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Integrated Framework to Capture the Interdependencies between Transportation and Energy Sectors due to Policy Decisions

Currently, transportation and energy sectors are developed, managed, and operated independently of one another. Due to the non-renewable nature of fossil fuels, energy security has evolved into a strategic goal for the United States. The transportation sector accounts for about 30% of the energy consumed by the U.S. As the emergent and strategic linkages between the two sectors are becoming increasingly apparent from a qualitative perspective, there is an evolving consensus that national, regional, and local policy goals may not be achievable completely or effectively by focusing on one sector at a time. For example, the increase in the market penetration of electric vehicle has brought many advantages and challenges along with it on both transportation as well as the energy sector. Such challenges for transportation sector include reduction of highway maintenance budgets due to a reduction in gasoline sales, and that for energy sector include increased power demand during specific times of the day, thereby affecting daily power generation operations. This motivates the need to develop an analytical framework to capture the interdependencies between these two infrastructure systems. This study provides a system-of-systems based infrastructure computable general equilibrium framework for analyzing the interdependencies between the transportation and energy sectors.