The external costs of transport are important in the analysis of transport policies and projects. Such analyses require the estimation of external costs on a consistent and appropriate basis. It is appropriate to measure these costs at the margin, and in this paper, for the first time, the marginal external costs for UK passenger transport are estimated. These costs were estimated by type and time of journey for different sectors of the UK passenger transport market. Where necessary, new techniques and models were developed to estimate marginal external costs. Otherwise, standard techniques and existing valuations were used. The estimates of the marginal external costs of local air pollution and global warming are surprising low. Possible errors and omissions are examined for these estimates.
Get full access to this article
View all access options for this article.
References
1.
AgostiniPBoltheonMCarraroM, 1992, “A carbon tax to reduce CO2 emissions in Europe”Energy Economics14272–290
2.
BanisterDButtonK (Eds), 1993Transport, the Environment and Sustainable Development (Spon, London)
3.
BarbierE B, 1989Economics, Natural-resource Scarcity and Development: Conventional and Alternative Views (Earthscan Publications, London)
4.
BeckermanW, 1992, “Economic growth and the environment: Whose growth? Whose environment?”World Development20481–496
5.
BeeversSBellSBrangwynMRiceJ, 1994, “Air quality in London: First report of the London Air Quality Network”, Association of London Authorities, London Boroughs Association, and South East Institute of Public Health; copy available from South East Institute of Public Health, Broomhill House, David Salomans Estate, Broomhill Road, Tunbridge Wells, Kent TN3 OXT
6.
BirdsallNSteerA, 1993, “Act now on global warming—but don't cook the books”Finance and Development30(1) 6–8
7.
BossierFDe RousR, 1992, “Economic effects of a carbon tax in Belgium: Application with the macrosectoral model HERMES”Energy Economics1433–41
8.
BouladonG, 1991La Mobilité en Zone Urbaine: Apprendre l'Économie des Transports (OECD, Paris)
9.
BroomeJ, 1992Counting the Cost of Global Warming (White Horse Press, Cambridge)
CarstenO M JTightM RSouthwellM T, 1989, “Urban accidents: Why do they happen?”, AA Foundation for Road Safety Research, Norfolk House, Priestley Road, Basingstoke RG24 9NY
12.
CBI, 1989, “Trade routes to the future”, Confederation of British Industry, Centre Point, New Oxford Street, London WC1A 1DU
13.
CEC, 1992, “Green paper on the impact of transport on the environment—a community strategy for sustainable mobility”, Com(92) 46 final, Commission of the European Communities, Brussels (Office for Official Publications of the European Communities, Luxembourg)
14.
ClineW R, 1991, “Scientific basis for the greenhouse effect”Economic Journal101904–919
15.
ClineW R, 1992aGlobal Warming: The Benefits of Emissions Abatement (OECD, Paris)
16.
ClineW R, 1992bThe Economics of Global WarmingInstitute for International Economics, Washington, DC
CTCC, 1993, “Annual report 1992/93”Central Transport Consultative Committee, Golden Cross House, Duncannon Street, London WC2N 4JF
19.
DawkinsR, 1976The Selfish Gene (Oxford University Press, Oxford)
20.
DoE, 1991Digest of Environmental Protection and Water Statistics, Number 14Department of Environment (HMSO, London)
21.
DogsEEllwangerGPlatzH, 1991, “Externe Kosten des Verkehrs”Die Bundesbahnnumber 1, 39–45
22.
DoT, 1992aGreat Britain Transport Statistics 1992Department of Transport (HMSO, London)
23.
DoT, 1992bRoad Accidents in Great Britain 1991: The Casualty ReportDepartment of Transport (HMSO, London)
24.
DoT, 1993, “HEN1”, COBA9 update, Department of Transport, 2 Marsham Street, London SW1P 3EB
25.
ECMT, 1990, “Transport policy and the environment—ECMT ministerial session”, European Conference of Ministers of Transport, prepared in cooperation with the OECD, Paris
26.
ECPO, 1986, “Campaign to cut the toll of road safelty accidents in the Community”, IP (86) 22, press release for European Road Safety Year 1986, 21 January 1986, European Communities Press Office, Brussels
27.
EvansA W, 1992, “Road congestion pricing: When is it a good policy?”Journal of Transport Economics and Policy26213–243
28.
FairlieS, 1994, “Sound advice for the DOT”The Ecologist24122–123
29.
FankhauserS, 1993, “The economic costs of global warming: Some monetary estimates”, in Costs, Impacts and Benefits of CO2 Mitigation Eds KayaYNakicenovicNNordhausW DTothF L (International Institute for Applied Systems Analysis, Laxenburg) pp 85–105
30.
FergussonMHolmanCBarrettM, 1989, “Atmospheric emissions from the use of transport in the UK: The estimation of current and future emissions”, Earth Resources Research Ltd, for World Wide Fund for Nature (WWF); copy available from WWF, Panda House; Godalming GU7 1XR
31.
FoE, 1992Less Traffic, Better Towns (Friends of the Earth, London)
32.
GodleeF, 1991, “Air pollution: II—Road traffic and modern industry”British Medical Journal3031539–1543
33.
GruppH, 1986, “Die sozialen Kosten des Verkehrs: Grundriss zur ihrer Berechnung Karlsruhe Teil I & II”Verkehr und Techniknumber 9, pages 359–366; number 10, pages 403–407
34.
GVF, 1992, “Soziale Kosten von Verkehrslärm in der Schweiz: Kurzfassung”, GVF report 3/92, Dienst für Gesamtverkehrsfragen, Eidgen Verkehrs- und Energie wirtschafts-departement, Bubenbergplatz 11, CH-3003, Bern
35.
HanssonLMarckhamJ, 1992, “Internationalisation of external effects in transportation”, Community of European Railways, Rue des Colonies 2, B-1000 Brussels
36.
HopkinsMO'ReillyD, 1993, “Revaluation of the cost of road accident casualties: 1992 revision”, RR378, Transport Research Laboratory, Crowthorne, Berks
37.
IPCC, 1990Climate Change: The IPCC Scientific AssessmentIntergovernmental Panel on Climate Change (Cambridge University Press, Cambridge)
38.
IvesDSobyBBallDKempR, 1993, “Revaluation of non-fatal casualty costs: A report of the application of the relative utility loss approach”, contractor report 339, Transport Research Laboratory, Crowthorne, Berks
39.
JanssonJ O, 1994, “Accident externality changes”Journal of Transport and Economics2831–43
40.
Jones-LeeM W, 1990, “The value of transport safety”Oxford Review of Economic Policy639–60
41.
Jones-LeeM WHammertonMPhilipsP R, 1985, “The value of safety: Results of a national sample survey”Economic Journal9549–72
42.
Jones-LeeM WLoomesGO'ReillyDPhilipsP, 1993, “The value of preventing non-fatal road injuries: Findings of a willingness-to-pay national sample survey”, WP-SRC/2, Transport Research Laboratory, Crowthorne, Berks
43.
London Transport, 1993, “The consequences of changes in road traffic levels in Greater London 1971–90”, RR-R277, London Transport, 55 Broadway, London SW1H 0BD
44.
MerlinP, 1992, “Choix de transport et environnement”, paper presented at the 6th World Conference on Transportation Research, Lyon; copy available from Institut Français d'Urbanisme, Laboratoire TMU, 4 rue Nobel, Cité Descartes, 77420 Champs-sur-Marne
45.
NelsonP M (Ed.), 1987Transportation Noise Reference Book (Butterworth—Heinemann, London)
46.
NewberyD, 1987, “Road user charges in Britain”, DP-174, Centre for Economic Policy Research, 6 Duke of York Street, London SW1Y 6LA
47.
NewberyD, 1988, “Road user charges in Britain”Economic Journal special issue, “Conference 1988” 98161–176
48.
NewberyD, 1990, “Pricing and congestion: Economic principles relevant to pricing roads”Oxford Review of Economic Policy6(2) 22–38
49.
NordhausW D, 1991, “To slow or not to slow: The economics of the greenhouse effect”Economic Journal101920–937
50.
NordhausW D, 1993, “Reflections on the economics of climate change”Journal of Economic Perspectives7(4) 11–25
51.
OECD, 1988Transport and the Environment (OECD, Paris)
52.
OECD, 1991Climate Change: Evaluating the Socio-economic Impacts (OECD, Paris)
53.
OPCS, 19921991 Census ResultsOffice of Population Censuses and Surveys (HMSO, London)
54.
OpschoorJ B, 1986, “A review of monetary estimates of benefits of environmental improvements in the Netherlands”, paper presented at the OECD Workshop on the Benefits of Environmental Policy and Decision-making, October 1986; copy available from OECD, Paris
55.
PearceD W, 1991, “The role of carbon taxes in adjusting to global warming”Economic Journal101938–948
56.
PearceD W, 1993Blueprint 3: Measuring Sustainable Development (Earthscan Publications, London)
PearceD WTurnerR K, 1990Economics of Natural Resources and the Environment (Harvester Wheatsheaf, Hemel Hempstead, Herts)
59.
PearceD WBarbierE BMarkandyaA, 1990Sustainable Development: Economics and the Environment in the Third World (Earthscan Publications, London)
60.
PearsonMSmithS, 1991, “The European carbon tax: An assessment of the European Commission's proposals”, Institute for Fiscal Studies, London
61.
PeirsonJSkinnerIVickermanR, 1994a, “Environmentally efficient transport taxes and investment”, DP-94/1, Centre for European, Regional and Transport Economics, University of Kent, Canterbury
62.
PeirsonJSkinnerIVickermanR, 1994b, “The taxation of external effects and the efficient supply of transport”, DP-94/3, Centre for European, Regional and Transport Economics, University of Kent, Canterbury
63.
PeirsonJSkinnerIVickermanR, 1994c, “Modelling the effects on London passenger travel of the efficient pricing of transport”, DP-94/4, Centre for European, Regional and Transport Economics, University of Kent, Canterbury
64.
PeirsonJSkinnerIVickermanR, 1994d, “Modelling the effects on intercity passenger travel of the efficient pricing of transpot”, DP-94/5, Centre for European, Regional and Transport Economics, University of Kent, Canterbury
65.
PeirsonJSkinnerIVickermanR, 1994e, “The microeconomic analysis of the external costs of road accidents”, DP-94/6, Centre for European, Regional and Transport Economics, University of Kent, Canterbury
66.
PIARC, 1991, “Reduction of car traffic in city centres”, precongress report, Technical Committee on Roads in Urban Areas, Permanent International Association of Road Congresses (PIARC), 27 rue Guénégard, 75006 Paris
67.
ProostSVan RegemorterD, 1992, “Economic effects of a carbon tax”Energy Economics14136–149
68.
QuinetE, 1988, “Le coût social des transports”, report for the Environment Directorate (OECD, Paris)
69.
QuinetE, 1990Le Coût Social des Transports Terrestres (OECD, Paris)
70.
QuinetE, 1992, “Pour une définition de la notion de coût social de l'environnement”Ēconomie AppliquéeXLVI(4) 67–77
71.
QuinetE, 1994Internalising the Social Costs of Transport (OECD, Paris)
72.
RCEP, 1993, “Countering climate change: Statement by the RCEP about the UK's National Programme for Carbon Dioxide Emissions”, Royal Commission on Environmental Pollution, Church House, Great Smith Street, London SW1P 3BL
73.
RothengatterW, 1989, “Economic aspects”, background reports, Ministerial Session on Transport and the Environment, European Conference of Ministers of Transport, 23 November, Paris (OECD, Paris)
74.
SagoffM, 1988The Economy of the Earth (Cambridge University Press, Cambridge)
75.
TEST, 1991, “Wrong side of the tracks? Impacts of road and rail transport on the environment: A basis for discussion”, TEST, Kingsland House, City Road, London EC1
76.
TomkinsR, 1993, “For whom the road tolls”Financial Times 13–14 February, page 8
77.
UIC, 1987, “Tarification de l'usage des infrastructures à imputer aux exploitants des transports terrestres. Arguments pour faire reposer cette tarification sur le coût marginal social”, Union Internationale des Chemins de fer, 16 rue Jean Rey, F75015, Paris
78.
UPI, 1991, “Ökologische und soziale Kosten der Umweltbelastung in der Bundesrepublik Deutschland”, Umwelt-und Prognose-Institut, Heidelberg
79.
WCED, 1987Our Common Future (Bruntland Commission's Report)World Commission on the Environment and Development (Oxford University Press, Oxford)
80.
WhiteleggJ, 1993Transport for a Sustainable Future: The Case for Europe (Belhaven Press, London)
81.
World Bank, 1993World Development Report 1993 (World Bank, Washington, DC)
