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We examined the co-evolution of the transportation, and electricity and heat generation sectors in the Netherlands until 2040 using a MARKAL bottom-up cost optimisation model. All scenario variants investigated indicate a switch away from crude oil-based diesel and petrol for transportation. Lowest overall CO2 abatement cost is achieved by accommodating transportation first and using relatively expensive options for emissions reduction in electricity generation if needed. Biomass and carbon capture and storage (CCS) are used to full potential. Transportation CO2 emissions are reduced by switching to ethanol or bio-based synthetic fuels combined with CCS, and series hybrid cars if needed. Depending on the availability of biomass and carbon storage capacity, electricity is produced from biomass, coal with CCS, or wind complemented with natural gas. Indirect greenhouse gas emissions rise to 34–54% of national emissions in 2040. The difference in annual investment required between the scenario variants with and without CO2 emissions reductions of 68% by 2040 is 4–7 billion euro/year, or 0.5–1.2% of projected GDP. Investment costs are mostly determined by the cost of cars and electricity generation capacity. We observe competition for limited biomass supply and CO2 storage capacity between the transportation and power sectors.

We examine the competitiveness of series hybrid compared to fuel cell, parallel hybrid, and regular cars. We use public domain data to determine efficiency, fuel consumption, total costs of ownership and greenhouse gas emissions resulting from drivetrain choices. The series hybrid drivetrain can be seen both as an alternative to petrol, diesel and parallel hybrid cars, as well as an intermediate stage towards fully electric or fuel cell cars. We calculate the fuel consumption and costs of four diesel-fuelled series hybrid, four plug-in hybrid and four fuel cell car configurations, and compared these to three reference cars. We find that series hybrid cars may reduce fuel consumption by 34–47%, but cost €5000–12,000 more. Well-to-wheel greenhouse gas emissions may be reduced to 89–103 g CO 2 km −1 compared to reference petrol (163 g km −1 ) and diesel cars (156 g km −1 ). Series hybrid cars with wheel motors have lower weight and 7–21% lower fuel consumption than those with central electric motors. The fuel cell car remains uncompetitive even if production costs of fuel cells come down by 90%. Plug-in hybrid cars are competitive when driving large distances on electricity, and/or if cost of batteries come down substantially. Well-to-wheel greenhouse gas emissions may be reduced to 60–69 g CO 2 km −1 .