Policy Options for Reducing GHG Emissions from Transportation Fuels
Read full brief (pdf)
Transportation is the second largest contributor to total U.S. greenhouse gas (GHG) emissions and responsible for about one-third of U.S. carbon-dioxide emissions from the combustion of fossil fuels. There are a variety of policy strategies that can be used to address GHG emissions from the transportation sector; this paper focuses on two such mechanisms. The first policy is an economy-wide cap-and-trade program, which would include transportation fuels under the cap and, thus, limit GHG emissions from fossil fuel combustion. The second is a low-carbon fuel standard (LCFS), which would set a carbon intensity targets for the entire range of transportation fuels. Either one or both policies can be implemented as a means to reduce GHG emissions from transportation.