The Potential Influence of the Cost of Carbon on Asphalt Pavement Construction

Abstract

Life Cycle Cost Analysis (LCCA) is a decision support method used in the roadway industry to compare the financial differences between alternative paving options. This project considers how the cost of carbon may be incorporated into LCCA studies, and what impact that may have on decision-making. A literature review on existing carbon costing avenues determined $35/MTCO2e at a discount rate of 2% to be a representative metric for case study analysis. Performing three Washington State highway paving case studies through the RealCost 3.0 software produced separate agency and user costs. The agency cost of carbon is calculated through the asphalt material’s global warming potential (GWP), while the user cost of carbon is based on excess vehicle emissions due to traffic delays. At the previously assigned unit cost of carbon, case study LCCA results showed the cost of carbon to contribute around 1% of total agency and user value. A further sensitivity analysis determined that in order to reach 10% of project value, the cost of carbon would need to be between $300 and $500 per MTCO2e. These results demonstrated that the value of greenhouse gas emissions would need to be much higher in order for it to play a significant role in decision-making in the pavement industry.