Decarbonizing passenger transportation in developing countries: Lessons and perspectives1

Abstract

This paper examines the challenges and opportunities in decarbonizing the passenger road transportation sector by reviewing recent empirical evidence and drawing lessons for developing countries. It first identifies the advantages and disadvantages of various policy instruments to promote modal shifts and vehicle fuel efficiency, and then discusses the potential impacts of electrification and ride-hailing in transportation decarbonization. While developing countries face formidable challenges in reducing carbon emissions from passenger transportation due to income and population growth, the paper argues that a unique window of opportunity exists to foster a culture of sustainable travel behavior by expanding public transit in combination with market-based pricing policies.