What is the Rationale for Government’s Involvement in Greening Transportation?
Because of its long life, investing in transport infrastructure will shape transport modal choices and hence potentially lock in the long-run trajectory of transportation costs. Transportation planning and infrastructure development affects spatial development, generation of agglomeration economies, and consumer choices and behavior; the long lifespan of infrastructure would have a persistent effect on transport system emission intensity. Development of transport infrastructure, which lowers transportation cost, would ultimately encourage spatial concentration of production centers. International experience also suggests that this increases the economic weight of major cities, resulting in higher macroeconomic productivity.CITATION Gla08 \n \t \l 1033 Urban land-use policies in particular influence the choice of lower emission modes in a multi-modal transport system. Transport infrastructure has a long lifespan, thus its modal composition has a persistent effect on transport system emission intensity.