Cost-Benefit Analysis of Low-Carbon Mobility Solutions

Transport is responsible for approximately 24% of global CO2 emissions, making it a critical sector for decarbonization. This chapter presents a comprehensive cost-benefit analysis (CBA) of low-carbon mobility solutions, including battery electric vehicles (BEVs), hydrogen fuel cell vehicles (FCEVs), public transit systems, and active transport modes such as cycling and walking. Drawing on life-cycle assessment (LCA) methodologies, total cost of ownership (TCO) models, and estimates of the social cost of carbon (SCC), the analysis quantifies both the private and social returns to low-carbon investment. Evidence suggests that BEVs and public transit deliver benefit-cost ratios significantly above unity when externalities are monetized, while active transport yields some of the highest co-benefits through reduced congestion, improved public health, and lower infrastructure costs.

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