Transport policy

Question 1

What are objectives in transport policy?

Answer 1

Effectiveness
Cost efficiency
Sustainability and dynamic efficiency
Multiple policy objectives

Question 2

What are obstacles in transport policy?

Answer 2

Assymetric information and market conditions
Uncertainty
Political and societal infeasibility
Technological path dependancies

Question 3

What policy can be selected to address effectiveness in transport policy? and why?

Answer 3

Emission Standards and Fleet Regulations: Set strict emission limits to ensure significant and measurable reductions in transport emissions.

Question 4

What policy can be selected to address cost efficiency in transport policy? and why?

Answer 4

• Carbon Pricing: Minimizes economic costs by allowing market-driven solutions to reduce emissions at the lowest cost.
• Technology-Specific Subsidies: Targeted support for low-carbon innovations ensures efficient allocation of funds to impactful solutions.

Question 5

What policy can be selected to address sustainability and dynamic efficiency in transport policy? and why?

Answer 5

• Infrastructural Investments: Supports the development of EV charging stations and hydrogen infrastructure to avoid technological lock-ins.
• Technology-Specific Subsidies: Encourages continuous innovation in low-carbon transport options like electric or hydrogen-powered vehicles.

Question 6

What policy can be selected to address multiple policy objectives in transport policy? and why?

Answer 6

• Integrated Urban Mobility Planning: Combines emission reductions with equitable access to sustainable transportation systems.
• Public Investment in Mass Transit: Promotes resource efficiency, equitable access, and a shift toward sustainable modes like buses and trains.

Question 7

Why is asymmetric information and market conditions an obstacle in transport policy? What instrument can address it?

Answer 7

• Lack of information about the true costs and benefits of low-carbon technologies (e.g., electric vehicles, hydrogen fuel) leads to market failures.
• Technology specific instrument: Support for new Infrastructure: Subsidies for electric vehicles or charging infrastructure to reduce the barrier of high upfront costs and make benefits clearer.

Question 8

Why is technological path dependancies are an obstacle in transport policy? What instrument can address it?

Answer 8

• Decades of reliance on fossil fuel technologies (e.g., internal combustion engines) create inertia in the transport sector.
• Existing infrastructure, such as gas stations, is not suitable for emerging technologies like EVs or hydrogen-powered vehicles.
• Technology neutral: Carbon Pricing: By imposing a cost on carbon emissions, carbon pricing increases the relative cost of fossil fuels compared to low-carbon alternatives, incentivizing innovation and adoption of cleaner technologies.

Question 9

Why is uncertainty an obstacle in transport policy? What instrument can address it?

Answer 9

• Uncertainty about future emissions, fuel prices, and technological advancements makes it difficult to design long-term policies.
• Carbon Pricing: Provides a flexible, market-driven mechanism to reduce emissions regardless of environmental or technological uncertainties.

Question 10

Why is political and societal infeasibility an obstacle in transport policy? What instrument can address it?

Answer 10

• Resistance from stakeholders (e.g., car manufacturers, fossil fuel lobbies) and consumers due to concerns about costs, jobs, or lifestyle changes.
• Public opposition to taxes or restrictive regulations like fuel bans.
• Policy Mixes: Combine carbon taxes with subsidies for low-carbon technologies to balance costs and build public support.