MIRA external costs
09.33
From 2009 to 2010
Commissioned by MIRA, TML calculated private costs, marginal external costs, and the degree of internalisation for different transport modes. This method involved analysing both user costs and additional social costs due to factors such as congestion, pollution, and accidents.
Are we paying enough for the negative effects of transport?
Commissioned by MIRA, Transport & Mobility Leuven calculated the private costs, marginal external costs, and degree of internalisation for road, rail, inland waterway, and maritime transport. Private costs are the costs for the user. The external costs are the costs to society due to congestion, air pollution, climate change, accidents, noise, infrastructure damage, and, for cycling, health benefits as well. They are called marginal because they refer to the additional social costs incurred by an additional vehicle kilometre. The degree of internalisation shows to what extent users pay for the external costs they cause via taxes and charges.
Is the degree and manner of internalisation adequate?
Current taxes and charges cover only part of marginal external costs. The degree of internalisation is greatest for road traffic and more specifically for passenger cars. On average, petrol cars even pay too much. For road transport, external costs and the degree of internalisation vary greatly with the place and time of travel. From an economic point of view, differentiated taxes are therefore appropriate.
What are the main marginal external costs and which transport modes score best?
For road transport, the main marginal external costs are the costs caused by congestion, except for motorbikes, for which accident costs are the highest. For the other modes of transport (rail, sea, and inland waterways), overall marginal external environmental costs are the most important. For passenger transport, motorbikes have the highest marginal external costs. For passenger cars, diesel cars have the highest marginal external costs. Due to their higher particulate matter emissions, their marginal environmental damage costs are the highest. Collective transport modes such as buses and trains have lower marginal external costs per passenger kilometre than private vehicles due to their economies of scale. For freight transport, rail and inland navigation score better than road and maritime transport.
This report is an update and extension of the report "Internalisation of external costs of road traffic in Flanders" (2004).
Are we paying enough for the negative effects of transport?
Commissioned by MIRA, Transport & Mobility Leuven calculated the private costs, marginal external costs, and degree of internalisation for road, rail, inland waterway, and maritime transport. Private costs are the costs for the user. The external costs are the costs to society due to congestion, air pollution, climate change, accidents, noise, infrastructure damage, and, for cycling, health benefits as well. They are called marginal because they refer to the additional social costs incurred by an additional vehicle kilometre. The degree of internalisation shows to what extent users pay for the external costs they cause via taxes and charges.
Is the degree and manner of internalisation adequate?
Current taxes and charges cover only part of marginal external costs. The degree of internalisation is greatest for road traffic and more specifically for passenger cars. On average, petrol cars even pay too much. For road transport, external costs and the degree of internalisation vary greatly with the place and time of travel. From an economic point of view, differentiated taxes are therefore appropriate.
What are the main marginal external costs and which transport modes score best?
For road transport, the main marginal external costs are the costs caused by congestion, except for motorbikes, for which accident costs are the highest. For the other modes of transport (rail, sea, and inland waterways), overall marginal external environmental costs are the most important. For passenger transport, motorbikes have the highest marginal external costs. For passenger cars, diesel cars have the highest marginal external costs. Due to their higher particulate matter emissions, their marginal environmental damage costs are the highest. Collective transport modes such as buses and trains have lower marginal external costs per passenger kilometre than private vehicles due to their economies of scale. For freight transport, rail and inland navigation score better than road and maritime transport.
This report is an update and extension of the report "Internalisation of external costs of road traffic in Flanders" (2004).
