Freight transport, policy instruments and climate
2014 (English)Report (Other academic)
The impact of policy instruments supposed to reduce greenhouse gas emissions from roadfreight transports may seem smaller than expected. Using insights from economics and contracttheory, the paper sorts out the (possible) instances of market failure in the freight transport market;operator market power, asymmetric information split incentives, and public goods. The primarylimitations of standard policy instruments are demonstrated to be linked to unobservable information.Some of these may be reduced but not eliminated as information technologies develop, making itpossible to observe, verify and provide contract-relevant information to the uninformed parties. Thereis little reason to believe that possible market failures present major limitations to the efficiency ofeconomic instruments geared toward protecting the climate, other than possibly in the short run.
Place, publisher, year, edition, pages
KTH Royal Institute of Technology, 2014. , 24 p.
, Working Paper Series, Department of Real Estate and Construction Management & Centre for Banking and Finance (cefin), 14/03
Freight transport, climate, greenhouse gas, policy instruments, asymmetric information, split incentives
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-144109OAI: oai:DiVA.org:kth-144109DiVA: diva2:711339
QC 201404222014-04-102014-04-102014-04-22Bibliographically approved