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Purpose – This chapter outlines the need for policy packages in urban areas, demonstrates how effective policy packages can be designed by combining appropriate policy instruments and discusses the implications for Chinese cities.

Methodology – The results in the chapter are derived from a predictive model of two UK cities (Edinburgh and Leeds), an objective function to reflect a city's objectives and constraints, and an optimising routine which identifies the most effective level of intervention for each policy instrument.

Findings – Where available, fuel taxes, fare levels, road pricing charges, low-cost capacity improvements and public transport frequencies are the most effective policy instruments. Optimal combinations designed to cost no more than current strategies offer substantial benefits to society. Infrastructure projects typically offer much lower value for money. Strategies designed to meet challenging climate change targets can be designed, but may well substantially reduce other benefits.

Research limitations/implications – Other policy instruments such as awareness campaigns and walking and cycling measures could be tested in a similar way. Similar analyses could be conducted in high growth contexts typical of Chinese cities.

Practical and social implications – Policy packages will be important for Chinese cities. They are likely to differ from European specifications, and include greater use of infrastructure. The methodology presented here could be applied to their design.

Originality – The chapter brings together research reported elsewhere, presents some new results on synergy and discusses the implications for China.

Anyone who follows climate change policy debates even casually knows that these debates are shot through with controversy about what ought to be done and who ought to be doing it. What sometimes get lost in these debates, however, are much deeper differences over the nature of the climate change problem itself. That is my focus in this chapter. I will take climate change as a prime example of broader debates over what constitutes “sustainable development” and draw upon different strands of the sustainability literature to show how these disagreements play out in the climate change context.

One of the principal tools in analyzing climate change control policies is integrated assessment modeling. While indispensable for asking logical “what if” questions, such as the cost-effectiveness of alternative policies or the economic efficiency of carbon taxes versus R&D subsidies, integrated assessment models (IAMs) can only produce “answers” that are as good as their underlying assumptions and structural fidelity to a very complex multi-component system. However, due to the complexity of the models, the assumptions underlying the models are often obscured. It is especially important to identify how IAMs treat uncertainty and the value-laden assumptions underlying the analysis.In particular, IAMs have difficulty adequately addressing the issue of uncertainty inherent to the study of climate change, its impacts, and appropriate policy responses. In this chapter, we discuss how uncertainty about climate damages influences the conclusions from IAMs and the policy implications. Specifically, estimating climate damages using information from extreme events, contemporary spatial climate analogs and subjective probability assessments, transients, “imaginable” surprises, adaptation, market distortions and technological change are given as examples of problematic areas that IA modelers need to explicitly address and make transparent of IAMs are to enlighten more than they conceal.

Purpose – The purpose of this chapter is to propose a cross-assessment model as an analytical tool for developing sustainable urban transport and land-use strategies for a low-carbon society.

Methodology – A cross-assessment model is developed based on demand and supply models of transport services. The model is able to generate a set of the optimal service levels in public transport reflecting selected target strategies. It is applied to an impact analysis of public transport and land-use strategies in 2030 for all of Japan's 269 urban areas,with outcomes – including the financial balance of public transport operation, user benefits and CO2 emissions reduction – compared among strategies and urban areas.

Findings – The analytical results show that three value factors of efficiency, equity and the environment do not necessarily conflict with each other. In particular, it is clarified that CO2-emission reduction targets can contribute to the improvement of both financial balance and user benefits at the national level. In addition, the results of comparative analysis among the land-use and transport integration (LUTI) scenarios demonstrate that a combination of urban transport strategies and land-use control in the form of ‘corridors and multi-centres’ provides greater emission reduction and increased user benefits.

Implications – The cross-assessment model developed in this chapter could serve as an analytical tool for strategic transport planning. The results in this chapter underlinethe benefit of LUTI strategies particularly in China.

This chapter develops and examines a model of the relationship between consumption and environmental degradation, using per capita gross domestic product (GDP) as the proxy for consumer behavior and per capita carbon dioxide emissions as the indicator of pollution. The time paths of emissions and consumption are modeled within a dynamic framework representative of ever-changing global economic and social conditions, and the result is expressed as an optimization problem from which Hamiltonian conditions are derived. Optimal control theory can be used to solve problems in dynamic economic analysis, and the Hamiltonian approach is one way of solving this class of problems. These conditions are analyzed through the use of a phase diagram, and the empirical section of the chapter reveals the relationship between CO2 emissions and GDP values for the aggregate of 148 nation states studied by the United Nations, as well as for developed, developing, and underdeveloped countries as classified by the United Nations. The results of our analysis are not encouraging unless significant changes are made to the policies of leading nations, and the chapter closes with a discussion of alternative policy paths that may ease the identified trends in environmental degradation.

Purpose – The shipping industry is generally recognised as having better fuel efficiency than other transport modes. In many regions of the world, therefore, policy has promoted shipping as the preferred freight transport mode of choice. In recent years, however, environmental problems associated with shipping have emerged. Several influential analyses have revealed the impact of shipping on air quality, particularly in the form of emissions of sulphur, nitrogen oxides and particulate matter, all of which have adverse consequences for human health.

Methodology/approach – An extensive environmental profile of shipping is provided, focusing specifically on the atmospheric pollution that is directly attributable to shipping operations.

Findings – It is important, however, to place the environmental profile of the shipping industry into the context of exactly how much transport work it does. This makes it clear that where shipping is a viable modal alternative then, in relative terms and most contexts, it still retains significant environmental advantages over other modes. The industry and its regulators have been slow, however, to improve its environmental profile and maintain its inherent advantage. Technical and operational measures which the industry may implement unilaterally are analysed, but these are deemed insufficient to stem the adverse tide of environmental concerns. Regulation is a necessity. Recently implemented regulatory measures are analysed, together with possible scenarios for the future regulation of greenhouse gas emissions. The IMO approach of global regulation is supported in preference to regionally based regulatory policies. There is also a danger that regulatory intervention may distort mode choice contexts.

Originality/value – The provision of an extensive environmental profile of shipping and an examination of this profile in relation to the importance of this transport mode to the global economy.

Carbon emission is one of the most important issues threatening the existence of the world. Mostly carbon emission induced climate change disrupts human and nature balance. Carbon emission occurs as a result of practices that are dependent on human activities or not. One of the actors causing carbon emissions is production companies. The companies are working toward reducing carbon emissions. However, although these efforts reduce carbon emissions in the short term, carbon emissions continue in the long term. Therefore, the present study aims to determine the importance of carbon emission in terms of sustainable economic development. Depending on this purpose, production companies in Chile were included in the scope of research for 1990–2019. Based on these data, the study has been tested by Toda Yamamoto causality analysis. Result shows that carbon emissions are not the primary cause of sustainable economic development. In this context, governments need to focus on other issues that have a stronger causal relationship with sustainable economic development. However, studies should be conducted to determine the importance of other activities of companies for sustainable economic development. Hereby, the amount of carbon emission will be reduced and deficiencies in factors affecting sustainable economic development will be identified.

Purpose – This study constitutes a first attempt to experimentally test the performance of a 100% auction versus a 100% free allocation of CO2 permits under the rules and parameters that mimic the EU ETS (imperfect competition, uncertainty in emissions' control, and allowing banking), with environmental targets more restrictive than the current ones but foreseeable for the near future.

Methodology/approach – Two experimental treatments were run to achieve our goal. Both included the rules and the parameters that parallel the EU ETS structure, the only difference being the rule for the primary allocation of permits.

Findings – Our experimental results indicate that the EU ETS has the potential to reduce CO2 emissions, achieving targets considerably more restrictive than the current ones at high efficiency levels, both with auctioned and free emission permits.

Practical implications – Concerns about undue scarcity, and corresponding high prices, in secondary markets generated by a primary auction market are not warranted under the proposed dynamic auction format. This adds arguments favoring auctioning over grandfathering as the rule for the initial allocation of emission permits in the EU ETS.

Originality/value of chapter – This study implements a theoretically appropriate auction format for the primary allocation of emission permits (the Ausubel (2004) auction) and incorporates a first attempt to include in the analysis measures of the risk preferences of subjects participating in emission permits experiments. These characteristics are for the first time implemented under a complex experimental design (including uncertainty of emission abatement, and banking), trying to parallel the EU ETS trading environment.

Purpose – In this chapter, the potential of Milk Run logistics, a method for consolidating freight, is analysed. Milk Run logistics provides a host of possibilities for consolidating freight transport activities and thus using transport capacity efficiently. It utilizes one vehicle to conduct several pick-ups/deliveries in a round trip, which means that the pick-up/delivery points should be located in a limited area which can be covered in a one-day trip.

Findings – Milk Run logistics seems highly beneficial in congested urban environments in developed and developing countries although it may also work in other areas. Furthermore, it can be linked to long-distance logistics, by rail for example, in the national and world-wide network of large companies.

Application – Examples for three automotive companies are given: Toyota with its logistic concept for the Bangkok region, Webasto, a supplier of hardtops and other car parts, and Audi, a daughter company of Volkswagen. All of them have introduced green logistics concepts including Milk Runs, which help to reduce CO2, waste material and – last but not least – costs.

Implications – The chapter concludes with indicating the high potential of Milk Run logistics to China and its rapidly developing automotive industry.