Transport, Health and Climate Change: Deciding on the Optimal Policy

Laure Cabantous, Olivier Chanel and Jean-Christophe Vergnaud

Economie Internationale, 2009, issue 120, 11-36

Abstract: Transport generates many externalities, some related to atmospheric pollution. In this paper, we focus on two: greenhouse gases, and local pollution. In the search for optimal transport policies, these two externalities have usually been analysed separately. Here, we study them jointly, in a sequential decision-making model. Our model allows for the irreversibility of the policies undertaken, as well as the possibility of a progressive reduction of uncertainties with the arrival of information. We find that when both sources of externalities are analysed jointly, structural measures enabling private transport requirements to be reduced are identified as being more advantageous economically than technological measures to reduce emissions of pollutants. We illustrate the usefulness of a joint analysis of externalities with two examples: tax measures on cars and housing policy.

Keywords: Climate change; model of decision-making under uncertainty; irreversibilities; transport policy (search for similar items in EconPapers)
JEL-codes: C6 D62 D81 R48 (search for similar items in EconPapers)
Date: 2009
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Related works:
Working Paper: Transport, health and climate change: Deciding on the optimal policy (2010)
Working Paper: Transport, health and climate change: Deciding on the optimal policy (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepiei:2009-4ta

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