External costs of transport as a tool to achieve sustainable mobility
CSFM Seminar with Josephine Leuba and Nicole Mathys from the Federal Office For Spatial Development (ARE), as well as with Thomas Heck from the Laboratory for Energy Systems Analysis at the Paul Scherrer Institute (PSI).
About the seminar
The benefits of transport are plenty and obvious, particularly for those that take part in it; however, there are also costs associated with the use of any transportation means. A part of these costs is generally covered by the users, but there is also a part of the costs which is covered by the general public. These are the external costs regularly assessed by ARE, primarily related to environmental and health damage, as well as a portion of the costs induced by accidents.
At this seminar, Josephine Leuba and Nicole Mathys explained in detail the methodology and scope of the national calculations of external costs of transport. These costs amount to a total of about 14 billion CHF (in 2019), of which only around 5% are currently internalized, with the majority of the internalization taking place via the performance-related heavy vehicle charge (HVC).
The annual external cost estimates for all modes of transport in Switzerland form the basis for calculating transport costs and compensation for heavy goods traffic, as well as shaping the country's transport policy. These estimations are used to assess cost-benefit analyses of road and rail infrastructure projects, and therefore contribute to paving the way for more sustainable decisions in the long run.
The methodology is constantly being updated. The next planned developments involve: the integration of congestion costs, the improvement of the database, the definition of critical parameters, as well as a better differentiation between urban and rural areas.
Thomas Heck, from the Laboratory for Energy Systems Analysis at Paul Scherrer Institute (PSI), presented the results of the life cycle-based assessment of environmental externalities of transport. The method used by the PSI’s team is a bottom-up approach for impact pathways, combined with a semi-regional approach that allows differentiation of drivetrain technology and level of development. It also enables simulation of future technological development.
Thomas Heck’s presentation emphasized the high importance of indirect impacts induced by the associated life cycle (e.g., vehicle manufacturing, fuel production, etc.) when calculating environmental impacts and externalities. In the past, the direct emissions of the vehicle, were the main source of environmental issues and externalities, when compared to the indirect life cycle emissions. However, technological improvements, and especially the electrification of the fleet, will lead to a completely different distribution of direct and indirect emissions. The method described by Thomas Heck allows to calculate the impact caused in regions far away from where the vehicles are used. Moreover, for electric vehicles, the impacts associated with electricity generation are particularly important.
We thank the engaged speakers for an insightful and inspiring evening, as well as the participants for a lively dialogue. The discussion should be continued, as the potential of external cost evaluation to promote a sustainable transportation system is substantial.
If you were unable to join us, or if you wish to revisit the presentations, please follow the links below to download the slides and get an impression of the event.
Impressions
Abstracts and short bios
The mobility of the Swiss population causes billions of dollars of damage - in form of external costs - every year. The environment, the climate, and health suffer mainly from these negative impacts. Per capita, transport in Switzerland causes on average 1’600 francs of external costs. Private motorised transport is responsible for most of this damage, followed by air traffic, rail traffic and pedestrian and bicycle traffic. Congested roads and trains cost the Swiss economy in addition several billion francs in lost time every year. The ARE is currently updating its calculations of external effects. An overview of the changes in the methodology will be given.
Joséphine Leuba has been working as an economist at the Federal Office for Spatial Development (ARE) in the Basics Section since January 2020. She is project manager for the external costs and benefits of transport. Previously, she completed a PhD in economics at the University of Neuchâtel (2015-2019). Her dissertation focused on the spatial distribution of income in Switzerland. During this time, she also taught, among others, microeconomics and sustainable development economics. She holds a Master's degree in Economics (University of Neuchâtel, 2015) and a Bachelor's degree in Political Science (University of Lausanne, 2013).
Nicole A. Mathys has been Head of the Basics Section at the Federal Office for Spatial Development (ARE) since 2013. The section provides the information needed for sound spatial planning and transport policy: data, analyses, application of transport models, economic analyses, coordination of innovation, research and evaluation. Between 2008 and 2013 she worked for the Swiss Federal Office of Energy (SFOE), where she was responsible for the "Energy-Economy-Society" research programme and contributed to the preparation of the energy strategy 2050. Nicole Mathys holds a degree in political economy from the University of Neuchâtel. She obtained her PhD in economics entitled "Five Essays in Trade and the Environment and Economic Geography" in 2007 from the University of Lausanne.
The current transport system contributes significantly to carbon dioxide emissions as well as air pollutant emissions like particulate matter or nitrogen oxides. For environmental impacts and externalities, also the indirect effects due to the associated life cycle (for example the production of vehicles, the fuel production etc.) need to be considered. This applies especially to new transport technologies and future mobility. For electric vehicles, the impacts associated to the generation of electricity are particularly important. The talk will provide an introduction to the combination of life cycle and externality assessment.
Thomas Heck is working as a scientist at the Paul Scherrer Institute (PSI) in Villigen, Switzerland, since 2001. He is member of the Technology Assessment group in the Laboratory for Energy systems Analysis (LEA). He has long experience in environmental impact assessment, externalities, life cycle analysis, and interdisciplinary modelling. He graduated with a PhD in physics (University of Stuttgart). Before he came to Switzerland, he worked as scientist for the Institute of Energy Economics and the Rational Use of Energy (IER) at the University of Stuttgart and for the EUsys-TTI GmbH Stuttgart.
