Sustainable Transport in the "Green Economy" System

Larisa D. Petrenko

Department of management of construction and housing and communal services, Institute of service and industry

management, Industrial University of Tyumen, Volodarsky st., 38, Tyumen, Russia

Keywords: Sustainable Transport, Green Transport, Sustainable Development, Green Economy, Decarbonization,

Electric Car.

Abstract: The actualization of global ecological problems necessitates transformational reformations in the transport

sector. The strengthening of global trends in decarbonization is leading to some deformations in the transport

sector. Greening the transport sector is due to the ecologization of global development and will be long-term,

what is due to its cost reduction and the achievement of appropriate energy efficiency indicators. The features

of the development of the transport sector are characterized by a decrease in the level of energy intensity, as

well as the active development of the "green" sector of electric cars. The intensive growth of the green

transport sector is largely supported by state financial backing as part of the implementation of sustainable

development strategies. Further development of the "green" transport sector will take place in the context of

expanding the use of market-based support instruments, that ensure the introduction of energy-efficient

technologies for vehicles; development of logistics technologies, that reduce the frequency and distance of

transportation; increasing the availability and sustainability of low-carbon fuel types.

1 INTRODUCTION

Climate change issues are a key trend, predetermining

global economic development over the coming

decade (Anseretal, 2020; Barrett, 2020; Carattinietal,

2019).

The ecological trend involves meeting the current

needs of people without affecting future generations

and the ecosystem of the planet and is supported by

the need to implement the Sustainable Development

Goals for the period up to 2030, as well as the Paris

Agreement on Climate (Sustainable development

goals, 2015; The Paris Agreement, 2015). The need

to implement these targets is due to the need to reduce

the level of inequality in the global economy and in

the transition to socio-economic development, taking

into account environmental restrictions (Brechetetal,

2016; Chanetal, 2019). The transformation of the

global transport sector plays a special role in

achieving these goals (Lorenteetal, 2020; Ravettietal,

2020; Sepehretal, 2019).

Long-term development strategies of countries

are based on the concept of a humane environment,

ecological compatibility, and safety, and transport

https://orcid.org/0000-0002-3433-8523

infrastructure plays an important role in this aspect.

The need for a transition to sustainable development

predetermines the actualization of mobility issues

when the transport infrastructure acts as a field shaper

of the country's united area. In the world, transport is

developing within the framework of achieving the

required level of comfort, ecological compatibility,

and safety, which determines the future of sustainable

development (Anderssonetal, 2020; Zenghelis, 2019;

Vitaetal, 2019).

At the beginning of the 21st century, a

breakthrough was outlined in the transport

infrastructure, associated with a change in the socio-

economic landscape. The deteriorating ecological

situation, the low level of safety, and the lack of equal

availability of space for the entire population

redetermined the vector of development of mobility.

The existing transport system is being reformed

towards progressive forms of movement - electric

cars and electric buses, which in the near future will

form the basis for a humane environment (Barbier,

2020; Kapustin and Grushevenko, 2020;

Anastasiadou and Vougias, 2019; Habich-

Sobiegallaetal, 2019).

Petrenko, L.

Sustainable Transport in the "Green Economy" System.

DOI: 10.5220/0010585200050009

In Proceedings of the International Scientiﬁc and Practical Conference on Sustainable Development of Regional Infrastructure (ISSDRI 2021), pages 5-9

ISBN: 978-989-758-519-7

The emergence of the term “green” or sustainable

transport is considered, as a logical extension of the

concept of “sustainable development”, describing

types of transport and transport planning systems, that

are consistent with broader sustainability issues.

"Green" transport has a positive impact on the

ecological, social and economic sustainability of

society and ensures the mobility of both socio-

economic tides and the population as a whole. The

actualization of the problems of ecological

compatibility of transport is due to the very

significant volumes of energy consumption and

carbon dioxide emissions, leading to negative

ecological changes. The ecological footprint of

transport is due to not only air pollution and the

depletion of non-renewable resources, but also by the

presence of problems with its disposal and hazardous

waste (batteries, etc.) (Herberz et al., 2020; Hansson,

2020; Wang et al., 2020; Jin et al. al., 2020; Sun et al.,

2020).

The article studies the features of the development

of the global transport sector. The research is based

on extensive scientific literature, that allows

comparisons, giving corresponding examples, and

extrapolation of ideas and results. The purpose of the

research is to study the features and identify

opportunities for the development of global transport

in the context of an eco-friendly trend.

2 MATERIALS AND METHODS

The research methodology was based on methods of

calculating the dynamics of indicators, characterizing

data on the development of the global transport

sector, as well as on a comparative analysis. To

achieve the purposes in hand and assess the results,

specific data from the International Energy Agency

(IEA) were used on CO2 emissions in the transport

sector, on the energy intensity of the transport sector;

the share of electric cars in global transport; their

technological and territorial distribution; market

share of electric cars by country.

3 RESULTS

Sustainable ("green") transport is considered as an

affordable, cheap and efficient type of transportation,

that minimizes environmental damage and

contributes to reducing the ecological and social

impact of its use. The types of such transport are:

pedestrian and bicycle traffic, eco-friendly cars,

transit-oriented development, vehicle rental,

economical urban transport systems, etc. Through the

development of sustainable transport, the needs of

people, companies, and society for reliable and

affordable means of transportation, without harm to

human health and the ecosystem as a whole, are met.

Ideally, it uses energy from renewable ("green")

resources (hydropower, solar energy, etc.).

Expanding the use of such transport contributes

to: reducing greenhouse gas emissions; reducing the

use of energy-consuming types of transport; the

transition to low-carbon fuel types; expanding

electrification in the transport sector; stimulating

research for affordable storage batteries, etc.

Sustainable transport is meant to improve the

ecological situation, providing consumers with a

decrease in exhaust gas toxicity, an affordable cost,

and a high level of its technical performance.

The development of sustainable transport can

ensure the ecological, social, and economic

sustainability of society as a whole, as well as an

increase in the number of socio-economic tides and

increased mobility of people. The increase in mobility

indicators cannot be considered in isolation from the

ecological, social, and economic costs of transport

systems. Social costs of transportation include

accidents, air pollution, reduced physical activity,

vulnerability to fuel price increase, and others. In the

economic context, traffic jams and blocks, resulting

in serious temporary losses in all sectors. Ecological

costs are associated, first of all, with significant

volumes of greenhouse emissions (lead, sulfur, solid

aldehydes, carcinogens, etc.), leading to oxygen

starvation, as well as significant energy intensity and

ecological imbalance in connection with the

production and use of transport means and

infrastructure.

The scaling of research in the development and

creation of "green" transport indicates a high level of

interest of the authorities at different levels in the

development of the ecological aspect. Ecological

humanism, which predetermines the world agenda,

implies a high level of culture of consumption, careful

attitude to natural resources, and is of a long-term

nature.

It is difficult to overestimate the degree of the

environmental impact of transport. The share of

transport in CO2 emissions from fuel combustion is

about 25%. It is important to note, that positive

dynamics of such emissions has been observed over a

long period. So, in 2019 their increase was by around

0.5%, suggesting a decrease of positive dynamics,

which is caused by improved energy efficiency,

increased electrification (over 7 million electric cars

ISSDRI 2021 - International Scientiﬁc and Practical Conference on Sustainable Development of Regional Infrastructure

in 2019 in the world), and increased use of renewable

energy sources in the global transport sector. The

largest share in the structure of emissions (about

75%) is accounted for by motor vehicles. Along with

this, there is a positive trend in CO2 emissions in the

aviation and shipping sectors. (Transport, 2020)

According to the sustainable development

scenario, measures to improve efficiency and reduce

energy demand are highly relevant in achieving the

global climate goals in the transport sector. At the

same time, there is an increase in emissions from the

motor vehicles sector, which is due to a number of

reasons. Most of the vehicle markets are

characterized by increased purchases of larger and

heavier vehicles. So, in a number of regions, the share

of cross-country vehicles was about 50%. (Tracking-

Transport-2020, 2020) In addition, there is a high

level of demand for road transportation due to the

expansion of the e-commerce and delivery services

sector.

The global slowdown in economic development

was reflected in a decrease in the energy intensity of

the global transport sector (by 2.3% in 2019).

However, the expected rate of decrease in accordance

with the goals of the sustainable development

scenario was not achieved. (Tracking-Transport-

2020, 2020) In this regard, the degree of importance

of measures to improve energy efficiency with an

increase in demand for mobility and freight

transportation with reducing CO2 emissions is being

updated. Improving energy efficiency in the global

transport sector can be achieved by: introducing

energy-efficient technologies for vehicles and fuel

types; developing of logistics technologies to reduce

the frequency and distance of transportation;

improving the energy efficiency of vehicles;

increasing the availability and sustainability of low-

carbon fuel types, etc. In addition, meeting the

sustainable development scenario targets for

improving air quality requires stricter emission

control standards for vehicles, as well as increased

availability of low-carbon fuel types.

Fiscal policy, that stimulates development in the

field of reducing emissions and improving air quality,

can be an effective regulatory tool. The mechanism of

adoption of taxes, reflecting social costs and the cost

of ecological damage, is an effective regulatory tool

for the mobility of passenger and freight

transportation. The features of making transport

decisions are influenced by taxation, associated with

the purchase and turnover of vehicles, which can

stimulate consumer activity in the sector of "green"

transport.

The active development of "green" transport is

observed in the electric car sector. So, in 2019, their

sales exceeded 2.1 million units (+6% compared to

2018) against a backdrop of a global contraction of

the car market. In addition, there is an increase in the

share of electric cars in the global structure of the car

market to 2.6% in 2019, which indicates the

consolidated sustainable development of this sector.

(Electric-Vehicles, 2020) The sustainable

development scenario implies the expansion of the

share of the electric car park in the world to 13% by

2030.

In 2019, the leaders in electric car sales were

China (1.06 million vehicles); Europe (560 thousand

cars); the USA (326 thousand cars). Their share in the

overall market structure exceeded 90% of all sales.

Against a backdrop of increased decarbonization

requirements for the economy, there was an increase

in sales of battery electric cars (including battery-

electric cars and plug-in hybrid electric cars). So, in

2019, their share in the total sales structure was about

75%.

In the second half of 2019 there was a slowdown

in global demand for electric ars due to the

deformation of direct subsidy policy in key markets.

However, the total amount of electric cars in the

world reached 7.2 million in 2019. At the same time,

about 47% of all cars are used in China. (Electric-

Vehicles, 2020)

The most popular in the global market are battery

electric cars. In 2019 there was a drop in hybrid

vehicle sales of 11%. Along with this, it is important

to note, that the share of such cars in the overall

structure of the electric car market is about 30%. The

most active sales of these cars are observed in China

(40% of the world market) and Europe (36%).

The development of "green" technologies is

becoming a characteristic trend for other types of

transport as well. The two-wheeled car sector

(scooters and bicycles) is actively developing, 25% of

which are electric and the most developed in China

(over 95% of the market). The market of electric

buses in the world as of 2019 exceeds 513,000 units

(+17% by 2018). China is the leader in this sector too.

The active expansion of the electric bus park is also

typical for Europe, India, and Latin America. The

segment of medium and heavy electric trucks is

expanding, especially in China, where sales grew by

more than 6,000 units in 2019. There is an

improvement in electrification processes in shipping

and aviation, especially in Europe and China.

(Electric-Vehicles, 2020)

Sustainable Transport in the "Green Economy" System

4 DISCUSSION

Achievement of the required indicators of sustainable

development in the "green" transport sector must be

accompanied by the implementation of appropriate

state policy. Among the key mechanisms for

stimulating the development of the electric transport

market are the tools of subsidizing and tax incentives.

In 2019, in Europe, a new fuel economy standard

for passenger cars and vans and a CO2 emission

standard for heavy vehicles was adopted, reflecting

the requirements or preferences for the electric

transport segment, that have a stimulating effect on

the sector. In 2020, in China, its fuel economy

standard for light vehicles was updated, also aimed at

stimulating the development of this sector. India

conducts a policy of stimulating the development of

electric transport, mainly in the two-wheeled car

sector. The development of this sector is actively

supported in Canada, Chile, New Zealand, Costa

Rica.

According to research in 2019, over 50 countries,

participating in the global car market, which share is

about 90%, provided direct stimulating regulation of

the development of the electric car sector. However,

there is a gradual elimination of the implementation

of direct stimulating measures at the national level in

leading markets (China, USA, etc.) and a transition to

indirect regulatory measures (for example, building

norms for the installation of charging infrastructure,

etc.).

The stimulating mechanisms, that provide the

development of battery technology in the electric car

sector forms a progressive battery cost reduction (-

13% in 2019). Since the basis of the cost of electric

cars is namely the car battery, an investment policy is

being actively implemented at the national levels,

aimed at developing innovative activity in the field of

battery technologies (increasing the size of the battery

pack, changing the chemical composition of batteries,

reducing costs due to the expansion of production

facilities, etc.).

In the early stages of the electric car market

(introduction and distribution), procurement

subsidizing policy was implemented at national levels

to demonstrate such technologies and intensive

growth of production, providing cost reduction.

Indirect regulation through tax incentives to increase

purchasing power in this sector, as well as additional

measures, that increase the value of daily driving of

electric cars (for example, discount parking rates,

discounts on toll roads and low-emission zones) play

a key role in attracting consumers and enterprises to

electric cars in an early market stage.

The next stage of the development of the electric

car sector implies increased requirements for both

CO2 emissions in relation to consumers and a

minimum share of cars with zero or low emissions in

relation to manufacturers. An important condition for

enhancing electrification of the transport sector is the

sustainable scaling of the battery industry, which

must be supported by appropriate policy at the

national levels (reducing investment risks, fuel

economy standards, zero or low emission mandates,

maintaining battery production value chains,

developing innovative technologies in this area, etc.).

5 CONCLUSIONS

Sustainable transport afflicts minimum damage to the

environment and helps to reduce the ecological and

social consequences of its use. Its use provides:

reduction of greenhouse gas emissions; transition to

low-carbon fuel types; expansion of electrification in

the transport sector, etc. Sustainable transport is

meant to improve the ecological situation, providing

consumers with an affordable cost and a high level of

its technical performance.

In the current period, the scale of the negative

impact of transport on the environment is very

impressive and is constantly increasing. The share of

transport in CO2 emissions from fuel combustion is

about 25%. In the current period, there is a decrease

in the level of energy intensity of the global transport

sector, the pace of which is not sufficient to achieve

the goals of sustainable development. In this regard,

there is an active development of "green" transport,

especially in the electric car sector. The most popular

in the global market are battery electric cars.

Achievement of the required indicators of

sustainable development in the "green" transport

sector must be accompanied by the implementation of

appropriate state policy. In the early stages of the

electric car market, a procurement subsidizing policy

was implemented at national levels to demonstrate

such technologies and intensive growth of

production, providing cost reduction.

The next stage of the development of the electric

car sector implies increased requirements for both

CO2 emissions in relation to consumers and the

minimum share of cars with zero or low emissions in

relation to manufacturers, and implies the

implementation of appropriate state policy as part of

the expansion of the use of market support tools, that

ensure the introduction of energy-efficient

technologies for vehicles; development of logistics

technologies, that reduce the frequency and distance

ISSDRI 2021 - International Scientiﬁc and Practical Conference on Sustainable Development of Regional Infrastructure

of transportation; increasing the availability and

sustainability of low-carbon fuel types.

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Sustainable Transport in the "Green Economy" System