Six Billion Pounds? Not Likely and Not Worth It
posted in Transportation |When President Obama announced his vision for high-speed rail, he claimed it would reduce greenhouse gas emissions by 6 billion pounds a year. The first clue that this number is pretty insignificant is the fact that it is expressed in pounds, instead of the usual metric tons. Six billion pounds is 2.72 million metric tons, which is less than five one-hundredths of a percent of the 6 trillion tons of CO2 the U.S. produced in 2007.
Even if it were significant, it is almost certainly a wild exaggeration. According to page 3 of the Federal Railroad Administration’s strategic plan, the source is a 2006 report by the Center for Air Policy and Center for Neighborhood Technologies.
At the risk of making an * ahem * ad hominem attack, this source is not exactly objective. Without documentation or attribution, the very first paragraph of the report claims that high-speed rail “can reduce congestion on roads and at airports, is cost effective and convenient, improves mobility and has environmental benefits.” That doesn’t sound very fair and balanced to me.

To calculate the annual CO2 savings of the FRA plan, the study made the following assumptions:
1. “Relatively low fuel prices and a continuing trend of drivers switching to sport utility vehicles” means that the average car on the road in 2025 will get 23 miles per gallon (the average today is about 20). Under Obama’s new fuel-economy standards, however, the average car on the road in 2025 will get almost 30 miles per gallon. Given recent high fuel prices — not known to the authors of the 2006 study but certainly known to FRA planners in 2009 — that’s a lot more realistic.
2. The average automobile on the road carries 1.6 people. While this is the national average, occupancies for the intercity travel with which high-speed rail will compete are much higher; the California High-Speed Rail Authority (which is not noted for its objectivity either) used 2.4 (see p. 3.2-31).
3. For rail vehicles, the study assumed Amtrak would replace its existing Diesel trains with a Danish Diesel whose top speed is only 99 miles per hour. Since most FRA routes call for trains going up to 110 miles per hour, and energy consumption is very sensitive to speed, this was the wrong choice.
4. The study relied on optimistic rail ridership assumptions, such as California’s 32 million trips per year (more than three times the number Amtrak carries in the more-heavily-populated Northeast Corridor). As another example, in the Pacific Northwest corridor, the study optimistically assumed that raising top speeds from 79 to 99 miles per hour would more than triple annual ridership.
5. The study counted only operational emissions, implicitly assuming that the emissions from construction (and periodic reconstruction) of high-speed rail would be zero.
These are all examples of what Bent Flyvbjerg calls “optimism bias.” Correcting any of these assumptions is likely to drastically reduce or, more likely, entirely eliminate the 6 billion pounds of emissions high-speed rail is supposed to save.
Incidentally, the report also estimates that, if the entire FRA plan is built before 2025, high-speed rail would carry 25.5 billion passenger miles per year (5.5 billion of which would be taken from conventional trains). Since the Census Bureau projects a population of 357 million in 2025, that represents an average of 71 miles per person. That is hardly the transportation revolution that Obama is counting on.
A more objective analysis of high-speed rail’s environmental effects is by Professor Roger Kemp of Lancaster University. He has studied high-speed rail proposals in the U.K. and concluded that, if you want to save energy, you should drive a car. At least in Britain, he says, even today’s cars are more fuel efficient than trains.
For one thing, Kemp found that — unless the rail lines are used to full capacity — the energy cost of construction completely dwarfs any energy savings from operations. With a round-the-clock average of just one train an hour in each direction, and no more than two trains a hour during the busiest times of day, even Amtrak’s New York-to-Washington corridor is far from full capacity.
For the sake of argument, however, let’s assume for a moment that the Center for Air Policy’s optimistic assumptions turn out to be correct and high-speed rail does save 6 billion pounds of CO2 per year. Is that cost effective? To answer that, we first have to estimate how much Obama’s plan will cost — something the Federal Railroad Administration has not bothered to do.
The FRA’s vision calls for upgrading about 6,600 miles of track to allow 110-mph trains and building about 1,200 miles of new track in California and Florida to allow 125- to 220-mph trains. The speed of another 1,000 route miles in Texas is left ambiguous; Texas wanted true high-speed rail but its plans stalled years ago. Let’s assume 110-mph trains in Texas.
Based on cost estimates for the Midwest and Empire corridors, adjusted to current dollars using construction cost indices, the average cost of upgrading existing track to 110-mph standards will be about $3.6 million per mile, or about $27 billion for 7,600 miles. The first segment of the California corridor is supposed to cost $33 billion; the entire corridor should cost around $52 billion. The first 92 miles of the Florida routes were projected to cost $25 million a mile in 2005; that’s about $31.5 million at today’s construction prices, or about $11 billion for the entire 356-mile Tampa-Orlando-Miami corridor.
That’s a grand total of $90 billion. Amortizing that over 30 years at 7 percent interest results in an annualized cost (not counting operational losses) of $7.2 billion per year. Six billion pounds of CO2 is about 2.72 million metric tons, so the cost is about $2,640 per ton of CO2 abated. That’s pretty high given that McKinsey & Company says we can cut our emissions in half by making investments that cost no more than $50 a ton.
In other words, spending $90 billion to reduce the nation’s greenhouse gas emissions by less than 0.05 percent is not an efficient investment. It is made even less efficient by the high risk that it won’t save any energy or greenhouse gas emissions at all.




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