Harnessing freight platforms to promote the penetration of long-haul heavy-duty hydrogen fuel-cell trucks

Long-haul heavy-duty freight sector has always been relying on diesel fuel and hard to decarbonize. Hydrogen fuel-cell trucks (HFCTs) can play a critical role in substituting the diesel trucks and achieving carbon neutrality in freight sector. However, the extremely high cost has impeded their penetration. This paper proposed that government could harness freight platform to promote HFCTs by issuing the platform licenses with strings attached that priority dispatch and commission discount have to be provided to HFCT drivers. To simulate the effects of the proposed policy instruments, an optimization model was developed and applied. The results validated the ability of both priority dispatch and commission discount to promote HFCTs' penetration. And combining the two mechanisms together can at most decrease the need for subsidy by 79%. Then the environmental effects were evaluated and the obtained emissions abatement cost ranges from 584 to 3712 RMB/t, which significantly exceeds the current carbon price in China. Besides, sensitivity analyses of key parameters have been conducted. It is found that the effects on promoting HFCT penetration of increasing subsidy is marginal diminishing. Business model innovation as well as further cost reduction of trucks and hydrogen fuels through technology progress are still in need. (c) 2022 Elsevier Ltd. All rights reserved.

Automated summary

This paper proposes using freight platforms to promote the adoption of hydrogen fuel-cell trucks (HFCTs) by issuing platform licenses with conditions such as priority dispatch and commission discount for HFCT drivers. The study shows that both priority dispatch and commission discount can effectively promote the penetration of HFCTs. However, the high cost remains a barrier and further innovation and technological progress are needed to reduce costs.