Summary

In this chapter, we illustrate the use of external cost estimates for evaluating transportation options. We begin by presenting damage cost estimates in Section 15.1, with results for the EU and for the USA.

In Section 15.2 we use the damage cost estimates of ExternE to compare a hybrid passenger car with a conventional car on a lifecycle basis. In Section 15.3 we look at walking and bicycling as alternatives to commuting to work by car; here the reduction of air pollution is a significant collective benefit, but much more important is the value of the health gain for the individuals who make the switch to an active transport mode. We present sufficient detail in these two sections to show how the calculations are done.

In Section 15.4 we compare the greenhouse gas emissions of the main transport modes. In Section 15.5 we conclude the chapter with a discussion of policies that can internalize the damage costs of transport, including the low emission zones (LEZ) that have been created in many cities of Europe.

External cost estimates for transport

Vehicle emissions

In the EU the emissions of vehicles must not exceed the limits specified in the EURO standards. As an example Table 15.1 shows the standards for passenger cars. Analogous standards are in force in the USA. The regulations of China, India and Australia are based on the EURO standards, although with different implementation schedules.

These standards are to be respected in actual use, and compliance is determined by testing the vehicle with a standardized test cycle. Developing realistic test cycles is difficult because the emissions vary strongly with driving conditions (cold engine, warm engine, speed, acceleration, etc.). There are always questions about how representative the tests are of typical driving conditions. The EURO standards specify the tests to be used for certifying compliance by vehicle manufacturers. The performance under other conditions can be estimated by using the COPERT 4 software of the European Environment Agency.