Chris Jensen-Butler

Modelling the Regional Economic Consequences of Environmental Policy Instruments Applied to the Transport Sector

There is a rapidly growing body of literature on the economics of environmental protection (see Turner et al. , 1994, for an overview) and considerable interest in the effects of economic instruments upon both the environment and economic activity is developing in both national and international organisations (OECD, 1991). In advanced countries the transport sector is one of the main contributors to environmental degradation, particularly atmospheric pollution. Pollution problems arising from transport are both global (C02 emissions) and regional and local, usually being concentrated in urban areas, and involving localised effects of such pollutants as ozone or S02.

Transport and Regional Growth

This chapter describes how, it is well established that there is a strong correlation between economic growth and demand for transport. This is the case for both freight and passenger transport. Passenger traffic has income elasticity of demand a little more than unity, and freight traffic has an income elasticity of demand of about unity. What is perhaps less clear is the direction of causality in this relationship. On the one hand, it is possible to view transport essentially as demand that is derived from economic activity, or economic growth requires trade, and trade requires transport. Economic growth implies greater division of labor and spatial specialization, the development of new technologies requiring transport such as just-in-time, growth in commuting and business travel, and growth in the quantity of goods and services to be transported. At the same time, rising household incomes generate increased demand for travel, both leisure activities and for shopping. However, the demand for transport cannot be treated simply as derived demand. Increasing mobility is a precondition for increased productivity, and growth and improvements in transport may in themselves promote growth.

Development Strategies in the Southern European Periphery: Comparisons with the Northern Periphery

In the following pages the regional development strategy and policy in Portugal is compared with that of Denmark. Approaches to regional development in the two countries are quite different, as are the results of the policies.

SPACE, ECONOMY AND THE ENVIRONMENT: DANISH STUDIES

The paper makes a brief presentation of selected research in the field of space, economy and the environment, as of 1998. The paper first reviews the reasons for strong Danish interest in these issues. Then, spatial issues are reviewed and Danish studies presented. In particular, distinction is made between environment-economy models as pre-models which treat environmental change and regulation as an input to models of the regional economy and post-models, which treat environmental change as a consequence of changes in regional economies and integrated approaches.

The Regional Economic Effects of the Femer Belt Link for the Western Baltic Area

Denmark is the location of three actual or potential major transport infrastructure investments, fixed links across straits. These fixed links are each 15–20 kilometres in length and represent major investments at the European scale. They also include substantial on-land investments involving motorway access and rail network improvements as well as the possibility of establishing dedicated highspeed rail links. Figure 10.1 shows the location of these three projects.