CO₂ Emission Reduction Potential from Interregional Physical Distribution

Abstract

We estimate potential CO₂ emission reduction in the freight sector by optimizing the physical distribution for the following two cases: the modal shift in the transportation and the change of the industrial structure to "local production for local consumption". The modal shift in the transportation can reduce CO₂ emissions to 54 % compared with the present. The decrease in the transport distance can reduce CO₂ emissions to 58% compared with the present. While minimizing transport cost shows the same trend, minimizing transport time does not contribute CO₂ emission reduction. This paper also shows the relationship between physical distribution and industrial production by the conception of "derived physical distribution". The derived physical distribution is clearly different from that of present physical distribution when optimizing CO₂ emissions in the case that transport distance can be changed. Combining the optimization analysis and the input-output analysis in the physical distribution, the optimized physical distribution can be depicted by visualizing industrial activities.