Title: Are there cost-efficient CO₂ reduction possibilities in the transport sector? Combining two modelling approaches

Authors: Stef Proost, Denise van Regemorter

Addresses: Centre for Economic Studies, K.U.Leuven, Naamsestraat 69, B-3000 Leuven, Belgium. Centre for Economic Studies, K.U.Leuven, Naamsestraat 69, B-3000 Leuven, Belgium

Abstract: To determine the real cost of CO₂ emission abatement in the transport sector is difficult because this sector is characterised by many market inefficiencies. There are important negative externalities that are addressed by inefficient instruments like fuel taxes. First, a transport model is used to estimate the effect on transport flows of a better internalisation of the other externalities like congestion, accidents and the emission of non-greenhouse gases by switching from fuel taxes to road pricing. Technological progress will make this switch feasible. Next, the new transport flows are used as inputs in a partial equilibrium model for the energy sector to estimate more correctly the cost effective contribution of the transport sector in the national CO₂ reduction required. It is shown that, under these conditions, the potential for cost effective CO₂ reductions in the transport sector is very limited.

Keywords: CO₂ emissions; transport sector; energy modelling; external costs.

DOI: 10.1504/IJVD.2001.001933

International Journal of Vehicle Design, 2001 Vol.26 No.2/3, pp.116-130

Published online: 15 Aug 2003 *

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