Cost-Benefit Analysis of Euro VI Heavy-Duty Emission Standards in Argentina

Argentina, with the second-largest commercial vehicle market in South America, has particulate matter (PM₂.₅) pollution levels that are 30% above the World Health Organization’s guideline. The Organisation for Economic Co-operation and Development estimates that the annual economic costs from PM₂.₅ pollution in Argentina exceed 3.7% of gross domestic product. Vehicle exhaust emissions were conservatively associated with roughly 1,000 air pollution-related deaths in Argentina in 2015, along with a much larger number of air pollution-related illnesses and disabilities. Heavy-duty vehicles (HDVs), including trucks and buses, account for 3% to 4% of Argentina’s vehicle fleet but produce 60% of PM₂.₅ and 70% of nitrogen oxide (NOₓ) emissions. To lower the health impacts of HDVs, the government has introduced progressively more strict emissions standards, up to Euro V standards. Implementing the next phase of standards, equivalent to Euro VI or U.S. 2010, would put reduce HDV emissions of PM₂.₅ and NOₓ by 90%. The authors use local data on Argentina’s HDV fleet to compare the costs and benefits of implementing Euro VI type standards in Argentina. The authors estimate that introduction of Euro VI standards in 2023 would prevent around 1,950 premature deaths in 2023–2050. These estimations are conservatively low, but each $1 invested for compliance with Euro VI standards would produce $3.60 in health benefits from reduced PM₂.₅ over the next 30 years. Because a large proportion of new HDVs in Argentina are manufactured in Brazil, the authors recommend that Argentina align with Brazil’s introduction of Euro VI standards, to take effect in 2022. There are several complementary actions that merit attention. Euro V standards have been in effect in Argentina since 2016, yet a majority of the the country's HDVs are certified to Euro III or earlier standards, and approximately half of HDVs are more than 10 years old. To accelerate the benefits of Euro VI standards, the authors recommend that Argentina provide incentives for early introduction of Euro VI vehicles and faster fleet renewal. This study assumes that all Euro V and VI vehicles use ultralow-sulfur fuel, required for the effectiveness of emission controls. Yet data indicate that ultralow-sulfur Grade 3 diesel is sold at a price 20% higher than high-sulfur Grade 2, which can lead to wrong fueling of Euro V and Euro VI vehicles. The authors recommend reducing this risk by adjusting fuel taxes to eliminate the price penalty imposed on Grade 3 diesel, and planning to switch the national diesel supply to Grade 3.

• Record URL:
  https://theicct.org/publications/cost-benefit-analysis-euro-vi-hdv-argentina
• Corporate Authors:

  International Council on Clean Transportation (ICCT)

  1500 K Street NW, Suite 650
  Washington, DC  United States  20005

  Climate and Clean Air Coalition

  1 Rue Miollis
  Paris,   France  75015
• Authors:
  • Miller, Joshua
  • Braun, Caleb
• Publication Date: 2020-4-23

Language

• English

Media Info

• Media Type: Digital/other
• Edition: White Paper
• Features: Figures; References; Tables;
• Pagination: 32p

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Exhaust gases; Heavy duty vehicles; Particulates; Public health
• Identifier Terms: Euro 6 (Standard : European Union)
• Geographic Terms: Argentina
• Subject Areas: Environment; Highways; Vehicles and Equipment;

Filing Info

• Accession Number: 01744238
• Record Type: Publication
• Files: TRIS
• Created Date: Jun 26 2020 5:20PM