Dr.

Sukumar Nandi Indian Institute of Management Lucknow

About me

• • • • •

Sukuamr Nandi
MA ( Economics), M.Phil. ( Econ) , Calcutta University Ph.D. ( Economics), Utah State University, Logan, USA Position: Professor of Economics, Dean ( Planning & Development), Chief Editor, METAMORPHOSHIS

[ Journal of IIM Lucknow]


• • • •

Past position:

Indian Institute of Foreign Trade, New Delhi; National Institute of Bank Management, Pune Vidyasagar University, WB; Calcutta university [ Economics Department] Massachusetts College of Liberal arts, Mass, USA; Utah State university, USA

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Importance of Transport
• Economic:
– Good transport provides a clear competitive edge providing;• Easy access • Low congestion costs • Good environment; so – Efficient transport facilitates economic growth, BUT – Congestion hinders business efficiency and impacts on regeneration

Environmental:
– Efficient transport helps provide high quality of life and address climate change, BUT – Unmanaged transport causes air quality problems, noise and traffic accidents

Sustainable communities:
– A good transport network enables equality of travel opportunity to all, BUT – Lack of transport provides a barrier to social inclusion particularly in areas of persistent social disadvantage and workless ness

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Ideal Transport System

A fully integrated safe transport network which supports social and economic regeneration and, ensures good access for all which, is operated to the highest standards to protect the environment and ensure quality of life

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Transport
• A statutory requirement set within the framework of National Priorities

• • • • •

Removing Congestion Air quality and quality of life Accessibility Road safety Problems related to Climate change

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Long Run Strategy
Manage for the growth of transport demand to provide for the efficient movement of people and goods

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Modern Transport System _ Dubai

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Los Angeles Roadways

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Los Angeles Highways

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Some Recent Trend in Indian Context
• Some increase in population, esp. city centre • More employment but new demands for travel opportunity, and • Continuing problems of accessibility in areas of disadvantage and workless ness • Rising freight movement particularly to the port • Increase in car ownership and use, • leading to
• Rise in congestion levels and poor air quality • Reduction in walking and bus use – health and obesity time bomb • Increase in rail use leading to some overcrowding

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How to Manage the city centre of Metro like Delhi
• • • • • The heart of the city region Main business district should have easy access Main economic growth area Growing importance of tourism Air Quality Management Area – traffic levels largely responsible • Forecast 10% traffic growth to the metro in morning peak

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How to manage Traffic in City Centre

Aim to provide high quality environment for all users of the city centre

– reduce traffic in core centre to reduce vehicle speeds – improving air quality for all – avoid fast through traffic to ensure a safe, friendly and historic city centre – improve access to all parts of the centre for all users - better signage and road layout
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How to Manage
• Managing traffic growth relies on – Managing the road network – Designated freight routes – Managing parking demand – Planning and development control – Increase in quality of public transport – partnership with operators crucial – Promoting walking and cycling • Using Travel Wise to work with employers to promote travel plans for major businesses, health care sites and schools • Developing links with key players like different Chambers of Commerce and industrial houses

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Plan
• • • • • • Government of India___ Efforts National Urban Transport Policy Identifies the growing problem Recognizes constitutional devolution to the states but appreciates the importance of some central functions, the need for technical advice and therefore, Advises on an issue by issue basis even, on state functions

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National Transport Policy
• • • • • • • • • • • • • • • • • • The declared objectives A four pronged approach “to ensure easily accessible, safe, affordable quick, comfortable reliable and sustainable mobility for all” to: reduce the existing levels of congestion reduce the impact of motor vehicles on air pollution improve road safety, and foster sustainable technologies National Urban Transport PolicyThe identified issues Public vs Personal transport Ownership vs usage Public transport pricing Public vs private provision Technologies for public transport Choice of fuel and vehicle technologies Managing vehicles in-use Local planning Non-motorized transport Financing Institutional co-ordination
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04/02/08

A Framework

Transport infrastructure improvement

Reduced distances

Reduced congestion

Other externalities

Cheaper, more reliable transport services

Logistical improvements

Facilities consolidation

Location effects

Value added effects

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Transport and Rural Poverty
• There are, however, good examples from Asia where Yao (2003) has documented the poverty reducing effects of rural roads in India and the People’s Republic of China.
Xianbin Yao, Infrastructure and poverty reduction: Making Work for the Poor, May 2003, Asian Development Bank Bulletin Markets

The elasticity estimates measure the percentage changes of the rural poverty incidence with respect to road infrastructure investments, working through different channels.

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Effects of Rural Transport on Poverty Reduction
India Poverty Reducing Effects Rural Road Investment Direct effect through increase in agricultural productivity Direct effect through increase in non-farm employment Direct effect through increase in rural wages Indirect follow-on effect through higher economic growth
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Peoples Republic of China Elasticity* % Share 28.46

Elasticity* -0.0119

% Share 17.92 -0.0450

-0.0300

45.18

-.0417

26.38

-0.0204 -0.0041

30.72 6.18

-0.0399 -0.0315

25.24 19.92

Overall

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-0.0664

100.00

-0.1581

100.00

18

Effects on Poverty Reduction
1991/92 1998/99 2005/06

80 70 60
Incidence (in percent)
64 68 59 52 46 35 23 8 11 10 39 30 25 17 39 24 38 29 17 19 20 13 40 29

50 40 30 20 10 0
Public Sector Em ploym ent

Private Private Form al Inform al Em ploym Em ent ploym ent

Export Farm ing

Food Crop Farm ing

Non-Farm SelfEm polym ent

NonWorking

G hana

M E ain conomic Activity
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Trend in Passenger Transport in Industrial Countries

Passenger transport
100% 80% 60% 40% 20% 0% EU -15
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Air W aterborne Tram m , etro Railw ays Bus/coach Passenger car

U SA

Japan
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Trend of Transport in Developed world
Motorization Level and Wealth in OECD Regions 1970-2000
Cars per 1000 inhabitants 900 800 700 600 500 400 300 200 100 0 10000 15000 20000 25000 30000 35000

GDP per capita (in 1995 US$ PPP)
USA EU-15 Japan

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Modes of Passenger Transport in the USA
800 0 700 0 600 0 500 0 b np illio km 400 0 300 0 200 0 100 0 0 1 970 197 5 198 0 19 85
U Aviation S

199 0
B us

1 5 99

20 00

U P ss.cars Sa
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R ilwa a y
22

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EUROPE : Modes of Freight Transport
10 60 10 40 10 20 10 00
B ntk illio m

80 0 60 0 40 0 20 0 0

17 17 18 18 19 19 20 90 95 90 95 90 95 00
E Ra U od E In n w te U la d a rs E So a U h rt-se EP e e U ip lin s E R il Ua

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Findings
The analysis of historic trends shows that road transport is the driving factor of transport demand (for passenger and freight) from 1970 to 2000 in the industrial countries External costs of transport are high and mainly caused by road transport Policy for decoupling has to focus on instruments addressing impacts from road transport Taxes based on distance driven and the environmental performance of vehicles can encourage important modal shifts They generate revenue for developing more environmentally friendly modes

The internalisation of external costs of transport leads to a decrease of transport activities and to a further reduction of externalities Policies for decoupling need to combine a package of instruments including economic instruments and regulations
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