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Transport, health and climate change: Deciding on the optimal policy

Author

Listed:
  • Laure Cabantous

    (UON - University of Nottingham, UK)

  • Olivier Chanel

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Jean-Christophe Vergnaud

    (CERSES - UMR 8137 - Centre de recherche sens, ethique, société - UPD5 - Université Paris Descartes - Paris 5 - CNRS - Centre National de la Recherche Scientifique, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Transport generates many externalities, some related to atmospheric pollution. In this paper, we focus on two: greenhouse gases, and local pollution. In the search for optimal transport policies, these two externalities have usually been analysed separately. Here, we study them jointly, in a sequential decision-making model. Our model allows for the irreversibility of the policies undertaken, as well as the possibility of a progressive reduction of uncertainties with the arrival of information. We find that when both sources of externalities are analysed jointly, structural measures enabling private transport requirements to be reduced are identified as being more advantageous economically than technological measures to reduce emissions of pollutants. We illustrate the usefulness of a joint analysis of externalities with two examples: tax measures on cars and housing policy.

Suggested Citation

  • Laure Cabantous & Olivier Chanel & Jean-Christophe Vergnaud, 2010. "Transport, health and climate change: Deciding on the optimal policy," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00543966, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00543966
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00543966
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    References listed on IDEAS

    as
    1. Mayeres, Inge & Proost, Stef, 2001. "Should diesel cars in Europe be discouraged?," Regional Science and Urban Economics, Elsevier, vol. 31(4), pages 453-470, July.
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    4. Henry, Claude, 1974. "Investment Decisions Under Uncertainty: The "Irreversibility Effect."," American Economic Review, American Economic Association, vol. 64(6), pages 1006-1012, December.
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    Keywords

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    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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