The warming of the climate system has raised a lot of concerns for decades, and this is traceable to human activities and energy use. Conspicuously, the transportation sector is a great contributor to global emissions. This is largely due to increasing dependence on private vehicles and a poorly planned public transportation system. In addition to economic impacts, this also has significant environmental and sustainability implications. This study demonstrates a novel approach using spatial logarithmic mean Divisia index (LMDI) to analyze drivers of traffic flow and its corresponding CO2 emissions in regions through an illustrative case study in the Philippines. Population growth is revealed as the main driver to traffic flow in most regions with the exception of a few regions and the national capital which are driven by economic activity. The economic activity effect shows positive trends contributing positively to traffic flow which is greatly linked to income level rise and increase in vehicle ownership. Concerning the impacts, results revealed that an increase in economic activity generally causes traffic intensity to decrease, and switching to more sustainable modes is not a guarantee to reduce carbon emissions. The authors recommend increasing equity on the appropriation of transport infrastructure projects across regions, quality improvement of public transport services and promoting mixed-use development.
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