"Cost-Benefit Analysis of the Use of Carbon Credits in Transportation System Development and Management"
Dr. Qingbin Cui
Civil & Environmental Engineering
The proposed project addresses the CITSM theme of integrated transportation system
management with specific emphasis on alternative transportation financing mechanism and
transportation system environmental management. Particularly, the research project
addresses one topic area defined in Center Strategic Plan, namely Scope 8 Policy and
Institutional Issues. The proposed research aims at provide the transportation community with current, relevant information on the carbon market and potential opportunities and challenges to their participation in this market. Moreover, the benefit-cost analysis and
decision model for participating the carbon market will be developed in this research to help the transportation agencies establish and implement carbon market policies at the institute level.
Additionally, this research project addresses the critical transportation funds shortage.
Transportation projects have been funded through a mechanism known as the highway trust
fund, which raises approximately 90% of transportation revenue from the federal gasoline
tax. Since 2002, overall spending out of the trust fund has topped revenue, and finally the fund ran dry in September 2009. The reauthorization of the Surface Transportation Act seems not yet ready before 2012, alternative transportation funding and financing mechanism must be developed to ease state transportation agencies’ funds shortage. This proposed research targets on the emerging carbon market which is expected to become one of the alternative financing mechanisms for transportation system development, especially green transportation systems.