The Intersection of Financial Regulations and Sustainable Travel: Exploring Cost Disparities and Environmental Implications

Alfred Tang

Hatched by Alfred Tang

Aug 28, 2023

3 min read


The Intersection of Financial Regulations and Sustainable Travel: Exploring Cost Disparities and Environmental Implications


The financial sector plays a crucial role in shaping economic activities and ensuring stability in various industries. Simultaneously, the issue of sustainable travel has gained significant attention due to its environmental implications. In this article, we will explore the surprising connection between financial regulations and the cost disparities between train and air travel. We will also delve into the environmental impact of the aviation industry and the need for policy changes to promote sustainable travel.

Financial Regulations and Travel Costs:

In the "consultation-paper-recommendations-by-srac.pdf," a proposed implementation timeline for financial regulations highlights the importance of segregating the financial sector into different categories. The first category focuses on a consolidated accounting group, while the second category includes associates, joint ventures, unconsolidated subsidiaries, or affiliates not included in the first category. Although this document may seem unrelated to travel costs, it sheds light on the complexity of financial regulations and their impact on various sectors, including transportation.

One might wonder how financial regulations influence travel costs. Surprisingly, the answer lies in the aviation industry's dominance and the presence of polluting subsidies. Aviation accounts for approximately 3 percent of global carbon dioxide (CO2) emissions, contributing significantly to climate change. However, despite its environmental impact, air travel often seems more affordable compared to train travel. This disparity can be attributed to the existence of subsidies that favor airlines, making their operations more cost-effective.

Environmental Implications of Aviation:

The aviation industry's carbon footprint is a growing concern, especially as global efforts to combat climate change intensify. The presence of polluting subsidies further exacerbates the issue. These subsidies not only lower airlines' operational costs but also discourage investment in cleaner alternatives. As a result, the aviation industry continues to emit large quantities of CO2, contributing to global warming and environmental degradation.

To address this issue effectively, it is crucial to re-evaluate financial regulations and subsidies within the aviation sector. By eliminating or reducing polluting subsidies and incentivizing greener practices, we can encourage the adoption of sustainable alternatives and mitigate the environmental impact of air travel.

Actionable Advice:

  • 1. Rethink Financial Regulations: Policymakers need to consider the implications of financial regulations on various sectors, including transportation. By incorporating sustainability goals into these regulations, we can drive change and promote greener practices. This can involve stricter criteria for subsidies and incentives that encourage the adoption of sustainable technologies.
  • 2. Encourage Investment in Sustainable Travel: Governments and financial institutions should prioritize funding and investment in sustainable travel options, such as high-speed rail networks. By diverting resources towards greener alternatives, we can level the playing field and make train travel a more affordable and attractive choice for travelers.
  • 3. Raise Awareness and Promote Responsible Travel: Education and awareness play a vital role in shaping consumer behavior. By highlighting the environmental impact of air travel and the benefits of sustainable alternatives, individuals can make informed decisions when planning their trips. Additionally, travel companies and organizations can contribute by promoting responsible travel practices and offering eco-friendly options to their customers.


The cost disparities between train and air travel are not merely a result of market forces or demand-supply dynamics. Financial regulations and polluting subsidies within the aviation industry play a significant role in shaping these discrepancies. To achieve a sustainable future, it is imperative to re-evaluate these regulations, eliminate subsidies that promote environmental harm, and invest in greener alternatives. By taking actionable steps towards sustainable travel, we can protect our planet and ensure a more equitable and affordable transportation system for all.

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