External Costs of Transport. up-date study INFRAS / IWW 06/2004

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Alicia Beatrix Moore
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1 External Costs of Transport up-date study INFRAS / IWW 06/2004 (to be published soon) Dr-Ing. Gunther Ellwanger, UIC

2 The consumption of natural resources is scarcely reflected in the prices. Motorised transport is too cheap. Considerable differences do exist between the different modes of transport : the environmentally adapted railway (low external costs) is under- represented on the market. Solution : Internalise external costs (polluter-pays principle)

3 Activities since /92 Treaty on European Union, Art. 174, 2 : precautionary and polluter pays principle. 06/92 Rio de Janeiro Declaration, Principle 16 : internalisation of environmental costs-polluter pays principle 12/95 COM 691 Green book «Towards Fair & Efficient pricing in Transport» 07/98 COM 466 White book «Fair payment of infrastructure use» 1998 ECMT: «Efficient Transport for Europe, Policies for Internalisation of External Costs» 09/01 White Paper : European Transport Policy for 2010 : time to decide European studies : ExternE, PETS, QUITS, FISCUS, TRENDS, UNITE

4 Methodology Overview 1 Cost component (% of total costs) Approach Data basis Differences to the past study Accidents cost (24%) IRTAD, UIC, EUROSTAT statistics Estimations based on the monitoring/victims principle Noise cost (7%) Air pollution (27%) Climate change (30% high scenario), improved database and methodology for Germany as reference ECMT, OECD, STAIRRS (railway noise), UBA Germany Updated TRENDS data for emissions and traffic volumes, improved emission factors TRENDS data for emissions, new shadow prices, two Scenarios : 20,- (low) and 140,- (high) New values for evaluation of mortality impacts of transport noise Improved data basis for emissions, latest results for non exhaust emissions of PM10 New data on avoidance costs and related shadow prices

5 Methodology Overview 2 Cost component (% of total costs) Approach Data basis Differences to the past study Nature and landscape (3%) Additional costs in urban areas (2%) Up- and downstream processes (7%) (unsealing, restoration and renaturation costs) EUROSTAT, New Swiss study on costs of nature and landscape (methodology) Up-to-date population data for cities and urban areas based on Ecoinvent, Ecoinventory for the transport sector Very samll differences (mainly changes of transport infrastructure network) Up-to-date population figures for cities and urban areas, adaptation of cost indicators according to GDP per capita Up-to-date life cycle assessment data based on Ecoinvent 2003 Congestion costs (separate cost category) European Transport Model VACLAV Use of a new traffic data base which is consistent for all countries.

6 Climate Change Methodology Climate Change (avoidance cost) Avoidance Costs: 2 Scenarios Low: International approach to meet Kyoto targets: 20 per tonne CO 2 High: National transport approach to reach IPCC long term cut of CO 2 emissions by 50% (2030, IPCC): 140 per tonne CO 2

7 Total External Costs without congestion in Western Europe year billion (7,3% GDP) Waterways 2,6 (0,4%) Upstream process 47,4 (7%) Landscape 20 (3%) Urban Effects 10,5 (2%) Accidents 156,40 (24%) Railways 12,2 1,9% Air 90,9 (14%) Road 544,5 (84%) Climate change 195,6 (30%) Noise 45,6 (7%) Air pollution 174,6 (27%) Source: INFRAS/IWW 6/2004

8 Total costs: 2000 Mill. per year 350' ' ' ' ' ' ' '000 50'000 0 INFRAS 15'000 26'000 Car Bus MC LDV HDV Rai l Pass. Accidents Air Pollution Urban Effects Climate change low scenario 57'000 8'000 4'000 Rai l Freight 85'000 Aviation Pass. 6'000 3'000 Aviation Freight Noise Nature & Landscape Up- and Downstream Processes Climate change (difference low/ high scenario) Wat er - borne

9 Average external costs Passenger: per 1000 pkm Car Bus Rail Aviation Ratio: 3,4 1,6 1 2,3 INFRAS Accidents Air Pollution Up- and Downstream Processes Climate change low scenario Noise Nature & Landscape Urban Effects Climate change (difference low/high scenario)

10 Average external costs Freight: 2000 per 1000 tkm Ratio 0 Road Freight Rail Aviation Waterborne ,8 1,3 INFRAS Accidents Air Pollution Up- and Downstream Processes Climate change low scenario Noise Nature & Landscape Urban Effects Climate change (difference low/high scenario)

11 Internalisation of External Costs Internalisation of external costs should begin immediately Internalisation of costs for all modes at the same time Adoption of a joint European approach to investment allocation, via socio-economic audits (study EC/EIB Investment Guideline, soon to be published)

12 Reducing rail s External Costs Railways have different potentials reducing their externalities: - Higher loading factors lower average costs - Alternative traction, electrification, mix of electr. - Air pollution reduction (UIC Diesel Action Plan) - Noise reduction (UIC Noise Action Plan Freight)

13 Conclusions Today it is possible to quantify damages to the environment and internalisation (polluter pays principle) can be applied Internalisation will avoid some traffic and transfer some traffic to rail sustainable mobility

The True Costs of Transport

The True Costs of Transport NEW UPDATE STUDY ON EXTERNAL COSTS Time to Act Measuring the external costs of European transport modes The volume of transport in Europe has more than doubled since 1970 1. This increase in transport