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Economic and environmental impact of transport sector on Europe economy

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Abstract

Transport sector plays an important role in today economy and society by connecting people, businesses and resources. Efficient and effective transport facilitates the free flow of people, goods and services, and contributes to the productivity in all other sectors in the economy. Over the past 60 years, European Union (EU) transport sector has improved and contributed significantly to EU economy. In Europe, transport sector accounts for about 5% of gross domestic product (GDP) and more than ten million people are directly employed in 1.1 million transport companies (European Commission, EU transport in figures—Statistical pocketbook, 2012). However, transport sector does have fundamental environmental impacts on air, land, water, ecosystem and human health. In EU transport sector is responsible for around a quarter of greenhouse gas (GHG) emissions, making it the second biggest GHG emitting sectors after energy. In this paper, our objective is twofold. Firstly, our aim is to present an approach to look into the relation between transport sector and the economic system as a whole, based on the quantification of the impact of the “transport sector output” on total output and income. We compare the economic impact of the production of different types of transport industries, observed in the European countries. Secondly, we present an approach that allows to examine and identify the role, or impact of the transport sector responsible for CO2 emissions in the European countries. Our approach shows the contribution of transport sector to CO2 emissions both from demand and supply perspective. The comparative analysis is performed among four European countries which make up the large portion of the European GDP: France, Italy, Germany and United Kingdom (UK).

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Notes

  1. The details of the 35 industries is illustrated in the “Appendix A”, Table A1.

  2. Market shares and technical coefficients for the selected countries are displayed in “Appendix A” and Figures 3, 4, 5, 6, 7, 8, 9, 10.

  3. From this consideration matrices \( {\mathbf{U}}, \;{\mathbf{S}} {\text{and}} {\mathbf{V}} \) can be easily shown working on Eq. (8). Further premultiplying matrix \( {\mathbf{R}} \) by its transpose \( {\mathbf{R}}^{\text{T}} \) one obtain

    \( {\mathbf{R}}^{{\mathbf{T}}} {\mathbf{R}} = [{\mathbf{USV}}^{{\mathbf{T}}} ]^{{\mathbf{T}}} {\mathbf{USV}}^{{\mathbf{T}}} = {\mathbf{VS}}^{2} {\mathbf{V}}^{{\mathbf{T}}} \) The columns of matrix \( {\mathbf{V}} \) are the set of orthonormal eigenvectors of the real symmetric matrix \( {\mathbf{R}}^{{\mathbf{T}}} .{\mathbf{R}} \) and that the elements of the diagonal matrix \( {\mathbf{S}} \) are the square roots of the eigenvalues of matrix\( {\mathbf{R}}^{{\mathbf{T}}} \cdot {\mathbf{R}} \), that is \( {\mathbf{s}}_{{\mathbf{j}}} = \sqrt {\lambda_{i} ({\mathbf{R}}^{{\mathbf{T}}} \cdot {\mathbf{R}})} \). By post multiplying matrix \( {\mathbf{R}} \) by its transpose one obtains \( {\mathbf{R}} {\mathbf{R}}^{{\mathbf{T}}} = {\mathbf{USV}}^{{\mathbf{T}}} [{\mathbf{USV}}^{{\mathbf{T}}} ]^{{\mathbf{T}}} = {\mathbf{US}}^{2} {\mathbf{U}}^{{\mathbf{T}}} , \) where the columns of matrix \( {\mathbf{U}} \) are the set of orthonormal eigenvectors of the real symmetric matrix \( {\mathbf{R}} \cdot {\mathbf{R}}^{{\mathbf{T}}} \) and the elements of the diagonal matrix \( {\mathbf{S}} \) are the square roots of the eigenvalues of matrix\( {\mathbf{R}} {\mathbf{R}}^{{\mathbf{T}}} \). It is worthwhile to mention that the square matrices \( {\mathbf{R}} \cdot {\mathbf{R}}^{{\mathbf{T}}} \)and \( {\mathbf{R}}^{{\mathbf{T}}} \cdot {\mathbf{R}} \) have the same set of eigenvalues.

  4. The policy control structure V 1 and the structure of policy objective 1 for Germany are shown in Figs. 11 and 12 in Fig. 12 in the “Appendix B”.

  5. Second set highly stimulated industries are: 23, 24, 20, 21, 17, 12, 8, 3, 1.

  6. The policy control structure \( V_{1} \) aggregated value is 100 and is determined in terms of its modulus \( V_{1} \).

  7. The direct CO2 emissions data for each country obtained from (http://www.WIOD.org).

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Author information

Authors and Affiliations

  1. Department of Management Sciences, Ghulam Ishaq Khan Institute of Engineering Sciences and Technology, Topi, Pakistan

    Yousaf Ali

  2. Economics and Law Department, University of Macerata, Macerata, Italy

    Claudio Socci, Rosita Pretaroli & Francesca Severini

Authors
  1. Yousaf Ali
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  2. Claudio Socci
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  3. Rosita Pretaroli
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  4. Francesca Severini
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Corresponding author

Correspondence to Yousaf Ali.

Appendices

Appendix A: Tables

See Table 5

Table 5 35 Sectors of the economy
Full size table

Appendix B: Figures

See Figs. 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14.

Fig. 3
figure 3

Market shares in France

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Fig. 4
figure 4

Technical coefficients in France

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Fig. 5
figure 5

Market shares in Germany

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Fig. 6
figure 6

Technical coefficients in Germany

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Fig. 7
figure 7

Market shares in Italy

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Fig. 8
figure 8

Technical coefficients in Italy

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Fig. 9
figure 9

Market shares in UK

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Fig. 10
figure 10

Technical coefficients in UK

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Fig. 11
figure 11

Dominating policy control and transport type industries (Germany)

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Fig. 12
figure 12

Dominating policy objective and transport type industries (Germany)

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Fig. 13
figure 13

Dominating policy objective and transport type industries (Italy)

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Fig. 14
figure 14

Dominating policy control and transport type industries (Italy)

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Ali, Y., Socci, C., Pretaroli, R. et al. Economic and environmental impact of transport sector on Europe economy. Asia-Pac J Reg Sci 2, 361–397 (2018). https://doi.org/10.1007/s41685-017-0066-9

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  • DOI: https://doi.org/10.1007/s41685-017-0066-9

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