meet climate targets, such as the Paris Agreement’s goal of 43% emission reduction. While Battery Electric Trucks (BETs) show great potential to reach these goals, their successful integration hinges on optimization and route planning. This thesis investigates the conditions under which a heavy-duty freight fleet can achieve substantial emission reductions through a Total Cost of Ownership (TCO)-optimized Electric Vehicle Routing Problem (EVRP), considering varying Internal Carbon Pricing (ICP), electricity prices, and electricity carbon intensity. Based on a case study of a German retail operator and an EVRP software, baseline scenarios (TCO-optimized diesel fleet, TCO-optimized mixed fleet, and emission-optimized mixed fleet) with present-day input parameters were established. To investigate the conditions for favourable outcomes, 100 scenarios were generated with Latin Hypercube Sampling of the three key parameters (ICP, energy price, energy carbon intensity). These simulations were then analyzed using the Patient Rule Induction Method (PRIM) to identify critical input parameter configurations leading to outcomes of interest. The study found that achieving a 43% emission reduction compared to a dieselonly fleet is primarily dependent on utilizing electricity with low carbon intensity (below 0.252 kgCO2e/kWh). This reduction is economically viable (meaning not being more costly than today) if the low-emission electricity has a price below e 0.256/kWh. The study also finds that there are 17 European countries whose electricity satisfies both of these thresholds. Internal Carbon Pricing demonstrated limited direct impact on achieving the emission target under these favorable energy conditions. However, ICP proved of importance for avoiding worst-case scenarios - where both costs and emissions increased - particularly when electricity prices were high (above e 0.428/kWh), by enhancing BETs’ cost-competitiveness. To summarize, this research demonstrates that the ambitious Paris Agreement goal for emission reduction can be achieved for heavy-duty freight transport through the adoption of BETs powered by low-emission and affordable electricity. While the energy carbon intensity is the primary driver for emission reductions, ICP can serve as an instrument for mitigating risks associated with energy price volatility and steering away from economically and environmentally unfavorable outcomes.}}, author = {{Sandefeldt, Karl and Sandwall, Carl Fredrik Tore}}, issn = {{1404-6342}}, language = {{eng}}, note = {{Student Paper}}, series = {{Master's Thesis in Mathematical Sciences}}, title = {{The Electric Slide Towards Net-Zero: Pinpointing the Conditions for Heavy-Duty Emission Reductions}}, year = {{2025}}, }