| ID | 186444 |
| Title Proper | Cost-effective reduction of fossil energy use in the European transport sector |
| Other Title Information | an assessment of the Fit for 55 Package |
| Language | ENG |
| Author | Proost, Stef ; Ovaere, Marten |
| Summary / Abstract (Note) | This paper surveys climate and energy policy in the EU transport sector covering the road, aviation, and shipping sectors. We summarise current policies, focusing on the Fit for 55 Package, and link the different instruments being used (e.g. cap-and-trade, tax, mandate, performance standard, or subsidy) to different sources of market failure. Next, we analyse the static and dynamic cost-efficiency of the policies and instruments. We find that they address a range of market inefficiencies, but that there are still a number of aspects that can further improve the cost-effectiveness of current EU climate policies in the transport sector. For example, higher taxes and emission performance standards for aviation and shipping, the right combination of research and innovation investments and learning-by-doing policies, and balancing implicit carbon prices by revising the road tax system and adding congestion tolls and charges. Finally, European policy has important side effects on the rest of the world that need to be taken into account in the selection of policies. This improved set of policies can support a sustainable recovery and reach the European Union's climate targets at the lowest cost. |
| `In' analytical Note | Energy Policy Vol.168; Sep 2022: p.113085 |
| Journal Source | Energy Policy 2022-09 168 |
| Key Words | Road Transport ; European Climate and Energy Policy ; European Transport Policy ; AviationShipping ; Fit for 55 Package |