Implementation of internalisation instruments

Indicator Fact Sheet
Prod-ID: IND-116-en
Also known as: TERM 026
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This page was archived on 08 May 2015 with reason: No more updates will be done

Assessment made on  01 Jan 2001

Generic metadata



DPSIR: Response


Indicator codes
  • TERM 026

Policy issue:  Differentiate transport taxes and charges on the basis of marginal external costs


Key assessment

Charges and taxes are a fundamental (though not the only) policy tool for internalising external costs in the transport sector. Most Member States are considering reframing transport-related tax and charge structures, differentiating them on the basis of external costs. However, it is still difficult to identify the most appropriate tax framework and to decide what tax and charge levels to apply.

Internalisation measures are currently mostly concentrated on air pollution in the road sector and noise in the aviation sector. Almost no measures have yet been taken to internalise costs of congestion (some aviation and rail charges, and some urban parking fees are exceptions). In most urban areas, internalisation of external costs is still very incomplete.

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