Economic Perspectives on Bhutan's Transport Sector: A Review of Growth and Sustainability Challenges

Abstract

This literature review focuses on the economic perspectives on Bhutan’s transport sector, highlighting the sustainability and challenges of growth. Bhutan’s environmental sustainability and economic development are directly associated with the unique transportation challenges, owing to the country being landlocked and diverse topography. The review explores existing studies on the economic impact of transportation infrastructure in Bhutan, navigating its sustainability concerns and role in national growth. Although Bhutan’s transport sector plays a pivotal role in facilitating trade, commerce, tourism and connectivity for the country’s economic development, it also brings numerous challenges such as high resource consumption, high dependence on imported fossil fuels, and environmental degradation. This review captures the concerns between sustainable development initiatives (eco-friendly practices) and rapid economic growth strengthened through transport networks. It emphasizes key issues related to environmental concerns, carbon footprint, alternative sources of energy, and the need for cohesive policies to promote sustainable transport systems in the country. Through this relevant literature, it identifies gaps in current research and provides insights for concerned policymakers, suggesting that Bhutan should balance the need for transport development with the need to address climate change. This finding highlights the significance of adopting a smart, green transport system to support both economic growth and environmental sustainability, encouraging Bhutanese policymakers to prioritize sustainable transport policies in the transport sector.