Abstract

This paper argues that a switch from current to efficient policies to internalise external effects from the EC transport sector might bring about significant positive effects on welfare. Policies should be selected on the basis of their welfare impact, or, if environmental benefits cannot be monetised, on the basis of cost-effectiveness. Applying these criteria to the main transport externalities - accidents, congestion, infrastruc-ture costs and air pollution - shows that available first best instruments are likely to comprise congestion charges in combination with efficiently formulated wear taxes, infrastructure construction rules, insurance schemes, standards and circulation taxes. Fuel taxes are critically absent from this list. Both the EC and the Member State level have an important role to play in formulating these policies.

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Panels of

Panel 2. Commercial Technologies and Buildings

Panel 1. Policy, Programs and Program Evaluation

Panel 4. The Energy-Environment Link

Panel 3. Human Dimensions of Energy-Use and Conservation

Panel 5. Transport