Internalising External Costs of Transport

Trade in goods requires transport over land, sea or air. External effects are directly linked to transport but also to the production and operation of infrastructure. These include emissions of harmful substances into the air, noise pollution and impairment of ecosystems. Not all of these are internalised in the market system and are therefore visible in freight costs and ultimately in the price of goods. This is certainly true for the climate costs associated with international air and sea transport. In the course of the study, the extent of the external effects of transport is quantified using evidence in the international literature. A distinction is made between regions. Finally, adjusted freight costs are assumed for a simulation calculation and a multinational and multisectoral model is used to determine the effects on production, value added, employment and trade volume.