147
Climate-Resilient Investment in Transport
Figure 4.6 Actual Transport Spending and Estimated Requirements, Sub-Saharan Africa 1,600 1,400
For South Africa: Actual spending = $7,100 million
US$, millions
1,200 1,000 800 600 400 200
Co
ng
o, D So em ut . R h ep A . N fric Ta iger a nz ia an K ia M Et eny oz hi a a o M mb pia ad iq ag ue as ca Cô te Ch r d a Ca 'Iv d m oir er e o Gh on Za ana m Ug bi a Na and m a Se ibi ne a g Ni al ge Be r M nin a Rw law an i Ca Les da pe oth Ve o rd e
0
Maintenance needs New investment, upgrade & rehabilitation needs Actual spending Sources: Briceno-Garmendia Smits, and Foster 2008; Carruthers and others 2009.
Table 4.8 Estimated Costs External to Transport, United States Externality
Cents/gallon
Cents/mile
Central values of marginal external costs Greenhouse warming Oil dependency Local pollution Congestion, cents/mile Accidents
6 12 42 105 63
0.3 0.6 2.0 5.0 3.0
Total
228
10.9
Source: Parry, Walls, and Harrington 2007.
The Magnitude of Transport Externalities Externalities in transport are estimated at 11 cents a mile (Parry, Walls, and Harrington 2007), about the same as the cost of fuel for a standard passenger car in the United States (table 4.8).13 In aggregate the cost of externalities would exceed 10–11 percent of GDP in Organisation for Economic Co-operation and Development (OECD) countries (table 4.9).14 Removing these externalities would thus be beneficial. Traffic congestion is a major externality. The estimated cost of congestion is 5 cents a mile and adds up to 8.5 percent of GDP. Road congestion is particularly costly in urban areas. In the United States, urban congestion delays increased from 16 hours a year to 47 between 1980 and 2003, pushing up the annual Turning the Right Corner • http://dx.doi.org/10.1596/978-0-8213-9835-7