OECD COUNTRIES
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OECD COUNTRIES
PROGRESS TOWARDS ENERGY SUSTAINABILITY IN OECD COUNTRIES 
by Dean Anderson
 1. Preface
 2. Progress indicators
 3. Executive summary
 4. Trends in energy intensity
  • Introduction 
  • Country reports 
 5. Changes in the mix of supply side energy sources
  • Introduction 
  • Country reports 
 6. Progress in implementing national climate change programmes
  • Introduction 
  • The European community 
  • The EU-15 countries 
  • The Non-EU OECD countries 
 7. Trends in transport
  • Introduction 
  • Country reports 
 8. Trends in transport
  • Introduction 
  • Country reports 

  • Progress Indicators



7. Trends in transport

Introduction
   The transport sector is the fastest growing energy consuming sector in the OECD and is the most problematic for environmental policy. The fact is that a high proportion of residents of these countries prefer to travel by automobile and most manufacturers find it more convenient to ship their products by truck. Getting people to switch to public transport is difficult and, of course, requires a substantial infrastructure investment to make alternatives to private travel available in the first place. The effectiveness of fuel taxes is unclear, since it is questionable how much consumers consider fuel costs either when buying a car or when deciding how much to use it. An alternative to a fuel tax is an excise tax on new cars, differentiated by the fuel efficiency of the car, which, though not a popular measure, is thought by some experts to be more effective than fuel taxes in changing consumer behaviour. Also being implemented or under consideration in some countries are road taxes, increased parking fees and restrictions on employment related incentives such as company cars. As noted, there is also continuing discussion of fuel economy standards imposed on manufacturers (similar to the CAFE standards in the US). As with energy policy, however, individual states have very different transport systems and use patterns and have correspondingly different ideas about what constitute (politically and economically) feasible policies and measures. The best that can be expected in this sector in the short term is that other problems, such as congestion and air pollution, will prompt the adoption of policies which will, as a side benefit, limit growth in CO2 emissions.

   All OECD countries have, specially or as part of their climate change programmes, adopted measures intended to encourage greater use of public transport. However, no country has succeeded in increasing the use of public transport relative to private vehicle use. Germany has done the most to make public transport an attractive and viable alternative. Denmark has done the most to discourage road travel through taxes (while at the same time continuing to invest in road infrastructure). Portugal, Spain and Greece are actually supporting massive expansion of road infrastructure, while the governments of Finland, Sweden and Norway, because of their size and geography, are, by default, encouraging road travel by not investing adequately in alternative modes. Some governments are facing incidents of civil disobedience aimed at stopping road construction and expansion projects.
 
 

Country reports
   Australia - The proportion of car ownership in Australia is substantially higher than the OECD average but below the US average. Average annual distance travelled is on a par with the UK and Germany, substantially above Japan, and again below the US. In spite of the fact that large volumes of commodities, including minerals, need to be transported from inland production areas to cities and ports along the coast, rail freight transport has decreased substantially in the past two decades while road freight transport has increased dramatically. The government is planning several major new motorway projects in and around major cities. It is also planning rail system upgrades and urban mass transit pilot projects but without prioritising them over improvements to road systems or providing substantial funding. On the positive side, the government exempts alternative vehicle fuels, such as natural gas, from Commonwealth taxes, requires new cars and light trucks to display fuel efficiency labels, and has entered into an agreement with vehicle manufacturers to establish a voluntary average fuel consumption target for new vehicles of 8.2 litres per 100km by 2000.

   Austria has a particularly serious problem with through transit freight traffic, 80% of which traffic flows between Germany and Italy. The tonnage which passes through Austria is much greater than that which passes through Switzerland, which has a much more highly developed rail network. The government increased motor fuel taxes in 1992 and again in 1995 and introduced a new car tax based on engine size in 1993. It has also imposed a night driving ban on heavy trucks and requires electronic speed governors on heavy trucks and buses. It has negotiated quotas with neighbouring states on the numbers of trucks and buses allowed to drive across the country.

   Belgium - As a European transit country, road transport is particularly important, and Belgium has the highest road density in the EU. Passenger kilometres by road increased over 66% between 1970 and 1990 while passenger kilometres by rail declined and rail freight stagnated.

The government believes policies to reduce road freight transport should be coordinated at the European level and accordingly has proposed no concrete domestic measures.

   Canada - The number of vehicles on the road increased by two-thirds between 1973 and 1991. Between 1960 and 1990, urban automobile use, measured in passenger-kilometres, more than doubled, while urban transit use remained stagnant. Canadian cities use four to five times more energy for transport than comparable European cities. Transportation is the largest single source of greenhouse gas emissions in Canada, yet the federal government's climate change National Action Plan (NAP) makes no mention of any efforts at the national level to discourage private vehicle use, develop public transport infrastructure, or encourage greater use of existing public transport modes. Instead, it refers to initiatives being taken by Canada's major cities to develop urban mass transit facilities. Federal transport initiatives focus primarily on supporting the use of alternative fossil fuels, such as propane, natural gas and ethanol. Canada has voluntarily adopted US fuel efficiency standards for automobiles and plans no mandatory increases. The government is considering tightening national standards for auto emissions. Ontario province imposes a graduated tax on new passenger vehicles based on the vehicle's average fuel efficiency, rebating the tax to purchasers of new cars that use less than 6 litres per 100km of highway travel.

   Denmark - has relatively fewer cars per capita than other OECD countries, with the exception of Japan, and the average car is relatively small, but Danes drive more kilometres annually than motorists in other OECD countries, with the exception of the US, Japan, and Finland. Denmark is heavily reliant on trucks for freight transport, which is particularly energy intensive because of the use of large numbers of small trucks. In spite of imposing the highest taxes in the OECD on new cars, increases are forecast in passenger and goods transport of 40% and 60% respectively between 1990 and 2010. The government has proposed energy efficiency labelling for cars, the development of electric and biofuel powered vehicles and the promotion of local planning to reduce travel. However, in the absence of EU initiatives on such measures as road pricing, the government sees little political room left to impose measures to further discourage road travel.

   Finland - In 1992 private cars accounted for over 80% of passenger-kilometres while public transport accounted for approximately 13%. Public transport's share of travel has been in decline, which has weakened it financially, resulting in cuts in services. Finland imposes relatively high taxes on new cars as well as fuels taxes graduated according to environmental criteria. In 1995 the governments stated an objective of stabilising transport emissions but has not developed a comprehensive programme for achieving this.

   France road travel represents over 80% of energy use in the transport sector and is forecast to continue growing. The government's climate change plan includes measures to support the development of public transport infrastructure but is weak in ones to discourage private vehicle use. The government indicates that it would go along with stronger, coordinated measures imposed by the EU, such as higher fuel taxes and tougher fuel efficiency standards for vehicles. In the absence of EU action, the government seems resigned to the continuing growth in road transport, which it regards as due to a certain extent to inclusion of Spain and Portugal in the EC. The government has raised excise duties on fuel and is supporting the development of combined rail/road transport, with the goal of doubling its volume by 2000 relative to 1990. It has also increased expenditure on urban and inter-city transport infrastructure, including high speed rail powered by electricity from hydro and nuclear.

   Germany - Between 1970 and 1990, western Germany's total road traffic nearly doubled and the size and power of vehicles, both passenger and freight, grew steadily (and continue to grow). The government forecasts that road passenger transport will continue increasing at the rate of over 1% per year while road freight transport increases at the rate of over 3% per year. The government imposes the highest tax on heavy goods vehicles in Europe and in 1994 increased gasoline and diesel fuel taxes between 13 and 20% (depending on the type). It is considering a road toll system. There is no general speed limit on German motorways, but speed limits exist on most German roads (in sections). Efforts have been made in recent years to modernise urban transport systems and the government has reordered its investment priorities to invest relatively more in public transport infrastructure than in private transport infrastructure. Given Germany's affluence and car culture, it appears that in spite of the government's substantial efforts to provide attractive mass-transit alternatives, growth in road transport will only gradually decline as travellers get fed up with worsening traffic jams and local environmental pollution.

   Greece - The number of private passenger cars and small trucks increased at an average annual rate of around 11% between 1970 and 1993. Today road travel accounts for over 85% of energy consumption in the transport sector. Since 1990 the government has offered financial incentives to encourage purchases of new, more efficient cars. Other measures include incentives for use of biofuels and efforts to improve transport system management. Under the second support framework of the EU, major work is being carried out to update and expand the national railway network and to construct a new Athens metro system.

   Ireland - The government appears resigned to continued rapid growth of private vehicle use, regarding greater road transport as necessary in Ireland because of the dispersed nature of habitations and the preference of people for private modes of travel. However, it is investing modestly in public transport infrastructure including improvements to commuter rail and bus service in the Dublin area, upgrades to the mainline rail network, and new public buses and bus routes. It says it would accept EU-imposed vehicle standards.

   Italy is experiencing some of the highest increases among OECD countries in both freight and passenger road transport. Between 1970 and 1991, road traffic increased by 132%. Road-based car and truck traffic accounts for nearly 90% of transport energy use. The development of transport infrastructures has concentrated on motorways while the rail network has remained more or less unchanged. Traffic is concentrated in urban areas, where car ownership almost doubled between 1970 and 1990. Urban public transport is highly subsidised but underdeveloped, with old vehicles and low service levels. Italy's fuel taxes are among the highest in Europe and this, combined with parking problems in urban areas, encourages the purchase of small cars. The government has plans to increase spending on urban mass transit, combined road/rail transport, and inter-city rail transport, but actual fundings are not keeping pace. And while some investments are being made in railways, even greater ones are being made in expanding roads.

   Japan has low road traffic relative to other OECD countries, but a dramatic shift towards private vehicle use has been underway since the 1970s and is intensifying. Not only has the number of cars increased dramatically but also their size and power, raising average fuel consumption. The government is proceeding with further development of road infrastructure. At the same time, Japan's urban transport systems and railway network are relatively well-developed. 80% of commuters in Tokyo, Osaka and Nagoya travel to and from work by train, while only 10% use private cars. Between cities 300 and 600 km apart, 80% of travellers go by train. However, in terms of energy use, railways account for only about 3% while road transport accounts for 80%. Truck traffic in metropolitan areas has been increasing, causing traffic jams. Japan's famous 'just-in-time' delivery system to manufacturing plants has promoted truck over rail transport. Vehicle fuel efficiency standards are not mandatory, the government taking the basic position that efficiency improvements should be left to the market. However the government is aggressively supporting the development of regional airports as well as road expansion in urban areas, which is incongruous with efforts to attract users to mass transit. In its climate change Action Report the government speaks of motorisation as an inevitable trend to which the government can only respond, thus ignoring its role in encouraging that trend through its support for road expansions.

   Netherlands road density in the Netherlands is the second highest among OECD countries; 95% of energy consumption in the transport sector is accounted for by road traffic. Road freight transport has been increasing as the opening up of eastern and central Europe promotes an increasing volume of trans-European trade. Road passenger transport is also booming, with the number of car-kilometres rising by 41% since 1980. The tendency to purchase more powerful cars has also increased energy consumption. The government's second transport structure plan (1988) provides the main transport strategy for the Netherlands up to 2010. Quantitative targets for limiting vehicle use, expressed in terms of vehicle-kilometres, have been set: a 30% increase in passenger car use by 2000 (35% by 2010) and a 40% increase in freight traffic by 2010. An increase in vehicle related taxes, introduced in 1996, is expected to encourage the purchase of more efficient and cleaner cars, and excise tax on gasoline is being progressively raised. The government is planning investments in rail and bus services, hoping to make public transport more cost-competitive. Cycle routes are required in regional transport plans. Company car pooling schemes and collective contracts with public transport companies are expected to reduce commuter transport by 7-10%.

   New Zealand - The dispersed nature of New Zealand's population over two islands with a combined length of 2000km has led to a heavy reliance on road transport and private passenger vehicles. New Zealand has 94,000km of roads, but a rail network of only 4,000km. In addition, New Zealand's urban population tends to live in low density suburbs which are not easily served by public transport networks. According to the 1991 census, over 40% of households owned more than one vehicle. Vehicle fuel prices are low compared to other OECD countries, contributing to the fact that the transport sector accounts for the largest and fastest growing share of CO2 emissions. Regional petrol levies to fund part of public transport costs were introduced in 1992. The Ministry of Transport is preparing a national vehicle fleet strategy with the aim of identifying how vehicle emissions can be reduced and the fuel efficiency increased.

   Norway - From 1960 to 1989 energy consumption for transport increased 4% per year. In 1994, road traffic amounted to 87.5% of total passenger kilometres, with private cars accounting for 88% of this total. Continued growth in road traffic is expected, the government budgeting substantially more for road expansions than for railroad infrastructure improvements. The government introduced carbon taxes in 1990 and has raised them several times since, counteracting fuel price increases but failing to measurably reduce road travel. Domestic ferries and passenger ships have been taxed since 1992, and in 1995 the government introduced passenger taxes on domestic and international flights. Other government initiatives are:

    (1) purchase taxes for cars which are among the highest in the world and are differentiated according to the value and weight of the vehicle; 
    (2) relatively low maximum speed limits; 
    (3) support for research into electric cars and the use of natural gas in buses; and (4) support for railway transport and public transport in Norway's four largest cities.
   Portugal - Between 1980 and 1990 road transport increased faster than rail transport: the number of automobiles on the roads doubled while road traffic in vehicle-kilometres increased by two-thirds. Today 90% of goods transport goes by road, 7% by ship and 3% by rail. However, despite the high rate of road transport growth, the number of vehicles per 1,000 inhabitants is around half the EU average. The government has plans to: (1) revitalise the rail network, increasing the capacity and improving the quality of suburban rail service; and (2) improve urban mass transit, including expansion of the Lisbon Underground, development of light surface railways in other metropolitan areas, and introduction of high speed trams in Lisbon. At the same time it plans to modernise its road infrastructure to improve safety and traffic flow and reduce pollutants and to construct major roads around and leading to the metropolitan areas of Lisbon and Oporto.

   Spain's road travel tripled and domestic air travel quadrupled between 1972 and 1990, while during the same period passenger rail travel stayed level. In 1990 80% of the energy used for transport was used in road travel. Between 1985 and 1992 the number of passenger cars increased by 40%, the number of trucks by 73% and the number of major roads by 134%. Public transport and railway infrastructures are underdeveloped, while transport policy is orientated primarily towards road travel, with public expenditure earmarked almost entirely for expansion of roadways. The government is not trying to discourage the use of private vehicles, and fuel taxes remain low. The government believes that in general the market should determine travel patterns. Some EU and national financial support is being given to improving public transport systems in the larger cities, but it will be insufficient to change the orientation towards private travel. It appears that most future government investment in transport will be made in roads.

   Sweden is sparsely populated, and urban centres are far apart. The car is seen as a holy cow, a vital means of communication, particularly in rural areas. There is little traffic congestion outside Sweden's three large urban centres. Since 1950 the number of cars has grown from 252,000 to 3.6m and the number of trucks has grown from 85,000 to 300,000. Government investment in infrastructure favours road over railway improvements. Sweden's domestic car manufacturers specialise in large, high performance vehicles; not surprisingly cars in Sweden are on the whole heavier and have more engine power than cars driven in the rest of Europe. There have been successive tax increases on gasoline and diesel fuels and since 1990 successive CO2 tax increases have subjected Swedes to some of the highest fuel costs in Europe. The government is supporting various forms of transport related research, ranging from behavioural studies to research into alternative fuels, more efficient engines, and electric cars.

   Switzerland - The transport sector is the largest energy consumer. Between 1970 and 1990 the number of private vehicles increased 116%, while the number of small utility vehicles increased eight-fold. During the same period, the number of tractor-trailer trucks increased over 140%. Between 1970 and 1990 freight transport by rail, expressed in tonne-kilometres (tkm), increased only 27% while freight transport by road increased 116%. In 1993 the Transit Agreement between the EU and Switzerland came into force. This agreement aims to shift the bulk of additional transit demand to rail or combined road-rail transport. In 1994 the 'Alp Initiative,' a constitutional amendment, was approved by referendum. It aims to shift all trans-Alpine road freight to rail over a ten year period. Implementation will involve new rail infrastructure as well as a revised tax system for heavy vehicles. The construction of two new rail tunnels as part of the plan is controversial. Switzerland has stricter weight limits for heavy vehicles than the EU and does not want to relax them for fear it will encourage greater road transport. Switzerland's motor fuel taxes are in line with its neighbours.

   UK - Between 1952 and 1992, total passenger-kilometres trebled in a population that grew by only 15%. Car ownership increased from 14% of households in 1951 to 68% in 1991, combined with a 20% increase in average annual distance driven per car. Total goods movements in the UK more than doubled between 1952 and 1992, when 65% of all freight was transported by road. Transport policy to date has focused on road building, resulting in considerable congestion, especially in and around London. The government's plan, announced in 1990, to widen congested motorway sections and building new roads, caused an unexpected public backlash, including protests at road construction sites. In 1993 the government re-evaluated its transport policy and in 1995 cut its road building. Also in 1995, the government increased road fuel duties; however an even larger relative decline in fuel prices negated its planned effect of discouraging travel.

   US - Car ownership in the US is the highest among OECD countries. In 1991 motor vehicles travelled a total of 3,500 billion kilometres, more than the distance travelled in all other OECD countries and more than double the vehicle-kilometres travelled in 1970. Because of its relatively low population density and large land area, the density of road per unit area is lower in the US than in countries such as Japan and the UK; however the per capita road length is almost twice as high as the OECD average. Trucks are the dominant transport mode for non-bulk cargo such as mail, processed foods and consumer goods. The bus is the most popular form of urban public transportation, accounting for about 60% of total urban mass transit trips nation-wide; however the number of passenger kilometres declined during the 1980s, partly because of declining financial support. Urban light rail (mostly trolleys) have been declining also. Some cities, such as San Francisco, have introduced heavy rail systems while around 20 cities have introduced or re-established light rail systems. Such systems are almost entirely limited to metropolitan areas with a million or more inhabitants. New York accounts for 60% of all commuter travel by rail. Nation-wide, the number of urban rail passenger-kilometres increased 28% in the 1980s. Passenger inter-city train services have since 1971 primarily been provided by Amtrak, a quasi-governmental corporation. Its overall share of intercity passenger traffic is less than 2%. There is only one high-speed rail line in the US, linking Boston, New York and Washington DC. Trains also carry over long distances bulk products including farm products, chemicals and coal, the latter accounting for 40% of rail transport. Stimulated by partial deregulation of the industry in 1980, rail companies have invested nearly $160bn in track and equipment. An increasing share of rail transport is inter-modal, involving trains in combination with trucks, barges and/or ships. Rail inter-modal transport, which doubled in volume between 1980 and 1992, accounts for a quarter of total rail car loadings. Air travel accounts for 9% of US domestic passenger travel, up from 3% in 1970, and is the fastest growing transport mode. The US has some 17,500 airports, more than the rest of the world. Of these the top 100 handle 95% of all passenger trips, and the 10 largest account for 40%. Only about 1% of domestic freight is transported by air.

   The US government has tried to offset the impact of such explosive growth in transport and oil consumption by imposing tough fuel efficiency standards. In response to the oil supply problems of the 1970s, the corporate average fuel economy (CAFE) programme was introduced in 1978. The overall fuel efficiency of passenger cars improved nearly 60% to 21.7mpg between 1970 and 1991, levelling off during the late 1980s. However, the average fuel economy of new cars and light trucks has not improved in the past eight years. Fuel consumption continues to rise because of this levelling off and also because of: steady growth in the number of vehicles, increased purchases of light trucks and utility vehicles for personal travel, and renewed consumer interest in larger, more powerful vehicles, which Americans prefer for reasons of both safety and perceived comfort. Today the average efficiency of new American cars is somewhat lower than the OECD and European averages. In addition to CAFE, the 1970 Clean Air Act mandated a 90% reduction in new car emissions, requiring the use of three-way catalytic converters. Standards have since been applied to trucks, buses, and off-road vehicles (farm equipment, etc.). The US introduced unleaded gasoline in the 1970s, when the first catalytic converters appeared. The use of unleaded gasoline then expanded significantly and the lead content in leaded gasoline was reduced before being phased out entirely in 1996. Both the federal government and several of the states are requiring the phased-in use of alternative fuels and lower emission vehicles. California has a special pilot programme requiring manufacturers to produce increasing numbers of lower emission vehicles beginning in 1996. This may be done through: (1) combinations of reformulated gasoline, engine modification, and additional emission control devices such as catalytic converters; or (2) introduction of dual-fuel cars. Another California programme requires that starting in 1999 at least 2% of all vehicles meet emission limits so low that at present only electric vehicles would attain the standards. The low level of fuel taxes in the US has resulted in real (inflation-adjusted) decreases since the 1980s in gasoline and diesel prices; the US currently has the lowest motor fuel taxes and prices in the OECD. The US climate change Action Plan includes no credible measures to reduce CO2 emissions in the transport sector.