Transport, Welfare and Externalities: Replacing the Polluter Pays Principle with the Cheapest Cost Avoider Principle

This book has been co-written by Christian Koboldt and discusses a paradigm shift for dealing with the internalisation of external costs in transport. It argues that relying on the Cheapest Cost Avoider Principle (CCAP) instead of the Polluter Pays Principle (PPP) when considering appropriate regulatory constraints in the transport sector can lead to substantial welfare improvements. It shows that the CCAP is superior to the PPP both methodologically and practically, with the CCAP promoting efficiency, fair competition and equity. Its use of some form of cost-benefit analysis also helps to avoid regulatory failure. Two case studies – showing that the methodology of the CCAP can be applied in practice – and a critical assessment of the European greening transport policy complete this volume.

The book is available to order from Edward Elgar Publishing.

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