HGV Toll: Internalisation of External Costs (EU Analysis)

Road traffic generates costs that can be split into those directly borne by road users and those imposed on others and the public (so-called external costs, e.g. air pollution, noise pollution, loss of time due to congestion). According to a Commission’s Proposal Member States are to be authorised to include the external costs of road freight transport into road tolls levied on HGV (so-called internalisation). The European Parliament and the Council have not yet reached any agreement on said Proposal. To this end, the Council asked the Commission to have an analysis drawn up exploring the impacts of a possible internalisation.

cepPolicyBrief

Conclusions as to the impacts of internalisation on transport costs and on final product prices throughout Europe should not be drawn on the basis of the Analysis: the chosen corridors are not representative for the actual European traffic flows. The presented macroeconomic benefits generated through internalisation are based on assumptions which are not relevant to the discussed policy project. The statement that the possible negative impacts on employment are insignificant is not substantiated.