Internalization of External Environmental Costs of Transport as a Tool for Providing Sustainable Development

The paper suggests a methodological framework for economic and social evaluation of marginal external environmental costs of transport on a national level using the internalization approach. The discussed framework adds to the existing theory some new viewpoints based on a holistic socio-economic approach, considering the existing methodologies for assessing external environmental transport costs. It ensures transparency of what society as a whole pay for the impact of transport on the current climate change and enables the correct justification of effective measures to reduce greenhouse gas emissions from the sector, thereby ensuring sustainable, efficient, and green development of the transport system. The application of the approach has been empirically tested, and, on this basis, a suggestion has been made for policymakers to use the results for internalization of the external costs of transport in order to prioritize policy measures for recovery and sustainable development based on potential savings for society, which still needs to be done.