The Clean Commuter Rebate Scheme (CCRS)

2014
The Clean Commuter Rebate SchemeThe Clean Commuter Rebate Scheme
A PROPOSAL FOR THE ADELAIDE
CITY COUNCIL
Natasha Rayan a1193390

[THE CLEAN COMMUTER REBATE SCHEME] a1193390
1
Contents
Abstract...................................................................................................................................................2
1. Climate Change ...................................................................................................................................3
1.1 Transport.................................................................................................................................3
1.2 Air Pollution ............................................................................................................................4
2. The Clean Commuter Rebate Scheme ................................................................................................5
2.1 Execution.......................................................................................................................................6
2.2 Intended Outcomes of the CCRS...................................................................................................6
2.3 Implications for Stakeholders .......................................................................................................7
2.3.1 Adelaide Metro..........................................................................................................................7
2.3.2 Other Stakeholders....................................................................................................................8
3. Management Strategy ........................................................................................................................8
3.1 Timeframe.....................................................................................................................................8
3.2 Anticipated Costs ..........................................................................................................................8
3.2.1 Private........................................................................................................................................8
3.2.1 Social..........................................................................................................................................8
3.2.3 Public..........................................................................................................................................9
4. Concluding Remarks............................................................................................................................9
5. References ........................................................................................................................................10

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Abstract
Climate change is a global issue which requires cooperation on mitigation efforts across all countries.
Australians are amongst the key contributors to global warming and must play their part in lowering
greenhouse gas emissions. Under the Clean Commuter Rebate Scheme, commuters in Adelaide will
be given an incentive to reduce their carbon footprint and offered a rebate on journeys that are
‘clean.’ In this report it is proposed that incentives and positive reinforcement are more effective
advocates for behavioural change than punishment for less desirable behaviour. Given any change in
policy there will always be stakeholders and costs to address which will be discussed at length
throughout.

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1. Climate Change
Climate change has been described as the largest threat to global health of the 21st
century (Costello,
et al., 2009). Numerous studies and scientific analysis have shown that human activity can be
directly correlated with the recently observed trends in global warming. Rising global temperatures
are expected to bring about an increase in the occurrence of severe weather events such as heat
waves, droughts, cyclones and storms (Pachauri RK, 2007). Australia contributes to about 1.5% of
the world’s green-house gas (GHG) emissions. While this sounds minimal, take population into
account and Australians are amongst the world’s largest polluters. Australia's carbon dioxide (CO2)
emissions per capita are nearly twice the OECD average and more than quadruple the world average
(DCCEE, 2010). Carbon dioxide forms the largest share of greenhouse gases in the ozone layer.
Human activity has severely impacted the proportion of CO2 in the atmosphere through practices
such as burning oil, coal and natural gas as a source of energy (OECD, 2013). Fuel combustion in cars
and other motorised vehicles is largely responsible for Australia’s contributions to the greenhouse
effect. Stabilisation of the world’s GHG emissions will require international co-operation in order to
alleviate the catastrophic effects of global warming.
1.1Transport
Significantly greater attention is being paid to the numerous environmental effects caused by the
use of road vehicles. On Australian roads the by-products of fuel combustion in vehicles used for
transportation are responsible for 14% of the nation’s total GHG emissions (DCCEE, 2010). Of this
fraction, road cars account for 54.9% (see Figure 1.1) - so just over 7% of Australia’s total GHG
emissions result from transport by car. It is important to note that trams and other electric vehicles
are not classified as exceptions. Despite the lack of fuel combustion and exhaust releases, the use of
electric vehicles does not lower GHG emissions unless the electricity is generated from clean sources.
In 2010, Australian fuel combustion resulted in 383 million tonnes of CO2 emissions (OECD, 2013).
The transport sector alone accounts for 76 million tonnes but such a figure isn’t surprising when
different fuels are examined for the amount of carbon and energy they contain. Per one litre of
petrol, approximately 2.3kg of CO2 are released from the exhaust (see Figure 1.2). This mass
increases to 2.7kg for vehicles run on diesel engines. It is interesting to note that a greater mass of
CO2 emissions are produced in combustion than the initial mass per litre of fuel and this is due to the
addition of atmospheric oxygen during the combustion process (DSEWPC, 2008).

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1.2Air Pollution
When fuel combustion takes place is cars, the chemical reaction produces three harmful by-products:
carbon monoxide (CO) which reacts instantly with oxygen in the air to form carbon dioxide (CO2), a
greenhouse gas. The combustion reaction also produces mono-nitrogen oxides (NOx) and volatile
organic compounds (VOC). The CO2 and VOC emissions mostly come from petrol-fuelled cars but NOx
emissions are caused by both LPG and diesel fuelled vehicles (Winther, 1998). CO2 may be the only
Figure 1.1 Shares of Australian Domestic Transport Fuel Use, by transport mode
for 1997-1998 (BTRE, 2002)
Figure 1.2 Projections of CO2 equivalent emissions from Australian
Domestic Transport (DSEWPC, 2008).

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combustion by-product which contributes to global warming but NOx and VOC are both hazardous
gases which affect air quality. NOx can react with other compounds in the air to form nitric acid
which contributes to acid rain (Blackenship, 1997). High level exposure to VOC has been associated
with respiratory, allergy and immune effects in infants and children (Mendell, 2007). The two gases
can even react with each other in the presence of sunlight to form Ozone. The inhalation of Ozone
can cause major health implications such as lung tissue damage and dysfunction amongst
susceptible demographics (WHO, 2003).
2. The Clean Commuter Rebate Scheme
The Adelaide City Council must recognise that it is necessary for measures to be taken in order to
lower GHG emissions. The current level of CO2 emissions in the transport sector is not sustainable
even with optimistic expectations for existing policy aimed at abatement (see Figure 1.3). However,
the car is a vital means of transportation for most of the population. Taking into account registration
fees, fluctuating petrol prices, maintenance costs and insurance needs; owning, driving and
maintaining a car is already stressful for those who rely on it. Implementing a tax, increasing fees or
otherwise inflating the cost of owning and running a vehicle may achieve a reduction in greenhouse
gas emissions but only from the group of commuters who are able to forgo motorised transport. The
Figure 1.3 Projections of CO2 equivalent emissions from Australian
Domestic Transport (BTRE, 2002)

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aforementioned strategy would adversely affect individuals who have no alternative means such as
public transport available to them.
Therefore, in response to the needs of Australians and pressures to alleviate climate change, it is
recommended that the Adelaide City Council implement a rebate scheme for commuters willing to
forgo motorised transport. The Clean Commuter Rebate Scheme (CCRS) aims to provide an incentive
to reduce carbon emissions without making motorists worse off. Implementation of the CCRS would
not affect the benefits to motorists as it does not force them to abate. However, a decrease in the
number of motorists as a result of the CCRS will see a reduction in greenhouse gas emissions.
2.1 Execution
The CCRS will provide monetary rebates to commuters who choose to forgo motorised
transportation. For every kilometre travelled on bike, foot, skates or any other non-motorised means
a rebate of 10c/km will be received. In co-operation with existing cycling and fitness mobile phone
applications and GPS software, features will be developed to track and record commuter journeys
for analysis. This information can then be uploaded to an online database and community if the user
wishes to share their progress with others. The uploads will be checked against existing modelled
data for cycling, running, walking and so on to ensure that only appropriate data is accepted. User
accounts will be linked to their Tax File Number (TFN) and at the end of each financial year a rebate
will be issued. The use of a TFN ensures that users cannot create multiple accounts. The use of a TFN
also ensures that users can only claim rides leading to and from their legally taxed place(s) of
employment.
2.2 Intended Outcomes of the CCRS
Following implementation of the CCRS immediate and long term benefits to individual recipients and
society can be expected. Commuters will firstly benefit from improved health and personal fitness by
factoring exercise into daily transport routines. Secondly, they will see instant savings in petrol costs,
parking costs and public transport costs. In the long run commuters may decide they no longer need
a car or require fewer cars per household. Such outcomes have been documented overseas where
users eliminated the need for a car all together and turned to car hire services in the event that
space was required for a larger payload (Birdsong, 2006). In addition to savings, the CCRS also
facilitates earnings by providing commuters with a rebate for distances travelled.
There are also benefits for society to be gained through implementation of the CCRS. In the long run,
it is expected that the number of motorists commuting to and from work will decrease. This will

7
result in lower CO2 emissions from the transport sector and may facilitate the stabilisation of GHG
emissions. Fewer motorists on the road will also alleviate traffic congestion and delays for
commuters who choose not to adopt the CCRS. The decrease in demand for fuel will create an
excess supply forcing a fall in prices.
2.3 Implications for Stakeholders
While the CCRS has the potential to alleviate Australia’s contribution to GHG emissions and provide
incentives for commuters to improve their health and fitness, it does not come without some
implications. Stakeholders within the transport sector may suffer from loss of business and revenue
resulting in consolidation of services or redundancies to employment.
2.3.1 Adelaide Metro
As South Australia’s main public transport service, Adelaide Metro is one of the largest stakeholders
under the CCRS. Starting with the negative externalities, it is likely that a fall in the demand for
public transport will be observed. Commuters living within a reasonable distance (estimated to be
≤10km) from work or study are more likely to embrace the benefits of the scheme and forgo
transport via motorised means including buses, trains and trams than those with a 10km or greater
commute. Adelaide Metro could respond to this expected fall in demand by adjusting routes to and
from the city to include fewer suburbs within a 10km radius. Another option is to increase the
number of express bus and train services from outer suburbs to lower travel times for distant
passengers. The frequency of services for surrounding suburbs of the CBD could also be decreased in
response to the anticipated fall in demand. In addition to this, an increase in the number of cyclists
on the road is likely to hinder ease of manoeuvrability for buses which often travel in the left lane.
On the other hand, there are some positive externalities to be gained from the scheme. The
decrease in motorists will allow for ease of manoeuvrability for buses and lighter traffic conditions.
Demand for public transport will remain unchanged in some weather conditions and potentially for
most of the winter season given fewer hours of daylight. Also, at times when commuters are likely to
consume alcohol such as Friday nights there will still be a demand for public transport. The decrease
in passengers living within reasonable distances of the CBD will mean that residents from further
locations will experience shorter travel times due to fewer stops. Adelaide Metro will also benefit
from the expected fall in petrol prices resulting from a decrease in demand.

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2.3.2 Other Stakeholders
Any business whose operations are dependent upon motor vehicles and transport is likely to be
affected as the CCRS unfolds. This includes but it is not limited to the petroleum industry, mechanics
and maintenance including car wash services, parking lots in the CBD, motor retailers, taxi services
and car insurers. Each of these markets will need to reassess their product or services and adjust to
the change in demand accordingly.
3. Management Strategy
3.1 Timeframe
It is proposed that the CCRS commence during the winter months to capture the attention of
existing clean commuters and gradually encourage the transition of other commuters onto the
scheme as daylight savings time approaches. This will allow time for reviewing and establishing
reliable software and analysis data and it is anticipated that the registration process will run
smoother. It is recommended that this scheme be first implemented as a trial run by the Adelaide
City Council and aimed at commuters travelled to and from the CBD. Should success of the CCRS
follow, it is expected that implementation can gradually proceed at a national level.
3.2 Anticipated Costs
3.2.1 Private
Commuters may face the steep initial costs of purchasing a bike and required accessories before
being able to benefit from the scheme. There are also safety costs to consider for cyclists choosing
to share a road with motor vehicles. However, the safety factor is likely to increase as the volume of
cyclists grows shown by studies on the ‘safety in numbers.’ The research shows that an increase in
the number of cyclists will be accompanied by an increase in injuries to cyclists but at decreasing
rate (Lindsay, Macmillan, & Woodward, 2010).
3.2.1 Social
Social costs may include changes in traffic conditions caused by an influx of cyclists and pedestrians
following the scheme. It is imperative that new cyclists are educated on road rules and follow
appropriate visibility protocol for riding in limited daylight. Education of commuters under the
scheme could be implemented as part of the registration process to ensure all participants are well
informed. A shortage of public bathrooms, showers and other end-of-trip facilities may affect
waiting times and workplace punctuality. Theft of bicycles and other private property will become an

9
issue of concern and one that should be addressed in conjunction with the Bicycle Institute of South
Australia (BISA) and South Australia Police (SAPOL), as they have currently developed joint measures
to lower incidences of theft (BISA, 2013).
3.2.3 Public
The most obvious economic cost to the public sector will be the issue of rebates following the end of
financial year. Given a 5km commute (10km round trip), a full time employee who commutes cleanly
for 5 days a week at 40 weeks a year can expect a rebate of $200 under the CCRS in their next tax
return. In 2011, the number of cyclists travelling to and from the CBD between the hours of 7am and
7pm on a typical weekday was recorded at 9,443 (sa.gov.au, 2011). Under the new scheme and
assuming that these cyclists follow the pattern described above, this will cost the city council an
estimated $1.89 million dollars in rebates – an estimate which fails to account for more recent
cycling figures, other clean forms of transport or the influx of clean commuters that are expected to
adopt the CCRS.
It is likely that the shortage of public bathrooms, bike sheds, bike paths and foot paths for
pedestrians will seek a response from the city council subsequent to implementation of the scheme.
These are further costs to consider for the health and safety of commuters and the success of the
CCRS. It is anticipated that initial costs will be high for the scheme but are likely to stabilise in the
long term.
4. Concluding Remarks
Climate change and air pollution are environmental risks which affect the health, safety and
wellbeing of society. Measures must be put into place to mitigate the release of GHGs and other air
pollution. Implementation of the CCRS is expected to result in greater net benefits to the individual
and society over negative outcomes. While some stakeholders will see a fall in benefits in the short
run, the overall long term effects of such a policy are vital for sustainable living conditions. Start-up
costs for both commuters and the public sector are high in the short term but are expected to
diminish as time goes on.

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5. References
Birdsong, A. (2006). Ten thousand bicycles in Portland: bikes, carpools, public transit, and planned
development reduce emissions in Portland. Earth Island Journal 21(2).
The Bicycle Institute of South Australia (BISA). (2013). Bike theft on the ride in Adelaide. Keeping
your bike safe. The Bicycle Institute, SA <http://www.bisa.asn.au/node/336>. [Accessed 29 March
14].
Blackenship, K. (1997). NOx in the Air: Multiple Effects. Chesapeake Bay Journal, 267-280.
BTRE. (2002). Greenhouse Gas Emissions From Transport: Australian Trends To 2020. Canberra ACT:
Bureau of Transport and Regional Economics.
Costello, A., Abbas, M., Allen, A., Ball, S., Bell, S., Bellamy, R., et al. (2009). Managing the health
effects of climate change. Lancet and University College London Institute for Global Health
Commission, 1693-1733.
DCCEE. (2010). Australia‟s emissions projections. Canberra, ACT: Department of Climate Change and
Energy Efficiency 2010.
DSEWPC. (2008). Reducing Greenhouse Gas Emissions. Department of Sustainability, Environment,
Water, Polution and Communities,
<http://www.environment.gov.au/settlements/transport/fuelguide/environment.html>.
[Accessed 29 March 14].
Lindsay, G., Macmillan, A., & Woodward, A. (2010). Moving urban trips from cars to bicycles: impact
on health and emissions. Aust NZ J Public Health, 54-60.
Mendell, M. (2007). Indoor Chemical Emissions as Risk Factors for Respiratory and Allergic effects in
Children: A review. Indoor Air 17(4), 259-277.
OECD. (2013). Emissions of Carbon Dioxide. OECD Factbook 2013: Economic, Environmental and
Social Statistics, 170-173.

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Pachauri RK, R. A. (2007). Climate Change 2007: Synthesis Report. Contribution of Working Groups I,
II and III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change. Geneva
(CHE): Intergovernmental Panel on Climate Change.
sa.gov.au. (2011) Cycling facts. The Government of South Australia
https://www.sa.gov.au/topics/arts-sport-and-leisure/sport-and-recreation/cycling/cycling-facts.
[Accessed 29 March 14].
WHO. (2003). Health Aspects of Air Pollution with Particulate Matter, Ozone and Nitrogen Dioxide.
Bonn, Germany: World Health Organisation-Europe.
Winther, M. (1998). Petrol Passenger Car Emissions Calculated with Different Emission Models. The
Science of the Total Environmental 224 , 149-160.
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