With transport emissions increasing at a faster rate than emissions in other sectors, mitigation action is needed. Mitigation action in the transport sector also often has economic and social benefits. However, data availability and a lack of established MRV systems are often roadblocks to such progress.

The Transport Pricing Methodology helps policymakers assess the impacts of pricing policies in the transport sector and improve their effectiveness. The document provides methodological guidance for assessing the GHG impacts of specific mitigation measures in the transport sector. The methods provided focus on the GHG impacts of fuel subsidy removals, increased fuel taxes or levies, road pricing and vehicle purchase incentives for efficient vehicles.

Executive summary

Chapters

1 & 2

What is the methodology and why should I use it?

These chapters provide an introduction to the methodology and an overview of objectives users may have in assessing the GHG impacts of pricing policies in the transport sector. This section should be read to understand whether to use the methodology and to determine what objectives it will be used for.

Chapters

3 & 4

Overview of the methodology

This section provides an overview of transport pricing policies and identifies the policies to which this guide can be applied. It also lays out an overview of the steps involved in assessing the GHG impacts of pricing policies, and provides guidance on planning the assessment.

Chapter

5

How to describe the policy or action being assessed

In this chapter, users will get guidance on the first step of the assessment process, describing the policy that will be assessed. Guidance is also provided on deciding whether to assess an individual policy or a package of related policies and choosing whether to carry out an ex-ante (forward-looking) or ex-post (backward-looking) assessment.

Chapter

6

How to identify the GHG impacts of pricing policies to assess

This chapter provides guidance for identifying the impacts of pricing policies. The guidance helps users to develop a causal chain by considering how the policy will be implemented, who will be affected by the policy, what the potential intermediate effects of the policy will be, and how these effects cause GHG impacts.

Chapters

7 - 9

How to quantify the GHG impacts

The guidance in Chapter 7 can be used for determining the baseline scenario, or the conditions most likely to occur in the absence of the policy being assessed. Guidance is provided for estimating the expected future GHG impacts of higher fuel prices in Chapter 8 and for assessing GHG impacts achieved by a policy to date in Chapter 9.

Chapter

10

How to assess impacts for vehicle purchase incentives and road pricing

This chapter provides supplementary guidance on estimating GHG impacts for two specific pricing policies.

Chapters

11 & 12

How to monitor indicators over time and report the results

This section is relevant for all users. Chapter 11 identifies data and parameters to monitor over time and provides guidance on how to develop a monitoring plan. Chapter 12 provides a recommended list of information to be reported, which ensures the impact assessment is transparent and gives decision-makers and stakeholders the information they need to properly interpret the results.

Appendix

A - H

Additional guidance

These appendices provide additional guidance or literature on price elasticities, other pricing policies and their impacts, the ASIF framework and how to involve stakeholders in an impact assessment. The final section explains how the scope of this methodology was selected.

Glossary, references and contributors

This section contains the glossary, abbreviations and acronyms, references and contributors.

List of key recommendations

This is a summary of the key recommendations provided throughout the methodology.

The transport sector did not get enough attention in the past. This was also due to challenges in the MRV process. As a result, the sector still has significant GHG reduction potentials and many cost effective measures can be applied. This initiative will make a strong contribution to enhance the understanding of how GHG effects from transport can be measured… It will help policy makers make the right long-term decisions to ensure the development of low carbon transport systems around the globe – all while meeting the ever increasing demand for mobility.

– Elisabeth Windisch, Ricardo Energy & Environment