Conclusion.

Assalamualaikum readers :)

Here the conclusion out of all the chapters that i have been share with all of you. Hope you will like it :)

In general, increased economic openness seems to have had, at worst, a benign effect on emissions of localised pollutants, such as SO2, NO2 and PM (particulate matter). However, it is not clear how the relative price changes that result from openness will affect the environmental composition of economic activity: some countries will produce more environmentally intensive goods, others will produce fewer. On the other hand, liberalisation will raise incomes, perhaps increasing the willingness-to-pay for environmental improvements: such income effects could well outweigh the negative scale effects associated with increased economic activity. When combined with the positive effects associated with technology transfer, the net effect of globalisation on local pollutants is quite possibly a positive one.

However, the evidence concerning carbon dioxide and other greenhouse gas emissions is less encouraging. Here, the evidence suggests that the net effect of trade liberalisation could be negative. One of the explanations for the pessimistic assessments of trade’s impact on greenhouse gas emissions is their global nature. Not only are the costs of CO2 emissions shared with citizens abroad, but many greenhouse gas emissions are associated with fossil fuel use, for which few economically viable substitutes have emerged to date. The income and other technique effects that are largely responsible for reductions in local air pollutants do not seem to have the same force when the pollutant in question burdens the global population – and requires global solutions – rather than just citizens residing within any one government’s jurisdiction.

Lots Of Love,

Amira binti Azmi

Last Chapter : Policy Instruments to Limit Negative Environmental Impacts

Assalamualaikum readers :) we meet again!Todays post is about the policy that can limit all the negative impacts cause by transportation. enjoy reading okey :)

The picture on climate change management in transport that emerges from the preceding sections is two-fold. Modes for which pre-existing policies are weak, such as shipping and aviation, seem to be candidates for integration into broader efforts to introduce climate change policy frameworks. Surface transport is characterised by stronger existing policies, and its integration in such broader frameworks is less straightforward. The shape of the broader climate change policy frameworks is uncertain. Much of the economic analysis is on top-down approaches, and studies how multilateral efforts can handle the sovereignty constraint as well as possible. Actual policy developments, however, look more like a bottom-up approach, where different jurisdictions introduce more or less broad policies. This tendency should not be too surprising, given the importance of “club benefits” in making effective climate change policy possible. While the bottom-up approach conceivably leads to gradual expansion of geographical coverage (e.g. by linking up US and EU carbon trading systems), the inclusion of developing

economies like China and India remains problematic.

Inclusion of aviation and maritime transport in cap-and-trade systems that cover other sectors is desirable from a cost-effectiveness point of view. Both for aviation and maritime transport, technological abatement options are limited in the short run because of slow fleet turnover. In maritime transport, the impression is that operational measures can reduce CO2 emissions to some extent in the short run, at relatively low cost. In aviation, there is some scope for abatement through better air traffic control and airport congestion management (as well as technology in the longer run), but the main intrasector abatement is likely to come from lower demand. Available estimates put an upper bound of about 5% on demand reductions, at prices of around EUR 20 per tonne CO2. Imperfect competition and airport congestion limit the extent of pass-through of cost increases to ticket prices, and hence limit the demand responses. The aviation sector is thus likely to be a net buyer of permits. Both in aviation and shipping, there is considerable scope for leakage, as long as trading schemes are not very comprehensive. Nevertheless, inclusion of these modes in trading schemes is desirable if overall abatement is to be costeffective. Other incentive-based measures can yield similar benefits, but seem less acceptable. Broadening the geographical scope of trading systems for maritime transport and aviation is likely to be a gradual process, perhaps along the lines discussed in Kågeson (2009).

Road transport is characterised by relatively stringent pre-existing policies. The EU has high fuel taxes and has recently introduced fuel-economy standards. The US has low fuel taxes, and fuel economy is determined by the fuel economy standard, that is now set to be tightened. In the EU, road transport is not included in the ETS. In various US proposals, the idea is to include the sector, possibly through upstream trading between refiners. Since the pre-existing policies are relatively stringent, abatement costs for CO2 in road transport are relatively high, and exceed current and expected prices for carbon permits. This seems undesirable from a narrow cost effectiveness point of view, but since the prevailing policies serve other purposes than just greenhouse gas reductions, it is not immediately clear if the welfare cost of further tightening of these policies is very high. For example, higher fuel taxes in the US seem justified if the goal is to handle congestion (in a blunt way) and increase infrastructure cost coverage, and this policy would reduce greenhouse gas emissions. It deserves emphasis, however, that the policy justification is congestion management and infrastructure provision, not reducing greenhouse gas emissions.

Within the static welfare economic framework used above, the case for tighter fuel economy standards or higher fuel taxes in road transport to reduce greenhouse gas emissions is weak. It is often argued, however, that policies are needed to increase the deployment of more fuel-efficient vehicles through the fleet. The reason is that the market for fuel economy provides only weak incentives to improve fuel economy, given consumers’ rational response to various uncertainties surrounding the investment in fuel economy. Given the additional market failures in research, development and diffusion of new technologies, a fuel economy standard could increase fleet fuel economy and the adoption of alternative technologies. And since using less carbon to produce prevailing mobility patterns is likely to be a cheaper way to reduce the risks of climate change than drastically changing the structure of transport activity, such standards could complement

market-based instruments in surface transport, aviation and shipping.

Thats all guys!

New Post on Road Transport :)

Assalamualaikum readers :)

This post gives an overview of the main trends in the environmental impacts of the transport sector as a whole, and road and rail freight transport in particular.

The trends in energy use from transport over the last decades are depicted. Energy consumption in transport almost doubled over this period. The growth in non-OECD countries was even higher: energy use almost tripled over this period. Both for OECD and non-OECD countries, road transport had by far the largest share: about three quarters, and this share is steadily increasing. Projections for energy use until 2050 are shown in Figure 8.2. This graph shows that the energy use of transport is expected to keep on growing at a similar rate as in the last decades, doubling between 2000 and 2040. The growth rates in road freight transport and

rail transport are roughly the same as these general growth rates. Just as happened in the past decades, the energy use of the transport sector is expected to grow much faster in non-OECD countries than in OECD countries. Where non-OECD countries currently account for about 36% of the worldwide transport-related CO2 emissions, their share is expected to equal that of the OECD countries somewhere around 2040. Particularly in Asia and Latin America, energy use of transport is expected to grow strongly.

Figure A

As shown in Figure A, the expected growth is highest in China, where road energy consumption is expected to grow by a factor of five between 2000 and 2030 (He et al., 2005). In China, freight transport has grown much faster than passenger transport (almost twice as fast) and is expected to do so in the future. The energy use of heavy duty trucks in China tripled between 1997 and 2002 (He et al., 2005).

This trend makes clear that reducing energy consumption of transport, and the related greenhouse gas emissions, is becoming more and more a global challenge.

Did You Know?

Hello Readers :)

The WHO estimated the number of road fatalities at 1.2 million in 1999. Further research showed that this is probably an overestimation (Jacobs and Aeron-Thomas, 2000). They estimated the number of fatalities worldwide at 750 000 to 880 000 in 1999, and the number of people injured by road accidents at 23 to 34 million per year.

It is very difficult to make forecasts for these global figures. In Europe, the number of fatalities is rapidly decreasing (from about 71 000 in 1990 to 41 000 in 2005). However, in other parts of the world, transport growth may well exceed the effect of vehicle and traffic safety improvements. The number of victims from rail transport accidents is much smaller than for road. In the European Union, 105 people were killed in rail accidents in 2004, which was about 0.2% of the number of fatalities in road accidents.

Source: Globalisation, Transport and Environment Book

Air Transport: An Introduction :)

assalamualaikum readers :)

In my previous post, i had wrote about the water transport which is Maritime Shipping. As the continuity, i would now write about another various type of transport that is Air Transportation. Lets find out what is Air Transport is actually about and its relationship with the globalisation.

Air transport is a major industry in its own right and it also provides important inputs into wider economic, political and social processes. The demand for its services, as with most transport, is a derived one that is driven by the needs and desires to attain some other, final objective. Air transport can facilitate, for example, the economic development of a region or of a particular industry such as tourism, but there has to be a latent demand for the goods and services offered by a region or by an industry. Lack of air transport, as with any other input into the economic system, can stymie efficient growth, but equally inappropriateness or excesses in supply are wasteful.

Economies, and the interactions between them, are in a continual state of flux. This dynamism has implications for industries such as air transport. But there are also feedback loops, because developments in air transport can shape the form and the speed at which globalisation and related processes take place. In effect, while the demand for air transport is a derived demand, the institutional context in which air transport services are delivered have knock-on effects on the economic system. These feedback loops may entail direct economic, political and social effects that, for example, accompany enhanced trade and personal mobility, but they may also be indirect, as for example through the impacts of air transport on the environment.

The analysis here focuses on one small sector, international commercial aviation, and on only one direction of causality, the implications of globalisation for this sector. Some related considerations are embraced where particularly important. For example, there is an increasing blurring of international and domestic air transport as airlines form alliances and invest in each other to form global networks. Indeed, the domestic and international air transport market within the European Union (EU) is de facto one market. Also, not all feedback loops are ignored, particularly when changes in air transport facilitate global trends that then, in turn, feed back on the air transport industries; migration of labour is one example of this.

p/s: thanks for reading guys :)

globalisation,transport and the environment

assalamualaikum.

The term “globalisation” is often used to describe the increased flow of knowledge,

resources, goods and services among nations. The term is sometimes defined as “the

development of an increasingly integrated global economy marked especially by free trade,

free flow of capital and the tapping of cheaper foreign labour markets”.*

Globalisation can also be described as a process by which the people of the world are

unified into a single society and function together. This process is a combination of

economic, technological, socio-cultural and political forces. The term is, however, often

used to refer in the narrower sense of economic globalisation, involving integration of

national economies into the international economy through trade, foreign direct

investment, capital flows, migration and the spread of technology.

OECD (2005) highlights that three major forces have contributed importantly to the

globalisation process: i) the liberalisation of capital movements and deregulation, of

financial services in particular; ii) the further opening of markets to trade and investment,

spurring the growth of international competition; and iii) the pivotal role played by

information and communication technologies (ICT) in the economy.