Economic Aspects of Transportation

Economic tools lead to the elimination of all unfavourable environmental externalities of economic activity. This provides a solution to the issue of property rights and the full application of the principle "the contaminator pays", with the goal that prices would reflect all costs, including the externalities. The individual economic tools have different forms, such as various payment systems, and recently the even more stressed environmental tax reform. Market-compatible tools are gradually being applied as well. A definite requirement is the cancellation of environmentally harmful subsidies, which still exist in practically all countries in the field of energy and transport.