An economic assessment of the impacts of the MOSE barriers on Venice port activities

To protect Venice from flooding, a number of protective measures have been adopted, including a system of mobile barriers known as MOSE. These separate the lagoon from the surges in the Adriatic Sea but interfere with shipping and on port activities. We estimate direct costs on ship traffic resulting from the use of MOSE, i.e., the additional costs of longer waiting time when passing through the Venice Lagoon. Our estimate uses inputs from a hydrodynamic model applied to the ship traffic between 2000 and 2002 and indicate that these costs range from €347,943 to €1.3 million a year, depending on the hypotheses adopted.     

Environmental regulations in shipping: Policies leaning towards globalization of scrubbers deserve scrutiny

Emission regulations for Sulphur oxides (SOx) and nitrogen oxides (NOx) are motivated by health- and other environmental objectives in local and regional settings, while global warming concerns motivate policies for carbon dioxide (CO₂). We point out that the direction chosen by the International Maritime Organization (IMO) – to tighten SOx and NOx limits globally – carries important risks. First, extending to a global setting the present regulations in coastal emission control areas (ECAs, in North America and Northern Europe) gives negligible or negative environmental benefits, and raises global warming impacts. Second, ‘end-of-pipe’ solutions, such as scrubbing and tuning, become dominant responses, and they reduce energy efficiency. Third, the adoption of these end-of-pipe solutions carry risks of deflecting attention from development of cleaner fuels and improving energy efficiency. Distinguishing local environmental benefits from global ones is important in general, and our research concludes that in the case of shipping, this distinction better serves the needs of the local environment, the global climate, and conserves on abatement costs.     

Does the aviation Emission Trading System influence the financial evaluation of new airplanes? An assessment of present values and purchase options

In this paper we assess the impact of the CO₂ costs for short- and long-haul aircraft based on present values and on purchase options. We evaluate purchase options with a framework developed for real option analysis to estimate the value of flexibility under uncertain kerosene and CO₂ prices. We find an average influence of CO₂ costs on present values of €1.1 million for the short haul plane and €4.1 million for the long-haul plane over the typical lifetime of an airplane. For purchase options, we find a CO₂ influence of €0.43 million for the long-haul plane and a moderate impact for the short-haul plane. The results underline the importance of CO₂ and kerosene costs for long-haul aircraft.     

Evaluating noise annoyance cost recovery at Düsseldorf International Airport

This study estimates airport noise annoyance cost around Düsseldorf, Germany by examining rental apartment market data. Using data on regional apartment offers we estimate rent discounts of 1.04% per additional decibel of airport noise. Other sources of traffic noise induce significantly lower price effects. As a result, airport noise annoyance costs amount to about €7.5 million a year. While the noise protection fund recovers annoyance costs, the charging regime of the airport fails to fully internalize them.     

The effects of emission control area regulations on cruise shipping

To control SOx, NOx and particulate matter emission from ships, including cruise ships, emission control areas (ECAs) have been defined by the International Maritime Organization (IMO), which influences cruise planning. This paper investigates a mixed integer programming model to reschedule voyage plans by optimizing speeds, sailing patterns and ports-of-call sequences, hence reducing fuel costs. A tabu search based solution method is developed to solve the model. Computational tests on real-world data of cruise lines are conducted in order to explore the effects of ECA regulations on cruise shipping. The results show that the proposed model can save fuel costs under ECA regulations, and the designed solution method is efficient.     

Green approaches at sea – The benefits of adjusting speed instead of anchoring

In this paper, the concept ‘green approaches’ already used in aviation is applied to cargo transportation at sea. Instead of anchoring outside a port waiting for berth, ships can adjust their speed to arrive just in time for berthing. With improved incentives for reducing speed and shared information about berthing times, green approaches instead of anchoring can be a way to reduce fuel consumption and emissions without increasing the transit times of goods. The present study estimates the benefits to society as a whole for the EU ports in the Baltic Sea with Automatic Identification System data applying a new method using data collected in real time. Data consists of all anchored ships awaiting berth on 40 different occasions in 2015 and are subsequently extrapolated to a year. Fuel consumption by the individual ships, emissions and values are calculated from the detailed data with established models and estimates of unit values. The potential benefits are estimated at 27 million euros per year in the scenario where the near 15,000 anchorings by ships annually awaiting berth may instead start a green approach 12 h prior to arrival and may reduce speed by 25%, using the middle unit values for fuel and emissions. The methodology used in the paper can be applied to estimate the benefits of green approaches in other areas with anchored vessels.     

Reducing CO<Subscript>2</Subscript> from cars in the European Union

The European Union (EU) recently adopted CO₂ emissions mandates for new passenger cars, requiring steady reductions to 95 gCO₂/km in 2021. We use a multi-sector computable general equilibrium (CGE) model, which includes a private transportation sector with an empirically-based parameterization of the relationship between income growth and demand for vehicle miles traveled. The model also includes representation of fleet turnover, and opportunities for fuel use and emissions abatement, including representation of electric vehicles. We analyze the impact of the mandates on oil demand, CO₂ emissions, and economic welfare, and compare the results to an emission trading scenario that achieves identical emissions reductions. We find that vehicle emission standards reduce CO₂ emissions from transportation by about 50 MtCO₂ and lower the oil expenditures by about €6 billion, but at a net added cost of €12 billion in 2020. Tightening CO₂ standards further after 2021 would cost the EU economy an additional €24–63 billion in 2025, compared with an emission trading system that achieves the same economy-wide CO₂ reduction. We offer a discussion of the design features for incorporating transport into the emission trading system.     

Are Longer and Heavier Vehicles (LHVs) Beneficial for Society? A Cost Benefit Analysis to Evaluate their Potential Implementation in Spain

Abstract

In this paper we carry out a thorough review of the current research related to the benefits and costs arising from the implementation of longer and heavier vehicles (LHVs). From this review we concluded that despite the many studies available, little has been said about the sensitivity of the benefits and costs to the ultimate performance of the key variables related to the evolution of the economy, road transport performance, safety, and so on. In order to fill this gap, we have designed a sensitivity approach based on a cost benefit analysis tool to determine which variables demonstrate the greatest influence on the benefits and costs stemming from the implementation of LHVs. In order to test the methodology, we have used it in an analysis of the Spanish trunk network. The results show that the benefits of LHVs for society are significant. Even in the least favorable scenario, the economic benefits are greater than €3500 million over 15 years, and the environment enhanced as well, for CO₂ emissions are reduced by 2 Million tonnes. Overall we noted how the results are not very sensitive to the evolution of key variables in determining the final outcome. However, we found that the variables that have the greatest affect on the final benefit, such as traffic growth and social discount rate, depend basically on the performance of the overall economy. Moreover, the private cost for haulers seems to be more important in determining the final benefit than externality costs.     

The impact of Low Emission Zones on particulate matter concentration and public health

A common policy for reducing particulate matter concentrations in the European Union is the introduction of Low Emission Zones (LEZs), which may only be entered by vehicles meeting predefined emission standards. This paper examines the effectiveness of LEZs for reducing PM₁₀ levels in urban areas in Germany and quantifies the associated health impacts from reduced air pollution within the zones. We employ a fixed effects panel data model for daily observations of PM₁₀ concentrations from 2000 to 2009 and control, inter alia, for local meteorological conditions and traffic volume. We apply the regression outputs to a concentration response function derived from the epidemiological literature to calculate associated health impacts of the introduction of LEZs in 25 German cities with 3.96 million inhabitants. Associated uncertainties are accounted for in Monte-Carlo simulations. It is found that the introduction of LEZs has significantly reduced inner city PM₁₀ levels. We estimate the total mean health impact from reduced air pollution in 2010 due to the introduction of stage 1 zones to be ∼760 million EUR in the 25 LEZ cities in the sample, whereas total mean health benefits are ∼2.4 billion EUR for the more stringent stage 2 zones when applied in the same cities.     

Valuing the Prevention of Road Accidents in Belgium

Abstract

In a recent international comparison of the social costs of road accidents, Trawén et al. (2003) noted that cost data are not available for Belgium and, by consequence, play no part in Belgian policy‐making. The purpose of the present paper is, therefore, to value the costs per casualty type and per accident in Belgium. Empirical data are provided on human and economic production losses as well as on direct accident costs such as medical costs, hospital visiting costs, accelerated funeral costs, property damage, administrative costs of insurance companies, litigation costs, police and fire department costs, and congestion costs. In Belgium the marginal unit value of preventing a road casualty is estimated at €2 004 799 per fatal casualty, €725 512 per seriously injured and €20 943 per slightly injured victim. The unit cost per accident amounts to €2 355 763, €850 033, €34 944 and €2571 for fatal, serious, slight injury and property damage only accidents, respectively. These results are consistent with valuations reported in other high‐income countries. Finally, the total costs of road accidents in 2002 are valued at €7.2 billion (2004 prices), or 2.6% of gross domestic product.     

Integrated analysis of GHGs and public health damage mitigation for developing urban road transportation strategies

This study attempts to present an urban road transportation strategy focusing on the mitigation of both GHGs emission and public health damage, taking Xiamen City as a case study. We developed a Public Health and GHGs Emission model to estimate the impacts of direct energy-consumption-related GHGs emissions and public health damage in Xiamen’s road transportation strategies from 2008 to 2025, considering the environmental benefits and economic costs. Two scenarios were designed to describe future transportation strategies for Xiamen City, and mitigation potentials for both GHGs emission and public health costs were estimated from 2008 to 2025 under a series of options. The results show that enacting controls on private vehicles would be most effective to GHGs mitigation, while enacting controls on government and rental vehicles would contribute the most to NO₂ and PM2.5 reductions. Compared with the Business as Usual scenario, the Integrated scenario would achieve about a 68% energy consumption reduction and save 0.23 billion yuan (95% CI: 0.16, 0.32) in health costs in 2025. It is clear that integrated and advisable strategies need to mitigate the adverse impacts of urban road vehicles on GHGs emissions and public health and economic costs, particularly in regions of rapid urbanization.     

Evaluating the social cost of cruise ships air emissions in major ports of Greece

Detailed NO_x, SO₂ and PM_2.5 emissions have been estimated for cruise ships in the five busiest Greek ports (i.e. Piraeus, Santorini, Mykonos, Corfu and Katakolo) for year 2013. The emissions were analyzed in terms of gas species, seasonality and activity. The total in-port inventory of cruise shipping accounted to 2742.7 tons: with NO_x being dominant (1887.5 tons), followed by SO₂ and PM_2.5 (760.9 and 94.3 tons respectively). Emissions during hotelling corresponded to 88.5% of total and have significantly outweighed those produced during ships’ maneuvering activities (11.5% of total). Seasonality was found to play a major role, as summer emissions and associated impacts were significantly augmented. The anticipated health impacts of ship emissions can reach to €24.3 million or to €5.3 per passenger proving the necessity of control of the emissions produced by cruise ships in port cities or policy and measures towards a more efficient cruise industry.     

Assessing air quality and health benefits of the Clean Truck Program in the Alameda corridor,CA

In this paper, vehicle microscopic simulation and emission models were combined with an air pollutant dispersion model and a health assessment tool to quantify some social costs resulting from urban freight transportation in the Alameda corridor that links the Ports of Los Angeles and Long Beach to downtown Los Angeles. Traffic on two busy freeways, the I-710 and the I-110, and some heavily trafficked arterial roads was analyzed to estimate the health impacts caused by drayage truck emissions of particulate matter (PM) for four different years: 2005, which serves as a baseline for various pollution inventories, as well as 2008, 2010 and 2012. These years correspond to deadlines for the Clean Truck Program (CTP), which was put in place to improve air quality in the Alameda corridor. Results show that the health costs from particulate matter (PM) emitted by drayage trucks exceeded 440 million dollars in 2005. However, these costs decreased by 36%, 90%, and 96% after accounting for the requirements of the 2008, 2010, and 2012 CTP deadlines. These results quantify the magnitude of the social costs generated by drayage trucks in the Alameda corridor, suggest that these costs justified replacing drayage trucks operating there, and indicate that the Clean Truck Program likely exceeded its target.     

Factors affecting public transportation,car, and motorcycle usage

This study established a hypothesis model based on the seemingly unrelated regression equations (SURE) model to investigate the relationship between public transportation, car, and motorcycle use in various townships in Taiwan and to analyse important factors that affect the usage of these modes. The SURE model was adopted because of the lack of a significant correlation between the dependent variables. The pairwise covariance analysis for any two of the three transportation modes revealed that the transportation modes could substitute for one another. Factors related to modal and demographic characteristics had different impacts on the usage of the three modes. The calculation of elasticity using different population densities and public transportation usage showed that when the ‘number of city bus routes’ was increased by 50% in areas with high population density and high public transportation usage, car usage decreased by 1.4%, which corresponds to 300,000 vehicles, and total CO₂ emissions reduced by 0.0204%. When the ‘total length of city bus routes’ was increased by 50%, the number of motorcycles used decreased by 83 million, and total CO₂ emissions reduced by 1.119%, which corresponds to 1.4 million tonnes of CO₂ emission. These findings suggest that these different factors had varying impacts on car and motorcycle usage in different areas. We therefore recommended that future transportation policies consider the varying transportation usage trends in different areas.     

Simulating deep CO2 emission reduction in transport in a general equilibrium framework: The GEM-E3T model

Transport sector restructuring to achieve deep GHG emission cuts has attracted much attention because transportation is important for the economy and inflexible in greenhouse gas emission reduction. The aim of this paper is to simulate transition towards low carbon transportation in the European Union until 2050 and to assess the ensuing macroeconomic and sectorial impacts. Transport restructuring is dynamically simulated using a new transport-oriented version of the computable general equilibrium model GEM-E3 which is linked with the PRIMES-TREMOVE energy and transport sectors model. The analysis draws from comparing a reference scenario projection for the EU member-states up to 2050 to alternative transport policy scenarios and sensitivities which involve deep cutting of CO₂ emissions. The simulations show that transport restructuring affects the economy through multiple channels, including investment in infrastructure, the purchasing and manufacturing of new technology vehicles, the production of alternative fuels, such as biofuels and electricity. The analysis identifies positive impacts of industrial activity and other sectors stemming from these activities. However, the implied costs of freight and passenger transportation are of crucial importance for the net impact on GDP and income. Should the transport sector transformation imply high unit costs of transport services, crowding out effects in the economy can offset the benefits. This implies that the technology and productivity progress assumptions can be decisive for the sign of GDP impacts. A robust conclusion is that the transport sector decarbonisation, is likely to have only small negative impacts on the EU GDP compared to business as usual.     

The urban road pricing scheme to curb pollution in Milan,Italy: Description,impacts and preliminary cost–benefit analysis assessment

Starting from January 2008 Milan implemented a charging scheme to enter an 8 km² area of the city centre. The term used to denote the scheme is Ecopass, conveying the stated political objective of the scheme: a pass to improve the quality of the urban environment (ECO). The charge depends on the Euro emission standard of the vehicle. The paper illustrates the main features and impacts of the Milan Ecopass scheme, and presents a preliminary cost–benefit analysis. The scheme has been effective in curbing not only pollution emissions, but also congestion, and the result has been achieved with low implementation costs and without major political opposition. The cost–benefits analysis presents an overall net benefit. The identification of the winners and losers of the policy is conditioned by penalty payments. Without including the penalties, the surface public transport users and the society at large are the main winners, whereas car and especially freight vehicle users are net losers.     

Forecasting the impacts of climate change on inland waterways

Inland waterways are vulnerable to climate change as river navigation depends on water levels. Droughts can severely disrupt inland navigation services by reducing water levels either to completely non-navigable ones or to levels that oblige operators to reduce vessel load. We analyse the impacts of droughts induced by climate change using projections of river discharge data provided by eleven different climate model runs. We consider location specific characteristics by focusing the analysis on four specific locations of the Rhine and the Danube where a substantial part of the total freight activity in the European Union (EU) takes place. For the majority of the cases and scenarios considered, a decrease of the number of low water level days is projected, leading to fewer drought related disruptions in the operation of the inland waterway transport system. Although the uncertainties from the climate projections should not be neglected, the navigation sector could benefit from global warming which means that European inland waterways might be one of the few sectors where climate change can have negligible, or even positive, impact. The average economic benefit, for the cases considered, from the decrease of low water levels by the end of the century is projected to be almost €8million annually.     

Pricing local emission exposure of road traffic: An agent-based approach

This paper proposes a new approach to iteratively calculate local air pollution exposure tolls in large-scale urban settings by taking the exposure times and locations of individuals into consideration. It explicitly avoids detailed air pollution concentration calculations and is therefore characterized by little data requirements, reasonable computation times for iterative calculations, and open-source compatibility. In a first step, the paper shows how to derive time-dependent vehicle-specific exposure tolls in an agent-based model. It closes the circle from the polluting entity, to the receiving entity, to damage costs, to tolls, and back to the behavioral change of the polluting entity. In a second step, the approach is applied to a large-scale real-world scenario of the Munich metropolitan area in Germany. Changes in emission levels, exposure costs, and user benefits are calculated. These figures are compared to a flat emission toll, and to a regulatory measure (a speed reduction in the inner city), respectively. The results indicate that the flat emission toll reduces overall emissions more significantly than the exposure toll, but its exposure cost reductions are rather small. For the exposure toll, overall emissions increase for freight traffic which implies a potential conflict between pricing schemes to optimize local emission exposure and others to abate climate change. Regarding the mitigation of exposure costs caused by urban travelers, the regulatory measure is found to be an effective strategy, but it implies losses in user benefits.     

Estimating the environmental costs of port related emissions: The case of Kaohsiung

This study estimates the emission costs of ships and trucks in the Port of Kaohsiung, Taiwan, focusing mainly on particular matter and volatile organic compounds. By calculating annual ship and truck emissions we find that the major contributors are tankers, container ships and bulk ships and trucks. Using a bottom-up methodology, the combined environmental costs of ships and trucks are estimated to be over $123 million per year.     

Impacts of motor vehicle operation on water quality in the US – Cleanup costs and policies

This paper investigates the costs of controlling some of the environmental impacts of motor vehicle transportation on groundwater and on surface waters. We estimate that annualized costs of cleaning-up leaking underground storage tanks range from $0.8 billion to $2.1 billion per year over 10 years. Annualized costs of controlling highway runoff from principal arterials in the US are much larger: they range from $2.9 billion to $15.6 billion per year over 20 years (1.6–8.3% of annualized highway transportation expenditures). Some causes of non-point source pollution were unintentionally created by regulations or could be addressed by simple design changes of motor vehicles. A review of applicable measures suggests that effective policies should combine economic incentives, information campaigns, and enforcement, coupled with preventive environmental measures. In general, preventing water pollution from motor vehicles would be much cheaper than cleaning it up.