Greening Transportation Fleets

33 Pages Posted: 26 Sep 2008

See all articles by Sang Hoo Bae

Sang Hoo Bae

Clark University - Department of Economics

Chung Sik Yoo

Yonsei University

Joseph Sarkis

Worcester Polytechnic Institute - Foisie Business School

Date Written: September 26, 2008


The greening of organizational transportation fleets, especially trucks and automobiles, has gained increasing attention by companies in a variety of industrial sectors. The reasons for this concern and attention are due to regulatory and competitive pressures, but also increasing costs of fossil-fuels. Surprisingly the amount of research and modeling for fleet management overall has been rather limited, with the focus on managing green vehicle investments virtually non-existent. In this study we develop a two-stage game theoretic model that helps evaluate, from both policy and organizational perspectives, the implications of greening of transportation fleets. Various parameters are evaluated including factors such as innovations in green vehicle technology, levels of service differences, cost of fuel, adjusting tax policy, regulatory compliance requirements, and adaptation costs. This evaluation provides practical insights into actions that could be considered by regulators and organizations to encourage environmental investments.

Keywords: Transportation Fleet Management, Environmental, Game Theory, Regulatory Policy, Investment Justification

JEL Classification: A13, C72, D21, L11, L21, L51, L62, L91, M1, M14, Q2, Q3, Q4

Suggested Citation

Bae, Sang Hoo and Yoo, Chung Sik and Sarkis, Joseph, Greening Transportation Fleets (September 26, 2008). Available at SSRN: or

Sang Hoo Bae

Clark University - Department of Economics ( email )

950 Main Street
Worcester, MA 01610
United States

Chung Sik Yoo

Yonsei University ( email )

College of Government and Business
Korea, Republic of (South Korea)

Joseph Sarkis (Contact Author)

Worcester Polytechnic Institute - Foisie Business School ( email )

100 Institute Rd.
Worcester, MA Massachusetts 01609
United States
5088314831 (Phone)
5088314831 (Fax)

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