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Integration of Environmental Considerations at Different Levels of Decision Making

5. Decision flow analysis

5.1 Introduction

The development of decision flow analyses for key actors in relation to sector specific environmental issues provides a clear and transparent summary of the decisions being taken, why and what tools can be used to influence these decisions. The analysis consists of the following steps:

	Identifying key decisions that affect the sustainability of production or consumption.
	Identifying key parameters which underlie these decisions. The parameters are the factors that the actor takes into account (consciously or unconsciously) when making a decision and the choice of possible outcomes. For example, whether a particular outcome is available, whether it will have an implication on the cost of the action, whether it will be suitable to the task, whether the actors know about all the options including the alternative with a lower environmental impact etc. These are all issues that may be of greater or lesser importance than environmental issues.
	Identifying gaps in current policy. Identification of the parameters allows policy makers to consider whether the current framework influences these parameters in favour of more sustainable production and consumption decisions or whether there are currently disincentives.
	Identifying potential tools which can be used to influence the parameters.
	Any framework conditions for the sector that can place constraints on the effectiveness of tools.

Examples of decision flow analyses for each of the four sectors are shown in Figures 5.1-5.4. These show the generic tools (right-hand side) which are used to influence the parameters (left-hand side) of each decision (columns). Presenting the information in this form may allow the policy maker to identify opportunities to use new types of tools in relation to a parameter or consider the use of existing tools in a new context. Further examples of decision flow analyses are presented in table form in Annexes A-D.

Section 5.2 describes the key parameters that emerged from the analysis of decision making in the transport sector in relation to climate change. Other decisions in the industry, transport, agriculture and energy sectors are illustrated in Annexes A-D respectively.

5.2 Transport and Climate Change

The decisions made by households and businesses, both in terms of passenger and goods transport, are generally the same for both actors:

	Is the journey necessary?
	If yes, what mode of transport should be chosen?
	If road transport is to be used, what make and model of vehicle should be purchased for personal use or for a company fleet?
	Finally, how should the vehicle be driven in terms of speed and technique?

Is the Journey necessary?

The key parameter for determining whether individual transport is necessary either for personal or businesses travel is the availability of alternatives to travel, currently largely determined by telecommunications technology for teleworking and the recent development of e-commerce facilities. Land use and urban planning also play a role in supporting mixed and high density development that reduce the need to travel long distances to work, school, shop or for leisure. For businesses involved in the transport of goods, the availability of resources and demands for supply arising from the transport of goods is also a key parameter. This will reflect the efficiency of production processes, logistics and the distances involved and will be largely influenced by costs.

The choice of which transport mode

Affordability. For passenger travel this is the cost difference between private road transport and public transport, reflecting purchase cost, fuel prices, road user and parking costs. For goods transport the comparison is between road and non road freight transport. The extent to which externalities are internalised in prices is key. Availability of the different transport options determined by infrastructure requirements, operator costs and regulation of services. Suitability of different transport options. Whether public transport services and rail freight services are designed to include the necessary facilities for different user groups and the capacity and capability of carrying different goods. Suitability also encompasses timetabling, reflecting frequency of services and journey duration. This parameter also includes considerations of convenience, since an option may be suitable but would require more thought or planning compared to getting into a car. Reliability. A major issue for all users which can be addressed through improved transport planning, regulation of services, collaboration between operators and provision of real time information to operators and users. Perception/habit. This is probably the overriding parameter for decisions about private car use by households. Despite an awareness of problems associated with private car use and access to other options, a poor perception of public transport and a dominant ‘car culture’ can lead to users being unwilling to change their reliance on car use. Conversely a well established culture of DIY transport (e.g. bicycle) for short journeys creates peer group pressure which may discourage those who would otherwise wish to use private cars in cities such as Copenhagen. Decision making by transport service operators, in areas such as which service to provide, timetabling and route planning, are largely based on considerations of demand, as set out above. Other parameters are capital and operating costs and the availability of suitable infrastructure.

Choice of vehicle make and model

The key parameters for these decisions are generally the same for households and businesses. If cars are the chosen form of transport then a key decision is which car to purchase in terms of energy efficiency or even alternative technologies? The key parameters are: Availability and affordability. At present alternative technologies are not generally available but energy efficiency is being addressed by most manufacturers. Research and development is key to providing affordable technologies but the use of fiscal instruments can support market penetration of low energy use vehicles, helping manufacturers to achieve a critical mass and achieve economies of scale until higher environmental standards are emulated by other manufacturers or incorporated in legislation. Suitability. Basic vehicle design is unlikely to change drastically for either more efficient vehicles or those based on alternative technologies. However, the introduction of alternative technologies will need to be supported by the provision of the necessary fuelling infrastructure. Driver behaviour is emerging as an increasingly important issue for reducing CO2 emissions from road transport. This has mainly been influenced by safety concerns and enforcement of speed limits but now the issue of reducing fuel consumption is being highlighted through driver education.

The key framework conditions for the transport sector are the availability and affordability of efficient public transport services and non road freight services. This includes the availability of the necessary infrastructure and a fair and efficient pricing system for the transport sector. The key instruments used to address these decisions include economic incentives, land use planning, and integrating transport services in terms of transport planning, timetabling, planning of intermodal transfer and network co-ordination.

The divergence between awareness of sustainability issues and actual willingness to act is an increasingly important consideration in encouraging sustainable transport decision making by households. Despite a general awareness of transport related environmental problems and the major role played by private car use it appears that a majority of those who own a car are unwilling to using public transport. The tools currently in place do not overcome the ‘car culture’ that predominates in many countries. A recent survey in the UK revealed that motorists are most concerned with price, fuel economy, safety and reliability. Few support the idea of higher fuel prices, electric cars or fitting cars with speed limiters. In the Netherlands, the advisory council VROMraad has stated that the government should shift policy from reducing mobility to cutting its negative effects through technology improvements, since ‘forcing’ people to use public transport is not succeeding.

Figure 5.1

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Figure 5.2

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Figure 5.3

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Figure 5.4

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