The contingency plan involves transporting all necessary crude oil from Western Canada to Ontario via

either truck or rail within Canada. A Canadian pipeline option is assumed not possible to implement in a

short timeframe. The total distance is approximately $2,000$ km and annual quantity translates to about

$4$

$24,000,000$ tonnes or $24$ million tonnes of oil $($i$.$e$.,540,000$ barrel per day x $159$ Litres per barrel x density

$0\mathrm{.}8$ kg per Litre x $350$ days effective per year $=24$ million tonnes$).$

You also have the following GHG emissions generation estimates that come from the U$.$S$.$ EPA, and other

reliable sources:

Via truck $0\mathrm{.}118$ kg GHG per tonne$-$km or $170$ tonnes GHG per million tonne$-$km

Via rail $0\mathrm{.}015$ kg GHG per tonne$-$km or $15$ tonnes GHG per million tonne$-$km

Via pipeline $0\mathrm{.}005$ kg GHG per tonne$-$km or $5$ tonnes GHG per million tonne$-$km

The Government of Canada has announced that a carbon tax of $$170$ per tonne of GHG will be applicable.

Based on information presented, determine the incremental annual cost of carbon tax that would be

involved moving the same oil $($a$)$ via truck versus a pipeline, and $($b$)$ via rail versus a pipeline?

Note you will need to calculate the carbon tax implication for the pipeline first as the baseline. This

analysis only considers costs associated with GHG emissions, and does not consider dangers of spills, etc.

$($Further note: $1\mathrm{.}0$ tonne $=1,000$ kg