The influence of Free-Trade on the environmental effects of transportation. Scale-, Technique- and Composition-Effects

Stefan Vannoni ()
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Stefan Vannoni: University of Basel

Working papers from Faculty of Business and Economics - University of Basel

Abstract: The changeover from a situation of Autarky to a situation of Free- Trade alters the trade and production patterns of the participating countries which in turn affects the transportation-sector. The amount of transported goods and the directions of the good-flows change. Profit-oriented shipping companies can and do respond to these changes by selecting adequate means and modes of transport for different routes and by building-up or restructuring a transportation-network. These changes affect the corresponding level of pollution from transport. We distinguish a scale effect which evolves from a higher frequency of transportation movements with an unchanged infrastructure of transportation, a technique effect which results by increasing the load per movement and a less than proportional increase in pollution per distanceunit and a composition effect which reflects an increase load per movement and a constant or decreasing pollution per distance-unit. Adding up all three effects could eventually lead to a lower pollution level in a situation with Free-Trade than with Autarky.

JEL-codes: C51 F18 L91 Q56 R40 (search for similar items in EconPapers)
Date: 2007-08-01
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Persistent link: https://EconPapers.repec.org/RePEc:bsl:wpaper:2007/10

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