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

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  • Vannoni, Stefan

    () (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.

Suggested Citation

  • Vannoni, Stefan, 2007. "The influence of Free-Trade on the environmental effects of transportation. Scale-, Technique- and Composition-Effects," Working papers 2007/10, Faculty of Business and Economics - University of Basel.
  • Handle: RePEc:bsl:wpaper:2007/10
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    File URL: https://edoc.unibas.ch/61242/1/20180305134814_5a9d3c8e2663e.pdf
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    References listed on IDEAS

    as
    1. Ken Hendricks & Michele Piccione & Guofu Tan, 1995. "The Economics of Hubs: The Case of Monopoly," Review of Economic Studies, Oxford University Press, vol. 62(1), pages 83-99.
    2. David Hummels, 2007. "Transportation Costs and International Trade in the Second Era of Globalization," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 131-154, Summer.
    3. Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann D., 2006. "Road and Maritime Transport Costs: A Comparative Analysis of Spanish Exports to Poland and Turkey," Ibero America Institute for Econ. Research (IAI) Discussion Papers 138, Ibero-America Institute for Economic Research.
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    More about this item

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F18 - International Economics - - Trade - - - Trade and Environment
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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