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Economic and environmental impact of transport sector on Europe economy

Author

Listed:
  • Yousaf Ali

    (Ghulam Ishaq Khan Institute of Engineering Sciences and Technology)

  • Claudio Socci

    (University of Macerata)

  • Rosita Pretaroli

    (University of Macerata)

  • Francesca Severini

    (University of Macerata)

Abstract

Transport sector plays an important role in today economy and society by connecting people, businesses and resources. Efficient and effective transport facilitates the free flow of people, goods and services, and contributes to the productivity in all other sectors in the economy. Over the past 60 years, European Union (EU) transport sector has improved and contributed significantly to EU economy. In Europe, transport sector accounts for about 5% of gross domestic product (GDP) and more than ten million people are directly employed in 1.1 million transport companies (European Commission, EU transport in figures—Statistical pocketbook, 2012). However, transport sector does have fundamental environmental impacts on air, land, water, ecosystem and human health. In EU transport sector is responsible for around a quarter of greenhouse gas (GHG) emissions, making it the second biggest GHG emitting sectors after energy. In this paper, our objective is twofold. Firstly, our aim is to present an approach to look into the relation between transport sector and the economic system as a whole, based on the quantification of the impact of the “transport sector output” on total output and income. We compare the economic impact of the production of different types of transport industries, observed in the European countries. Secondly, we present an approach that allows to examine and identify the role, or impact of the transport sector responsible for CO2 emissions in the European countries. Our approach shows the contribution of transport sector to CO2 emissions both from demand and supply perspective. The comparative analysis is performed among four European countries which make up the large portion of the European GDP: France, Italy, Germany and United Kingdom (UK).

Suggested Citation

  • Yousaf Ali & Claudio Socci & Rosita Pretaroli & Francesca Severini, 2018. "Economic and environmental impact of transport sector on Europe economy," Asia-Pacific Journal of Regional Science, Springer, vol. 2(2), pages 361-397, August.
    • Handle: RePEc:spr:apjors:v:2:y:2018:i:2:d:10.1007_s41685-017-0066-9
    DOI: 10.1007/s41685-017-0066-9
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    References listed on IDEAS

    as
    1. Maurizio Ciaschini & Francesca Severini, 2010. "The Economic Impact of the Green Certificate Market through the Macro Multiplier Approach," Working Papers 2010.105, Fondazione Eni Enrico Mattei.
    2. Ciaschini, Maurizio & Socci, Claudio, 2007. "Final demand impact on output: A macro multiplier approach," Journal of Policy Modeling, Elsevier, vol. 29(1), pages 115-132.
    3. Maurizio Ciaschini & Rosita Pretaroli & Claudio Socci, 2009. "A Convenient Multisectoral Policy Control For Ict In The Us Economy," Metroeconomica, Wiley Blackwell, vol. 60(4), pages 660-685, November.
    4. Yousaf Ali & Maurizio Ciaschini & Rosita Pretaroli & Claudio Socci, 2015. "Measuring the economic landscape of Italy: target efficiency and control effectiveness," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 297-321, September.
    5. Leroy P. Jones, 1976. "The Measurement of Hirschmanian Linkages," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(2), pages 323-333.
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    Cited by:

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    2. Darwanto Darwanto & Nenik Woyanti & Purbayu Budi Santosa & Hadi Sasana & Imam Ghozali, 2019. "The Damaging Growth: An Empiric Evidence of Environmental Kuznets Curve in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 339-345.
    3. Tomas Kliestik & Alena Novak Sedlackova & Martin Bugaj & Andrej Novak, 2022. "Stability of profits and earnings management in the transport sector of Visegrad countries," Oeconomia Copernicana, Institute of Economic Research, vol. 13(2), pages 475-509, June.
    4. Pavol Durana & Katarina Valaskova & Roman Blazek & Jozef Palo, 2022. "Metamorphoses of Earnings in the Transport Sector of the V4 Region," Mathematics, MDPI, vol. 10(8), pages 1-14, April.
    5. Haider Mahmood & Ateeq ur Rehman Irshad & Muhammad Tanveer, 2024. "Do innovation and renewable energy transition play their role in environmental sustainability in Western Europe?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-9, December.

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