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Freight transport, policy instruments and climate

Author

Listed:
  • Mandell, Svante

    (Department of Real Estate and Construction Management, Royal Institute of Technology)

  • Nilsson, Jan-Eric

    (The Swedish National Road and Transport Research Institute (VTI))

  • Vierth, Inge

    (The Swedish National Road and Transport Research Institute (VTI))

Abstract

The impact of policy instruments supposed to reduce greenhouse gas emissions from road freight transports may seem smaller than expected. Using insights from economics and contract theory, the paper sorts out the (possible) instances of market failure in the freight transport market; operator market power, asymmetric information split incentives, and public goods. The primary limitations of standard policy instruments are demonstrated to be linked to unobservable information. Some of these may be reduced but not eliminated as information technologies develop, making it possible to observe, verify and provide contract-relevant information to the uninformed parties. There is little reason to believe that possible market failures present major limitations to the efficiency of economic instruments geared toward protecting the climate, other than possibly in the short run.

Suggested Citation

  • Mandell, Svante & Nilsson, Jan-Eric & Vierth, Inge, 2014. "Freight transport, policy instruments and climate," Working Paper Series 14/3, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
  • Handle: RePEc:hhs:kthrec:2014_003
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    References listed on IDEAS

    as
    1. Mandell, Svante, 2011. "Carbon emission values in cost benefit analyses," Transport Policy, Elsevier, vol. 18(6), pages 888-892, November.
    2. Carlén, Björn & Mandell, Svante, 2012. "On assessing climate effects of electrifying the transport sector," Working papers in Transport Economics 2012:11, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    3. Mandell, Svante, 2009. "Policies towards a more efficient car fleet," Energy Policy, Elsevier, vol. 37(12), pages 5184-5191, December.
    4. George P. Baker & Thomas N. Hubbard, 2003. "Make Versus Buy in Trucking: Asset Ownership, Job Design, and Information," American Economic Review, American Economic Association, vol. 93(3), pages 551-572, June.
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    Cited by:

    1. Vierth, Inge, 2013. "Why do CO2 emissions from heavy road freight transports increase in spite of higher fuel prices?," Working papers in Transport Economics 2013:4, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    2. Hamid Saeedi & Bart Wiegmans & Behzad Behdani, 2021. "Measuring concentration in transhipment markets: methodologies and application to a European case," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(3), pages 548-568, September.
    3. Björk, Lisa & Vierth, Inge & Cullinane, Kevin, 2023. "Freight modal shift: A means or an objective in achieving lower emission targets? The case of Sweden," Transport Policy, Elsevier, vol. 142(C), pages 125-136.
    4. Björk, Lisa & Vierth, Inge, 2021. "Freight modal shift in Sweden – means or objective?," Working Papers 2021:5, Swedish National Road & Transport Research Institute (VTI).

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    More about this item

    Keywords

    Freight transport; climate; greenhouse gas; policy instruments; asymmetric information; split incentives;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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