Public investment in clean transport infrastructure and low-emission zones is a major focus for metropolitan authorities. Government intervention to address market failure from diesel-powered light commercial vehicles (LCVs), which are overconsumed in the free market, is deemed vital to meeting municipal air-quality and net-zero goals. However, despite urban congestion charges and clean air zone penalties costing logistics operators nearly £85m in 2023, the data in Fig. 1.1 shows that diesel LCVs remain the primary mode of last-mile urban delivery.
Fig. 1.1: Metropolitan last-mile delivery fleets by primary propulsion type, 2023
| Propulsion / Vehicle Type | Active vehicles (thousands) |
|---|---|
| Cargo Bikes (manual/e-assist) | 12 |
| Electric Vans (e-LCVs) | 8 |
| Hybrid LCVs | 15 |
| Diesel LCVs | 110 |
| Petrol LCVs/Cars | 45 |
| Walking couriers | 5 |
Explain, using the information in Extract 1, why diesel LCVs may be overconsumed in the free market.