OECD Environment Working Papers
This series is designed to make available to a wider readership selected studies on environmental issues prepared for use within the OECD. Authorship is usually collective, but principal authors are named. The papers are generally available only in their original language English or French with a summary in the other if available.
- ISSN: 19970900 (online)
- https://doi.org/10.1787/19970900
Mobilising Private Investment in Sustainable Transport
The Case of Land-Based Passenger Transport Infrastructure
Transport infrastructure is a pillar of economic development and a key contributor to climate change.
Globally, transport-related greenhouse gas emissions are expected to double by 2050 in the absence of new
policies. There is an urgent need to scale-up and shift transport infrastructure investments towards lowcarbon,
climate-resilient transport options and help achieving the environmental, social and economic
benefits associated with sustainable transport infrastructure. Given the extent of investment required to
meet escalating global transportation infrastructure needs, and the growing strains on public finances,
mobilising private investment at pace and at scale will be necessary to facilitate the transition to a greener
growth. Investment barriers, however, often limit private investment in sustainable transport infrastructure
projects, due to the relatively less attractive risk-return profile of such projects compared to fossil fuelbased
alternatives. In part, this can be attributed to market failures and government policies that fall short
of accounting for the full costs of carbon-intensive road transport and the benefits of sustainable transport
modes.
Keywords: infrastructure, development, climate change, private investment, urban planning, climate finance, transport, transport policies
JEL:
O18: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure;
Q01: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / General / Sustainable Development;
L92: Industrial Organization / Industry Studies: Transportation and Utilities / Railroads and Other Surface Transportation;
R40: Urban, Rural, Regional, Real Estate, and Transportation Economics / Transportation Economics / Transportation Economics: General;
G18: Financial Economics / General Financial Markets / General Financial Markets: Government Policy and Regulation;
Q50: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: General
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