sectoral economic costs and benefits of ghg mitigation - IPCC

Transport
Lack of technology data
Detailed data on cost, performance and the anticipated life of existing technologies are not
available. Overcoming this deficiency is a critical need. For new technologies, sharing of
information between countries on the above parameters is crucial.
Inadequate economic data
There is a need for credible data to analyze the impact of changes in energy prices on energy
demand in different sectors and their respective end uses. Such analysis would be useful in
determining demand elasticities, cross price elasticities, income elasticities and usage elasticities
for various end uses. Moreover, it would be extremely valuable to assess the degree to which
such elasticities are consistent or inconsistent in response to the introduction of new
technologies.
Lack of a satisfactory integrated policy analysis
In spite of serious efforts, no fully satisfactory integrated analysis of alternative low-carbon
futures is available because of the existing limitations in the framework for transportation
analysis coupled with data problems. For instance, in the transport sector, just addressing
efficiency improvement in technology is not sufficient for reduction of carbon emissions unless
appropriate system and demand management measures to adopt such technologies through a
mixture of pricing and command and control are in place.
Barriers to market penetration of technologies
In spite of considerable work, experts have not achieved a consensus on the most effective ways
of quantitatively describing the acceptance of new technology, either in terms of the dynamics of
penetration or the fraction of the market at saturation.
Lack of an appropriate institution
There is a need to strengthen the existing institutions and to establish linkages for an effective
real time communication through setting up of an apex body. The role of such an apex body
would be to identify relevant institutions with a clear-cut action plan and review the existing
plans and proposals. The apex body would also solicit feedback from the concerned
agency/agencies on the problems of and constraints on the existing institutional and regulatory
mechanism. Also, wherever necessary, appropriate legislative changes, and their effective
enforcement, are required.
Investments in Research and Development
If energy efficiency and low-carbon solutions in the transport sector are to be taken seriously
from the viewpoint of climate change strategy, increased investments in energy R&D will be
needed, along with supportive programs and policies. This would call for an aggressive national
commitment to some combination of targeted tax incentives and non-price policies (e.g.,
accelerated R&D, demonstration programs, and efficiency codes and standards).
References
ADB/GEF/UNDP, 1998. Asia least-cost greenhouse gas abatement strategy (ALGAS) – India,
Bangladesh, Thailand and Republic of Korea. Asian Development Bank/Global
Environment Facility/United Nations Development Program. Manila, October.
Bose, R.K., 1998. Automotive energy use and emissions control: a simulation model to analyze
transport strategies for Indian metropolises. Energy Policy, 26 (13): 1001-1016.
Dargay J and Gately, D., 1999. Income’s effect on car and vehicle ownership, worldwide: 1960-
2015. Transportation Research Part A (33):101-138.
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