Effective Speed: Can Cost Effective Transportation Be Sustainable (Reducing Emissions and External Costs)?

Abstract

Given the need to reduce fuel emissions from transport many research studies have been devoted to the development of technologies and identification of new policies to tackle this problem. The majority of these strategies either increase the costs (e.g., new technology), are more time-consuming (i.e., choosing a more sustainable mode of transport), or encourage consumers to forgo travel plans (i.e., flights to holiday destinations). Implementing any of these changes is challenging for a society where cost, quality and time are the key motivators. The paper differs from previous research, given that the focus is not to slow down global warming, through the development of new technologies, or through inconveniences to lifestyle. Instead, the focus is to improve the sustainability of transport using current technology without increasing the cost or time factor. By using the concept of effective speed, this paper estimates the possible reduction in emissions, external costs and land use if people can be persuaded to choose the most cost-effective mode of transport. The effective speed is calculated by dividing the distance travelled by the time spent (i.e., travelling to work and earning the money to pay for the commute). This case study uses data from a survey of residents in New York City (NYC) and incorporates supporting data about commuting patterns in Germany. If people use their most cost-effective mode of transport in NYC, it is possible to have emission reductions of up to 14.7%, external cost reduction of 11.6% and a reduction in the time–area requirements of 16.5%. The results of this paper highlight that people do not always need to spend more time or money on their transport activity to travel in a more sustainable way. Indeed, encouraging people to use a mode of transport with a faster effective speed may even reduce the external effects for some.