ABSTRACT
This chapter discusses some details of the climate impacts of the transport sector and their contribution to the external costs of the different transport modes. It looks at state actions to stimulate the market players in order to take avoidance measures and deals with concrete options for shifting transport from air to rail. The transport sector produces about one fifth of the global CO2 emissions and shows high growth dynamics. In the aviation sector the emission trading scheme applies only to flights between airports in the European Economic Area. Savings of CO2 emissions is the major external cost advantage of railways when compared with aviation. The railway sector has a long tradition of public subsidization since the state took over the governance in many countries by the end of the 19th century after spectacular bankruptcies of private railway companies and increasing importance for military purposes.
