Valuation of environmental externalities: from theory to decision‐making

Valuation of externalities is a condition for correct investment and pricing decisions in transport. This paper provides a brief survey of the main studies achieved in OECD countries in order to get these valuations. Numerical values for the average social cost of transport are presented. The procedures according to which environment is taken into account in France and Italy are analyzed, and the importance of valuation in these procedures is assessed. Finally, prospects for further research and new developments are expressed.     

A meta-analysis of Western European external costs estimates

This paper analyses the external transport cost estimates that have been found in various European studies. These estimates seem at first glance to be highly dispersed, a fact which raises questions about their reliability. The article offers a list of the possible reasons for discrepancies between the various studies; differences in the specific situations studied, in the type of cost calculated, in the physical laws relating to emissions, in the measurement of values of external costs. It assesses the relative magnitude of each of these causes through a meta-analysis. It turns out that the main differences come from the specificity of the situation under review and the type of cost calculated. In comparison, differences in the laws and in the values methods have a lower importance. The conclusion is that the estimates of external costs are reliable for decision-making policies.     

Applications of transport economics and imperfect competition

The great majority of analyses made in transport economics use, explicitly or, more often, implicitly, the common assumption of perfect competition. This is the case, for instance, when infrastructure projects are evaluated using the mere sum of the surpluses of transport users and providers. Even when putting aside the question of externalities such as noise, safety or environmental quality, the real chain of economic interactions that takes place in transport provision or downstream of transport provision is not taken into account. Surely enough, describing and simulating this chain could be quite complex. Nevertheless, it is not uninteresting to try to estimate if it does make a big difference or not to make this approximation. The paper makes such an attempt for two broad kinds of applications of transport economics:     

A comparison of rail liberalisation levels across four European countries

This paper presents the results of a research into railway regulation and liberalisation in Italy, France, Germany and Spain. The analysis covers the relationship between the State and the rail companies, network access conditions by operators, slot allocating and pricing schemes and how public service obligations are defined, financed and regulated.