BEST PRACTICES FOR ESTIMATING EXTERNAL TRANSPORT COSTS

Transport activities give rise to environmental impacts, accidents, congestion, and infrastructure wear and tear. In contrast to the benefits, the costs of these effects of transport are not fully borne by transport users. Without policy intervention, the so called external costs are not taken into account by transport users when they make travel decisions. Transport users are thus faced with incorrect incentives, leading to welfare losses.The next study gives a perspective to what it could be done