Internalization of External Costs in the EU Transport Sector as an Instrument of Rationalization of the Logistics Supply Chains

Abstract

Aiming at meeting the general EU transport policy objective, the EC has started promoting very actively the sustainable development of the member states transport systems. Putting into effect common framework and methodology for estimating the external costs of transport activities and specifying how external costs can be internalized in all modes of transport, the EC intends to minimize their negative impact on all spheres of human activity. This strategy needs to apply social marginal cost pricing (SMCP) for the use of transport infrastructure. It could, however, induce significant changes on the EU transport markets and subsequently affect the supply networks and logistics supply chains leading to their rationalization in terms of optimizing transport and inventory costs.