Modelling the Regional Economic Consequences of Environmental Policy Instruments Applied to the Transport Sector

There is a rapidly growing body of literature on the economics of environmental protection (see Turner et al. , 1994, for an overview) and considerable interest in the effects of economic instruments upon both the environment and economic activity is developing in both national and international organisations (OECD, 1991). In advanced countries the transport sector is one of the main contributors to environmental degradation, particularly atmospheric pollution. Pollution problems arising from transport are both global (C0₂ emissions) and regional and local, usually being concentrated in urban areas, and involving localised effects of such pollutants as ozone or S0₂.