Roads are the arteries through which the economy pulses. By linking producers to markets, workers to jobs, students to school, and the sick to hospitals, roads are vital to any development agenda. Since 2002, the World Bank has constructed or rehabilitated more than 260,000 km of roads. It lends more for roads than for education, health, and social services combined. However, while roads bring economic and social benefits, they can also come with social costs such as pollution or deforestation. The Amazon rainforest is crisscrossed by almost 100,000 km of roads—enough to circle the Earth two and a half times. And the transport sector accounts for about 23 percent of global energy-related carbon dioxide emissions and a significant share of local particle pollution. Such tradeoffs need to be weighed when planning any intervention.
The Creative Wealth of Nations is a series of blogs related to Patrick Kabanda's forthcoming book on the performing arts in development.
It was a scene I still can’t forget.
A few years ago on a busy Kampala intersection, cars zoomed by while pedestrians braced themselves to cross a road. They lurched back and forth, like a fence being blown hither and tither by heavy winds. In frustration, a voice of a woman with a baby tucked on her back cried out: senga no wabawo atusasira. “I wish someone would be kind to us.”
Note from Let's Talk Development Editors: Co-authors Michael Keen and Ian Parry were not mentioned in an earlier version of this blog post, this has been corrected.
The central focus of climate talks that concluded last year in Lima has been on building wide agreements to restrict national emissions of greenhouse gases. But some important emissions are hard to allocate to individual nations: Those from international aviation and shipping. These currently constitute about 4% (and rising) of global carbon emissions, and are subject to almost no charges. This current state reflects heavy resistance to such charges, from industry and many governments, but also tax competition: Taxing these sectors by any one country can be hard due to their geographic mobility and international nature.
Economists often recommend fuel taxes to curb greenhouse gas emissions from automobiles in cities. But the effectiveness of these taxes depends heavily on other factors, like the availability of public transportation, and the density of a city. In the following podcast interview, I discuss my paper, co-authored with Paolo Avner and Jun Rentschler, and explain why taxes are twice as effective when accompanied by an investment in public transport. Please listen in.