2003 - Annual Energy and Transport Review

Transport and energy together represent the arteries of modern industrial societies. The two sectors have a strong mutual dependency with all forms of transport relying on energy and accounting for 30% of its total consumption (and nearly 60% of total oil consumption). Energy supply in turn relies upon transport - waterways, rail, road and pipelines. The prominent role of both sectors for a sustainable development can shortly be illustrated from the economic, ecological and social points of view: (1) They contribute significantly to economic gross value added (GVA), with energy representing some 4.3% and transport slightly more than 6% of GVA including auxiliary transport services such as travel agencies, transport intermediaries and warehouse and storage services. Not to mention that the output of transport and energy-related industries such as car or gas turbine manufacturing, inter alia, leads to contributions estimated at an additional 2%, such that the two sectors approximately account for an estimated 12.3% of the economic gross value (all percentages refer to the direct contribution of the sectors). Their smooth functioning not only ensures a sound development of both sectors but also generates productivity increases in other sectors, hence contributing to the Community’s international competitiveness. Such indirect effects further increase the two sectors’ high relevance within the economy. (2) They strongly influence the path of economic growth which is widely dependent on the functioning of international trade and the stimuli stemming from innovative energy production/processing, mobility and logistics. (3) They open equal opportunities for the development of regions and provide low-income groups access to mobility (in particular by public transport). (4) They are jointly responsible for the largest share of emissions of greenhouse gases and other pollutants and are thus a major vector to achieving sustainability. Due to their high economic significance, it is very important to minimise production costs without sacrificing flexibility or reliability. In the energy sector, the cost of electricity is particularly critical as it represents about half of the economies’ energy bill where prices vary widely across the Community and its trading partners. In contrast, the price of fossil fuels (excluding taxes) is more uniform because it is determined by global markets. In the transport side, the ongoing market opening has resulted in high competition and very low transport service costs and market prices for the air and road sector. However, current attempts to internalise external costs into infrastructure charging schemes might result in somewhat increasing figures. Apart from costs, flexible and responsive transport of passengers, goods and energy is particularly important for the completion of the Single Market. It enables manufacturers at different stages of the chain to connect and to use advanced management schemes such as JIT (just in time) to minimise their inventory costs. Reliable high-speed/low-cost connections assist international diversification of production and allow manufacturers to exploit the potentials of international work sharing. In combination with rapidly developing telematics, reliable supply chains can be scheduled which overcome the obstacle of physical distance. Rapid passenger services also contribute to industrial productivity and in addition help Community citizens enjoy a high standard of social life. Tourism is one of the most important consumer service industries which presupposes a variety of high-quality and low-cost opportunities for international travelling. Three sets of adjustments are needed to give a more complete picture of the overall economic roles of energy and transport: (1) The extensive subsidies granted to the transport sector and to coal mining; (2) The economic costs of under-performance and limitations to accessibility in the two sectors. Examples for the energy sector include the consequences of power blackouts and potential gas shortages; for the transport sector, the results of congestion on the roads, delays, cancellations or generally slow speeds in the rail and air sectors, together with limits in access to transport for citizens and business; (3) The externalities arising from their activity - environmental emissions, noise, visual intrusion, injuries and loss of life as well as costs and hazards associated with the nuclear cycle. The levels of accidents, noise, air pollution and greenhouse gas emissions from these sectors are such, that they are the focus of environmental and safety policy.


  • English

Media Info

  • Media Type: Web
  • Features: CD-ROM; Figures; Tables;
  • Pagination: 84p

Subject/Index Terms

Filing Info

  • Accession Number: 01001415
  • Record Type: Publication
  • ISBN: 92 894 7889 6
  • Files: TRIS
  • Created Date: Jun 29 2005 4:20PM