031 Energy Use in the Transportation Sector of Malaysia

8/12/2019 031 Energy Use in the Transportation Sector of Malaysia

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EXECUTIVE SUMMARY

Transportation is one of the !ey factors for the economy and society Therefore,transport policyma!ers have to create the policy framewor!s that re"uire the

transport sector to sustain energy with the three#dimensional ob$ective namely

ecology, economy and social acceptability In chapter %, the report discusses about

international experiences on reduction of energy use in transportation sector There

are many methods and policies to reduce energy consumption in transport sector,

however only several of them that are suitable to be used in Malaysia are elaborated

in this chapter Those include fuel economy standard for motor vehicle, fuel economylabels, fuel switching, fuel taxation, emission abatement, further improvements to

vehicles which have been implemented in other developed as well as developing

countries The study found that many policies can be implemented directly in

Malaysia while some others must be modified to ma!e it suitable for this country

&or example fuel economy label guide program can be directly implemented

however fuel economy standard must be modified because Malaysia has its local

vehicle manufacturers that have to be protected

'missions in the transportation sector produce adverse effects on the

environment that influent human health, organism growth, climatic changes and so

on The (yoto protocol by the )nited Nation &ramewor! *onvention on *limate

change +)N&** in December -../, prescribed legally binding greenhouse gas

emission target of about 01 below their -..2 level About -32 countries including

Malaysia now adopt this protocol The transportation sector is the main contributor

for emission in this country In order to calculate the potential emission by this

activity, the types of fuel use should be identified The study found that there are no

radical changes of fuel use for transportation sector in Malaysia The data showed

that fuel use are 041 petrol, 451 diesel, -41 AT&, 2 231 Natural Gas, and 2 241

electricity in year %222 It was pro$ected to be 531 petrol, 5%1 diesel, -%1 AT&,

2 %.1 Natural Gas and only 2 2/1 electricity in the year %2%2 The study found that

the transportation sector has contributed huge emissions in this country and the

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change on fuel type is necessary to change the emission These are discussed

intensively in chapter 4

The main part of the transport and energy investigations and pro$ections is

presented in *hapter 5 The first part of the chapter discusses a review of existing

data available from related authorities and transportation studies that were

underta!en to date 6opulation growth, socio#economic factors and energy use in

transportation sector have been considered &orecasting future transportation growth

based on population growth and socio#economic factors up to %2 years is presented

*onsideration of relationship between transportation trips production and energyconsumption is elaborated &ormulation of a model for forecasting energy

consumption by transportation sector and model validation that ta!es into

consideration the correlation coefficient is discussed in detail &urthermore, the uses

of the model to analy7e energy consumption based on the modal split scenarios are

also presented This topic is discussed in *hapter 0

Due to rapid economic growth, the usage of fuel especially petrol and diesel for

transportation sector has increased tremendously As a result, the government is

encouraging the use of alternative fuels in the transportation sector 8ne of the

proposals is to use natural gas +NG as an alternative fuel and proposing a suitable

policy for it 9tudy on natural gas vehicle +NG: has been underta!en to identify the

deficiency and to improve the previous policies This study involved respondents

+consumers from public transports +taxi drivers, taxi and bus companies and owners

of pump stations to identify their opinion about the policy Data collection to

identify an overview of the current status of NG: development including mar!et

activities and the future prospects of NG: in Malaysia are conducted by interviewing

respondents

Malaysia has been experiencing a dramatic increase in the number of vehicles

and this is pro$ected to be higher in the future due to rising income per capita

*hapter 3 focuses on the potential implementation of fuel economy standards for

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motor vehicles in Malaysia The fuel economy standard is developed based on the

fuel consumption data that is obtained from manufacturers and other related sources

;ith the increasing number of vehicles, fuel economy standards are one of the highlyeffective policies for decreasing energy use in the transportation sector &uel

economy standards are also capable of reducing air pollution In this study, the

potential efficiency improvements of vehicles are analy7ed by using the engineering#

economic analysis Meanwhile the possible efficiency improvement of motor

vehicles in reducing the fuel consumption in the transportation sector in the future is

examined by relating the energy, economical and environmental impacts

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CONTENTS

'C'*)TI:' 9)MMA@? iiA*(N8; 'DGM'NT9 v*8NT'NT9 viI9T 8& &IG)@'9 xI9T 8& TAB '9 xiv

N8M'N* AT)@'9 xxii

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0 % - Natural Gas @eserves -5E0 % % Natural Gas @eserve in Malaysia -0-0 % 4 Natural Gas :ehicle in Malaysia and 8ther *ountries -04

0 % 5 Number of :ehicles in Malaysia -030 % 0 6rice of 8il and Natural Gas in Malaysia -32

0 4 Methodology -320 4 - 6rimary Data *ollection -3-0 4 % 9econdary Data *ollection -350 4 4 *onducting 'conomic Analysis -33

0 5 @esults and Discussions -3/0 5 - 6rediction for Number of 6ublic Transport in Malaysia -3/0 5 % 6ublic Transportation -3/0 5 4 *ompanies and Managers of 6ump 9tation -/50 5 5 'conomic Analysis -/3

0 0 *onclusions and 9uggestions -/.0 0 - *onclusions -/.0 0 % 9uggestions -E-

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LIST OF FIGURES

No Description 6age- - &inal energy use by sector in %22% of 44%.2 !toe 4- % &inal consumption for petroleum product in %22% of %2,340 !toe E- 4 6ercentage of transportation sector energy use based on fuel types

in %22% of -4,55- !toe E% - Austrian draft fuel economy label 43% % Australian draft fuel consumption labels 4/% 4 *anadian fuel economy label 4E% 5 Danish draft fuel consumption label 4.% 0 9wedish fuel economy label 52

% 3 9wiss draft fuel economy label 5-% / )9 fuel consumption label 5%% E )( fuel economy label 54% . 'nvironmental information guide 554 - 6redicted energy demand based on percentage fuel mix for

transportation sector in Malaysia 0.4 % 6attern of *8 % and *8 emissions production by transportation

sector in Malaysia 3-4 4 6attern of 98 % and N8 x emissions production by transportation

sector in Malaysia 3-5 - &ederal highway view towards (uala umpur /45 % Motori7ation rates in Malaysia from -..- to %22% /55 4 Trends of private cars and public transport vehicles /E5 5 Integrated rail services in (lang :alley E%5 0 @T passengers per day E45 3 6ar! Jn ride at @T station E45 / 6roportion of passenger by modes .45 E 9catter#plot of observed vs modeled passenger car volumes

+method - -2.5 . 9catter#plot of observed vs modeled bus volumes +method - --25 -2 9catter#plot of observed vs modeled commercial vehicle

+method - ---5 -- 9catter#plot of observed vs modeled passenger car volumes

+method % --45 -% 9catter#plot of observed vs modeled bus volumes +method % --55 -4 9catter#plot of observed vs modeled commercial vehicle

+method % --05 -5 9catter#plot of observed vs modeled passenger car +method 4 --.5 -0 9catter#plot of observed vs modeled bus +method 4 -%2

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5 -3 9catter#plot of observed vs modeled commercial vehicle

+method 4 -%-5 -/ &orecasted petrol consumption by road transport sector +liter day -455 -E &orecasted diesel consumption by road transport sector +liter day -455 -. &orecasted petrol consumption by road transport sector +!toe year -435 %2 &orecasted diesel consumption by road transport sector +!toe year -4/5 %- &orecasted energy used in transportation sector +do nothing -4.5 %% &orecasted energy used in transportation sector +do something -520 - 6ercentage of vehicles by type -0E0 % Increasing number of vehicles in Malaysia +-.E/ H %22% -0.0 4 Number of public transport +bus and taxi from the year -.E/ to

%22% -0.3 - Impact of design option changes on prices and &'9 for class I

+*ity %4E3 % 6aybac! period and life cycle cost for class I +city %4.3 4 Impact of design option changes on prices and &'9 for class I

+


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3 -. Impact of design option changes on prices and &'9 for % stro!e

motorcycle +method % %0%3 %2 6aybac! period and life cycle cost for % stro!e motorcycle

+method % %0%3 %- Impact of design option changes on prices and &'9 for 5 stro!e

motorcycle %043 %% 6aybac! period and life cycle cost for motorcycles 5 stro!es %053 %4 Impact of design option changes on prices and &'9 for medium

duty lorry +class % K 4 %003 %5 6aybac! period and life cycle cost for medium duty lorry

+class % K 4 %00

3 %0 Impact of design option changes on prices and &'9 for medium

duty lorry +class 5 # 3 %0/3 %3 6aybac! period and life cycle cost for medium duty lorry

+class 5 H 3 %0/3 %/ Impact of design option changes on prices and &'9 for heavy duty

lorry +class / K E %0.3 %E 6aybac! period and life cycle cost for heavy duty lorry

+class / K E %0.3 %. Impact of design option changes on prices and &'9 for busses %3-3 42 6aybac! period and life cycle cost for busses %3-3 4- 6ro$ected fuel savings for cars %343 4% &uel consumption with and without standards +9TD vs BA) for

cars %353 44 6ro$ected fuel savings for motorcycles %303 45 &uel consumption with and without standards +9TD vs BA) for

motorcycles %333 40 6ro$ected fuel savings for medium duty lorry +class % K 4 %3/

3 43 &uel consumption with and without standards +9TD vs BA) formedium duty lorry +class % K 4 %3E

3 4/ 6ro$ected fuel savings for busses %3.3 4E &uel consumption with and without standards +9TD vs BA) for

busses %/23 A- *ar growth in Malaysia %E43 A% Motorcycle growth in Malaysia %E43 A4 orry growth in Malaysia %E53 A5 Bus growth in Malaysia %E5

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LIST OF TABLES

No Description 6age% - 'xamples of transport regulations in selected countries 42% % 'xamples of transport voluntary agreement program in selected

countries

4-

% 4 'mission limits for new cars 4%% 5 &uel economy labelling schemes in selected countries 454 - &inal energy use by transportation sector 0-4 % Transportation sector energy use based on fuel types 044 4 *8 %, 98 %, N8 x and *8 emission from fossil fuel per GF energy

use by transportation sector 054 5 6redicted energy demand and fuel mix of transportation sector in

Malaysia 0E4 0 6otential emissions production by transportation sector in

Malaysia

3%

5 - Mode classification scheme 3.5 % Number of motocars and motori7ation rates in Malaysia from

-..- to %22% /45 4 Number of motorcycles and motori7ation rates from -..- to %22% /05 5 Number of buses, commercial and other vehicles

from 1991 to 2002

..

/3

5 0 Proportion of private cars and public transport

vehicles from 1991 to 2002

..

//

5 3 9ummary of road mileage in Malaysia /.5 / (TMB passengers and freight traffic from year -..% to %22% E25 E @ail passengers from -..E to %22% E5

5 . Air traffic at public#use airports in Malaysia from year -..- to%22% E0

5 -2 Air passengers traffic at public#use airports in Malaysia from year

-..2 to %22% E35 -- International air passenger#!m data of ( IA E/5 -% Domestic air passenger#!m data of ( IA EE5 -4 Air passenger#!m data of (ota (inabalu airport E.5 -5 Air passenger#!m data of (uching airport .25 -0 Air passenger#!m data of 6enang airport .25 -3 Air passenger#!m data of ang!awi airport .-

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5 -/ Total cargo throughput by ports from year -..- to %22% .%5 -E Number of new vehicle registration based on fuel type .55 -. Malaysia population from -..- to %22% .0

5 %2 Gross domestic products +GD6 from -..- to %22% .35 %- 'mployment in all sectors from -..- to %22% ./5 %% Trip production regression model -2-5 %4 General e"uation fro the trip generation attraction model +macro

level -2%5 %5 General e"uation fro the trip generation attraction model +micro

level -2%5 %0 Average vehicle occupancy and load factor -245 %3 Average daily trip production rates by vehicle type in Malaysia -245 %/ Number of vehicles forecasting models in Malaysia -255 %E Modal share in the (uala umpur metropolitan area -205 %. 6ro$ected populations, %220 H %2%2 -235 42 6ro$ected employment from year %220 to %2%2 -235 4- 6ro$ected gross domestic product +GD6 from year %220 to %2%2 -2/5 4% 8bserved vs modeled passenger car volumes +method - -2.5 44 8bserved vs modeled bus volumes +method - --25 45 8bserved vs modeled commercial veh +method - ---5 40 8bserved vs modeled passenger car volumes +method % --%5 43 8bserved vs modeled bus volumes +method % --45 4/ 8bserved vs modeled commercial vehicle +method % --55 4E No of cars, busses and commercial vehicle year -..- to %22% --35 4. No of daily rail passenger year -..E to %22% --35 52 No of daily air passenger --/5 5- Method 4 regression model --E5 5% 8bserved vs modeled passenger car volumes +method 4 --.5 54 8bserved vs modeled bus volumes +method 4 -%25 55 8bserved vs modeled commercial vehicle +method 4 -%-5 50 Trips generation models -%45 53 &orecasted no of passengers by type of modes -%55 5/ &orecasted modal split by type of modes -%05 5E &uture modal split scenarios -%3

5 5. &orecasted no of vehicles by type of modes +do nothing scenario -%/5 02 &orecasted no of vehicles by type of modes +do something

scenario -%/5 0- &orecasted trip generation rates by type of modes -%/5 0% Total vehicle#!m of the traffic +do nothing scenario -%E5 04 Total vehicle#!m of the traffic +do something scenario -%E5 05 9ummary statistics for passenger cars, -..2 H %222 -%.5 00 9ummary statistics for two#axle truc!s, -..2 H %222 -%.5 03 No of new vehicle registration based on fuel types -425 0/ 6roportion of new vehicle registration based on fuel types -425 0E &orecasted no of vehicles +do nothing scenario -4%

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medium duty lorry +class 5 # 3 %-03 -% 6otential increase in fuel economy and related price increase for

heavy duty lorry +class / K E %-33 -4 &'9 and incremental cost of design options for class I car %-E3 -5 &'9 and incremental cost of design options for class II %-.3 -0 &'9 and incremental cost of design options for class III %-.3 -3 &'9 and incremental cost of design options for class I: %%23 -/ &'9 and incremental cost of combined design options for class I

+*IT? %%23 -E &'9 and incremental cost of combined design options for class I

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motorcycle %043 05 ife#cycle cost and paybac! period calculation for medium duty

lorry +class % K 4 %053 00 ife#cycle cost and paybac! period calculation for medium duty

lorry +class 5 # 3 %033 03 ife#cycle cost and paybac! period calculation for heavy duty

lorry +class / K E %0E3 0/ ife#cycle cost and paybac! period calculation for busses %323 0E Input data for potential fuel saving of cars %3%3 0. The calculation of fuel savings for cars %343 32 Input data for potential fuel saving of motorcycles %353 3- The calculation of fuel savings for motorcycles %30

3 3% Input data for potential fuel saving of medium duty lorry +class % K 4 %33

3 34 The calculation of fuel savings for medium duty lorry

+class % K 4 %3/3 35 Input data for potential fuel saving of busses %3E3 30 The calculation of fuel savings for busses %3.3 33 The calculation result from the cost#benefit analysis for cars %/-

3 3/ The calculation result from the cost#benefit analysis for

motorcycle %/%3 3E The calculation result from the cost#benefit analysis for medium

duty lorry %/%3 3. The calculation result from the cost#benefit analysis for busses %/4

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NOMENCLATURES

9ymbols Description )nitvi AEI Annual efficiency improvement

AFC Annual fuel cost +@M

vi ANS Annuali7ed net savings in year i of vehicle +@M

vi AS Applicable stoc! in year i of vehicle

vi AS - Applicable stoc! in year i#- of vehicle

v s BFC Baseline fuel consumption in the year of standards

enacted for vehicle

+@M

vi BS Bill savings in year i of vehicle +@M

C Annual maintenance cost +@MC,k *onstant value* d Drag coefficient* g Natural gas consumption + iter !m* o The conventional fuel consumption before conversion + iter !mCRF The capital recovery factor

D Annual distance travel +!md Discount rate +1

ni ES 'nergy use in year i of fuel type n +!toe

F &uel consumption + iter -22!mn

p FE 'mission per unit energy of fuel type n +!g GFvi FS &uel savings in year i of vehicle +literv IC Incremental cost for the more efficient vehicle +@M

v s IIC Initial incremental cost for more efficient vehicle +@M

r L ife span of vehicles

+year LCC ife *ycle *ost +@M

Mg Maintenance cost of NG: +@M yearMo Maintenance cost before conversion +@M year

MPG 2 The base year fleet average fuel economy +- !m MPG TOT The potential new fleet average fuel economy +- !m N ife time of the appliance +year

vi Na Number of vehicles in year i

vi Na - Number of vehicles in year i#-vi NS Net savings in year i for vehicle +@M

OC Annual operating expenses +@M P &uel price +@M

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6 o 6rice of the conventional fuel +diesel or petrol +@M liter6 g 6rice of natural gas +@M liter

PAY 6aybac! period +year

PC Investment cost +@M( )vi ANS PV 6resent value of annuali7ed net saving in year i +@M PWF 6resent worth factor R &uel price +@Mr Discount rate +19 saving +@M year

v sSFC 9tandard fuel consumption of vehicle +liter yr

viSh 9hipments in year i of vehicle

viSSF 9hipment survival factor in year i of vehiclev

sTEI Total efficiency improvement of vehicle +1

iTM Total emission in year i +!g, Ton i )tili7ation increase

viFS Initial unit energy savings in year i of vehicle + iter yearv

sFS Initial unit fuel saving + iter year ! ?ear predicted H year startY 6redicted value

" Motor vehicles predicted data# " The average data

viYs$ ?ear of standards enacted of vehicle +year

viYsh ?ear i of shipment of vehicle +yearvT Y%& ?ear target calculation for vehicle +year

Abbreviation

ASEAN Association of 9outheast Asian Nations ATF Aviation Turbine &uelCAFE *orporate Average &uel 'conomyCF *onversion factor CNG *ompressed Natural GasCO *arbon monoxideCO ' *arbon dioxideCSE *entre for 9cience and 'nvironment

DAF Dutch vehicle Ma!er Association EDI 'lectronic Data InterchangeG( GigagramG)G Green


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ENERGY USE IN THE TRANSPORTATION SECTOR OF MA AYSIA

C!A"TER #

INTRODUCTION

Transportation is one of the ma$or human activities around the world )nfortunately,

this activity is burning the limited nonrenewable energy that leads to some negative

impact to our living environment Therefore, there is a necessity to adopt suitable

energy policy for transportation sector as one of the options to balance the demand

and supply for energy at the government, society and individual levels This effort

would lead to the preservation of our limited nonrenewable energy resources and our

living environment In addition, it is the responsibility and contribution of the present

people towards the future generations 'nergy planning and policy has become very

important in the public agenda of most developed as well as some developing

countries today The importance of energy planning and policy is lin!ed to industrial

competitiveness, energy security and environmental advantage Transportation in

Malaysia is still using traditional fossil fuel type such as gasoline, diesel and

electricity These activities create millions of tons of greenhouse gases each year

6attern of emissions production by transportation sector in Malaysia is has not

analysed accurately yet 9uitable energy planning and policy in transportation sector

can reduce the demand for fossil fuel and hence reduce the production of greenhouse

gases and other emissions Based on fossil fuel consumption, transportation sector

accounts for almost 5. percent of the national greenhouse gas emissions +M89T',

%222 Therefore, suitable policies can play an important role in helping Malaysia to

meet overall greenhouse gas and emissions reduction target and at the same time

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reducing the energy consumption, economic benefit as well as improving the

competitiveness of our product in the international arena

'nergy conservation in the transport sectors helps to reduce the energy

consumption In most countries, Transportation energy consumption ranges from

%21 to 321 of the total electricity consumption 8n average, the Transportation

sector in Malaysia uses about 521 of the total energy demand +National 'nergy

Balance, %224 The final energy use by sector in Malaysia is presented in &igure - -

This energy is used by a variety of type transport such as motor car, motorcycle, bus,

goods vehicle, train, @T, airplane, marine and etc to provide transportation services

and other end#uses for society Ideally, fuel consumption by various vehicles such as

motor car, motorcycle, bus and freight vehicle must be set to a certain level in order

to ensure that they use energy efficiently &or the benefit of the consumers, the

comparable energy consumption of the vehicle must be characteri7ed Based on type

of fuel used, the petrol +gasoline and diesel has been the largest of energy share in

transportation sector, which are about 001 and 4-1 of total energy consumption in

transport sector +National 'nergy Balance, %224 In order to reduce energy

consumption in this country, consumer should be educated to select the most efficient

vehicle from the mar!et or to promote alternative fuel This ob$ective can be

achieved by introducing fuel economy program and implementing suitable policy

such as shifting to public transport and switching to NG:

)sing energy efficiently and caring about the environment are two important

conducive factors under the current global mar!et conditions @eali7ing that, energy

efficiency policy is becoming a strategic policy for many nations today This is also

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#$# Ba%&'ro(n)

&or more than two decades, in average Malaysia>s economy grew more than

31 per annum The Gross Domestic 6roduct increased from @M /.,442 million in

-..2 to @M %55,000 million in %225 At the same time, the per capita income has

increased from @M 3,%42 to @M -0,4/3 +'conomic 6lanning )nit, %225 'conomic

growth is the main driving factor for increased energy demand in transportation

sector in Malaysia Transportation is a fundamental prere"uisite for a society>s

development and improvement of people>s life As the Malaysian economy grew

rapidly in recent years, the importance of transportation sector has been reali7ed for

both continuous economic growth and improvement of standard of living The

increasing number of passenger and vehicle time to time increasing trip lengths and

traffic densities, thereby increasing the energy used for propulsion of vehicles

Moreover, with the increase of income levels as well as unconstrained expansion of

the cities, the private vehicle population has grown year by year in Malaysia


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use of petroleum oils and also reduce growing air pollution especially on *8 %

emission which is two#third comes from transport fuels combustion @ecently, India

as a low per capita income country but have greater *8 % emissions based

transportation sector is already begin to manage the energy use for transport sector

by conducting several studies and policies such as implementing fuels energy

efficiency policy as well as improved the fuels "uality standard &urthermore, some

studies on 'uropean and Fapanese fuel economy initiatives= what they are, their

prospects for success, their usefulness is given by 6lot!in +%22% In 'uropean

*ountries which are mostly oils importer, the infrastructure improvement was done

by traffic controlled in the cities to avoid traffic $am as well as by implementing strict

rule on the vehicle speed at the highway was successfully reduce total fuel

consumption and maintain air "uality + )anielis, 199*+ + ias!as, %222 Besides

that, by implementing several efficiency policies such as fuel economy program as

well as introducing alternative fuel cars with lower fuel consumption can lower

emissions 9everal developed countries such as Fapan, 'ngland, )9A and 9weden

have also implemented the policy to reduce energy intensity by population such as

higher taxation for petroleum fuels as well as for every gram of *8 % emits more than

the level of standard

Malaysia with the rapid petroleum based fuel growth also tries to introduce

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overta!e this problem while petroleum crisis and environmental impact being a great

issues recently This study is necessary to develop energy used database for transport

sector and will be used for total energy used database in this country The database

will be dedicated to Malaysia policy ma!ers for further action in order to manage

energy consumption and economic growth simultaneously based on energy intensity

As stated earlier, motor vehicle is one of the ma$or energy consuming in the

transportation sector According to National 'nergy Balance +%224 , motor vehicle

accounts more than E21 of overall consumption of petroleum product share

Therefore, it perhaps will save a significant amount of energy in transportation sector

if suitable efficiency policy for motor vehicle implemented in this country

9ince land transport is one of the ma$or energy consumers in the transportation

sector in Malaysia, implementing suitable energy efficiency policy for this sector

may contribute a significant impact on energy consumption in the transportation

sectors and offer great benefits for the consumers, government as well as to the

environment In agreement to this opinion De*icco and Mar! +-..E states that the

transition toward a more sustainable transportation system can emanate from a suite

of mutually reinforcing policies 9trong efficiency and greenhouse gas emissions

standards would provide the foundation of the technology innovation strategy that

includes pricing reforms, incentive, and voluntary programs *ombined with

enabling @KD, the policies can facilitate mar!et transformation toward advance

technology highway vehicles, efficient air and intercity travel, and renewable fuels

Improvement in regional planning such as in (lang :alley, 6enang and Fohor Bahru

and intermodal capacity would help by reducing travel needs and shifting travel to

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more efficient modes


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'nergy policies and energy technology is a pair and it wor!s simultaneously

and mutually The technologies continually remove the less efficient product from

the mar!et and energy policies are creating transformations in the mar!et As the

consumers, become energy conscious, manufacturers use efficiency as a mar!eting

tool to win their competition in the mar!et To ma!e this program a success, there

should be a good cooperation between the public and private sector ;ith an

appropriate policy, the manufacturers and companies will have time to retool and

invest in designing towards more efficient energy use As a result, the transport

manufacturer will develop more efficient product, which will benefit them, through

increasing demand and competitiveness of the product in the international mar!et

By the combination of suitable policies and technologies, Malaysia will be able to

promote more efficient energy used product and will begin an important mar!et

transformation for the product in the country It is expected that energy efficiency

initiatives for transportation sector can indeed be tapped and expanded in Malaysia to

decelerate the growth of energy consumption in the transportation sector, monetary

savings as well as reducing the environmental impact

#$* Ob+e%tive o, t-e t().

The main ob$ective of research is to ma!e policy recommendations with

views to reduce the energy use and environmental emissions in the transportation

sector in Malaysia In order to achieve this main aim several other ob$ectives have

been identified, and these are=

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To review energy consumption of the transportation sector in 6eninsular

Malaysia +particularly in the (lang :alley , 9abah and 9arawa!

To identify !ey energy#consuming sub#sectors within the transportation sector

To examine international experiences related to the reduction of energy use in

transport sector

To analy7e historical trend and pro$ect future trend of energy demand and

environmental emissions from the transportation sector

To examine the potential of modal shift to public transport

To examine the feasibility and potential of switching to NG: by commercial

vehicles

To study vehicle efficiency standards

#$/ Contrib(tion o, t-e t().

To proposed recommendations with a view to reduce energy intensity in the

transportation sector in this country The output will be a report entitled 'nergy )se

in the Transportation 9ector of Malaysia It will cover all the points mentioned in

the ob$ectives

#$0$ Li1itation o, t-e t().

It is noted that an important "ualification of the results in this study due to

uncertainty in forecasting )ndoubtedly, pursuing the path outlined here would yield

large reductions in energy used and emissions compare to what will ensue in the

absence of policy change eaving aside upheaval in global oil supply or other

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economic disruptions, unforeseen technology changes or other developments could

push demand significantly higher or lower than the baseline assumed in the study


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*hapter 5 deals with the transportation system development and energy

consumption in Malaysia

*hapter 0 examines the feasibility and potential of fuel switching to NG: by

commercial vehicles in Malaysia

*hapter 3 presents a study on fuel economy standard for motor vehicle in

Malaysia

Re,eren%e

)anielis, -. 199*+. (ner"y use for transport in /taly Past trends.

(ner"y Policy 2 9+, 99340 .

)e5icco, 6., ar7, 6. 1994+. eetin" the ener"y and climate

challen"e for transportation in the %nited $tates. (ner"y Policy 28

*+, 9* :12.

Dowlatabadi, < , ave, B , @ussell, A G +-..3 A free lunch at higher *A&'O A

review of economic, environmental and social benefits 'nergy 6olicy %5 +4 , %04#

%35

'conomic 6lanning )nit, +%225 The Malaysian 'conomic in &igures, 'conomic

6lanning )nit, 6rime Minister>s Department, 6utra$aya, Malaysia

ias!as, ( , Mavrotas G , Mandara!a, M , Dia!oula!i, D +%222 Decomposition of

industrial *8 % emissions=The case of 'uropean )nion 'nergy 'conomics %% +5 ,

4E4H4.5

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M89T', F +%222 Malaysia initial National *ommunication Ministry of 9cience

and Technology and 'nvironment, (uala umpur, Malaysia

National 'nergy Balance %22%, +%224 inistry of (ner"y, 5ommunications

and ultimedia, ;uala &umpur, alaysia.

6lot!in, 9 ' +%22- 'uropean and Fapanese fuel economy initiatives= what they are,

their prospects for success, their usefulness as a guide for )9 action 'nergy 6olicy

%. +-4 , -2/4H-2E5

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C!A"TER *

INTERNATIONAL EX"ERIENCES ON REDUCTION

OF ENERGY USE IN TRANS"ORT SECTOR

SUMMARY

Transportation is one of the !ey factors for the economy and society Therefore

transport policyma!ers have to create the policies framewor!s that are re"uired for

transport sector to sustain energy with three dimensional ob$ective namely ecology,

economy and social acceptability This chapter discusses international experiences on

reduction of energy use in transportation sector There are many methods and

policies to reduce energy consumption in transport sector, however only several of

them that are suitable to be used in Malaysia will be elaborated in this chapter Those

include fuel economy standard for motor vehicle, fuel economy labels, fuel

switching, fuel taxation, emission abatement, further improvements to vehicles

which are have been implemented in other develop as well as developing countries

The study found that many policies can be implemented directly in Malaysia while

other must be modified to ma!e it suitable in this country &or example fuel economy

label guide program can be directly implemented in this country, however for fuel

economy standard must me modified to ma!e it suitable because Malaysia has it

local vehicle manufacturers that have to be protected

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*$#$ Intro)(%tion

There are many methods and policies to reduce energy consumption in the

transportation sector To provide an impression of the coverage, a number of these

measures are= relocation of enterprises to reduce transport re"uirementsL increase in

density in 7oningL elimination or decrease of fiscal deductibility of travel expensesL

introduction of a four day wor! wee!L improvement of car and truc! enginesL

restriction of energy#consuming options in carsL research and development of

alternative vehicle enginesL production of smaller carsL reduction of taxation for car

poolingL creation of par!ing facilities and reservation of lanes for car poolsL

subsidi7ation of public transportL improvement of "uality of service of public

transportL introduction of toll roadsL taxes on pea! hour travelL speed limitL limit on

highway constructionL par!ing leviesL par!ing limitationL introduction of gasoline

couponsL limiting number of gasoline stationsL and measures to restrict the energy

consumption in the transport sector


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America>s gas mileage over the subse"uent decade The National Academy of

9cience has estimated this saves about % E mbd transportation alternative.

Meanwhile, it has been reported in *anada that bet'een 1990 and 2002,

the amount of ener"y used by the transportation sector increased

by 2 percent, from 14 .9 P6 to 2 08.0 P6.


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21.2 P6. Cesides that, improvements in the ener"y eBciency of

frei"ht transportation led to savin"s of 12 .4 P6 of ener"y and 9.

t of !@!s. ost of the improvements in frei"ht ener"y eBciency

occurred in heavy truc7s and rail.

)ha7al 200 + on the other hand analyDed the ener"y and

environmental implications of transportation policies in ;athmandu

#alley, Nepal up to the year 2020. From this study, it could be

summariDed that increasin" the avera"e speed of vehicles on the

street to :0 7mEh 'ould reduce total ener"y demands by 2 and

reduce 5G 2 emissions by 2* . Cesides that, the policy to increase

the share of public transportation is eHpected to brin" 2 of

savin"s in total ener"y demands and 20 of 5G 2 reduction in the

year 201*. ?he other policy that is reported to brin" substantial

implication is the promotion of electric vehicle. /t is reported that

this move 'ould reduce the total ener"y demand and 5G 2 emission

by 20 in the year 201*.

ean'hile, in 5uritiba, CraDil local authorities have developed

an inte"rated plan for transport, urban plannin", infrastructure,

business and local community development. Cy plannin" and

Donin" residential and industrial development alon" so called

arteries in the proHimity of public transport, transportation needs

have been mana"ed sustainably. ?he arteries are supplemented

'ith a system of rin" roads. $eparate bus lines operate in close

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connection 'ith eHpress buses 'hich enter the residential areas.

?he move made 5uritibas "asoline use per capita lo'er than that

of comparable CraDilian cities. /t also led to annual fuel savin"s of

approHimately 2 million liters.

/n /ndonesia on the other hand, =Clue $7y Pro"ramme> 'as

launched in 1992, for mobile sources, the maIor activities of the

pro"ram are, amon" others, to encoura"e the use of 5N! and &P!

as an alternative cleaner fuel for motor vehicle to phase out

leaded "asoline and introduce lo' sulfur diesel fuel Jinyantoro,

2001+.


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%224 and has also increased the number of Toyota 6rius hybrids in the fleet to -3

Meanwhile, from &ebruary %22- to Fune %225, the 9tate Government has spent more

than P02million on cycling infrastructure, with another PEmillion earmar!ed this

year As a result, the number of people using the 6erth Bicycle Networ! has doubled

during the last five years Additionally the Government has embar!ed on the 9tateQs

biggest#ever public transport pro$ect#the P- 0billion New Metro@ail 6ro$ect , New

Metro@ail will carry almost 40,222 people each wee!day and ta!e %0,222 cars off

their freeways It is estimated that wor!#related patronage on the 9outhern 9uburbs

@ailway alone will save almost -0million litres of fuel each year +Mactiernan, %225

Meanwhile vehicle emissions in Myanmar are expected to contribute

significantly to air pollution problems which are increasing at a rate of E/ -4 Gg *8 %

e"uivalent per year In Myanmar, motor vehicle inspection is pursued by the @oad

Transport Administration Department of the Ministry of @ail Transportation

Although Myanmar does not yet have any vehicle emission standards, the

department has adopted standard re"uirements and testing procedure for motor

vehicle inspection The re"uirements include among others, bra!e minimum

efficiency, exhaust emission +smo!e , noise, and depth of tyre groove, which are

based from the existing A9'AN standards +Myint, %22-

In (orea, motor vehicle registration nationwide has increased -E - times, from

0%/,/%. in -.E2 to .,004,23% in -..3 The passenger car ownership increased %/ /

times since -.E2, from %5.,-2% to 3,E.4,344 in -..3 This figure reflects an

increase of an average %4 -1 per year The road system, which handles more than

.21 of the countryQs transportation, has been intimately connected to (oreaQs rapid

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government has implemented two phases of ight @ail Transit + @T systems and

the fuel efficient electrified double trac! commuter service The improved transport

services is viewed that it will change the pattern of the existing transportation usage,

reducing number of private vehicles on the road thus reducing fuel consumption

which lead to reduction of emission Apart from that, the Ministry of &inance has

allocated tax exemption on !its and necessary components for converting vehicle to

utili7e natural gas &urthermore, the road tax of vehicles using only natural gas is

discounted by 021 of the prevailing rate while %01 was given to bi#fuel vehicles

Moreover, special capital allowance was also given to companies operating mono#

gas buses and for NG: petrol station entrepreneur +Norhayati K ?u7lina, %22-

*$/ Tran 4ortation 4o6i%. in e6e%te) %o(ntrie

Mobility is one of the !ey factors for the economy and society Transport

policyma!ers have to create the statutory and policy framewor!s that are re"uired if

transport needs are to be met ta!ing account of sustainability in its three dimensions

+ecology, economy and social acceptability In the transport sector, land transport,

especially road transport, can ma!e a significant contribution towards reducing

vehicle emissions if improved fuels and engines are introduced This scope for improvement is being exploited


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use of renewable energy in transport and in the production of fuel will ma!e it

possible to ta!e a big step towards more sustainable transport Moreover, the need of

such policy which will be implemented on fossil fuels usage is becomes much

necessary Among the countries which have been implemented the policy of fuels

usage on transport sector are some 'uropean countries, )9A, Australia, Fapan, etc

*$/$#$ T-ai6an)

According to Thailand 6rime Minister Tha!sin 9hinawatra, Thailand will more

concern on energy policy on fossil fuel started at this year As the subsidies on petrol

prices come to an end this year, Thailand government is also trying to set a suitable

policy for energy and fuel conservation, to !eep the economy and the countryQs

coffers in good shape 6aradoxically, the government is letting petrol prices float andwill continue subsidi7ing diesel at least through to the end of the cool season That is

the way Thailand can minimi7e the impact of higher fuel prices in the short term

+Diesel News, %224

*$/$*$ Sin'a4ore

In 9ingapore the rapid economic development in the last three decades has led

to increased demand for land transportation which is presently heavily dependent on

oil As a small city#state with no indigenous supply of conventional energy resources,

9ingapore needs to constantly promote energy conservation and to explore the use of

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alternative fuels At the same time, the 9ingaporean government is also concerned

with the environmental problems associated with rapid industriali7ation :arious

measures and recommendations on promoting clean technology, protection of the

local and global environment, reduction of *8 % and 98 % emissions, etc , were

announced and documented in the 9ingapore Green 6lan +9ingapore Ministry of

'nvironment, -..4 8ther policy which has been used in 9ingapore is to provide

financial incentives to promote the use alternative fuels and electric vehicles This is

based on a reduction of imported vehicle tax and vehicle road tax +6oh and Ang,

-...

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*$/$/$ E(ro4ean Co(ntrie


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'conomic *ase for


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ministryQs current guidelines, automa!ers must ma!e passenger cars -2 percent more

fuel efficient and less polluting by %2-2, compared to %222 Truc!s are exempt from

such standards

*$/$2$ A( tra6ia

Due to its geographical nature Australia is a highly transport dependent society

Despite significant efforts to promote the benefits of public transport, its use has

declined while the affordability of motor cars has continued to improve and car

ownership and use are rising *onsumers want affordable and safe cars, cheap fuels,

ample par!ing, congestion free roads and environmentally friendly vehicles as long

as they don>t have to pay for it As a community they are hyper sensitive about

petrol prices and as we have seen a few cents a litre rise at the petrol pump can cause politicians to become wea! at the !nees *onversely Governments &ederally to the

tune of P-% 0billion year through excise and 9tates receipts of P% /billionn year are

!eenly aware of the revenue generated from petroleum products +'nvironment News

9ervice, %222

According to Dr 9harman 9tone, 6arliamentary 9ecretary to 'nvironmentMinister @obert


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The transport sector is the largest single contributor to AustraliaQs greenhouse

gas emissions, accounting for almost -3 percent of the /% 3 million tonnes of carbon

dioxide pumped into the environment every year The new rules will mean higher

octane, lower sulphur content fuel This should help reduce pollution as well as cut

greenhouse gas emissions Australia is struggling to meet international commitments

to limit emissions of carbon dioxide and other climate warming gases to eight

percent of -..2 levels 9uch emissions have actually grown by -3 percent The &uel

Suality 9tandards Bill forms part of the Australian governmentQs AP- billion

+)9P052,222 greenhouse plan !nown as Measures for a Better 'nvironment

pac!age The new law in Australia will introduce tougher penalties to protect

consumers and environment +Australian Greenhouse 8ffice, %225

*$/$8$ In)ia

According to a Times of India report, IndiaQs government has been announced

its final conclusions regarding the Rauto#fuel policy reportR delivered by an expert

committee headed by IndiaQs top science advisor This report recommended fuel

neutrality +with ultra#low sulfur diesel by %2-2 rather than the *NG monopoly

scheme for ma$or cities pushed by IndiaQs 9upreme *ourt and anti#diesel RgreenR

group, *enter for 9cience K 'nvironment +*9' *urrently, the comprehensive study

or results still yet to publish regarding this policy


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*$9$9$ Fran%e

&rance policyma!ers so far have implicitly assumed that ade"uate supplies of

NG would be available for transport *learly, NG is one of the possible alternative

fuel that produce ma$or reductions in transport oil use, NG as transport fuels is still

available in large "uantities in the years %2%2 This now seems unli!ely The I'A has

recently analy7ed world energy prospects out to %2%2 and beyond +I'A, -..E &or

NG, it was assumed that ultimate reserves, both already produced and still to be

produced, were %32 btoe, slightly less than the 4-2 btoe estimated for oil ;orld

demand for NG is growing faster than that for oil as gas increases its share of energy

in the developed countries and gas grids are introduced in an increasing number of

industriali7ing countries

*$/$:$ Ne5 ;ea6an)

The New ealand example is instructive A ma$or shift to NG#based transport

fuels occurred in the -.E2s, based on *NG and synthetic petrol At its pea!, NG

supplied 421 of New ealand>s transport fuels Today, the figure is only about -21,

and will decline to near 7ero by %2-5, the expected date of gas field exhaustion,

assuming no imports +9tatistics New ealand, %222

*$/$


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reasons for this choice are= no need for such a big tan!, the composition is clearly

defined and there is no need to have the gas compressed in an expensive compression

station

*$/$#=$ "-i6i44ine

The 6hilippines first attempted to commerciali7e li"uid biofuels for motor

vehicles following the oil shoc!s of the -./2sL unfortunately, the ambitious program

was abandoned during the political crisis of the mid#-.E2s Today biofuels are

receiving renewed interest in the 6hilippines due to a combination of economic and

environmental factors The principal economic incentive is the reduction of

dependence on imported petroleum This issue is particularly true for the transport

sector which is almost entirely dependent on oil @eduction of *8 % emissions

resulting from fossil fuel use is one of the primary environmental considerations

+6hilippine Department of 'nvironment and Natural @esources, %222 As with the

biofuels program of the early -.E2s, a biodiesel program can help insulate the

6hilippines from world oil price fluctuations, and simultaneously revitali7e stagnant

sectors of the economy These benefits may very well enough to compensate for the

relatively high production cost of biodiesel Implementation of carbon trading

through the *lean Development Mechanism can also be employed to subsidi7e such

a program


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*$0$ Tran 4ort Re'(6ation

Table % - lists various international regulations and or guidelines aimed at

improving new vehicle fuel efficiency for selected countries +8'*D Ministry of

Transport, %222 There are of course many other guidelines and regulations relating

to efforts to reduce emissions by the transport sector but only those directly related

the study that have been listed in this section

*$2$ Vo6(ntar. a'ree1ent or 4ro'ra1

The costs +both financial and environmental of regulatory measure can

outweigh the benefits of that program In the case of fuel efficiency standards, the

cost of developing and implementing technological advances and the consumers>

tendency to use some of the savings from reduced fuel consumption to drive further

+the rebound effect could outweigh the actual fuel savings achieved :oluntary

agreements program can be an alternative means of achieving improved fuel

efficiency Table % % lists a number of examples of voluntary agreement program

+8'*D Ministry of Transport, %222

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Table % - 'xamples of transport regulations in selected countries

*ountry @egulation description

*7ech @epublic 9pecific fuel consumption targets agreed andimplemented

Fapan &uel efficiency targets for %222 set, average E 01improvement over fiscal -..% levels01 target for average improvement in fuel efficiency for

petrol truc!s

@ussian &ederation Development of vehicle fuel efficiency standards proposed

9weden Target for private car average fuel consumption of 3 4liters per -22 !m by %220 has been proposed 9ince newcar fuel economy was E 5 litres -22!m in -..4i, thisimplies an improvement of %01 over the period -..4 to%220 :olvo has committed itself to a %01 reduction inaverage fuel consumption by %220

9wit7erland &ederal Government 8rdinance on reducing the specificfuel consumption of cars @e"uirement is for a -01

reduction in average fuel consumption in the period -..3to %22- +4 %1 per year

)nited 9tates *orporate Average &uel 'fficiency +*A&' standardsImplemented in -./0, came into effect for cars in -./East revised in -..% currently %/ 0 mpg +E 00 litres -22!m

'uropean )nion *ommission *ommunication *8M +.0 3E., %2December -..0, *ouncil *onclusion of %0 Fune -..38b$ective is to achieve an average of -%2 gm !m *8%

emissions +approx 0 l -22!m for new cars by %220Target is aimed at 'uropean made vehicles, but plans areto extend the targets to imports as well

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Table % % 'xamples of transport voluntary agreement programs in selected countries

*ountry *ountry :oluntary agreement programs

Austria Agreement with motor vehicle manufacturers to improve fuelefficiency to 4 litres -22 !m +envisaged measure

*anada :oluntary agreement with each of the manufacturers onincreasing fuel efficiency of new vehicles

&rance &rench car manufacturers have set a target of cutting average*8 % emissions to -02 gm !m by %220

Germany Agreement with domestic vehicle manufacturers on fueleconomy *alls for a %01 reduction in average fuelconsumption between -..2 and %220 +a rate of - .1 a year

9weden :olvo has committed itself to a %01 reduction in average fuelconsumption of its cars sold in the ') by %220

)nited (ingdom )( manufacturers are committed to meeting the A*'A targetof a -21 improvement in fuel efficiency by %220

'uropean )nion Agreement reached between the 'uropean *ommission andA*'A to cut *8 % emissions down to -52 gm !m

approximately 0 / litres -22 !m by %22E There is also acommitment to review emissions targets in %224 with a viewtowards achieving the *ommission>s ob$ective of -%2 gm !m+approximately 0 litres -22 !m by %2-%

*$8$ Air >(a6it. 4o6i%ie

In addition to carbon dioxide, vehicle usage results in other gas emissions,

many of which have implications for local air "uality Three of these are covered by

the 'uro standards= carbon monoxide, hydrocarbons and nitrogen oxides, all

measured separately for petrol and diesel cars, and also particulate matter for diesel

cars only tabulated in Table % 4

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of both local air "uality change and global climate change, recogni7ing that fuels

have different benefits and disadvantages In 'urope, the Directive is part of a trio of

policy approaches, concerned with climate change These include the voluntary

agreement to reduce missions by technical improvements to new cars and fiscal

measures In the )(, the fiscal measures include differentiated vehicle excise duty,

related on carbon dioxide emissions, and reduced company car allowances

*$9$ F(e6 e%ono1.

This chapter compares existing and planned vehicle fuel economy labelling

schemes in several selected countries 9ome of the planned schemes within 'uropean

countries are refer to earlier drafts of the ') Directive This is an area of policy that

should considered for every countries around especially for developing countries

that have been rapidly increase in the number of vehicles The simultaneously survey

in this section gives a dated snapshot of the current situation in the country 9o some

of the data given in this study section might be have already change

:ehicle labelling schemes have been in existence for several years in 9weden

and the )nited 9tates +both since -./0 and in the )( +since -.E4 The American

scheme was amended in -..2 and the *anadian scheme in -..E, in the light of

consumer feedbac! There is little evidence of the way these schemes influenced

consumer purchases 9ummary of fuel economy energy labels for motor vehicle in

several selected countries is given in Table % 5 +Brenda et al, %222 The fuel

economy label for several selected countries is given &igs % - H % .

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Table % 5 &uel economy labeling schemes in selected countries

A( tria A( tra6ia Be6'i(1 Cana)a Den1ar& Net-er6an) S5e)en S5it3er6an) USA EUDire%tive

"6anne) orE?i tin'

6lanned 6lanned 6lanned 'xisting 6lanned 6lanned for attachment tocars#existing

on website

'xisting 6lannedTemporary label

in meantime

'xisting Directive-... .5 '*

adopted

S%o4e Asdirective

6assenger cars,maybe extension tolight commercial

vehicles, 5x5

Asdirective

Newcars,vans,

light dutytruc!s

As direc tive As direc tive All passenger

cars

As directive New cars,vans, lightduty truc!s

New passenger

cars

Intro)(%tion)ate

Asdirective

%222 Asdirective

-..E - Fan %222 As directive -.// As directive buttemporary label

prior to that

-./0 To beimplementedin ') M9 byFanuary -E th

%22-

Man)ator.@ ?es ?es ?es No ?es ?es No No= Temporary ?es ?es

Unit o,%on (14tion

-22!m -22!m -22!m -22!mLmpg

mpg -22!m -22!m NotshownL -22!m

in guide

mpg -22!m or !m l or

combinationCo14ari onb. ab o6(te1ea (re orre6ative %a6e

@elative by si7eand salesweighted

Absolute but perhaps label

changed toappliance star style

+relative

@elative bysi7e and

salesweighted

Absolute Absolutecomparing

all cars

@elative bysi7e and sales

weighted

Absolute No scale shown but efficientdesignation withsales weighted

comparison for allsame weight

No scale butrange of

consumptionshown for

cars of samesi7e

Nore"uirement

for comparison

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Table % 5 *ontinueA( tria A( tra6ia Be6'i(1 Cana)a Den1ar& Net-er6an) S5e)en S5it3er6an) USA EU Dire%tive

Co14ari on4ara1eter

width Clength

None width Clength

None None width C length None weight si7e class N A

Ot-er1ea (re o, %on (14tion

Asdirective

None Asdirective

Annualfuel cost+focus of

label

(rona yr (rona %2222

!m(rona 32222

!m

*ost 02222!m*ost litre

None None None )nits can bein gallons

and miles if compatible

with DirectiveE2 -E- ''*

CO * Intentionto include

values

No Asdirective

No ?es +g*8 %!m

?es +g*8 %!m

?es+g

*8 %!m

Not shown but

in guide +g!m

No H intendedfor theguide

*8 %emissions in

g !m

Environ1enta6 Ran&in'

No No No No No No ?es,ran!ing -

to 4

No In guide byA*'''

No

"rinte)G(i)e

Intended ?es ?es ?es ?es ?es ?es ?es ?es ?es

On6ine G(i)e Intended ?es ?es ?es Intended ?es ?es Intended ?es Not re"uired but

consideredFi %a6inte'ration

?es # withfuel

consumption tax

+No:A

No Intended No ?es with fuelconsumption

tax+greenowner

?es withr$4a%iv$

consumption

;ithenvirorating

Intended H either to *8 %

or fuelconsumption

No

Ne5 %aro6) to ,6eetb(.er

-01maximum

-2#-01 # -21 # -21 # V 01 -21 N A

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&igure % - Austrian draft fuel economy label

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&igure % % Australian draft fuel consumption labels

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&igure % 4 *anadian fuel economy label

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&igure % 5 Danish draft fuel consumption label

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&igure % 0 9wedish fuel economy label

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&igure % 3 9wiss draft fuel economy label

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&igure % / )9 fuel consumption label

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&igure % E )( fuel economy label

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*$:$ Con%6( ion

There are not many policies around the world have been implemented for

reducing transport sector energy use other than for motor vehicle This may be

because the technology replacement for airplane and ship not so progressive such as

for motor vehicle There was a replacement for railway especially in Fapan and

&rance, however the replacement was not really related to energy but more to

increasing speed of mass railway transport Therefore the study is more favored to

motor vehicle since they are the ma$or energy consumer in the transportation sector

in this country 9everal countries are using the opportunity to experiment with

innovative approaches that go considerably beyond this minimum level This is in

order to reduce the contribution that new cars are ma!ing to environmental

degradation and climate change The focus on fuel economy provides substantial

benefits to consumers, particularly at a time of rising real oil prices and concerns

about the cost of petrol

As a result of the proposed fuel economy standard and fuel economy label,

consumers will be able to differentiate efficient vehicle with ease This will create

healthy competition among vehicle manufactures to come up with a more efficient

vehicle gradually 'ventually if these measures are implemented, it will bring great

benefit to government, consumers as well as to the environment 8verall,

dependency on petrol fuel could be reduced and greenhouse gas emission could be

mitigated Additionally, the fuel subsidy on petrol and diesel by government in the

future should be withdrawnL consumers will not pay more ton efficient vehicle unless

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it proven will be using lesser amount of fuel and benefit them due to higher cost of

fuel

Re,eren%e

Australian Greenhouse 8ffice +%225 Australia Green


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8'*D Ministers of Transport +-../ *8 % 'missions from Transport, 'uropean

*onference of Ministers of Transport, 8'*D

6hilippine Department of 'nergy +%22% 6hilippine 'nergy 6lan %22%H%2--

Manila

6hilippine Department of 'nvironment and Natural @esources +%222 Implementing

@ules and @egulations of @A E/5.W*lean Air Act of -..., Manila

6ir!ey, D, McNutt, B,


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/$#$ Intro)(%tion

8ver the past decades, it has been observed that there is an increasing

atmospheric concentration of greenhouse gases such carbon dioxide +*8 % and other

emissions that give negative impact to the environment such as sulfur dioxide +98 %,

nitrogen oxide +N8 x and carbon monoxide +*8 8ne of the main contributors of

these gases is generated by transportation sector because a conventional vehicle still

using fossil fuels as their main energy sources Burning fossil fuels is releases the

emissions such as mentioned gasses which !nown can cause greenhouse gas

emission effect, acid rain and other negative impact to environmental and

human!ind

*8 % is a colorless, odorless gas and produced when any form of carbon is

burned in an excess of oxygen Due to this reason, *8 % greenhouse effect in the

world has been enhanced This means that the atmosphere is trapping more heat that

has to escape to space This enhancement has lin!ed the greenhouse effect is causing

global warming *8 % is the largest contributor of greenhouse effect out of all the

gasses produce by human activities

98 % is a colorless gas, from the family of sulfur oxides +98 x It reacts on the

surface of a variety of atmosphere solid particles and can be oxidi7ed within

atmosphere water droplets &ossil fuel combustion is the main sources of 98 %

produce by human activities

N8 x are a collective term used of two types of oxides of nitrogen namely nitric

oxide +N8 and nitrogen dioxide +N8 % N8 is a colorless, flammable gas with a

slight odor N8 % is a nonflammable gas with a detectable smell and in certain

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concentration will highly toxic, which is in longtime can cause serious lung damage

N8 % is plays a ma$or role in the atmospheric reactions that produce o7one or smog

In the atmosphere, N8 % will mix with water vapor producing nitric acid and

deposited as acid rain

*8 is a colorless, odorless, poisonous gas 'xposure to *8 reduces the bloodQs

ability to carry oxygen *8 is a product of incomplete burning of hydrocarbon#based

fuels *8 consists of a carbon atom and an oxygen atom lin!ed together During

normal combustion, each atom of carbon in the burning fuel $oins with two atoms of

oxygen forming a harmless gas ;hen there is a lac! of oxygen to ensure complete

combustion of the fuel, each atom of carbon lin!s up with only one atom of oxygen

forming *8 gas

Malaysia planning to reduce the production of *8 %, 98 %, N8 x and *8 in the

country but the data of production of these gasses is unavailable therefore the study

attempts to estimate potential production of these gases from transportation sector in

this country ;ith exact figure of these emissions, Malaysia can contribute to

undermine the disaster caused by these gases by maximi7ing of using renewable fuel

9imilar study on emissions from electricity generation in Malaysia has been

discussed by Mahlia +%22%

/$*$ S(rve. Data

The data used for this study are the fuel consumption data, distribution of fuel

type for transportation sector data and emissions of *8 %, 98 %, N8 x and *8 from

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fossil fuel for unit fuel consumption in +g GF These data are collected from the

National 'nergy Balance +%22% All of the survey data are tabulated in Tables 4 -,

4 % and 4 4

Table 4 - &inal energy use by transportation sector

?ear Total

+!toe-.E2 %,4.E

-.E0 4,5//-..2 0,4E/-..0 /,E%/-..3 E,.0--../ -2,%2--..E .,/.4-... --,4.4%222 -%,2/-%22- -4,-4/%22% -4,55%

Type of fossil fuel used in transportation sector in Malaysia are include, Natural

Gas, Aviation gasoline +Avgas , Motor gasoline +Mogas , Aviation Turbine &uel

+ ATF or Avtur , Diesel oil and fuel oil Natural Gas fuel is a mixture of gaseous

hydrocarbons +mainly methane which occurs either in gas fields or in association

with crude oil in oil fields Aviation gasoline +Avgas is a special blended grade of

gasoline for use in aircraft engines of the piston type Distillation range normally

falls within 42 o* and %22 o* Motor gasoline +Mogas 6etroleum distillate for used as

fuel in spar!#ignition internal combustion engines Distillation range is within 42 o*

and %02o* AT& or Avtur is fuel for use in aviation gas turbines mainly refined from

(erosene Distillation range within -02 o* and %02 o* Diesel oil is Distillation falls

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within %22o* to 452 o* Diesel fuel for high speed diesel engines +i e automotive are

more critical on fuel "uality than diesel for stationary and marine diesel engines

Marine oil usually consists of a blend of diesel oil and some residual +asphalt

material Meanwhile, fuel oil is heavy distillates, residues or blends is used as fuel

for production of heat and power &uel oil production at the refinery is essentially a

matter of selective blending of available components rather than of special

processing &uel oil viscosities vary widely depending on the blend of distillates and

residues Transportation sector energy use based on fuel types is given in Table 4 %

+National 'nergy Balance, %22%

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Table 4 % Transportation sector energy use based on fuel types

?ear &uel Type +!toe

6etrol Diesel AT& &uel oil NG 'lect-.E2 -%.3 E5/ %02 # 2 2-.E0 %20/ -24% 4E3 # 2 2-..2 %EE. -E%3 3%E 5- 2 2-..0 55// %-3E --0E -/ 0 2-..3 0-3- %5-/ -444 4% 5 --../ 00/5 4-23 -54/ /0 0 --..E 0E5. %4-- -3-E . 5 --... 3//E 4-/5 -5%4 -4 2 5%222 34/E 5-24 -0/5 5 / 5

%22- 3E%2 5045 -/3% 0 -5 0 -/%22% 3.52 53E2 -/E0 5 %E 5

The summation of total energy use in Table 4 % is not very similar to the data in

Table 4 - is because the are some other types of fuel are not included in the table

such as 6G and Avgas which have been used for transport fuel in a very little

"uantity Time series data for these types of fuels is also unavailable and difficult to

predict

The type of e"uivalency in energy data in Table 4 - and Table 4 % is given by

tones oil e"uivalent +toe unit across different type of fuels Toe generally refers to

energy content to one metric ton of crude oil The international table standard defines

one toe as having a net calorific value of -2 Gcal There are different definitions in

the literature for ton oil e"uivalent The one used in this study is the conversion

factor that - toe X -2 Gcal X 5- E3E GF +'IA, %225L I'A, %22%L )N, -..-

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/$/$ Met-o)o6o'.

This study uses the scenario approach for the analysis 9chwart7 +-..3 states

that scenarios are tools for ordering perceptions about alternative future

environments and the end#result might not be an accurate picture of tomorrow,

however can give better decisions about the future No matter how things might

actually turn out, both the analyst and the policy ma!er will have a scenario that

resembles a given future and that will help us thin! through both the opportunities

and the conse"uences of that future

This analysis is generally based on modeling methodologies to figure out the

potential emissions from transportation sector in Malaysia in the future &or this

purpose, initially, the type of fuel use for transportation sector should be identified

9ome of the data are already available but others have to be calculated with respect

to the county fuel consumption trend 9everal methods have been employed to

analy7e and predict unavailable data Those are linear, logarithmic, "uadratic, power

growth and exponential curve fitting &rom the calculation found that the best

method used to estimate the rest of the calculation data is polynomial curve fitting

The best fit from these methods will be used for this study The method is an attempt

to describe the relationship between variable ! as the function of available data and a

response Y ;hich see!s to find some smooth curve that best fit the data, but does

not necessarily pass through any data points Mathematically, a polynomial of order

k in ! is expressed in the following form +(lienbaum, -..E =

k k ! C 555 ! C ! C C Y ++++= %%-2 +4 -

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The pattern of emission due to the fuel changes is potential emissions released

by transportation sector in Malaysia The common gasses are consisting *8 %, 98 %,

N8 x and *8 'mission pattern of the transportation sector can be calculated by the

following e"uation=

,+ 44%%-- n pni pi pi pii FE ES 555 FE ES FE ES FE ES CF TM ++++=

+4 %

/$0$ Re (6t an) Di %( ion

There are two types of data to be analy7ed i e fuel consumption data based on

fuel type and emission data of transportation sector These fuels are 6etrol, Diesel,

AT&, Natural Gas and 'lectricity The usage of the mentioned fuels is potentially to

be increased in the future Based on the data shown in Table 4 %, using '" +4 - , the

petrol consumption by transportation sector in Malaysia from year %224 to year %2%2

can be predicted by the following e"uation=

./.0234%-4.4-%25 %%- =++= R , ! 5'236 ! Y +4 4

Based on the data shown in Table 4 %, using '" +4 - , the diesel fuel

consumption in transportation sector in Malaysia from the year %224 to %2%2 can be

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predicted The total of diesel fuel use in transportation sector can be predicted by the

following e"uation=

.-E4233--2/4%5/--2-0 %%% =+= R , ! ! Y

+4 5

The total of AT& fuel used for transportation sector in Malaysia can be

predicted by the following e"uation=

.3E/20%-0//%.5253-.5 %%4 =++= R , ! ! Y +4 0

The total of natural gas fuel uses in transportation sector in Malaysia can be

predicted by the following e"uation=

/5232-2%32020.-%/00% %%5 =+= R , ! ! Y +4 3

The total of electricity uses in transportation sector in Malaysia can be predicted

by the following e"uation=

E%-522%05240.%250E52 %%0 =+= R , ! ! Y +4 /

The results of the predicted data based on '"uations +4 4 , +4 5 , +4 0 , +4 3 and

+4 / from the year %224 to %2%2 are tabulated in Table 4 5

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Table 4 5 6redicted energy demand and fuel mix of transportation

sector in Malaysia

?ear &uel Type +!toe6etrol Diesel AT& NG 'lect Total

%224 //45 5./2 -.30 %% 3 -5 3.3%225 E-3. 04.E %2/. %0 3 -0 3/E%220 E3-3 0E5/ %-./ %. / -3 3./%223 .2/3 34-E %4-E 4% E -/ /04%22/ .05. 3E2. %55% 43 . -E E53%22E -2 245 /4%% %0/2 5- -2 -. .//%22. -2 04% /E0/ %/22 50 -- %- -50

%2-2 -- 25% E5-4 %E45 5. -4 %% 402%2-- -- 030 E..2 %./- 05 -5 %4 0.4%2-% -% -22 .0EE 4--- 0. -0 %5 E/4%2-4 -% 35E -2 %2E 4%05 35 -3 %3 -.2%2-5 -4 %2E -2 E5. 4522 /2 -E %/ 050%2-0 -4 /E- -- 0-- 4002 /0 -. %E .43%2-3 -5 43/ -% -.0 4/2% E- %2 42 433%2-/ -5 .30 -% .22 4E0E E/ %% 4- E4%%2-E -0 0/3 -4 3%3 52-/ .4 %4 44 443%2-. -3 %22 -5 4/5 5-/. -22 %0 45 E//%2%2 -3 E43 -0 -54 5455 -23 %/ 43 500

The predicted fuel percentage trend based on fuel type of energy consumption in

transportation sector in Malaysia is presented in &ig 4 -

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&igure 4 - 6redicted energy demand based on percentage fuel mix for

transportation sector in Malaysia

The small changes of energy sources for transportation sector have contributed

for emissions pattern in Malaysia To replace petrol the authority has to increase the

use of diesel This replacement can be avoided if Malaysian government plans early

The authority should switch this replacement to another renewable energy sources

such as bio#diesel or hydrogen fuel Gradual replacement of petrol and diesel with

natural gas is another alternative option since Malaysia has reserve a large amount of

this fuel and that is !nown that natural gas has lower emission than petrol and diesel

This can help to reduce emission in the future and also helps to secure Malaysia>s

energy security This is due to high cost of imported crude oil and higher cost of

conserving emissions in the future *onducting life cycle cost analysis of conserved

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emissions and investment is necessary


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&igure 4 4 6attern of 98 % and N8 x emissions production by transportation

sector in Malaysia

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Table 4 0 6otential emissions production by transportation sector in Malaysia

?ear 'missions production by transportation +Ton

*8 % 98 % N8 C *8

%224 50 22E 0%. -5-5 0%E 4./ - -3% E-E%225 5E 2-3 4-0 -02. 00. .3E - %%E E3/%220 0- -4E 05. -32/ 0.% 00. - %.3 E30%223 05 4/0 %4% -/2. 3%3 -3. - 433 E--%22/ 0/ /%3 43% -E-5 332 /.. - 54E /23%22E 3- -.- .52 -.%4 3.3 55. - 0-% 05.%22. 35 //- .3/ %240 /44 --. - 0EE 45-%2-2 3E 533 55% %-0- //2 E2E - 333 2E%%2-- /% %/0 435 %%/- E2. 0-/ - /50 //-%2-% /3 -.E /40 %4.5 E5. %50 - E%/ 52E%2-4 E2 %43 005 %0%- EE. ..4 - .-2 ..5%2-5 E5 4EE E%- %30- .4- /3- - ..3 0%E%2-0 EE 300 04/ %/E0 ./5 05E % 2E5 2--%2-3 .4 243 /22 %.%4 - 2-E 400 % -/4 554%2-/ ./ 04% 4-- 4235 - 234 -E% % %35 E%4%2-E -2% -5% 4/- 4%2. - -2. 2%E % 40E -0-%2-. -23 E33 E/E 440/ - -00 E.5 % 504 5%E%2%2 --- /20 E45 402. - %24 /E2 % 002 305

The results from Table 4 0 show that the total emissions production from %224

to %2%2 are about -,434,/45,555 tons of *8 %, 5%,E50 tons of 98 %, -0,-/4,0/% tons

of N8 x and 4%,3%3,%0% tons of *8 These are huge amount of emission for small

developing country li!e Malaysia The authorities and policyma!ers should find a

suitable policy to reduce this emission in order to contribute to (yoto 6rotocol and to

leave a better environment for future generation

/$2$ Con%6( ion

The emissions from transportation sector contributed the largest emission for the

country Government intervention to abate this emission is urgently needed at the

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present The emissions pattern from fossil fuel used in transportation sector can be

reduce by switching from fossil fuel to renewable fuel such as bio#diesel and

hydrogen fuel This policy offers solution and multiple benefits to utility, society and

most important to protect the environment Malaysian authority has to find ways to

reduce these emissions, such as by introducing emissions taxation which can be used

to subsidies renewable fuel or lower emission fuel or for replanting threes of the rain

forest in the country The increase in emissions is suspected due the increase in

vehicle population in Malaysia The greater the increase in vehicle population, the

higher would be the corresponding emissions Thus, one would have to conclude

031 Energy Use in the Transportation Sector of Malaysia

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Transcript of 031 Energy Use in the Transportation Sector of Malaysia