Table 3.19 Policies, Legislation, and Regulations Aff ecting the

Table 3.19 Policies, Legislation, and Regulations Affecting the Transport Sector

LEVEL STAGE I: ENABLING CONDITIONS STAGE II: ADDITIONAL MEASURES

National Vehicle and fuel standards and taxes Sustainable transport policies Roadway design standards Energy policies and targets Environmental protection and management laws Universal design and participatory rules Capacity building and research Regional/metropolitan Urban expansion and land management policies Integrated transport improvement and land use plans Public transport provision and regulation Financial mechanisms (road pricing) Vehicular restrictions

Local Zoning and taxation Road space allocation Traffi c and parking regulations Financial mechanisms (value capture)

Source: Author compilation (Georges Darido).

Funding for investments in transportation and, occasionally, operation and maintenance may be fi nanced by vehicle and fuel taxes, bonds, and government-backed loans. The funding of transportation infrastructure typically requires participation by national or subnational governments, while local governments typically provide operations and maintenance with or without private sector participation.

A fuel tax is arguably one of the most important and eff ective fi scal measures because it directly levies users for consumption, but it is often politically diffi cult to pass or sustain. Fuel tax revenue is usually collected by national governments and then redistributed to fund roadway and transport investments. Most oil-importing countries impose a tax on transport fuels, but policies vary widely. In the United States, gasoline is taxed roughly US$0.12 per liter, but it is taxed several times more in European countries. The additional revenue collected in Europe has funded an arguably more sustainable mix of high-quality transport infrastructure and services, while encouraging less dependence on automobiles. Opponents argue that a fuel tax is socially and economically regressive because middle- and lower-income groups spend a greater share of their total incomes on fuel. For these and other reasons, national governments commonly adopt other taxes to raise revenue, including vehicle, registration, and licensing fees. A carbon tax is analogous to a fuel tax because greenhouse gas emissions are directly related to fuel consumption.

Many countries mandate road, vehicle, and fuel standards to promote safety, effi ciency, and quality. The United States, for example, requires automobile manufacturers to meet fuel effi ciency targets under the law on corporate average fuel effi ciency passed in 1975, but standards in many Asian and European countries are stricter, as illustrated in fi gure 3.48. Several countries also require that domestically sourced ethanol be blended into fuels, but the effi ciency of the ethanol production process greatly depends on the source of the fuel. Corn is the main fuel source in the United States. However, corn is inferior to sugar cane—a crop used in a successful ethanol program in Brazil—because corn is a major food crop that requires more resources to produce.

Other considerations at the national level include environmental protection laws, energy policies, and participatory regulations. Environmental laws often require a detailed review process to identify and mitigate project impacts on air, soil, water, and the environment (that is, impacts such as noise or visual intrusion). These rules infl uence transport policies or projects at the subnational level. For example, air quality regulations linked to federal transport funding in the United States have driven cities and states to implement vehicle inspection and maintenance programs that mandate emissions and safety standards for motor vehicles. National policies also include targets for energy effi ciency or independence. China, for example, has tar-