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Internalisation of external effects in European freight corridors
Posted on: 17 May 2013
By: mackene
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Filed under: News
External effects or externalities “consist of the costs and benefits felt beyond or ‘external to’ those causing the effect”. In the case of transportation, the negative externalities (costs) can take the form of air pollution, noise and accidents. Since external effects do not have a market price, external effects are a form of market failure. Wear and tear of the infrastructure is external to individual drivers and operators, and thus also included in the analysis. The aim of this project is to study the rate of internalisation of external effects through taxes and charges in two European freight corridors during 2012; for road, rail, and sea transport, respectively. The study is based on two presumed freight corridors, between Norway (Narvik) and Italy (Naples), and between Norway (Oslo) and the Netherlands (Rotterdam).
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