The Internalisation of External Costs in Transport: From the Polluter Pays to the Cheapest Cost Avoider Principle

Schmidtchen, D., Koboldt, C., Helstroffer, J., Will, B., Haas, G. , TRANSPORT, WELFARE AND EXTERNALITIES: REPLACING THE POLLUTER PAYS PRINCIPLE WITH THE CHEAPEST COST AVOIDER PRINCIPLE, Edward Elgar, Forthcoming

156 Pages Posted: 11 Dec 2007 Last revised: 28 Oct 2009

See all articles by Dieter Schmidtchen

Dieter Schmidtchen

Saarland University - Center for the Study of Law and Economics

Christian Koboldt

affiliation not provided to SSRN

Jenny Monheim Helstroffer

Université de Lorraine; BETA

Birgit E. Will

Saarland University - Center for the Study of Law and Economics

Georg Haas

affiliation not provided to SSRN

Date Written: December 1, 2007

Abstract

The European Commission mandated the consulting firm CE Delft to develop a framework for the internalisation of external costs and to devise a number of potential internalisation scenarios for further analysis. The results of their preliminary research are published in a CE discussion paper, and the Commission is now formulating draft legislative proposals which will be subjected to a consultation of stakeholders. The present report offers a critical assessment of the above mentioned CE study, provides a theoretical examination of the relative strengths and weaknesses of the polluter pays principle and the cheapest cost avoider principle in relation to the problems arising in the road transport sector, demonstrates how the cheapest cost avoider principle can be applied in practice by providing examples of external costs in road transport, and puts forward recommendations for the appropriate principles that should guide the Commission's further activities in this area.

Keywords: Cheapest Cost Avoider, Externalities, Transport

JEL Classification: D61, D62, H21, H 23, H54, K32, L51

Suggested Citation

Schmidtchen, Dieter and Koboldt, Christian and Helstroffer, Jenny and Will, Birgit E. and Haas, Georg, The Internalisation of External Costs in Transport: From the Polluter Pays to the Cheapest Cost Avoider Principle (December 1, 2007). Schmidtchen, D., Koboldt, C., Helstroffer, J., Will, B., Haas, G. , TRANSPORT, WELFARE AND EXTERNALITIES: REPLACING THE POLLUTER PAYS PRINCIPLE WITH THE CHEAPEST COST AVOIDER PRINCIPLE, Edward Elgar, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1069622 or http://dx.doi.org/10.2139/ssrn.1069622

Dieter Schmidtchen

Saarland University - Center for the Study of Law and Economics ( email )

P.O. Box 151 150
Saarbrucken 66041
Germany

Christian Koboldt

affiliation not provided to SSRN

No Address Available

Jenny Helstroffer (Contact Author)

Université de Lorraine ( email )

France
0033354504369 (Phone)
0033354504351 (Fax)

BETA ( email )

13, Place Carnot
Strasbourg, 67000
France

Birgit E. Will

Saarland University - Center for the Study of Law and Economics ( email )

Georg Haas

affiliation not provided to SSRN

No Address Available

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