Government intervention to obtain climate objectives: how can public authorities steer the passenger transport market?

Abstract

The global increase in greenhouse gas emissions and the potentially devastating consequences require governmental action in various policy fields. Transport accounts for 27% of total EU CO2 emissions and is one of the few industrial sectors where emissions are still rising. The thesis attempts to get a grip on the climate issue and the share of transport within the problem, after which various policy options for reducing car and bus emissions are explored. Different policy options are treated in the context of achieving a pre-set objective: reducing (Belgian) passenger transport emissions by 35% compared to 2030 levels. The focus is mainly on internalizing the true climate cost in the transport price. Since internalization does not seem to be the conclusive answer to achieve the stated objective, other policy options such as pricing policies, subsidies for public transport, an emission trading scheme, planning policies, technological innovation and stricter regulation are also concisely dealt with.