Air pollution, accidents, noise and climate change: transport has many costs that are not borne by the transport users themselves. On behalf of the federal government, INFRAS and Ecoplan have updated the methodology for calculating external effects and recalculated the figures for 2021. A new damage cost approach was adopted for calculating climate costs.
Every year, accidents, noise, air pollution and greenhouse gas emissions from transport generate costs that are borne by the public. These external effects are calculated for the whole of Switzerland on an annual basis.
On behalf of the Swiss Federal Office for Spatial Development (ARE), INFRAS worked with Ecoplan to review the existing calculation methodology and update the underlying data and assumptions for the year 2021.
The largest costs come from private motorised road traffic
The result: the external effects of transport in the year 2021 totalled approximately 24 billion Swiss francs. Of this, the highest costs were generated by damage due to climate change at seven million Swiss francs. The biggest contributor was private motorised road traffic, which accounted for 77% of the costs.
As a new addition, the costs of road transport were also calculated for each type of power – fossil fuels, electric and other. Furthermore, the costs for rail and road transport were broken down for each canton.
External benefits: third parties also benefit from improved health
In addition to external costs, external benefits were also considered – in particular, the health benefits of pedestrian and cycle transport. Third parties also benefit from improvements in individual health – for example, as a result of lower treatment costs or reduced losses in productivity. For the year 2021, the external health benefit was calculated to be approximately six billion Swiss francs.
Updated methodology results in higher costs
Various methodological adjustments were made, resulting in higher external costs of transport overall. This was particularly due to the climate cost rate (social cost of carbon). Previously, this was calculated on the basis of prevention costs – the costs that are incurred when measures to prevent or reduce damage are taken. In the updated methodology, a damage cost approach was chosen. This approach considers the costs of damage that has occurred and is expected.
INFRAS calculated the new climate cost rate using the open-source model GIVE (Greenhouse Gas Impact Value Estimator). The GIVE model was also used to calculate the current climate cost rate for the German Environment Agency (UBA). According to the assumptions made, the average climate cost rate for the year 2021 was 430 Swiss francs per tonne of CO2. Previously, the value was thought to be approximately 140 Swiss francs.
More information:
- Final report (in German)
- ARE dossier: External costs and benefits of transport
- Article of the Neue Zürcher Zeitung: “New study: should the Swiss triple the carbon tax?” (in German, Paywall)
- UBA report: Methodological convention for the assessment of environmental costs
Other INFRAS projects on this topic:
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