Environmental Challenges, Externalities and Sustainable Policies in Transport Sector in Egypt
Environmental Challenges, Externalities and Sustainable Policies in Transport Sector in Egypt

Summary/Abstract: The study analyzes the environmental effects, externalities and energy consumption in transport sector in Egypt. It focuses on external costs from transport sector and its economic impact on society expressed in monetary terms, and these external costs are mainly congestion, road accidents and air pollution caused by carbon dioxide emissions. The Human Capital approach is applied to estimate economic costs of road accidents in 2014 in terms of injuries, fatalities, damages in vehicles, suffer and loss and these economic costs are estimated to be 3.75 billion dollars. Moreover, the economic costs of air pollution mainly due to carbon dioxide emissions are estimated to be 2.8 billion dollars in 2014, and these estimated economic costs of both road accidents and air pollution are about 5% of GDP. In addition, environmental and safety transport policies are discussed. Also, internalization of externalities and policies adopted in transport sector in Egypt are illustrated and finally possible sustainable transport policies are recommended.

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