Prof. Young-Tae Chang

1. Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Thirty Eight APEC Transportation Working Group Meeting, Bali, Indonesia 1 – 5 July 2013 Framework for Evaluating the Externalities of Intermodal and Logistics System Regarding Cross-Cutting Issues of Transport, Energy, Environment and Human Health Graduate School of Logistics Inha University, Republic of Korea Economy: Prof. Young-Tae Chang

2. Co-Sponsoring Economies More economies gradually included Start with 3 APEC economies

3. What does the project Seek to achieve ? Objective The main objective of this project is to develop an integrated framework for evaluating supply chain and energy efficiency, emissions of greenhouse gases and other noxious gases, and their impacts on human population in intermodal and logistics system 1 2 Specific goals Practical application and derive social welfare increases Develop a state-of-the-art integration framework Test the framework model in a case study Assess cargo flows and the emissions from cargo transportation and pollutant concentration Reducing the pollution impacts on human population Perform health exposure assessment and monetize health impact on human population This project can enhance supply-chain connectivity to ensure sustainable and secure growth for not only contemporary, but more importantly next, generations.

4. 38th APEC Transportation Working Group, Bali, Indonesia July1-5, 2014 Why should APEC undertake this project? 1) Various APEC fora from Summits and Leaders’ meetings to High-Level Officials meetings and Working Groups have set forth their own goals and action plans unilaterally or at most bilaterally, for instance between Transportation and Energy 2) • APEC goals and action plans • 2012 APEC Summit in Vladivostok reaffirmed 10 % improvement in supply-chain performance by 2015 = 2013 APEC Trade Ministers Meeting in Surabaya • 2009 APEC Leaders in Singapore endorsed the Declaration in Sidney, 2007 of reducing energy intensity by at least 25 % by 2030 • 2012 High-Level Official Meeting on Health and Economy in St. Petersburg stated to fully capture economic returns of a healthy and productive population= 1994 APEC Environment Ministers in Vancouver 3) Vital for APEC to develop a framework Pressing need to develop an integrated framework to link all the goals and approaches in agendas germane to transport, energy, environment and human health (TEEH agendas)

5. 38th APEC Transportation Working Group, Bali, Indonesia July1-5, 2014 Total Cost of Proposal • Operational Account • sought from APEC • Overall: US$ : 75,000 • By category in USD: • Travel: US$ : 20,000 • Labor Cost: US$ : 54,000 • Publications & Distribution: US$: 1,000 • Expected Project Period: 12/10/13-12/20/14 US$ : 75,000

6. Methodology Methodology Combine UIC and GSL models and expand Univ. of Illinois at Chicago (UIC) team has been developing a state-of-the-art model linking traffic flow, emissions of noxious gases, dispersion of the pollutants and physical impact on human population in highway transportation 1 2 Graduate School of Logistics (GSL) team has been developing a sustainable intermodal transportation network modelto enhance Short Sea Shipping Combined model will be expanded into monetizing the impact on human population, estimating social costs and benefits of pollution reductions and applying the model to intermodal freight transportation Applying the framework Apply the framework to a real case of sponsoring/co-sponsoring economies and derive best policy-formulation

7. Proposal Framework Integrated Analysis Framework for Energy, Environment and Health Exposure Health Risk Assessment

8. an Example Framework Overall Framework Proposed Integrated Framework for this project

9. AERMOD • Air dispersion models measure how pollutant disperse into atmosphere and how its concentration disperse over time and space Source: Turner, 1994

10. Exemplary Methodology – Proposed Framework • Focus on project scale and scope • PM2.5 , CO2 as examples • Proposed integrated framework will be accomplished in the following four stages: • Stage 1: Development of an integrated framework between DynusT and MOVES • Stage 2: Automation of data flow between MOVES and AERMOD for air quality modeling • Stage 3: Development of health exposure indices (iF) • Stage 4: Monetizing the health impact and estimate social benefit/cost

11. 38th APEC Transportation Working Group, Bali, Indonesia July1-5, 2014 Work Plan and Project time lines May 31, 2014 Development of the integrated model Testing and validation of the model August 31, 2014 1 2 Oct. 30,2014 Applying the framework to a case 3 Nov. 30,2014 Policy-formulations and drafting a report 5 4 Submission of the final report Dec. 20, 2014

12. 38th APEC Transportation Working Group, Bali, Indonesia July1-5, 2014 How will the project help achieve APEC’s key priorities ? Contribute to regional economic integration by increasing the efficiency of Supply Chain Connectivity and addressing key Next Generation Trade and Investment Issues particularly in developing best practices on supply chain connectivity and designing innovative environment services. 1) • Contribute to Sustainable Growth by developing energy-efficient and low carbon technology • Strengthen health system for APEC, resulting in Secure Growth • Promote Innovative Growth via joint policy-formulation and research cooperation 2) Relevant APEC fora 2012 APEC Summit in Vladivostok; 2009 APEC Leaders’ Declaration in Singapore; 2013 APEC Trade Ministers Meeting in Surabaya; 2012 APEC Ministerial Meeting, in Vladivostok; 2012 APEC High-Level Meeting on Health and Economy in St. Petersburg; 2011 APEC Transportation and Energy Ministerial Meeting Action Agenda in San Francisco; and 1994 APEC Environmental Ministers’ meeting in Vancouver 3)

13. 38th APEC Transportation Working Group, Bali, Indonesia July1-5, 2014 How will the project help achieve APEC’s key priorities ? This proposal would be very timely and relevant to APEC priorities for 2013, especially how it relates to the APEC Supply Chain Connectivity Framework Action Plan 4) Direct link to the APEC Health Working Group and the APEC Energy Working Group since the TPT-WG was encouraged to partner with other working groups in its last meeting 5)

14. 38th APEC Transportation Working Group, Bali, Indonesia July1-5, 2014 Who are the beneficiaries and relevant stakeholders (APEC and non-APEC) and how they will be engaged in the project 1) 2) • APEC economies • Asia Logistics Round Table (ALRT) 2014 annual conference, Chulalongkorn University, Bangkok, Thailand, April 1-3, 2014 • Sino-American Logistics Conference and US-China Transportation Forum More economies gradually included Start with 3 APEC economies Non- APEC economies International Association of Maritime Economists (IAME) 2014 annual conference, Norfolk, Virginia, USA, July 15-18, 2014 3)

15. 38th APEC Transportation Working Group, Bali, Indonesia July1-5, 2014 How you plan to communicate the results or benefits this project to other 1) 2) Plan to disseminate the results in 3 ways a. Uploading the report onto the APEC TPT website b. Presenting the results in major international conference (International Association of Maritime Economist/Asia Logistics Round Table…) c. Publishing papers in top-notch international journals

16. Thank You ytchang@inha.ac.kr