ABSTRACT
This chapter considers the transport-related environmental problems that governments need to tackle, and summarises the literature that justifies state intervention to reduce environmental impacts. It looks at the range of policy tools open to governments at different levels to reduce environmental impacts and the theory behind each of these approaches, and describes experience of implementing these policy tools in practice, by the means of case studies. These options range from voluntary agreements, through the imposition of Pigouvian taxes, to direct regulation of transport activities and to emissions trading schemes. The chapter discusses the implementation and operational challenges of each type of policy option. It concludes with a brief evaluation of the different policy options from the point of view of both their impact on environmental problems and the practicalities of implementation, including reference to the level of cooperation between agencies that is required for them to work.
