(Solved): Exercise 12.2 Policy options for freight transport One issue not highlighted in this chapter is that ...

Exercise 12.2 Policy options for freight transport One issue not highlighted in this chapter is that oulside of qualitative reguiation, policy options for freight transport, particularly road haulage, tend to be very limited at the national level with most policy initiationes arising at the European Union level. In this exercise, you are asked to consider proactive (economic) measures in the freight transport industries. In Chapter 8 a member of policy optians were outined to address the problem of traespert's impact on the natural environment. To recsp, these werc: Pigouvian tanes (and subsidies) Negotiation and bargaining (Coase Theorem) Auctioning pollution rights Direct regulation. a) In this exercise you are asked to consider the practical implementation of these measures to freight transport, by outlining the extent to which each of the measures indicated could be implemented to the freight transport industry in an attempt to control the air emissions of vehicles. You should consider the actual mechanism through which these measures would actually be realised and also consider the extent to which you would seek 'equality' between different modes of transporL. Although most of your cases will probably be based upon implementation to the road haulage industry, you should aiso ensure that you consider what measures you would take with regard to the other modes of freight transport. b) You should then weigh up the advantages and disadvantages of each of the tools outlined and come to some conclusion regarding which would be your 'preferred' approach. You should highlight the reasons why you favour that particular method giving particular emphasis to the concept of sustainable development. c) Once you have considered how to implement these measures, you should then identify any potential institutional barriers that may exist concerning the implementation of the policies that you have identified in part (a).