External costs

Boekcode: VPD

General

External costs are caused by the harmful byproducts of transport and industrial activities. The attractiveness of certain modes of transport can be partially explained by relative low prices and the fact that other effects (e.g. pollution) are not included in the final cost. To include this inflicted damage to the environment one can add a fee to existing transport prices. Negative effects on the environments are charged to the pollutant and the end customer. External costs can be attributed to direct charges but can also be reimbursed indirectly. The carbon footprint concept is one of the proposed measures to determine if a mode of transport is more harmful to the environment compared to other alternatives. It is commonly being used to assess ecological performance but can also be extended to rate consumer goods as it reflects the actual cost of a product. Global warming or climate changes are claimed to be influenced by pollution generated by combustion engines found in trucks, ships, trains and airplanes. Since road transport remains one of the dominant modes of transport within the EU a modal shift policy is being applied to reduce pollution levels. The idea that a polluter should repair the damages done to the environment gains more support. It will increase the search for more sustainable transport logistics solutions.