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The growth of transport cector CO2 emissions and underlying factors in Latin America and the Caribbean

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  • Timilsina, Govinda R.
  • Shrestha, Ashish

Abstract

This study examines the factors responsible for the growth of transport sector carbon dioxide emissions in 20 Latin American and Caribbean countries during 1980-2005 by decomposing the emissions growth into components associated with changes in fuel mix, modal shift, and economic growth, as well as changes in emission coefficients and transportation energy intensity. The key finding of the study is that economic growth and the changes in transportation energy intensity are the main factors driving transport sector carbon dioxide emissions growth in the countries considered. The results imply that fiscal policy instruments - such as subsidies to clean fuels and clean vehicles - would be more effective in reducing emissions in countries where the economic activity effect is the primary driver for transport sector carbon dioxide emissions growth. By contrast, regulatory policy instruments - such as vehicle efficiency standards and vehicle occupancy standards - would be more effective in countries where the transportation energy intensity effect is the main driver of carbon dioxide emissions growth. Both fiscal and regulatory policy instruments would be useful in countries where both economic activity and transportation energy intensity effects are responsible for driving transport sector carbon dioxide emissions growth.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4734.

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Date of creation: 01 Sep 2008
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Handle: RePEc:wbk:wbrwps:4734

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Keywords: Transport Economics Policy&Planning; Energy Production and Transportation; Oil Refining&Gas Industry; Environment and Energy Efficiency; Energy and Environment;

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  1. Joseph Francois & Will Martin, 2002. "Commercial Policy Variability, Bindings, and Market Access," International Trade 0210002, EconWPA.
  2. Mattoo, Aaditya & Subramanian, Arvind, 2008. "Currency undervaluation and sovereign wealth funds : a new role for the World Trade Organization," Policy Research Working Paper Series 4668, The World Bank.
  3. Mitchell, Donald, 2008. "A note on rising food prices," Policy Research Working Paper Series 4682, The World Bank.
  4. Luci Ellis & Kathryn Smith, 2007. "The global upward trend in the profit share," BIS Working Papers 231, Bank for International Settlements.
  5. Gary Clyde Hufbauer & Yee Wong & Ketki Sheth, 2006. "US-China Trade Disputes: Rising Tides Rising Stakes," Peterson Institute Press: Policy Analyses in International Economics, Peterson Institute for International Economics, number pa78, November.
  6. Subramanian, Arvind & Wei, Shang-Jin, 2005. "The WTO Promotes Trade, Strongly But Unevenly," CEPR Discussion Papers 5122, C.E.P.R. Discussion Papers.
  7. Gootiiz, Batshur & Mattoo, Aaditya, 2009. "Services in Doha : what's on the table ?," Policy Research Working Paper Series 4903, The World Bank.
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