Transportation Economics Case Study

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a. NAAQS were established for six principal pollutants. Describe each and give examples of each applicable pollutant. (10 points)

The National Ambient Air Quality Standards (NAAQS) were established in order to cope with six principal pollutants. The pollutants can be described as follows:

1. Carbon Monoxide (CO) – This is a pollutant that is in the form of an urban smog. It is more often perceived in different regions such as California and also in Lake Michigan

2. Nitrogen Dioxide – this is an emission that comes from engines

3. Particulate Matter – this is a pollutant that is usually found in smoke, soot, dust, and soil

4. Lead – Despite the fact that this is of the six principle pollutants, lead has been discontinued and reduced by the EPA from the 80s period. An example of lead includes lead that is found in gasoline and also in products such as paints.

5. Sulphur Dioxide - this is a pollutant that is emitted from the combustion of fossil fuels, in industrial facilities, and in power plants. In addition, the pollutant can be obtained in very small amounts when metal is extracted from ore.

6. Ozone – Ozone is an emission from industrial facilities, chemical solvents, exhaust pipes of motor vehicles and electrical utilities.
b. In Hepburn’s Speed Model, the coefficients of vehicles are indicated for C and D. As the chief of operations in your organization, you are responsible for presenting the yearly budget for the semi trucks in your company’s inventory.

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Since your safety officer is insisting that each of your drivers must maintain an average speed of 55mph, what would be the vehicle operating cost of your company for each semi-truck in cent per mile? ____(10 points)

Vehicle Operating Costs can be calculated using the following formula:

VOC = a0 – a1s + a2s2

In this case s = 55mph

VOC = 38.1 – (0.093 × 55) + (0.00033 × 55)

= 38.1 – (5.115) + (0.99825)

= 33.9833

c. A taxi driver plans to pick you up at the airport and drop you off at the bank so you can complete some financial transaction before you head home. He notes that the change in vehicle operating cost (VOC) is 42 cents per mile. Given that his fuel consumption per minute is 0.2, what is the approximate price of fuel for this given arrangement if you delayed the driver for 36 minutes at the bank? ____(10 points)

Change in fuel vehicle operating costs (VOC) = g(d0 – d1)p

VOC = 42 cents per mile

G – fuel consumption per minute = 0.2

D0 – D1 = change in delay = 36 minutes

P = price of fuel

42 = 0.2 (36) p….....

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