Urban Transport Policies and Net Zero Emissions in the European Union

Abstract

This review discusses the role of road transport policies in achieving the European Union's ambitious zero-emission target for the transportation sector by 2050 and provides an overview of the empirical literature that studies the effectiveness of urban transport policies. The analysis is divided into two parts. First, we study policies that are relevant in the transitional phase from internal combustion engine vehicles to battery electric vehicles (BEVs), then we discuss policies that will remain relevant as we switch entirely to BEVs. In the best-case scenario, the transition can be driven by fuel taxes, but in case fuel taxes are not feasible or acceptable, a combination of penalties for buying polluting vehicles and subsidies for scrappage of such vehicles might be the best compromise. In the long run, road space will be increasingly at a premium, and to ensure its efficient use, increasingly sophisticated road-pricing policies will be needed.