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Indispensable road freight transport

Road freight transport is associated with traffic accidents and environmental degradation. In the contemporary global and specialised economy, road transport is however a necessary prerequisite for economic growth. This is emphasised in a report from the Institute of Transport Economics.

Through emphasising the interconnectedness between economic growth, industrial organisation and transportation mode, the report analyses why road freight transport has grown faster than other forms of freight transport.

Geographical fragmentation of production and centralisation of stocks and ware­houses make higher demands on the speed, flexibility and reliability of transports. These are qualities that road freight transport possesses.

Society’s dependence on road freight transport is not reflected in the share of value added accruing to the hauling industry, however, which is characterised by low profit margins. Like other activities in a society with a high degree of mutual dependency between businesses, it is difficult to estimate quantitatively the total significance of road freight transport for economic growth, welfare and settlement.

Instead, the report takes a theoretical perspective on the hauling industry’s impact on productivity, market growth and welfare.

Source: TØI rapport 901/2007 (Norwegian), Godstransport på veg: Lastebilnæringens betydning for vekst, velferd og bosetting,  Thorkel C Askildsen og Anne Gjerdåker.

      

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