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Road Transport

Environmental Economics


Handed in by:
Lena Rabe 546783
Himanshu Bansal 546748
Lasse Schneppenheim 546804
Jonas Banse 546312

Julia Schirrmacher

Summary (Lena&Jonas)

Road transport in Delhi is characterized by severe congestion and the disregarding of

traffic rules. A high population increase and rising urbanization together with a growth of
private motorized vehicles overcharges the road transport system in Delhi on a daily
basis. More than 25 million people are living in the greater area of Delhi with more than
8 million registered vehicles. From 2014 to 2015, 600,000 new vehicles were registered
while the government is not able to keep pace with those growth rates. Inefficient
transport systems have consequences for health and safety, the environment, and also on
the economy, thus causing high external costs. Considering the expected growth of the
need for transport in Delhi, the government has to intervene. Therefore, new policy
instruments are necessary to lead the road transport sector towards an efficient and
sustainable system.

Many examples for policy instruments regarding traffic are available and have been
applied in cities all over the world already. This is due to the many externalities of road
transportation and the many stakeholders involved in addressing them. Examples reach
from incentives for lower demand (e.g. improvement of public transportation systems) to
increasing the marginal private costs of each motorist (e.g. road pricing, fuel taxation, etc)
and measures such as road space rationing. However, every instrument has its positive
and negative sides and each city has its different circumstances and unique problems.
Some measures have proven to be efficient in several cities, but are hard to implement
somewhere else; while other measures are highly depending on the local circumstances
like existing infrastructure, and the society. Therefore, for all measures, not only the traffic
itself has to be observed itself but also the social environment, education, and other
factors. Traffic is always a crucial part of the society and thus planned measures have to
be suitably taken.

The main goal of the government of Delhi should be a significant reduction of the number
of vehicles on the streets by improving the infrastructure for non-motorized vehicles and
improving the public transport system. Also, the awareness about transport and its
external costs have to be raised within the population. For the motorized private
transport, an increased share of electric cars and two wheelers would be advisable as this
would significantly reduce air and noise pollution. The car owners could shift to electric
two wheelers, thereby emitting less pollution, and using less space on the roads which
would reduce congestion. Congestion pricing within the city center has proven to be
effective when it comes to take cars off the streets and increase the use of public transport.
Even if it would be difficult to implement in Delhi and would also cause high investment
costs, the advantages of this measure make it advisable. The resulting revenues would pay
of the system in few years and could also be taken for improvements of streets and public
transport. Thus, there is a lot of potential in managing and reducing the traffic with
policies considering the development of public transport and the infrastructure for non-
motorized vehicles.

Table of Content
1 Introduction (Lasse) ............................................................................................................ 1

2 Road Transport in India (Himanshu) ................................................................................ 2

2.1 Urbanization in India ........................................................................................................... 2
2.1.1 Vehicular growth and motorization ............................................................................... 2
2.2 Traffic problems in Delhi ..................................................................................................... 4
2.2.1 Mobility patterns .............................................................................................................. 5
2.2.2 Public transportation system .......................................................................................... 6
2.3 Effects of road transport ...................................................................................................... 7
2.3.1 Effects on health & environment .................................................................................... 7
2.3.2 Effects on road safety ..................................................................................................... 10
2.4 Traffic outlook for India ..................................................................................................... 11

3 Introduction of Instruments for the transport sector (Lena) ........................................ 12

3.1 External costs and benefits of road transport (Lena) ...................................................... 12
3.2 Command and Control Instruments (Lena) ..................................................................... 14
3.3 Other legal and Planning Instruments (Lena) .................................................................. 16
3.4 Market Based Instruments (Lena) .................................................................................... 16
3.5 Informational Instruments and Institutional Approaches (Lasse) ................................. 18
3.6 Instruments currently enforced in Delhi (Lasse) ............................................................. 18

4 Analysis of Instruments (Jonas) ....................................................................................... 20

4.1 Lessons Learned Worldwide (Jonas) ................................................................................ 20
4.1.1 Electric Two-Wheelers (Jonas) ..................................................................................... 20
4.1.2 Congestion Pricing (Jonas) ............................................................................................ 22
4.1.3 Other Measures (Jonas) ................................................................................................. 23
4.2 Assessment of lessons learned worldwide (Lasse) ......................................................... 25
4.2.1 Congestion Pricing in Delhi (Lasse) .............................................................................. 25
4.2.2 Electrification of Two Wheelers in Delhi (Lasse) ........................................................ 26
4.2.3 Other Measures in Delhi (Jonas) ...................................................................................... 27

5 Recommendations and Conclusion (Lasse) ..................................................................... 29

Sources ...................................................................................................................................... XXXI

Introduction (Lasse)

1 Introduction (Lasse)
The transport sector is highly important for the economy of the world and of individual
countries. Without transport, supermarkets all over the world would be empty within
days to just to name one example. We often dont realize how inevitable it is for us. On the
other side it is also contributing to a major part of the energy demand. Since many vehicles
run with their own fossil fuel based engine their emission dont only have a direct
environmental impact but also have a very limited efficiency. This causes worldwide
environmental impacts such as the greenhouse effect due to carbon emissions but also
local effects due to air pollutants such as sulfuric oxides and others. This results in direct
health problems for local residents. A high traffic density also leads to congestions and
traffic accidents which increases the emissions per kilometer even more and also has a
negative effect on the economic efficiency of the transport sector directly as well as due
to external costs. The goal of this report is to give an overview on different environmental
and economic measures that have a positive effect on the climate, health and economic
impact of the transport sector in Delhi/India. The result includes an estimation of the
potential and will give certain recommendations for different measures. Delhi is Indias
city with the highest air pollution due to dramatically high traffic appearance. Regulation
and improvements seem to take very long in Delhi because of the fast development of the
transport sector and missed opportunities to intervene. Many parts of the city are built by
the population without proper management causing a generally overwhelmed
infrastructure. As a relatively tough case the results of this report for Delhi will help to
find potential measures and a way to go which can also be used as basis for other cities.

Road Transport in India (Himanshu)

2 Road Transport in India (Himanshu)

2.1 Urbanization in India

The world is urbanizing, so as India. However, the meaning of the term urban differs
from country to country. For India, the definition adopted for an urban area is: a) all places
with a Municipality, Corporation or Cantonment or Notified Town Area, b) all other places
with a minimum of 5,000 inhabitants, a density of at least 400 square kilometer, and at
least 75% of the male working population work in the sectors other than agriculture
(Office of the Registrar General & Census Commissioner, India, 2011). India, a country
with a current population of 1.3 billion inhabitants, has been experiencing a population
growth of nearly 1.2% per year. The urban population of India as a whole has been
following an annual growth rate of 2.4%. (The World Bank, 2016). This increasing
urbanization has been leading to a growth in the number of metropolitan cities in India.
India has currently 50 metropolitan cities and 8 of them Delhi, Mumbai, Kolkata,
Chennai, Ahmedabad, Pune, Hyderabad and Pune - have a population of over 5 million.
These cities accounts for 42.3% share of total urban population (Office of the Registrar
General & Census Commissioner, India, 2011). In the years to come, India will follow the
same trend of urbanization and eventually contribute a lot in its economic development
process. In last quarter of year 2014, GDP growth of India overpassed that of China and
became the worlds fastest growing major economy with the rate of 7.6% (The World
Bank, 2016).

2.1.1 Vehicular growth and motorization

To cater with the rising urbanization, population and other such factors; India needs to
have a strong transportation sector which can also be able to provide support to the
economic activities in the country. Transportation system facilitates the everyday
mobility of people and goods from supply side to the demand side. Transportation can be
made available by various means such as road, rail, pipelines, water, air, etc. The share of
transportation in GDP (and the economic growth) of India rises from 6.4% in year 2003-
04 to 6.5% in 2011-12, with the maximum contribution of road transport (4.8%) in it
(Transport Research Wing, 2013, p. iv). In this report, the emphasis will be exclusively on
road transport. The road transportation is the only sector in the whole transportation
system which requires larger space and continuous maintenance (thereby costs), for

Road Transport in India (Himanshu)

vehicles and roads both. There is a mixed composition of traffic in Indian metropolitan
cities, ranging from private vehicles like two-wheelers (scooters and motorcycles) and
cars to public vehicles like metro rail, buses, taxis, tractors, trailers, auto rickshaws, and
other miscellaneous vehicles. Vehicles on road can also be distinguished as motorized and
non-motorized. Indian roads experience 2 different types of three-wheelers rickshaws
such as auto rickshaws (motorized) and cycle rickshaws (non-motorized). Both are used
for commercial purposes. Moreover, with cycle rickshaws; bicycles and street hawkers
also comes under non-motorized road transport which together are one of the prime
reason for traffic chaos in an urban and populated city.

The total number of registered motor vehicles in India has grown enormously since the
year 1951. As represented in Fehler! Verweisquelle konnte nicht gefunden werden.,
approx. 159.5 million motor vehicles (includes two-wheelers, cars, jeeps & taxis, buses,
good vehicles, and other vehicles) were running on the roads during year 2012, in
contrast to only 21.4 million in 1991. The composition of different categories of vehicles
as % of total registered motor vehicles in India, from year 1951 to 2012, can be figured
out in Fehler! Verweisquelle konnte nicht gefunden werden.. Majority of the growth
has been noticed among personal vehicles, mainly two-wheelers (from 11.1% of total
motorized vehicles in year 1951 to 72.4% in 2012). This has been a consequence of
inadequate and poor public transport system that people feel more comfortable

Figure 1: Total Number of Registered Motor Vehicles in India (in million): 1951-2012
(Transport Research Wing, 2013, p. V)

commuting through their personal vehicles.

Road Transport in India (Himanshu)

% of total registered vehicles

Figure 2: Composition of Registered Motor Vehicles (Transport Research Wing, 2013, p. VIII)

2.2 Traffic problems in Delhi

When talking particularly about Indias capital territory, termed as the National Capital
Territory (NCT) of Delhi, it has a population of around 25 million (includes NCT and the
urban towns in its neighboring states, collectively known as National Capital Region,
NCR), making it the second most populous city after Tokyo, Japan (Worldatlas, 2016).
Delhi relies remarkably on its transport sector, especially on road transport. Delhi is
significantly fighting with the issue of increased vehicular traffic due to its growing
population and urbanization. As a result, daily commuting on the roads has become a
nightmare to the people living and working in Delhi. It shows the failure of the public
transport infrastructure to keep up with the pace of the urbanization taking place in Delhi.
The situation is the worst during office hours (from 8:00 to 10:00 hours and from 17:00
to 20:00 hours). Delhi wastes a large quantity of man-hours every day in the process of
commuting from home to office and back. The structure of Delhi is not alike throughout.
The areas with high population density, high social status, old town, commercial areas and
residential districts are unevenly distributed in Delhi, which leads to even more complex
and severe traffic problems at times. The traffic of Delhi is largely from motorized
vehicles. The following image (Fehler! Verweisquelle konnte nicht gefunden werden.)
shows a typical scenario of traffic congestion problem in Delhi.

Road Transport in India (Himanshu)

Figure 3: Traffic Congestion in Delhi (Singh S. , 2015)

Some of the reasons for this traffic bottleneck can be thought of as the substantial increase
in number of vehicles (mainly private), increase in the population of Delhi (migration is
one cause for it), illegal sharing of roads by street side vendors, lack of proper parking
facilities resulting to traffic chaos in many city markets, reliance of people on their private
vehicles (even for shorter distances) due to inadequate and ineffectual public
transportation system, unplanned towns in Delhi with narrow streets and informal
residential colonies, mixed traffic conditions making traffic management very tedious job
indeed, negligence of traffic rules by the drivers leading to major traffic jams, and
inefficiency in the state road safety & traffic management authority.

2.2.1 Mobility patterns

The roads of Delhi have been covered by the diversified types of motorized vehicles.
During 2014-15, the highest annual growth rate of 7.38% was noticed in goods vehicles,
followed by 7.27% in two-wheelers (motor cycles & scooters) in comparison to 6.30%
rise in cars & jeeps. As a whole, the total number of motorized vehicles moving on the
roads of Delhi (as on 31st March, 2015) was 8.82 million with an increase of 6.89% over
previous year. The following table (Table 1) can be observed for category wise
distribution of vehicle population in Delhi.

Road Transport in India (Himanshu)

Table 1: Shares of Transport Modes in Delhi (year 2013-14 & 2014-15) (Department of Planning, Government
of NCT of Delhi, India, 2015, p. 169)

The growing population, GDP (Gross Domestic Product), and per capita income are the
macroeconomic factors supporting the superiority of private vehicles among the people
of Delhi. Moreover, an inadequate, unreliable, and unsafe public transportation system is
continuously forcing the people to rely heavily on their private vehicles. Owning more
than required vehicles (for e.g. more than one car per small family is also seen as a status
symbol for the folk these days in Delhi.

2.2.2 Public transportation system

Buses and metro rails form the backbone of the public transport system in Delhi. These
modes are serving as a lifeline for the people of Delhi. The Mass Rapid Transit System
(MRTS) is the name coined for the metro subway rails of Delhi. It was first introduced in
December, 2002 with a rail line of 8.4 Kms in length. It was expanded over last decade to
187.41 Kms with the average ridership of Delhi metro currently reaching approximately
2.4 million per day. The ridership is further expected to increase up to 4 million per day
with the completion of the construction for final phase soon (Phase-III, adding an extra
117.57 Kms in the metro rail length). The metro trains run daily from 6:00 AM in the
morning till 11:00 PM in the night, with a frequency of 3 minutes in peak hours and up to
12 minutes in non-peak time. Delhi Metro Rail Corporation (DMRC) in conjugation with
Delhi Development authority (DDA) are responsible for all the activities related to MRTS,
including its maintenance, expansion, and construction of new metro rail network. It was
a great initiative by the Government of Delhi which aims at providing an environmentally

Road Transport in India (Himanshu)

friendly, efficient, safe and cheap mode of public transport. It also helps in reducing traffic
congestion and eventually the number of traffic collisions on road. (Department of
Planning, Government of NCT of Delhi, India, 2015, pp. 174-177)

Another most important mode of public transport in Delhi is through buses. Delhi
Transport Corporation (DTC) is an organization which manages the bus transport system
in Delhi/NCR. DTC runs 4712 buses on 578 city routes and 18 NCR routes. As a whole, all
the buses in Delhi/NCR routes, carry around 3.9 million commuters per day. However, the
quality of services provided to the people through bus transport is not up to the mark.
This is the reason why people are more attracted towards using their personal and private
vehicles. Proper bus time tables on bus stations, clean buses and bus stations, ensuring
safety for women inside buses, easy & electronic ticket vending machines, etc. are few of
the services on which DTC has to work on, in order to sustain publics belief on them. The
use of buses has another drawback that it contributes a lot in carbon emissions to the
environment as buses consume the considerable amount of fuel. Replacement of old buses
with the modernized and low emission technology can result in the reduction of air
pollution but higher investment and operating costs are needed at the same time.
(Department of Planning, Government of NCT of Delhi, India, 2015, p. 180)

2.3 Effects of road transport

The dramatic increase in vehicular traffic is consistently leading to an unimaginable
increase in pollution levels and road fatalities in the various cities of India. Although road
transport is highly necessary for trade, mobility, and day to day economic activities of an
urban city, yet it has many harmful effects as well. The effects significantly varies in terms
of health, environment and road safety issues. Few of the consequences of road
transportation services are described below.

2.3.1 Effects on health & environment

India ranks third (after China and United States) among the top ten carbon emitting
countries in 2013. Looking at Figure 4, it can be observed that the transportation
sector is one of major worldwide contributor (23%) of carbon emissions to the
environment, as compared to other sectors like electricity & heat, industry, residential,
services, etc. The two sectors, electricity & heat and transport combined, contributes
nearly two-thirds of global carbon emissions in the year 2013. And among the transport

Road Transport in India (Himanshu)

sector, the prime share belongs to road transport, which got increased by 68% since 1990.
(International Energy Agency, 2015, pp. 10-11)

For a country like India, where high amount of people counts on their personalized
vehicles, the major chunk of fuel consumption is taken away by cars and two-wheelers,
thereby causing more emissions. Figure 5 shows that the road transport alone
contributed 46% to the total CO2 emissions of 15.41 million metric tons in Delhi. However,
these values were from year 2007-08, the share of emissions from road transport would
have been increased since then.

Figure 4: World CO2 Emissions by Sector in 2013 (International Energy Agency, 2015, p. 10)

Figure 5: CO2 Emissions from Delhi (2007-08) 15.41 million metric tons
(Energy Efficiency & Renewable Energy Management Center, 2013)

Road Transport in India (Himanshu) Air pollution

The continuous growth in urbanization and motorization in the city like Delhi, particularly
due to immense increase in personal mode of transport, imposes varying impacts on
ecology and the health of people living there. India experiences 692,425 premature deaths
per year as a result of health problems caused by air pollution (Global Burden of Disease
(GBD) report, World Health Organization, 2013). This count is not only due to the
emission of vehicular pollutants, but due to the impacts of ambient air pollution as a whole
(from road transport, industries, commercial, and domestic households). However,
information on an estimate of the death toll solely from the air pollution caused by the
road transport sector in India, has not been found in any of the internet sources. The level
of vehicular emissions depends on various factors such as engine-type, age of vehicles
being used, emission rate, vehicle speed, quantities of fuel consumption, and quality of
roads. The estimated pollution load in 8 metropolitan cities of India can be identified in
Table 2 with Delhi being on top in the list.

Table 2: Estimated Pollution Load in cities of India (Central Pollution Control Board, 2010, p. 24)

Root causes for the escalating vehicular pollution in Delhi could be, for e.g. irregular
inspection & maintenance schedule for vehicles, excessive increase in personal vehicles,
crawling of aged vehicles on roads, availability of low quality fuel & fuel products in the
market, improper dispersion of emissions due to sky touching buildings causing
stagnation of emissions to the ground level, terrible conditions of road, poor land use and
transport planning resulting more vehicle rides and consumption of fuel, less awareness
among people to use eco-friendly mode like walking or riding bicycle, poor footpaths and

Road Transport in India (Himanshu)

cycle lanes can also be held responsible for physical inactivity among people (leading to
high dependence on their personal vehicles). Noise pollution

Another form of hazardous pollutant effecting environment and the health of a person can
be noise pollution. Over last decade, there has been a gradual increase in the noise
emissions as well. It is caused by growing number of vehicles, high intensity traffic woes
all over the city (especially at busy roads and signals), trend of heavy & powerful engines
now a days, etc. The noise standards for commercial areas should not exceed 65 dB in
daytime and 55 dB at night. The corresponding values for residential areas are 55 dB and
45 dB, respectively. However, the average noise index measured for Delhi was over 80 dB,
which is greater than the prescribed guideline values. High noise levels may lead to health
hazards like annoyance, frustration, disturbance in sleep, reduction in work efficiency,
severe headache, hypertension, and increase in blood pressure & other cardiovascular
diseases in old aged persons. Therefore, continual check on the levels of noise emissions
in the city is also required in order to transform the unsustainable road transport sector
of India to sustainable one. (Chandra, 2013)

2.3.2 Effects on road safety

Road safety is another major issue in Delhi. Considerable amount of people die every year
in the road crashes, however minor accidents and injuries are so common on roads that
they dont get accounted and documented. The total number of road accidents increased
by 2.5%, from 489,400 in 2014 to 501,423 in 2015 and number of persons being killed in
road fatalities increased by 4.6% since last year (146,133 in 2015 as compared to 139,671
in 2014). Moreover, ages of people killed in road accidents were also analyzed and found
that 54.1% of them were in the 15-34 years age group. These figures are terrifying and
proves that Indian government needs to take some bold steps in context of road safety
issues. (Transport Research Wing, 2016, pp. 1,6)

There could be multiple reasons for these misfortunes such as disobeying of traffic rules
by the drivers (like drinking and driving, ignorance of using seat belts and helmets while
driving, and over speeding & rash driving), lack of segregation in service lanes between
fast motor driven vehicles and the bicyclists or pedestrians (making latter more
vulnerable to accidents), improper geometric features at the intersection points, non-
efficient road-safety policies (like missing traffic signs and marking, easy issuance of

Road Transport in India (Himanshu)

driving license for inexperienced drivers), hindrance to traffic movement on roads with
the invasion of space by illegally parked vehicles and roadside pavement dwellers,
ineffective city traffic police.

2.4 Traffic outlook for India

The growing urbanization and the population explosion in India would result in high
demand for transportation systems. The demand for passenger transport within the
urban areas of India, would grow 6.6 times from 892 bpkm (Billion passenger-kilometers)
in 2010 to 5932 bpkm in 2050 in BAU (Business-as-Usual) scenario, as can be realized
from Figure 6.

Figure 6: Passenger Transport Demand - Urban Transport (Bpkm): BAU scenario

(Subash Dhar, 2015, pp. 191-192)

In conclusion, it can be deduced that the road transport system in Delhi is highly non
sustainable and it requires some serious reformations in the form of new polices or
extensive action plan with the measures (will be discussed in later sections of the report)
like imposing environmental charges or taxes, setting stringent emission standards &
regulations, and facilitating & creating environmentally related awareness among the

Introduction of Instruments for the transport sector (Lena)

3 Introduction of Instruments for the transport sector (Lena)

Environmental economists have developed different instruments to address undesired
environmental impacts caused by production or consumption of goods and services and
internalize aspects of environmental protection. Objective of these instruments is to find
an optimal level of environmental impacts by minimizing social costs and bringing
benefits and external costs to an equilibrium. The presented instruments can be
categorized as hard instruments and soft instruments according to their approach to this

In this following chapter externalities of road transport shall be presented and 4 different
approaches shall be introduced and explained in the context of the negative external
effects of road transport.

3.1 External costs and benefits of road transport (Lena)

External costs and benefits of road transport arent often discussed at the same time.
While different aspects of social costs are well documented and addressed regularly, the
benefits arent well established. Lets start with those and see where it takes us.

Benefits of transportation are manifold. It starts with ease of communication, as well as

time savings, comfort and privacy; but also job opportunities and an increase in leisure
time can be attested. However, these benefits cannot be argued to be truly external but
are also private benefits in their nature. Because of this, there is a market for
improvements and extending these benefits. Therefore, they are internalized quickly be
the market participants and there is no need for governmental intervention to guarantee
efficiency (Ruta, 2002).

For external costs however, the picture is a different one. They are hardly internalised and
cause a strong need for governmental intervention to control vehicle use. External costs
of road transport can be seen in two different dimensions, as presented in Figure 7. One
dimension, presented on the vertical axis, is the different stakeholders of external effects.
The question here is Who is affected by the externality?. Intra sectoral stakeholders
would be the users of vehicles, directly affected by the use of it. The social environment
includes users and non-users of vehicles alike. And the ecological environment includes
the surroundings as well. On the horizontal axis, the source of the externality is classified.
External costs can either be caused by the active use of a vehicle, by the vehicle when it is

Introduction of Instruments for the transport sector (Lena)

not in motion, or they are resulting from the pure existence of the infrastructure of road
transport (Verhoef, 1996, p. 235).

Figure 7: External costs of road transport (Verhoef, 1996, p. 236)

With this classification social costs of road transport can be identified and categorised.
Also it helps to find appropriate measures to address these externalities, by identifying
the stakeholders. Congestion for example is a cost that is caused by the active use of
vehicles and mostly affects the users themselves. Cost caused by congestion should not be
carried by the population as a whole (including non-users) but by the users themselves.
Therefore financial incentives on users can be a valuable measure for this externality. Air
pollution however is caused by active motorists but causes negative effects for users, non-
users and the environment. This calls for a different approach and while it can be
addressed with market based instruments a combination with strict command and
control measures seems recommendable, to ensure efficient environmental standards.
Severance effects in ecosystems are a structural problem of the infrastructure which is
needed for road transportation and has to be addressed in long term plans by the
governmental structures.

Introduction of Instruments for the transport sector (Lena)

3.2 Command and Control Instruments (Lena)

Command and Control instruments are a hard regulatory instrument of environmental
economics which have been favored by many in the past decades. Different forms of
regulation have been implemented to address different aspects: Permission, Prohibition,
standard setting and enforcement.

Within the context of regulating the external costs caused by automotive transport several
different options occur:

o Required pollution-abatement technologies describe the requirement to use

particular technologies that the regulator sees as necessary to meet his goals.
Examples in the context of road transport could be the required use of soot particle
filters in the whole automotive transport sector. However, by giving the polluter
no options and no incentives to improve the methods and limit the pollution in
other ways, this instrument tends to hinder innovations and always requires
future adaptation by the regulator (Gwilliam, Kojima, & Johnson, Reducing Air
Pollution from Urban Transport, 2004, p. 23).

o Limits on concentrations in flows of effluent discharges in the context of road

transport do not only focus on limitations of for example carbon monoxide in
exhaust gases, but can also incorporate production processes and its discharges.

o Limits of total effluent emissions from particular sources over specific time period
are often used in the context of water pollution. But air pollution and with it the
transport sector are catching up on total limits as well. High concentrations of
carbon monoxide or carbon dioxide are known to cause non-allergic respiratory
as well as cardiopulmonary diseases and are therefore a health hazard. Thus,
concentration limits are set in some cities. Exceeding these limits over a certain
period of time, calls for actions, often known as a Smog alarm. There are different
possible measures to reduce the total number of cars and therefore the total
amount of exhaust gases:

No-drive areas or Resident-only areas are a common site in Europe and

often were set up to protect historical buildings or certain areas from
externalities of mobile transport

Introduction of Instruments for the transport sector (Lena)

Carpooling: Causing a necessity to share cars by only allowing cars with at

least 2 passengers into different areas or giving them preferable lanes

Introducing road space rationing measures such as alternate-day driving or

no-drive days among other measures

To develop a concrete regulatory instrument, first, hard values addressing the

environmental issue have to be determined. By this the extent the instrument as well as
the amount of fines and penalties can be derived. To determine values, however, isnt easy
to do. Firstly, the type of damage (reversible, irreversible) and its extent (local, regional,
global) have to be considered. Then all the different aspects of the damage have to be
added up. This is done because the costs of such an instrument have to be in relation to
the damage. Total costs of such instruments can be separated by their different payers:

o The regulator for example has costs for monitoring and enforcement of the

o The pollutant however has to carry the largest share of costs. Abatement costs
describe the costs involved to meet the required regulations, e.g. technical
equipment. Compliance costs are caused by arrangements made to allow
monitoring and enforcement by the regulator. And opportunity costs are caused
by the constraints that both capital and labor resources are bound by the measure
instead of being used to produce more goods in the same time.

This instrument is well-established, with little set-up costs for most developed countries.
However, developing countries often face capacity constraints when it comes to
monitoring and enforcement. Therefore, the ability to enforce such measures always has
to be taken into account. Ability to monitor (technically and human resource wise) has to
be ensured and sufficiently severe sanctions have to be in place to give financial incentives
for polluters. Also the potential for a regulatory capture, the suppression of
innovativeness and the potentially too high total costs of compliance are a declared
weakness ( (Gwilliam, Kojima, & Johnson, Reducing Air Pollution from Urban Transport,
2004, p. 34). Another weakness is the fact that maximum social welfare isnt always
achievable with these measures. An example for this can be seen in restricted driving
areas. A user that is restricted to drive in a certain area might be willing to pay more than
the marginal social costs of his usage, while a permitted user might have marginal benefits

Introduction of Instruments for the transport sector (Lena)

of his use that are lower than the marginal costs. Lastly, it can be summarized, that
Command and Control measures often lack flexibility to be convincingly efficient.

3.3 Other legal and Planning Instruments (Lena)

Apart from the presented command and control instruments there are other legal and
planning instruments which are often seen as a subcategory but shall be presented
separately in this context. The main difference of these instruments is their prospective
and preventive nature (Maddison & et al., 1999, p. 68). One example out of the context of
road transport could be road and city planning. By taking environmental issues into
account, medium and long term plans can adjust traffic streams from housing areas to
work related areas in the city; by doing this, congestion as well as air pollution can be
diverted even without being reduced in its total value. Another example would be the
reduction of junctions in areas with large traffic volumes to increase average speeds and
lower the number of stops. This can be done by building new lanes as well as by replacing
junctions with tunnels or brides instead. Also the support of research of environmental
friendly automotive transport or the extension of public transportation systems can be
seen as a legal and planning instrument.

3.4 Market Based Instruments (Lena)

Market based instruments are a hard political instrument as well but they represent a
more economic than political approach to address environmental issues. The
understanding behind it is to see environmental damage as a market failure for negative
externalities. To correct this market failure, economic variables (e.g. prices) are used to
provide incentives for polluters to reduce or eliminate the negative externalities. These
incentives are almost always financial incentives to create a hard value for external
effects. This means that the external costs of externalities have to be included in the price
of the product or service.

One example for this would be the issuing of permits to drive into certain heavily
congested areas. These permits could be given to either residents or employees with
business in that area. Whoever doesnt want to use their permit could sell it in a free
market to those that werent issued one. This way the total number of cars within an area
could be limited, and controlled by the government. However, enforcement of such rules
is limited to law enforcement capacities, and experience shows that the prices for permits

Introduction of Instruments for the transport sector (Lena)

rise to very high levels, excluding low income earners from traffic in said areas
(Worldbank, 2002, p. 17).

A more classical market-based instrument is the idea of increasing the private marginal
costs for every motorist. This can be done in different ways.

o Studies have shown the influence of parking prices and the ban of illegal on- or off-
street parking in cities on daily commuters. If it is expensive to park a car in certain
areas, people will avoid doing so for longer periods at a time, like for example
during their office hours and tend to prefer carpooling or public transportation
options instead.
o Another example would be road prices. This is an instrument where either the use
of certain types of roads or the use of roads in general is priced, limited by either a
certain amount of time of a certain amount of kilometres. This can be done by
issuing badges in different colours for easier controls, or by physical or electronic
toll stations on the roads (Ryan & Turton, 2007, p. 131). This instrument affects all
users equally and the increase in price is not only a further source of income to
improve road infrastructure but it also gives an incentive to use alternatives. There
also have been examples where the road prices were lifted for all vehicles with a
certain number of drivers, to give more incentives for carpooling.
o Congestion pricing is a certain type of road pricing. However, it is understood not
as a way to internalise the wear and tear on roads but as an instrument to combat
congestion. Therefore, the entrance into heavily congested areas is priced usually
according to the time of day. This is done because there are certain peak times of
congestion. These strongly demanded times are priced higher than hours that
experience lower demand. This gives users incentives to divert their demand or
reduce the amount of commuting in their own private vehicle (Ryan & Turton,
2007, p. 177).

Introduction of Instruments for the transport sector (Lena)

3.5 Informational Instruments and Institutional Approaches (Lasse)

Different to the previously mentioned instruments, Informational Instruments and
Institutional Approaches belong to the soft instruments within the environmental
economics as they have none or a much weaker legal binding force than the instruments.
These instruments are based on their informational character towards the active or
passive producer of emissions.

Classical examples are:
-advisory and information services
-environmental education
-environmental research and its funding
-eco-labelling (e.g. Blue Angel)
-certification systems (e.g. EMAS)

By their own nature the effect of those instruments is hard to measure as any change to
better or worse is difficult to be connected to the implementation of specifically this new
Informational Instruments and Institutional Approaches do have a high potential as
their success might not come as quickly and reliable as of hard instruments but often have
a rather sustainable long term effect.
Due to many failures of hard instruments soft instruments are on the rise in industrial as
well as in developing countries when it comes to environmental issues (GODFREY &
NAHMAN, 2007, S. 1)) trusting in citizens to think for themselves and make the right
decision rather out of their own belief instead of being forced to. The success though is
highly dependent on the attitude, priorities and education of the addressed ones.
Especially citizens of developing countries are often facing problems in their everyday life
that withdraw the attention from environmental issues. Indias population in this case is
rather concerned about unemployment, insufficient education, poverty and others.
(Hoerisch, 2002, S. 22)

3.6 Instruments currently enforced in Delhi (Lasse)

There is a wide spectrum of measures that is currently enforced in Delhi to reduce or
optimize the traffic and thereby reduce pollution and increase efficiency. As the reasons
for Delhis problems are quite complex this chapter will focus on some of the major
Introduction of Instruments for the transport sector (Lena)

measures that have been implied. As stated by the government this includes the
development of a Mass Transportation Rail System which transports millions of people
every day as stated in chapter 2.2.2 and is planned to be further developed in the future.
Other measures where legal instruments such as the tightening of emission standards,
phasing out of old vehicles, requirement of catalysts or informational instruments such as
raising public awareness for health issues. As a major problem the enforcement of
regulations is quite difficult in Delhi due to corruption and low staff capacities.
Consequently, measures such as the mobile enforcement teams that are searching and
prosecuting vehicles lacking the required environmental standards are a critical aspect
for the effect that new regulations can have in practical use (Delhi Government, 2016).
According to the paper Sustainable and equitable transport system in Delhi: Issues and
policy direction published by the ESCAP United Nations which is referring to the Delhi
Masterplan 2021 which is published by the Delhi Development Authority (Delhi
Development Authority, 2005) the development of NMT, short for Non-Motorized-
Transport, is a major priority for a sustainable transport development in Delhi. An
efficient integration into the still growing Public Transport System, due to intelligent
planning of stations, planning of exclusive lanes as for cycles promises to increase the
demand for PT further and thereby make the usage of private vehicles less attractive.
Traffic management measures therefore include exclusive lanes not just for cycle but also
for buses. (Alam & Ahmed, 2013)
As a Road Space Rationing measure the selection of vehicles which are allowed to drive
on certain days depending on if the license has an odd or even number seems to be a
rather unconventional measure. Though it has already been enforced in Mexico City and
other cities as well (Banerji, 2015). Delhi has started a first trial period from the
01.01.2016 to the 15.01.2015 from 8am to 8pm and reported positive results. The
regulation took about one million cars off the streets every day and reducing pollutants
about 18% during noon hours and 10-13% over a 24 hours average (The Economic Times,
2016). Despite such solid results this measure also has a number of disadvantages such
as heavy protest from the citizens or the need for active enforcement. Also it is not a
permanent solution as it might restrict citizens too much and provoke them to avoid this
regulation by buying a second vehicle for instance.

Analysis of Instruments (Jonas)

4 Analysis of Instruments (Jonas)

Examples for policy instruments in case of road transport are discussed in the following
chapter. First lessons learned worldwide is presenting examples from all over the world by
analysing the impact on public, congestion and air pollution. Afterwards it will be discussed,
if it is possible to implement those measures in Delhi.

4.1 Lessons Learned Worldwide (Jonas)

The first two chapters about lessons learned worldwide will go into detail about
congestion pricing and the implementation of electric two-wheelers. The third chapter
gives a short overview over other measures.

4.1.1 Electric Two-Wheelers (Jonas)

The implementation of electric two-wheelers (E2W) will be analysed on the example of
China. In the last 15 years China experienced a fast grow of E2W with up to 28.5 million
sales in 2012 (cf. Figure 8), which meant a global market share of 92% (Fu, 2016).
Particularly in bigger cities like Beijing and Fuzhou E2W became quite popular (Wells &
Lin, Spontaneous emergence versus technology management in sustainable mobility
transistions: Electric bicycles in China, 2015)

Figure 8: Sales of electric bicycles in China (, 2016)

In 2016 there were already 2.5 million E2W on the streets of Beijing, while 300,000 are
sold each year. The fast grow was due to the beginning ban of motorized two-wheelers
within the city centres at 1997. Those bans offered a niche for E2W for private transport
in cities and together with a decreasing price development E2W are now especially
popular in the working class of China and the fast delivery services (Buckley, 2016). The

Analysis of Instruments (Jonas)

fast growth of E2W caused other problems than the noise and air pollution by
motorcycles. Missing regulations and unexperienced drivers were responsible for a rising
chaos on the Streets in the city centres. E2W driving on motorized and non-motorized
lanes where responsible for 3,600 fatalities in China 2009, which is almost 6 times as
much as in 2004 (Fu, 2016). In 2002 the Beijing government announced to ban E2W in
2006 from the streets like other cities like Guangzhou already did. They justified it by the
traffic chaos and the environmental damage due to the lack of battery recycling. Protests
from industries, citizen and the suggestions of researchers in the end convinced the
government to cancel the ban in 2005 (Wells & Lin, Spontaneous emergence versus
technology management in sustainable mobility transistions: Electric bicycles in China,
2015). Since April 2016 there are 10 streets in Beijing where E2W are banned from the
streets due to high traffic volume, high accident rates and missing bicycle lanes (Xinhua,

The development in China shows the advantages and also the drawbacks of a higher use
of E2W. The main advantage is to provide private transport with a small use of road space
and low emissions compared to motorcycles (cf. Figure 9).

Figure 9: Life-cycle analyses of E2W and other vehicles in China (Wells & Lin, Spontaneous
emergence versus technology management in sustainable mobility transistions: Electric bicycles in
China, 2015, p. 375)

Also those emissions are not emitted locally within the city centres but regional
depending on the electricity mix used for the E2W. The drawbacks are estimated to be the
higher fatality risk and the environmental damage due to illegal disposal of used batteries.
Also the traffic chaos showed that there is a need for regulations and traffic management.

Analysis of Instruments (Jonas)

4.1.2 Congestion Pricing (Jonas)

Congestion pricing is one of the most popular and successful
measures considering traffic management. It is already
implemented in Cities like London, Seoul, Singapore and
Stockholm. In the following especially the measures taken in
Stockholm and their effects will be discussed. In conclusion the
effectiveness will be analysed by comparing the effects of
congestion pricing in different cities.

In 2005 the government of Stockholm had run the so called

Stockholm Trial where the planned congestion pricing was tested Figure 10: Prices of the
Stockholm congestion pricing
in a period from January to August. During the trial drivers had to (Own illustration based on
(Hugosson & Eliasson, 2006)
pay on weekdays between 06:30 and 18:30 (cf. Figure 11) at toll
stations to enter the city centre of Stockholm. Also included was an expansion of public
transport with 197 new buses and 16 new bus lines as well as 2800 new park-and-ride
facilities. The trial was responsible for a massive cut in vehicles entering the city centre.
A reduction of 78,000 less
vehicles entering the city every
weekday was observed without
high variations (cf. Figure 12)
(Hugosson & Eliasson, 2006).
During the trial the public opinion
about congestion pricing changed
from a slight refusal to a high
acceptance rate. In August 2007
the congestion pricing was
implemented permanently in
Stockholm and the statistics Figure 11: Traffic Reduction in Stockholm during the trial (Hugosson &
Eliasson, 2006, p. 7)
prove, that the observed effect
during the trial was not temporary. To the contrary the traffic reduction compared to
2005 increased over the years from 18.1% in 2007 to 22.1% in 2013. Also outside the
inner city the traffic volume was constantly 5 % lower and therefore less congestion than
there was before the congestion pricing. The travel time inside and outside the congestion
pricing zone was reduced by up to 50 % in average.

Analysis of Instruments (Jonas)

While the traffic and congestion was reduced the measure also had an effect on air
pollution, especially within the city centre (Eliasson, 2014). Over this area the reduction
in air pollution was between 10 and 15 % which also means an important health benefit.
Johansson et al. estimated the health benefit to be 206 gained years of life per 100,000
people over a 10-year period for the whole Stockholm area with around 1.44 million
inhabitants (Johansson, Burman, & Forsberg, 2009). The total system costs for the
Stockholm congestion pricing are estimated to be around 1900 million SEK (205 million
), while the running costs started with 220 million SEK in 2007 today the National Road
Administration pays 250 million SEK in total for the systems in Stockholm and

4.1.3 Other Measures (Jonas)

Collaboration with Companies in Sao Paulo
An initiative in Sao Paulo from the World Bank and the World Resources Institute had set
up a cooperation with 20 local companies to reduce the traffic impact of their over 1,000
employees. In the first step researchers calculated the economic impact of long
commuting for the companies to incite them for setting up measures for supporting
transport alternatives.
In result the companies were willing to constitute new measures for a more sustainable
transport. Some companies now provide showers and lockers within their buildings to
support cycling and walking to work. Others support carpooling by giving better parking
spaces or financially reward the use of public transport. Also companywide education
programs were considered to be effective to overcome cultural barriers like the car as a
status symbol. Overall an increased use of public transport, improved health and well-
being has been observed by the initiative (Valk, 2016).

Low Emission Zones in Germany

Low emission zones (LEZ) have been implemented in Germany in more than 40 cities
today (Federal Environment Agency, 2016). The main goal of LEZ was to reduce the
emissions of particular matter within the high polluted city centres, but also effects on the
traffic flow was expected due to less cars entering the centre. Vehicles were classified by
pollution classes and by restricting classes allowed to enter the city centres the
governments expected to lower the emissions due to traffic. Studies about the LEZ came
to different conclusions of the effectiveness of LEZ. While Lutz and Rauterberg-Wulff
(2010) concluded that the LEZ have lowered the emissions in Berlin but didnt had any
Analysis of Instruments (Jonas)

effect on the traffic flow, other researches werent able to show a significant impact of all
LEZ, neither on traffic flow nor on emissions (Morfeld, Groneberg, & Spallek, 2015). They
stated out that the effect of LEZ is highly varying on the conditions within the city and that
it is not possible to say that the measure is overall effective also due to the low
classification standards.

Daily ban of cars based on license plates in Mexico City

Mexico City tried to fight the massive air pollution by taking cars of the streets during
weekdays based on their last license plate number. The measure was not implemented
against congestion but as they expected a lower use of private vehicles, there have been
expected also effects on congestions in the city. In the trial period from the 20th November
1989 onwards every private vehicle was not allowed to drive on one day a week and in
the first phase the program was very successful. A reduction in traffic of around 20% and
an increase of the average travel speed has been observed. Due to the success the
government made the measure permanent which changed the drivers behaviour
significantly. Those who were able to afford a second car bought one to avoid the driving
ban (Cambridge Systematics Inc., 2007). Overall the measure is considered as not effective
as the numbers of registered cars in Mexico City rose and also the emissions were back on
a high level due to the circumstance that most of the second cars were old high emitting
vehicles (Mathiesen, 2014).

License plate lottery or auction in Beijing and Shanghai

The large grow of population and private vehicles in the city area of Beijing and Shanghai
lead to many troubles like congestion and high air pollution in the city centres. To
approach the rise of private vehicles both cities implemented with a cut of new license
plates a similar but different measure. While Beijing has set up a license plate lottery,
Shanghai has implemented a license plate auction.

Since the start of the license plate auction 2002 in Shanghai the number of new cars has
been successfully reduced and a huge benefit for infrastructural measures generated. The
Price for a license plate rose from around 15,000 CNY (1,812 US$ in 2002) up to around
70,000 CNY in 2012 (11,021 US$ in 2012) (Zhao, 2013). To get a license plate for a new
car in Beijing the inhabitants have to register for the monthly lottery to have the chance
to get the license. This procedure is free for everyone to reach the most possible equity.
The lottery was able to cut down the vehicle growth rate from 15 % down to 3 to 4 % in

Analysis of Instruments (Jonas)

the first two years (Zhao, 2013).

Due to the restriction on buying new cars the prices on the second hand car market were
rising significantly in Beijing. Therefore the social equity has been reached only for the
lottery itself, but not for the whole car market. In Shanghai the auctioning system didnt
even tried to reach equity and is only available for people from the upper classes. Surveys
have shown, that the public acceptance of the lottery system is with around 45 % nearly
twice as high as the auctioning system. But the main disadvantage of the lottery is the fact,
that it either costs money than it earns. This lead to a combination of both systems in
Guangzhou by dividing the number of new cars on both systems (Zhao, 2013).

4.2 Assessment of lessons learned worldwide (Lasse)

If the measures presented in chapter 4.1 are effective and efficient for a city like Delhi will be
discussed in the following. The focus will as well be on the congestion pricing and the
electrification of two wheelers while other measures will be discussed briefly.

4.2.1 Congestion Pricing in Delhi (Lasse)

As one of the measures that can be implemented in the nearer future congestion pricing
might be an effective long term solution for Delhi. As in many other cities Delhi also
already has some experience with toll-based payment systems for usage of certain roads
or highways but can a specific congestion pricing measure be possible in a city like Delhi
and which are the barriers? A system like in Stockholm which has been described in the
previous chapters either requires several preconditions or instead a much higher effort
than a relatively simple toll system. For an adequate effect on congestion peak hours it is
therefore mandatory to find a payment system that can synchronize higher prices with
times of high traffic density. In Stockholm that was possible since the downtown city lays
on an island which is only accessible over several bridges. A toll station can simply
increase prices during peak hours. In Delhi the geographical situation is different. There
is no natural border separating downtown from the surrounding areas. There a several
highways leading into the city and two of them are already toll roads due to that they are
partly privatized. In reality most citizens dont take advantage of those roads since they
can easily escape priced roads due to the uncountable number of smaller streets and
pathways that run through the city of Delhi and thereby even have a further negative
effect on those small streets. Other aspects to consider are social fairness, financing and
the efficient usage of the earned money. A system that could work around most of those

Analysis of Instruments (Jonas)

problems would be an electronic system in which vehicles get equipped with an Invehicle
Unit, furtherly called IU in this report. Those IUs then will be able to track time if the
vehicle is being driven within a certain zone and can automatically charge a certain
amount of money per kilometer during congestion times. The implementation would be
mandatory for the whole targeted group of vehicles.

Examples from other countries show that this measure has several positive effects. As in
Singapore for instance the traffic entering the restricted zones has declined 20-24 percent
since its implementation in 1998. Therefore average traffic speeds increased from 30-35
km/h to 40-45km/h has a positive effect on the emissions since engines are naturally
running with a better efficiency at that speed. Seoul in the Republic of Korea is another
city that profits from the advantages of congestion pricing. Despite those positive effects
there are several barriers such as high costs which were 115 million USD for Singapore in
1998. Considering that Singapore is severely smaller and has a higher income per capita
than India (
India) a similar system is a dramatic investment for Delhi especially regarding the fact
that half of the investment costs for Singapore were spread on implementing the IU for
vehicle owners with a lower income. (Gwilliam, Kojima, & Johnson, Reducing Air Pollution
from Urban Transport, 2004, S. 67) Consequently congestion pricing might not be a
measure to implement on a short term scale but will still be an effective long term solution
to keep traffic less dense. As the report Reducing Air Pollution from Urban Transport
states on page 67: Direct pricing of road use has a high potential in developing countries
both as a means of generating local revenue and of reducing congestion and air pollution.

4.2.2 Electrification of Two Wheelers in Delhi (Lasse)

As a city like Delhi which has such a big number of two wheelers (see chapter 2.1.1) the
development of electrification is especially interesting since other vehicles are still
causing problems to be successfully equipped with electro motors without too many
disadvantages. Bikes and cycles though work very well due to their light weight and
mostly shorter distances that they are meant to cover. A growing number of electrified
two wheelers will immediately have a positive effect on the local emissions and will also
reduce the overall emissions due to a higher overall efficiency but obviously also
depending on the energy mix that is used to charge them. The graph 1 shows that the
overall energy demand for two-wheelers tends to decline with a higher percentage of
electrification. While local CO2 emission will decline to zero, the overall emissions will be

Analysis of Instruments (Jonas)

reduced to around one third of its previous amount. This correlates a lot with the curve of
the overall energy use. A higher number of renewables within the local energy mix of
electric energy can reduce the overall CO2- and other emissions further.

Effects of motorbike electrification on Emissions







0,00% 20,00% 40,00% 60,00% 80,00% 100,00% 120,00%

Energy Use in kwh/pax-km Local Emissions CO2 g/pax-km Overall Emissions CO2 g/pax-km

Figure 12 Effects of electrified two-wheelers on energy usage and emissions depending on their share of the
total number of two-wheelers. Graph made from Data. (Wells & Lin, Spontaneous emergence versus
technology management in sustainable mobility transitions: Electric bicycles in China, 2015, S. 375)

Barriers for electric bikes are high costs as well as a charging infrastructure. Cycles with
removable batteries might be charged in the house but heavier two-wheelers might need
to be charged on the spot. This will require a certain infrastructure which is still needed
to be built. Since the population mostly often use scooters to drive with two plus baggage
or even more passengers, electric cycles wont be an option to substitute for fuel based
motor scooters or bikes.

4.2.3 Other Measures in Delhi (Jonas)

Low emission zones and daily bans of cars have been considered as more or less ineffective
and should not be considered to be implemented in Delhi. Fighting problems caused by traffic
with low emission zones would lead to dirty cars driving longer distances around the zones.
This could lead to even more congestion outside the city center, since Delhi has in most of the
areas only one highway going around the city. The daily ban of cars depending on the license
plate number would only have a short time effect on air pollution and congestion whereas it
would lead to more private vehicles per citizen. In Delhi this would cause even more traffic
Analysis of Instruments (Jonas)

chaos due to the usage of traffic lanes as parking spaces. Also for both measures bribery could
lead to no effects at all, since Delhi still has problems with this pattern.

License plate auctions or lotteries are effective in lower the growth rate of private vehicles
and thus could lower the pressure on building new streets for more cars. But it also causes
social inequality since only rich people could afford plates from auctions or buy second hand
cars where the prices would be expected to increase. Thus a system like that could only
function with great investments in public infrastructure together with cheap ticket prices.
Otherwise the inequality could lead to protests and political consequences.

The easiest measure to be implemented is the collaboration with companies. It would be easy
to proof the advantages of better transport systems for commuters since many studies and
data from other cities are available. Therefor a task force focusing on big companies with many
employees could reach awareness of public and private transport in Delhi and set up new
modes of transport like company buses. Induced by companywide awareness programs it
could also be possible to have an influence on more than the employees, since they could
spread their knowledge. Thus with relatively low investments a first step could be made
towards a more sustainable transport system with a positive impact on the local economy.

Recommendations and Conclusion (Lasse)

5 Recommendations and Conclusion (Lasse)

The risks and problems that are connected to the transport sector reach a critical point
in many cities all over the world. Delhi itself is certainly at a dramatic point with the
highest air pollutions in India and an incredible high traffic density that causes heavy
congestions at most times of the day.

Action Instrument Implemenation Costs Health Traffic

Traffic Management Other legal and planning - 0 0 0


NMT Other legal and planning + + + +


Exclusive Lanes Other legal and planning 0 0 0 +


PT Other legal and planning - - + +


Combining NMT and PT Other legal and planning 0 + + +


Odd and even number Command and control 0 + + +

plates instrument

Higher taxes on old Marked based 0 + + -

vehicles instrument

Parking restrictions / Command and control - 0 0 +

Enforcement instrument

Caps Command and control + 0 0 +


Bans Command and control 0 + 0 -


Congestion Pricing Marked based - + + +


Electrification of two Marked based - - + -

wheelers by using taxes instrument
or subsidees

Marketing and Informational + 0 + +

informations for PT and Instrument
against AP

Figure 13 Examples for current and future measure. Categorized into the kind of tool and evaluated into positiv
(+), neutral (0) and negativ (-) for the factors of difficulty of implementation, costs, effect on health and on

Recommendations and Conclusion (Lasse)

Figure 14 shows and overview on the measures to improve the situation. Blue colored
measures are already enforced with some success. Green measures are measures that are
not or not adequately implemented yet. For the conclusion of this report single measures
shall be highlighted and recommended.

Regarding the activities on traffic in the past the government is obviously aware of the
problem and is trying to change the situation for a better. Several current and possible
future measures are introduced and observed in this report and lead to the conclusion,
that the main goal for Delhi needs to be to reduce the number of vehicles. This also covers
the governments many current measures which aim is to increase usage of public
transport, car sharing (odd and even number plates) and NMT. Traffic management also
does play a big role such as exclusive lanes for PT or cyclists, combing NMT and PT. The
focus of the measures though is consequently withdrawn from intense new construction
of streets since it is threatening to worsen the situation for the time of constructions even
more and dont benefit in the long run since traffic density tends to increase again until
the same problem raises again. Due to the fact that heavy congestions also exist because
of ignorance towards regulations and traffic rules it is heavily recommended to raise
awareness for this matter and increase parking restrictions and enforcement of those
regulations. The government is already involved in enforcing regulations more
consequently but corruption make the attempts very inefficient. Additionally,
electrification of two-wheelers and introducing a congestion pricing system will
contribute to keep the Delhis traffic density, air pollution and accident numbers lower on
a long term scale.


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