Multi-level policy diffusion in electric mobility and electric last-mile distribution : analyzing potential policy diffusion between Amsterdam and the European Commission

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UNIVERSITEIT VAN AMSTERDAM

Multi-level Policy Diffusion in Electric

Mobility and Electric last-mile Distribution

Analyzing potential policy diffusion between Amsterdam and the

European Commission

L.D. Horbach (6177026) 6/27/2014

M Politicologie / Internationale Betrekkingen Supervisor: Dr. L.W. Fransen

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LIST OF ABBREVIATIONS

ASC Amsterdam Smart City

CCP Cities for Climate Change Program

EC European Commission

EFV Electric Freight Vehicle

EGVI European Green Vehicles Initiative

EU European Union

EV Electric Vehicle

FREVUE Freight Electric Vehicles in Urban Europe

LCC London Congestion Charge

MRA Metropoolregio Amsterdam

PPP Public-Private Partnership

TMN Transnational Municipality Network

TN Transnational Network

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1. INTRODUCTION

1.1 INTRODUCTION OF THE SUBJECT AND THE RESEARCH QUESTION

In the wake of diminishing amounts of fossil fuels, grave environmental challenges and changes in how the purpose of road vehicles is perceived, the 21st_{century marks the} beginning of the development of different mobility systems. The subject of sustainable transport is starting to appear on everyone’s agenda: automotive industries, governments, research and development (R&D) institutions, and citizens. Sustainable energy is a multi-level problem which concerns all layers of public administration. Local, regional, national and international legislators have come to realize that action needs to be taken in order to ensure road safety for coming generations. Therefore, most European cities are developing plans to be smart and sustainable, in order to successfully counter the challenges that lie ahead. Besides urban mobility in general, last-mile distribution accounts for many problems concerning air quality, sound nuisance and CO2 emissions (RVO, 2012).

Although united in the European Union to certain extent, every country and every city has its own particular problems to face and its own solutions to provide. With regards to electric mobility, The Netherlands can be seen as a frontrunner. Since 2009 The Netherlands, and in particular the cities of Amsterdam and Rotterdam, is actively promoting a system of electric mobility (Table 1 & 2, appendix II). The approach Amsterdam has taken regarding the development of electric charging points and the city’s cooperation with stakeholders has been widely acknowledged and praised. If Amsterdam’s approach to electric mobility and electric last-mile distribution works accordingly, it would seem likely that certain best-practice policies or initiatives could be followed up by the European Commission (EC), so that other member-states and cities could benefit. On the other hand, one may argue that it is the EC that can and should develop general policies and initiatives which can diffuse to the local government. It is exactly these possible scenarios which involve cooperation, education, imitation and competition among businesses and legislators on a local, national as well as international level, that this thesis seeks to analyze. Subsequently, the research question is as follows:

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Page | 4 What describes and explains policy diffusion between the municipality of Amsterdam and the European Commission, with regards to electric mobility in general and electric last-mile distribution in particular?

1.2 ABOUT THE RESEARCH

The focus of analysis lies upon the direction in which policies or initiatives can diffuse either bottom-up or top-down. Before a proper analysis can be made, it is important to examine first the ways the city of Amsterdam uses to create policy concerning electric mobility and last-mile distribution. The reason that both the concepts of electric mobility and last-last-mile distribution are used, has to do with the fact that many policies and initiatives concerning the two have a considerable overlap. Throughout the analysis there are shifts between electric mobility policies in general and electric last-mile distribution policies in particular.

There are several reasons why Amsterdam is chosen as subject for this research. Amsterdam has an old, picturesque and lively center, characterized by her many narrow streets, canals and beautiful bridges. Understandably, these are not the ideal conditions for distribution by heavy trucks. Although the distances in the city center are relatively small, the city’s physical infrastructure makes it necessary that trucks for postal services or restocking are forced to accelerate and brake often, and have difficulties moving through the narrow streets and around corners. This leads to several undesirable consequences (Gemeente Amsterdam, 2013: 7). First and foremost, heavy trucks, even with the latest soot filters, are heavy polluters of the environment, especially in a densely populated center as is the case in Amsterdam. Second, last-mile distribution by heavy trucks creates high levels of noise hindrance in the city center, especially when taking into consideration that most restocking of retail goods is done in the early morning. The third undesirable consequence of large trucks in the city center is specific to Amsterdam: large vehicles on the narrow roads are a danger to cyclists. Even with the mandatory best rear-view mirrors, each year citizens are injured and killed by large trucks in Amsterdam’s city center. (SWOV: 2012).

1.3 SOCIETAL AND ACADEMIC ADDED VALUE

This research seeks to fill a gap in policy diffusion theory, namely the vertical transition of policies and initiatives. Most contemporary theory is written on horizontal, state-to-state

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policy diffusion (Shipan & Volden, 2008/2012; Weyland, 2005: Gilardi, 2010; Marsh & Sharman: 2009), neglecting the idea that policy diffusion could work vertically as well. When taking into account that the local level of authority is gaining in influence, the European Commission can cooperate directly with municipalities, while at the same time the legislative power of national governments of EU member-states is diminishing (this will be explained in the theoretical section). In order to understand and face environmental problems and uncertainties, the relationship between the European level of governance and the municipality level requires empirical research. Accordingly, this study will provide insight into the interaction between the municipality and the EC regarding electric mobility and last-mile distribution. The societal relevance can thus be appreciated in the evaluation of the municipality’s ability to be a European actor, and on how local government deals with collective action problems as described above.

1.4 CHAPTER OUTLINE

In the following chapter, the theoretical framework of this thesis will be presented. This will provide sufficient theoretical background and information on the subject. The theoretical framework also functions as the core of the research.

In the third chapter, the research approach and methodology will be laid out, giving insight on how this study has been conducted and what the limits are.

In the fourth chapter, the first part of the findings will be descriptively analyzed. These results are presented through two sub questions: the first question focuses on the development of electric mobility and last-mile distribution policies and initiatives in Amsterdam, the second presents the results regarding potential bottom-up policy diffusion.

The fifth chapter will present the second part of the empirical findings. Here the emphasis is centered on policies and projects on European level, and on the possibility for them to diffuse top-down to the local governments of the member-states.

The sixth chapter will contain concluding remarks on this research and implications for the theory, followed by recommendations for local and European policy makers and recommendations for future research.

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2. THEORETICAL APPROACH

In this section I will elaborate further on the theoretical part of the research. In doing so, one will have more understanding of backgrounds and concepts, often used in the research paper itself. The theoretical framework is established through selecting and analyzing the relevant concepts, which makes it easier to comprehend the process laid out in this thesis.

2.1 THE POWER OF CITIES: POLICY DIFFUSION AND BEST PRACTICE

Many scientists and experts have written on the subject of policy diffusion. Also for this research it is important to understand the various meanings and ways in which policy diffusion is described. In its most basic form, the definition of policy diffusion is the influence upon a particular government’s policy choices by policy choices of other governments (Shipan and Volden, 2012: 1). These governments and its policy makers thus rely on examples and insights from those who have experimented with similar policies in the past. Globalization has created closer connections between countries and regions, which has resulted in structuring the policy opportunities and constraints which governments face at the local, regional, national, and international levels. According to Shipan and Volden, policy diffusion today is much more than merely geographic clustering of similar policies. They argue that policy diffusion is “not merely the study of whether the same policies spread across governments, policy diffusion broadly encompasses the interrelated decisions of governments, even when one government’s education policies influence another’s transportation or entertainment policies” (2012: 2). To this extent, policy diffusion is a complex and interdependent phenomenon in (political) science. Soon, governments can compete with one another, they can cooperate, they can simply imitate other government’s policy (perhaps with negative consequences) and they can learn through the sharing of information and know-how. Shipan and Volden put emphasis on the notion that policy diffusion is not necessarily beneficial to both parties. Policy imitation is the copying of another government’s policies without concern for the effects of those policies (2012: 3). Some cities, regions or even countries do not have the same capabilities as others: imitating policy that is still ‘beyond your reach’, could therefore be harmful. Some argue that, on a

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larger scale, policy diffusion through competition could be harmful in creating a race to the bottom in trade barriers worldwide (Meseguer & Gilardi, 2009: 527).

2.1.1 BEST PRACTICE

How and what can one learn from best practice? That dissemination of best practice might lead to policy change has almost become accepted practice within national policies and programmes. The argument is that by sharing knowledge or information on specific initiatives, other individuals and/or organizations will be able to start similar projects or processes, or learn from the experience. This in turn will lead to policy change and the implementation of initiatives, and furthermore, will contribute to enhancing programs such as urban sustainability (Bulkeley, 2005: 1032). Accordingly, best practice then provides a means through which this framing of urban sustainability becomes more visible and translates into specific places (2005: 1036). After all, ‘nothing teaches more than to understand a local problem in another context’ (ICLEI.org: 2006).

2.1.2 CAUSES FOR POLICY DIFFUSION

What moves a legislative body to adapt policies or initiatives created by others? According to Sugiyama (2007), there are three main reasons for states or cities (which is the aim of Sugiyama’s research) to do so. Sugiyama’s findings can be connected to the ways through which policy diffusion can occur as described above:

1. Political circumstances: the legislator will import promising innovation from elsewhere to show the population that ‘the government is doing something’. This would mean that the government would act out of self-interest, and would therefore most likely result in the imitation of policies.

2. Ideological similarities: Sugiyama gives the example of San Francisco being more likely to adapt policies from New York City instead of neighbouring Oregon, because the two cities have more ideological similarities. Consequently, policy diffusion would mostly consist out of cooperation and learning processes.

3. Social networks: through formal networks, a city could benefit from cognitive shortcuts and social cues. Through informal networks, a city would be eager to ‘keep up with the Joneses’. The result would be either cooperation or competition.

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Accordingly, it depends on the situation of both states or cities to what extend policy diffusion will take place, and in what way.

2.1.3 DIRECTIONS OF POLICY DIFFUSION

Highly relevant for this research is the direction of policy diffusion. Most theory regarding policy diffusion concerns horizontal diffusion between states, regions or cities. Because this research seeks to discover bottom-up and top-down policy diffusion, potential vertical acts of policy diffusion needs explaining. In the table below the three main directions of policy diffusion are shortly summarized as how Andrew Karch (2007) categorizes them:

Direction of policy diffusion Diffusion through Example

Horizontal Bilateral agreements,

cooperation, imitation, competition

Policy diffusion between states in the US

Vertical: bottom-up Best-practice, professional legislation on local level

US anti-smoking policy (Shipan & Volden, 2006) Vertical: top-down Enforcement by higher level

of governance, cooperation with local level.

Binding EU policy for member states

Table 1: Directions of policy diffusion according to Andrew Karch (2007)

According to Shipan & Volden (2006), political conditions determine the likelihood of higher-level policy adaptions. The political environment, in combination with the professionalism of the legislature, determine whether local policy creates a bottom-up

snowball effect or a pressure valve effect. The former indicates that any additional law at the

local level increases the chance the state will adopt such a law (of course, given its overall effectiveness). The latter indicates that the passage of laws on the local level relieves pressure on higher-level politicians, because success at the local level would decrease the necessity for higher-level implementation or its pursuit (2006: 827). In other words, stable political conditions and a professional legislature can be seen as important determinants for possible bottom-up policy diffusion.

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When speaking of policy diffusion from the lower to the higher level of governance, one could easily suggest that for decision-making to be of any influence in a bottom-up dynamic, a strong city is needed as opposed to the European Commission (EC). Scholars at the end of the twentieth century started to consider other actors than only states in European decision making. Intuitively, a difference comes to mind when thinking of how individual cities react to the EU. This difference relates to numerous factors such as economic importance, size, the attitude of the political elites towards external activities of the city, projects to enhance the international recognition of the city (or the willingness to create one), and so forth (Schultze, 2003: 122). These factors can determine whether or not cities have the capacity to get sufficiently involved in EU activities. Even among the larger European cities, there are only a few local governments that have the capacity and the resources to become relevant players at the EU level. This could, however, change when cities start to seek collective interests through multi-actor organizations (2003: 123). (More on this later.) In his article, Schultze makes the distinction between so-called policy takers and policy makers. Where the former indicates a largely hierarchical, top-down mode of governance (ibid.), the latter a more polyarchic system with opportunities for bottom-up initiatives and for influence over policy outcomes (Kohler-Koch, 1996). Speaking in terms of ‘tailored policy’ or ‘tailored innovation’, as I would like to call it, it makes sense: there are goals specific to certain policy fields, in certain regions. Cities, if capable, should thus at least have the ability to promote policy in an agenda-setting sort of way, such as the right of proposal (2003: 125; 130). Schultze argues that this can only be effective if it engenders a feedback loop and fosters cooperation between the EU and sub-national levels of decision making and implementation: it should be a two-way street, creating opportunity structures on the one hand and responding to increasing demand for involvement in policy-making on the other (top-down and bottom-up) (2003: 124). This theory could be highly significant in this thesis when analysing similar tendencies in electric last-mile distribution.

2.1.5 SMART CITIES

But what does a city consist of? Is it just the government that creates the ‘strong city’ that can ensure influence on the European level? It seems highly unlikely that it would be a mere effort of the municipality alone. Subsequently, many scholars argue that cities should not only be strong in terms of size or financial and material resources, but should also act as a

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smart actor both internally and externally. One working definition of a ‘smart city’ is ‘when

investments in human and social capital, traditional transport and modern (ICT) communication infrastructure fuel sustainable economic growth and a high quality of life, with a wise management of natural resources, through participatory governance’ (Caragliu,

2011: 70). A smart city is, so to speak, a new approach to mitigate and remedy current urban problems and to make rising urban development more sustainable (Alawadhi et al., 2012: 40). Similar to what Van Duin et al. (2013) wrote, smart cities are shaped and formed by three (technology, management and organization, and policy) core factors, in combination with the context and conditions of localities (Alawadhi et al., 2012: 43). A city becomes ‘smart’ when there is a noticeable transformation that entails the interaction of technological components with political and institutional components (Alawadhi et al., 2012; Mauher and Smokvina, 2006).

A smart city is the combination two factors: the first entails the focus on certain development in the field of technology, management and organization. The second factor emphasizes the importance of the collaboration between stakeholders within the city. According to Alawadhi et al., stakeholder relations include the ability to cooperate among stakeholders, support of leadership, structure of alliances and working under different jurisdictions (p. 44). Subsequently, one of the findings in their research entailed that the agency or department (in my case, the municipality of Amsterdam and/or the European Commission) plays an important role in linking with other related external and internal organizations and stakeholders (p. 47). In other words, the public sector seems to have an important role in bringing different stakeholders together, and in functioning as a mediator among them. Note that these forms of partnerships and stakeholder platforms can exist on all levels of governance.

2.2 MULTI-STAKEHOLDER/LEVEL APPROACH AND EUROPEANIZATION

Although cities were usually seen as actors more at the lower spheres of the decision making process, mostly overruled by national and European governance, the focus now does not only shift more to the relation between the local and the European government, but also to the multiplicity of actors and institutions involved. This multi-stakeholder approach presents itself in two ways: first, as mentioned above, multiple actors cooperate in the ‘smart city’ to

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better address the problems they face. When local stakeholders are united in their approach towards a certain problem, a city is stronger when trying to influence European policy. The second way in which the multi-stakeholder approach presents itself might better be called a multi-level approach: local authorities and other institutions organize themselves in transnational networks to learn from each other and to influence policy on the European level. These theories are relevant for the research because they can shed light on the current dynamics and interaction between different actors on multiple levels.

2.2.1 PUBLIC-PRIVATE PARTNERSHIPS

Multi-stakeholder cooperation often presents itself in so-called public-private partnerships (PPPs), loosely defined as institutional arrangements between public and private actors, and established for the benefit of both business and governmental bodies (Hodge & Greve, 2007: 546). By engaging in such cooperative action, all actors can put their best qualities in the right place. Accordingly, the objective of the PPP is to utilize the economies of the private sector in order to deliver more effectively the service or infrastructure (Akintoye et al., 2003: 4). Linking the concept of PPP to the subject of this research would entail that private organizations would cooperate with the municipality on the local level, and with the EC on the European level, to create solutions that fit the problems. These public-private partnerships thus help guide the urbanization process into a more sustainable direction in the maintenance, development and operation of sustainable urban transport.

Others, however, believe that the focus of the private sector on short-term financial returns on investments is incompatible with the long-term perspective needed to realize sustainability objectives, which could lead to situations such as over-engineered, inefficient infrastructures and long-term indebtedness of the municipalities (Koppenjan & Enserink, 2009: 285). As mentioned above, PPPs can contribute to sustainability in a relatively straightforward way. On the other hand, private ownership of infrastructure can create natural and legal monopolies for private businesses. Parties can pursue their own self-interest instead of the sustainability objectives that underlie the choice for public-private partnerships in sustainable urban planning (p. 286). Accordingly, these PPPs should not just be regulated by economic regulations, but supplemented by forms of governance that exist solely for safeguarding sustainability projects and public interests (p. 286/288). Because of this perceived incompatibility between the public- and private sector, this article must also elaborate further on the idea of stakeholder platforms, where the partnership between the

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government and private business is supplemented by civil society organizations and educational institutions.

2.2.2 NETWORKS OF LOCAL ACTORS

As mentioned earlier, there are multiple factors that determine the strength and intelligence of a city when it comes to influencing or participating in European policy making. When working together, however, actors can combine their strengths and could therefore have a better chance at influencing the European agenda. Most theories on these transnational networks are state-centered; the concept of a transnational advocacy network, for example, includes ‘those relevant actors (i.e. states) working internationally on an issue, who are bound together by shared values, a common discourse, and dense exchanges of information and services’ (Keck & Sikkink: 1998: 2). At one moment, scholars started moving away from the focus on the nation-state as the only location of governance. One approach to transnational networks can be labeled as global civil society, which moves away from traditional state-centered analyses, and considers the multiplicity of actors and institutions that influence the ways in which global (environmental) issues are addressed across different scales. These networks are the result of global issues, and have the belief that networks can be influential insofar as they have the ability to mobilize information, ideas and values (Betsill & Bulkeley, 2004: 475). Regarding issues concerning sustainability, Betsill and Bulkeley argue that local governments will be important actors in any attempt to implement both national and international policy imperatives such as the reduction of greenhouse gases, and can thus play a significant role in climate protection (2004: 477). A prime example is the Cities for Climate Protection program (CCP), which builds on the assumption that local authorities can make a significant contribution to efforts to mitigate climate change by working together (ibid.). Subsequently, the organization is built around the production and dissemination of technical information about what local authorities can do about climate change, measures that can be taken locally to address the problem, and the potential co-benefits (2004: 478).

2.2.3 EUROPEANIZATION

Elaborating further on these ideas, it seems clear that authority has not simply shifted upwards to European institutions (in contrast of what many Eurosceptics believe Europeanization to encompass), but it has become dispersed across multiple territorial levels and among a variety of public and private actors (Rosamond, 2007). Europeanization does

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not only include the domestic impact of European-level institutions, but also the impact of EU Member States’ actions on EU institutions, alone or through transnational networks described above (Kern & Bulkeley, 2009: 312). Accordingly, these top-down and bottom-up dynamics are also relevant to the relations between EU institutions and local authorities (Schultze, 2003: 123; Kern & Bulkeley, 2009: 312). Europeanization is not only happening in this vertical way. Local authorities play a part in the Europeanization process by cooperating transnationally, by exchanging experiences and developing innovative solutions for issues by which they are all confronted. Subsequently, Europeanization is also a horizontal process (Kern & Bulkeley, 2009: 312). These forms of European integration create a system of interdependence. Cities in member-states can benefit from European institutions such as the European Structural Fund and other projects to stimulate development in cities. Also, as has been mentioned above, cities can organize themselves in transnational networks to make their presence felt by the EC (Marshall, 2005: 669). However, as much as European cities might need Europe and its institutions, the opposite is true as well: the EC has become more dependent on these networks as external sources of information and expert advice, and thus facilitating their access to European institutions (Goldsmith, 2003; Eising, 2004).

2.3 SUSTAINABLE URBAN PLANNING

An important concept within this field of study is that of sustainable urban planning. This concept is derived from the idea of sustainable development in general, which is, according to Goldman and Gorham (2006), an ‘enduring and compelling concept because it points policy

in a clear intuitive direction, yet is flexible enough to adapt to emerging new issues, technological and economic conditions, and social aspirations’. Because this challenge

requires a systemic view of economy and ecology, it has induced planners, scholars, local and international NGOs, civil societies and governments to propose new frameworks for the redesigning and restructuring of urban places to achieve sustainability (Jabereen, 2006: 38). This thesis, however, has its focus on sustainable urban transportation in general and on sustainable urban last-mile distribution in particular. Many scholars agree that sustainable transportation is still a difficult territory, since one can notice the complexity of the porous, social, technical and economic system in which sustainable urban transportation is ought to operate. In short, urban transportation is a system in which human activity is high. This means that in redesigning and restructuring urban forms of transportation, one has to take into

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account many different opinions and preferences. However, transport is arguably the single biggest concern in environmental debates relating to urban forms, so naturally it is an issue that deserves much, if not the most, attention. Sustainable transportation can be defined as

‘transportation services that reflect the full social and environmental costs of their provision; that respect carrying capacity; and that balance the needs for mobility and safety with the needs for access, environmental quality, and neighborhood livability' (Jordan and Horan,

1997: 72). Think in this respect of the recycling of components, the use of renewable energy, compactness of operations and efficiency (Jabareen, 2006: 40).

This goes for the transportation of both people and products, so freight transportation is basically a complex system where freight is moved within the same transportation system on which passengers travel. In their analysis, scholars Russo and Comi (2011) divide urban freight transportation into two main freight movements. The first are end-consumer movements, that are made by customers traveling from their residence or consumption zone to the place of purchase. The second form is logistic movements, which are movements in which the freight reaches the facilities where it is delivered to markets for producing other products or services (warehouse to retail outlet) (p. 143). One of the main focus points of this research is last-mile distribution. This means that freight is transported to a transshipment point near the city, and distributed from there into the city. For the analysis and possible implementation of measures the policymaker has to take into account all the actors and stakeholders in the system. There are the end-consumers, the logistics and transportation operators, and the public administration (local and national government) (p. 144). Among these different potential measures for improving urban distribution, the most relevant for this research are measures related to equipment, with the focus on transportation units (i.e. electric or hybrid vehicles). Since urban distribution is a primary support system for retailers to sell their products, it therefore is a necessary daily activity in and around urban areas. Smooth distributional operations in urban areas is crucial to the economic vitality of cities, since goods movements make it possible to satisfy demand of consumers. These movements represent an estimated 20-30% of vehicle kilometers in urban areas, and with that a large amount of pollutant emissions by all transport activities (Dablanc, 2007).

As mentioned above, the problem of sustainable (urban) transport is a complex one: different stakeholders and actors in urban freight transport face and cause different problems, and even though the need to solve these problems is felt by all, successful implementation of solutions is rare: many scholars thus point out that the success of urban logistics solutions depend on

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the balance of logistics, technology and policy (Van Duin et al., 2013: 2). In other words: the authors argue that solving the problems in urban distribution need a multi-stakeholder approach, where different actors work together on a local level.

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3. RESEARCH DESIGN

3.1 INTRODUCTION

With the theoretical framework in mind, the purpose of this chapter is to give an overview of the key features of research design used in this study. This will be done by justifying the choices made during this research, and by explaining why the study was shaped as it is at this moment.

In this chapter I will first explain the approach used in this research, followed by a detailed elaboration of the method of analysis. Then I will briefly explain the dependent and independent variables with regards to operationalization and conceptualization. Finally, the limitations of this research will be discussed by examining validity and reliability concerns.

3.2 RESEARCH APPROACH

For the gathering of data in this research I have chosen for a qualitative approach. Boeije (2005) describes qualitative research as ‘[…] a study in which the question aims to explain

(1) how people give meaning to their social environment and how they accordingly behave. (2) The methods used make it possible to analyze the subject through the perspective of the people and organizations that are analyzed, aiming to (3) describe and explain this subject.

Since this study is aimed to explain and describe possible directions of policy diffusion, qualitative analysis lends itself perfectly for this research: through the people interviewed, the documents examined and the observations made, the subject is analyzed. Also, the multi-stakeholder aspect of the research (multiple actors with different perspectives on the subject), makes qualitative research a suitable method.

Typical methods of research used for qualitative research are interviews, document analysis and observations. It is also common to use these three methods simultaneously, as has been done in this research. In the section below I will elaborate further on these methods.

The function of this research can typically be defined as an attempt to clarify ongoing activities regarding electric distribution on multiple levels of governance. Since the subject of electric transportation is relatively young and complex, research is needed to see whether

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different actors can influence each other from different levels of governance. Accordingly, this research is also intended to discover ways in which policy on electric mobility can successfully diffuse, making it easier to develop a system of sustainable transport in Europe. To successfully map these directions, the important actors and the influence they exert, a descriptive, qualitative research is needed.

3.3 METHOD OF ANALYSIS

As mentioned above, the choice in this research is a qualitative design. The methods used for the gathering of data are interviews, observations and document analysis. The results of this analysis are presented in a descripted format in the analysis chapters. To structure the analysis chapters, four sub questions were formulated:

RQ-1: How does the municipality of Amsterdam create policy and initiatives concerning electric mobility in general, and electric last-mile distribution in particular?

RQ-2: Does Amsterdam policy and its best-practice initiatives diffuse to the governance level of the European Union?

RQ-3: To what extent does the EC develop policies and initiatives regarding electric mobility and last-mile distribution?

RQ-4: Is policy diffusion in the field of electric mobility noticeable from the EC to the local governance levels?

Sub questions 1 & 2 are used to structure the first chapter of analysis, and sub questions 3 & 4 are used in the second chapter. The methods used to answer these questions are presented below.

3.3.1 INTERVIEWS

The interviews conducted in this research were used to qualitatively understand factors that characterize electric mobility policy, its important actors and possible directions of policy diffusion. The respondents were selected from various levels and functions, including transport businesses, the municipality of Amsterdam, research facilities, EU transport experts and other policy makers. The selection of interviewees was based on the multi-stakeholder

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approach. The idea was to interview key figures in the decision making process from both the local and the European level. A total of seven interviews were conducted in this research. An overview of the interviewees and their function can be seen in the first appendix below. The interviews consisted out of semi-structured questions, with topics to lead the discussion, and open questions. Open questions can be of equal importance because they can help in obtaining non-factual information such as opinions, relations and perceptions (van Thiel, 2007). All the interviews were in Dutch, so an English translation was required. The interviews were recorded, carefully typed out and manually coded and categorized. As mentioned before, the results are presented descriptively. With a specific comment, such as an opinion or observation from the interviewee, an anonymous reference will be added.

3.3.2 OBSERVATIONS

During the length of this research, three relevant acts of observations took place. The first was the fifth annual celebratory meeting of Amsterdam Elektrisch (branch of the municipality of Amsterdam concerned with electric mobility). On this event, presentations were given on the development of the electric infrastructure, the role of different stakeholders and the future that lies ahead. Stakeholders present on this event came from the government, businesses (both automotive and other), educational facilities and civil society. Besides the role of the observer, I engaged in direct discussion with multiple attendees. The second moment where observations took place was the morning that was spent at the Cargohopper transshipment point. Cargohopper is the first last-mile distribution company in Amsterdam with fully electric vehicles. Prior to the interview with Cargohopper’s general manager, observations were made regarding the practical possibilities and difficulties concerning electric last-mile distribution.

The third moment where important observations were made was during my independent part-time internship at MisterGreen Electric Lease, a lease company that focuses entirely on electric vehicles, with side projects such as electric carsharing for small delivery companies and the development of a fast-charger network in the Netherlands. For the total duration of the research (and also after the completion), I was close to the interaction between different stakeholders (MisterGreen, citizens and the municipality). My responsibilities varied from communicating with the municipality of Amsterdam about subsidy declarations, to testing ways in which small delivery companies can share electric vans. Being an active player in the stakeholder discussion, MisterGreen contributes to the establishment of the electric mobility

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network in Amsterdam, making it a valuable addition to the research data. Also, this internship has led to two out of the seven interviews conducted in the research.

Instead of regarding these observations as hard data, they are used in this research to find overlap and/or practical implications with the data derived from interviews and document analysis.

3.3.3 DOCUMENT ANALYSIS

Several documents were analyzed for this research. They varied from governmental guidelines for municipalities concerning sustainable transport, to white papers from the European Commission concerning the Horizon 2020 sustainability goals. The documents were selected through several criteria, focused on the source, the intended reader, the type of document (factsheet, working paper, policy document, guide) and orientation (electric mobility in general or electric last-mile distribution). Similar to the interview transcripts, the relevant documents were coded and categorized manually. The function of the document analysis is partly to generate a relevant context, and also to find confirmation for the data derived from interviews and observations. In the analysis chapters, direct references are made to the documents, which can be find in the bibliography section.

3.4 DEPENDENT AND INDEPENDENT VARIABLES

Although this research is solely based on qualitative data, it is still important to briefly clarify the dependent and independent variables in the research question. The research question looks for a direction, and not so much for a causal relation. However, there are still some variables that need explaining in terms of conceptualization and operationalization.

3.4.1 DEPENDENT VARIABLE

The dependent variable in this research (i.e. the object this study seeks to explain) is policy diffusion regarding electric last-mile distribution. It is now important to stress the difference between what policy diffusion is (as explained in the theoretical section), and how it is used in this research. In this study, policy diffusion will be defined as a clear transfer of a specific

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forms of policy diffusion such as cooperation and learning, are, however of equal importance, much more difficult to discover clearly. Throughout the analysis, distinctions between types of policy diffusion will often be made.

3.4.2 INDEPENDENT VARIABLES

The proposed causal factors for the dependent variable are both explained in the theoretical section and throughout the analysis chapters. First, there are the proposed best-practice initiatives and policies. The successful implementation of policies and projects regarding electric distribution can make other (higher) levels of governance want to implement the same policies or initiatives. When for example a certain specific policy is developed in Amsterdam, it can be picked up by the European Commission, and thus diffuse to higher levels of governance. Second, local authorities can be united in transnational networks (TNs). When these actors are combining their concerns and similar issues, it can instigate policy diffusion as well. Policy diffusion can accordingly be measured by successful acts of agenda-setting and policy development from these TNs at the European level. The third independent variable concerns projects initiated by the EC, in order to promote electric mobility and last-mile distribution in its member states’ cities. These projects are designed to draw conclusions after pilots and demonstrations are done in European cities. Policy diffusion could thus be measured through successful policies and initiatives implemented in the cities, which are originally derived from these projects. However, as I will pay attention to in the analysis chapters, many of these projects are still ongoing.

3.5 VALIDITY AND RELIABILITY: POSITIVE EVALUATIONS AND CONCERNS

Without rigor, research is worthless, becomes fiction, and loses its utility. – M. Morse et al.

(2002)

To successfully conduct this research, it is necessary to evaluate the verification strategies used in this study. In doing so, shortcomings and other concerns can be acknowledged in an early stage of the research.. First there will be a brief assessment of the precautions made to

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ensure the rigor of this research, followed by an overview of the shortcomings regarding validity and reliability.

According to Alan Bryman (2001), reliability includes the consistency of the researcher’s measurement (i.e. would the researcher acquire the same results when repeating the same experiment), whereas validity refers to the accuracy of the measurement (i.e. is the experiment measuring what it is originally set out to measure). Accordingly, the researcher needs to use certain verification strategies prior to and during the research (it must be built in the qualitative research process). This is necessary because it can help the researcher modify the research process in order to achieve reliability and validity (Morse et al., 2002: 17). In this research, a few measures were taken to conduct the research as valid and reliable as possible.

3.5.1 VALIDITY AND RELIABILITY MEASURES

First, Morse et al. identify the role of the researcher as vital in using the verification strategies: their creativity, sensitivity, flexibility and skill can determine the validity and reliability of the study. The inability to abstract, a lack of knowledge and overly adhering to instructions are examples of how lack of responsiveness can create a threat to the validity and the reliability of the research (2002: 18). For example, one of the reasons I actively searched for an internship during the research period, was to be active in the field of study. Through the knowledge gained in this experience, the criteria for interviews and respondents became more specific and relevant due to increasing insight in the subject.

Second, the method was designed to ensure congruence with the research question. The possible directions of policy diffusion (bottom-up or top-down) functioned as key guidelines for constructing the interviews, selecting the respondents and creating a framework for analysis for the documents. Methodological coherence is a step towards a valid and reliable study (Morse et al., 2002: 18).

Third, Morse et al. (2002) state that sampling adequacy ‘means that sufficient data to account

for all aspects of the phenomenon have been obtained.’ Accordingly, the respondents for the

interviews were carefully selected. Since the research examines multiple actors, operating in multiple levels of governance, the respondents were picked accordingly: from a local business, an educational institution, the municipality of Amsterdam, transport experts and the ministry for domestic affairs in the Netherlands.

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Page | 22 3.5.2 VALIDITY AND RELIABILITY CONCERNS

With regards to validity and reliability, this study also acknowledges a number of limits, which are set out below:

- The research can be seen as generally vulnerable, due to the limited amount of interviews conducted in this study. This limited amount of interviews, in combination with the relatively young nature of the subject, harms the reliability of the research: if one would repeat a similar research in a year, results could be different due to the changeable character of the subject. Also, the main units of analysis are still people who have their own opinions and preferences. Bias or socially preferable answers can never be fully excluded. For example: an EU representative would be more likely to give an positive answer when asked about the merits of EU projects in member states’ cities.

- Because of the use of both semi-structured and open questions, the validity can be questioned. The research would be more accurate if the questions were structured or semi-structured. However, as has been indicated before, open questions do have added value in obtaining non-factual information such as opinions, relations and perceptions. In the light of this research, open questions are adequate (in combination with semi-structured interviews) due to the multiplicity of actors and perspectives on the subject. The interpretation of this information is closely linked to the responsiveness of the researcher, as mentioned above.

- Another reliability threat concerns the selection of interviewees. As mentioned before, two of the interviewees occurred through the internship at MisterGreen Electric Lease. When conducting a similar study, a researcher might not be able to reach the same respondents, creating differences in the results.

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4. ANALYSIS 1: BOTTOM-UP POLICY DIFFUSION AND BEST-PRACTICE

IN AMSTERDAM

4.1 INTRODUCTION

In this chapter the first results of the analysis regarding bottom-up diffusion of electric last-mile distribution policies and initiatives are presented. To eventually answer the research question of this thesis, two complementary and consecutive sub questions were formulated to help explain and describe the empirical findings of the research:

RQ-1: How does the municipality of Amsterdam create policy and initiatives concerning electric mobility in general, and electric last-mile distribution in particular?

RQ-2: Does Amsterdam policy and its best-practice initiatives diffuse to the governance level of the European Union?

In the first part of this chapter, the problems faced by public and private actors when creating initiatives and pursuing policy in the field of electric last-mile distribution will shortly be reflected on, as they have been pointed out so frequently in the empirical research. To successfully analyze the interaction between the municipality and the EC, it is important of first look at the dynamics inside the city and the obstacles it faces when it comes to establishing a system of electric mobility in general, and last-mile distribution in particular. That is why secondly the cooperation of actors within the city, aiming to develop projects and policies of electric urban mobility, will be analyzed. Consequently, an analysis is made of what the role of the municipality and the national government is in this public-private collaboration. Then the analysis of potential policy diffusion from the municipality of Amsterdam in the direction of the EC will be explained and described. As will become clear below, it can be problematic to discover clean bottom-up policy diffusion, but it rather presents itself in different, more complex ways. The last part of this chapter will thus focus on this complex system of the diffusion of policies and initiatives.

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Page | 24 4.2 THE COOPERATION OF ACTORS IN ESTABLISHING ELECTRIC LAST-MILE

DISTRIBUTION

When creating sustainable policy and initiatives, one needs to consider and take into account many actors. In this chapter there will first be elaborated on the opportunities and obstacles that policymakers and local businesses face when trying to establish a system of electric last-mile distribution, and subsequently set out the empirical findings regarding the cooperation and the roles that different actors play.

4.2.1 OPPORTUNITIES AND OBSTACLES

In theory Amsterdam presents an ideal city where a certain system of sustainable distribution could be implemented. Its physical appearances (a small city center), in combination with a high degree of distributional activity (3000 trucks and 25.000 vans drive in and out of Amsterdam every day (Amsterdam Elektrisch, 2013: 12)) would certainly make electric last-mile distribution interesting. Beside these aspects, there are other drivers and opportunities one has to take into account:

a) The ambition for companies to have a green image appears to be of high importance. Having a ‘green label’ on your trucks/vans can boost the company’s image.

b) Some companies expect that regulations regarding less environmental-friendly vehicles become more restrictive in the years to come: investing in electric vehicles could thus pay itself back in the future.

c) Last-mile distribution could boost the efficiency of transportation companies by bundling their goods, enabling them to make lesser trips into the city whilst distributing the same cargo. The technical university of Delft and the Organization for Applied Scientific Research (TNO) stated that making last-mile distribution electric could lead to a 19 percent reduction in distributional kilometers, a 90 percent reduction of CO2 emissions and the improvement of air quality in large cities (van Duin et al., 2013).

d) Since electricity is cheaper than petrol, changing to electric vehicles could benefit a company financially as well. Here however the notion must be made that the purchase of an electric truck is still highly expensive, so companies are still weary when it comes to the investment of purchasing an all-electric vehicle. The use of smaller vans,

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however, is much easier to accomplish since they are cheaper than larger trucks (NSR e-mobility, 2013: 227).

e) Beside the strong promotional value and the green image as mentioned above, it appears that citizens react positively on electric trucks and vans in their city. According to the general manager of Cargohopper Amsterdam, ‘there is always a lot

of attention and the reactions are extremely positive: the playful appearance in combination with the absence of noise and smell usually puts a smile on those who come across one of our Cargohoppers.’

f) The possibility to get a subsidy (by the local government and/or the national government) to purchase an electric vehicle for distributional purposes lowers the threshold for willingness to invest in electric vehicles (more on this below, when the role of the government is closely examined).

Although the drivers and the opportunities of implementing an operational system of electric last-mile distribution are widely acknowledged, there are still barriers for companies to overcome. For example, as of yet there are not that many appropriate vehicles available on the market. And, as mentioned above, the (especially larger) freight vehicles that are available are often too expensive: the high purchase price is a major determinant. A recent study showed that the prices of diesel trucks and zero-emission trucks will come together in the next fifteen years. As will be elaborated on further below, this is where the (local) government plays a crucial role: in supporting technological innovation and developing appropriate policy so that companies can eventually benefit from the advantages of scale (den Boer et al., CE Delft/DLR: 2013).

The purchase price of these electric freight vehicles is broadly acknowledged as an obstacle for companies to make the transition to a zero-emission fleet. Ideally, a company would turn to an electric fleet because of its merits to society and the environment. In practice, transportation is something that needs to be done as efficient and as inexpensive as possible: an entrepreneur’s main focus is its core business, not the ways in which their products are being transported (respondent #3: 2014). One of the respondents, an expert in logistics and urban distribution, notices that ‘the incentives to adjust a company’s fleet in a

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Page | 26 environmental concerns are still subordinate to financial interests’ (respondent #2, 2014).

Larger companies such as Heineken (Heineken is aiming on zero-emission urban distribution by 2020) and UPS can make the transition to an electric fleet more easily, since they have the financial resources to do so. For smaller companies the investment is still too high, especially when taking into account that the profits will be long-term. The lack of proper incentives, in combination with smaller barriers such as the limited range of certain vehicles, is the main obstacle that the government and the businesses face when trying to make the transition to zero-emission last-mile distribution.

4.2.2 LOOKING FOR SOLUTIONS: THE INTERACTION BETWEEN THE MUNICIPALITY, THE BUSINESSES AND CIVIL SOCIETY

As explained in detail in the theoretical section of this thesis, a city is considered ‘smart’ when actors work together on a new approach to mitigate and remedy current urban problems and to make rising urban development more sustainable (Alawadhi et al., 2012: 40). To tackle urban problems such as the difficulties of electric last-mile distribution described above, a stakeholder platform where representatives of government, business and civil society work together can be created. An example of a PPP in Amsterdam is Amsterdam Smart City (ASC), that functions as a platform where government officials and representatives from businesses and civil society come together to develop sustainable projects to improve conditions in Amsterdam. However, not specific for distribution, this platform encompasses some initiatives with a focus on electric mobility.

According to the majority of the respondents, these forms of cooperation and PPPs are an absolute necessity and are not occurring as often as they should. One interviewee, a researcher at TNO in Delft, specifically argues that cooperation between different actors is of vital importance, because the problem lies in the middle of different fields. The ‘problem’ of urban distribution lies as much with the municipality and the transportation company, as with the end-consumers (respondent #1: 2014). An example of the direct cooperation between the municipality and a company, is the search for Cargohopper’s transshipment point, which was eventually found in Duivendrecht. For electric last-mile distribution, the location is of key importance: it has to be reachable for heavy transport, large enough to process cargo, and close enough to the city center so that the operational range of the electric vehicles is sufficient.

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4.2.2.1 THE ROLE OF THE MUNICIPALITY

Elaborating further on the idea that the problem lies between different actors, the question is easily raised as to who should lead the way in finding suitable solutions and creating ‘tailored’ innovation and policies. A researcher of the TNO in Delft states that it is the municipality that labels it as ‘a problem’, making other actors willing to jointly design and implement possible improvements. Furthermore, the problem concerns urban distribution, so it seems logical that the municipality should take the lead.

The project manager Electric Vehicles at the municipality of Amsterdam (respondent #3: 2014), notices the growing requirement for information. From the beginning, communication was one of the main assumptions from which policy and initiatives concerning electric vehicles was derived. Because electric mobility still remains unfamiliar to most companies and consumers, the municipality informs as much as possible, showing businesses what is possible in the field of electric mobility. Here of course is also an important role for technological- and civil society organizations: they help the municipality by gaining and spreading knowledge on electric mobility and its possibilities. In this way, the municipality creates a platform where different stakeholders can come together and exchange knowledge and ideas.

As mentioned earlier, the lack of incentives for companies to make the transition to zero-emission vehicles is also a problem the municipality solves. One respondent argues that the municipality of Amsterdam is predominantly good at rewarding those who try and become more sustainable (environmental zones, subsidies, taxation benefits, etc.), but lacks a certain ‘punishing’ element (respondent #1: 2014). In other words: the municipality could be more strict on companies. The introduction of environmental zones, a zone where vehicles are only allowed when they meet higher requirements regarding polluting emissions and noise production (NSR e-mobility, 2013: 193), is used in the Amsterdam Metropolitan Region (MRA) to encourage the use of electric vehicles, but they do not prohibit the use of a standard diesel-driven truck either. Put simply, the empirical results derived from the analysis concerning the role of the municipality can schematically be divided in three categories:

1. The facilitating role: the municipality plays an important facilitating role when trying to counter the problems posed by last-mile distribution. Besides bringing actors together in so-called stakeholder platforms, the municipality also helps the individual company in reaching their goal: becoming more sustainable without many financial

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disadvantages. The municipality for example adjusts certain (by)laws, they help companies in finding suitable transshipment points (like in the Cargohopper case), they can accompany businesses during the transition process, and maintain and expand the electric mobility infrastructure.

2. The stimulating role: this means creating a stimulus that make companies want to make the transition into zero-emission last-mile distribution. Think of the environmental zones mentioned above, narrowing down time windows for supplying shops (so that companies are forced to work more efficient), and subsidies for the acquisition of an electric fleet. Some companies however are against structural subsidies because they might influence the competition in the market (Agentschap NL, 2013: 22). During my internship at MisterGreen Electric Lease many observations where made regarding subsidies for the electric lease vehicles.

3. The client role: To lesser extent, but still an important way in which the municipality stimulates electric last-mile distribution, is by immediately becoming a direct customer. By doing so, the company has a major customer at the start, making it more profitable for the company and enticing for other companies to engage in initiatives and/or make the transition to a sustainable fleet. In a way it makes sense: if the municipality facilitates and stimulates the transition to more a more sustainable fleet, they might as well make use of it.

The facilitating and stimulating role of the municipality in combination with the innovative drive of companies results in multiple projects regarding electric last-mile distribution. As a result of the active role of the municipality, these companies can test the current technologies and learn how to successfully deal with its characteristics. There are many initiatives in Amsterdam where the municipality played a facilitating or stimulating (or both) role. Some examples are set out below:

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Project description Role of municipality

Cargohopper: electric last-mile distribution Vehicle subsidy and location transshipment point (facilitating and stimulating). The municipality is also a client.

Peter Appel Transport: electric vehicles for the domestic distribution of foodstuff

Location for transshipment point (facilitating)

020stadsdistributie.nl: heavy electric vehicles for chilled last-mile distribution

Exemption of Amsterdam’s 7.5 tons-zone, exemption of time windows (facilitating and

stimulating)

Technische Unie: electric vehicle for distributing technical materials

Vehicle subsidy (stimulating)

De Wit Verhuizers: electric vehicle for moving

Vehicle subsidy, exemption of 7.5 tons-zone, municipality is customer (facilitating and

stimulating)

Peeters Vervoercentrale: transportation of goods with medium sized electric vehicles

Vehicle subsidy, exemption of 7.5 tons-zone, exemption of time windows and the use of bus lanes (facilitating and stimulating)

Table 2: Electric last-mile distribution projects and the municipality’s role. Source: Agentschap NL: Stedelijke distributie met elektrisch vervoer, 2013.

Altogether, the question remains how Amsterdam is able to perform successfully as the facilitator and stimulator of electric mobility in general. According to the project manager of Electric Vehicles, the answer lies not only in the form of government and the overall emphasis on communication among actors, but also on the development of an adequate electric mobility infrastructures (i.e. charging points in the city). In the municipality of Amsterdam there is one group that is involved in electric mobility (Amsterdam Elektrisch, part of the service for Infrastructure, Transport and Traffic (DIVV)), and accordingly only one alderman, making them easy to contact, transparent and very close to the interaction. ‘In

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Page | 30 the district. In this way we can create policy and projects that really fit the need (respondent

#3: 2014). As a result, the municipality’s facilitating role in developing the electric mobility infrastructure using a demand-driven policy in combination with the stimulating measures (as mentioned above) plays a positive role in creating a system of electric mobility in Amsterdam (van den Hoed et al., 2013: 9).

4.2.2.2 THE ROLE OF THE NATIONAL GOVERNMENT

It appears that the municipality of Amsterdam has a recipe for success. The local government acts as a facilitator and stimulator of electric mobility, actively helping local companies in becoming more sustainable, and creating projects to test the latest possibilities. Before analyzing the possibilities for diffusion to other regions or levels of governance, one must recognize the important role the national government plays. Two of the respondents definitely agree that Amsterdam is a strong independent actor when it comes to its role in electric mobility, but they emphasize the assistance from the national government.

The question is: who facilitates the facilitator? In 2009 the Dutch national government started an ambitious policy regarding electric transport. The ambition was to develop The Netherlands in this respect as a pilot country for other countries to follow and as an international laboratory for electric driving. Consequently, the number of initiatives regarding electric driving to accomplish large-scale introduction in the market grew. This plan, to which the national government dedicated over 65 million Euro, included the establishment of an expert team (comparable to the stakeholder platform described above) and concrete measures (Ministerie van Verkeer en Waterstaat, Plan van Aanpak Elektrisch Rijden, 2009). These concrete measures consisted out of:

a) A subsidy program for electric driving.

b) Encouraging the (local) government to act as launching customers (what we have seen with for example Cargohopper).

c) The further development of the electric infrastructure.

d) Supporting the research and development (R&D) regarding electric transport. e) Bringing relevant actors together.

Under concrete measure e), the national government intends to boost the development of electric mobility in general, and therefore increasingly focus on these platforms, or as the

Multi-level policy diffusion in electric mobility and electric last-mile distribution : analyzing potential policy diffusion between Amsterdam and the European Commission