Motivating modal shift or emission reduction on the basis of averages is against the basic principles of economics. Thünen, Cournot, Carl Menger, who received a PhD at the University of Krakau, and generations of economists eversince have established and confirmed that prices have to be set and resources are consumed in margins. The low levels of resource consumtion in freight transport is a result of competition and market at play. It is against reason, to use that as a motivation for additional subsidies for rail, unless a marginal analysis proved so. Further efficiencies should be reaped. The achieved efficiency of rail cannot serve as a reason for complacency of that sector. Otherwise thumbs up for ERA and Josef!
Motivating modal shift or emission reduction on the basis of averages is against the basic principles of economics. Thünen, Cournot, Carl Menger, who received a PhD at the University of Krakau, and generations of economists eversince have established and confirmed that prices have to be set and resources are consumed in margins. The low levels of resource consumtion in freight transport is a result of competition and market at play. It is against reason, to use that as a motivation for additional subsidies for rail, unless a marginal analysis proved so.
Further efficiencies should be reaped. The achieved efficiency of rail cannot serve as a reason for complacency of that sector.
Otherwise thumbs up for ERA and Josef!
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