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National Interests: Priorities and Security
 

Evaluating the transition to gas engine fuel for the Western Europe – China International Transit Corridor

Vol. 12, Iss. 1, JANUARY 2016

PDF  Article PDF Version

Received: 29 September 2015

Accepted: 7 October 2015

Available online: 25 January 2016

Subject Heading: ECONOMIC POLICY OF THE STATE

JEL Classification: Q42, N75, L95

Pages: 31-39

Grachev I.D. Central Economics and Mathematics Institute, Russian Academy of Sciences, Moscow, Russian Federation
idg19@mail.ru

Sharapov M.M. Financial University under Government of Russian Federation, Moscow, Russian Federation
m.sharapov@me.com

Importance The article analyzes the transition to gas engine fuel, i.e. liquified natural gas for the specific transit corridor running along territories of Russia, Kazakhstan and China.
Objectives The research evaluates the use of liquified natural gas and assesses whether it is possible to arrange a network of fueling stations. We also make economic estimates and assessments supporting considerable socio-economic benefits of the project and possible reduction in carbon emissions.
Methods We analyzed relevant global practices, compared infrastructure and technological solutions and substantiated the choice of the Western Europe – China International Transit Corridor. The article outlines a possible scenario of such transition, drawing upon data of the previous researches.
Results Alternative fuel has been proved to generate significant socio-economic benefits. Setting up a fueling network will reduce the cost of freight delivery, open new gas distribution markets and workplaces alongside the transportation route.
Conclusions and Relevance The proposed scenario has an obvious advantage over the existing ones. The proposed approach implies the use of alternative fuel throughout a vast area with the interested consumer, rather than using it only in large cities. The findings can be utilized to more thoroughly analyze whether it is possible to set up fueling network and prepare for the adoption of gas engine fuel.

Keywords: alternative fuel, international transit corridor

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