Evaluating environmental and economic impact of sustainability practices in transportation: a general equilibrium analysis of scenarios in Lithuania
摘要
Transportation is a vital component of the modern economy, playing a crucial role in its functionality. However, it also stands out as one of the significant contributors to pollution. This study evaluates the economic and environmental impacts of three sustainable transportation practices—public transport, efficient driving, and electric vehicles—on fuel consumption in Lithuania’s transport sector. The objective of this study is to assess the economic impacts—specifically changes in GDP and employment—as well as the effects on greenhouse gas emissions resulting from the adoption of sustainable transportation practices. The analysis covers both supply and demand scenarios, adjusting and utilizing the CleanProdLT general equilibrium model. This approach allows for assessing GDP, employment, and GHG emissions. The study results indicate that while efficient driving and public transport practices may reduce the added value contributed by the oil industry, their overall impact on the economy is positive. These practices also lead to a significant reduction in greenhouse gas (GHG) emissions. In contrast, the electric vehicle (EV) scenario showed a negative impact on GDP and employment, though it contributed positively to reducing GHG emissions. These findings highlight the importance of adopting diverse and integrated solutions to balance environmental benefits with economic stability, emphasizing the need for comprehensive strategies to mitigate potential adverse effects on the national economy.
Graphical abstract