evaluated in this case involved an internalization of all external costs in supply
chains and is reported in more detail in Tavasszy et al. (2016). External costs
associated with various types of health effects were included, going far beyond
carbon emissions (environmental externalities and social externalities including
noise, congestion and traffic safety). Figure 2.9 shows the principle of adding
external costs to product prices in the entire supply chain. Eventually, consumers
will be charged the full external costs (Fig. 2.10).
Road Freight Cost and Ton-km Changes by Commodity Type:
All Traffic Originating from EU
(Source: SCENES Model)
-30%
-20%
-10%
0%
10%
20%
30%
40%
Consumer Food
Conditioned Food
Solid Fuels and Ores
Petroleum Products
Metal Products
Cement and manufactured building
materials
Crude Building Materials
Basic Chemicals
Fertiliser, Plastic and Other Chemicals
Large Machinery
Small Machinery
Miscellaneous Articles
Cost per ton
carried
Ton Km
Cereal and Agricultural Product
Fig. 2.9 Impacts of external costs based road user charges in the EU. (Raha et al. 2003)
70
60
50
40
30
External costs
Production costs
Euro
Baseline
20
10
0
R a w
m a t e r ia l
T r a n s p o r t 1
T r a n s p o r t 2
P r o d u c t io n 1
P r o d u c t io n 2
C o n s u m p t io n
70
60
50
40
30
Euro
Baseline
20
10
0
R a w
m a t e r ia l
T r a n s p o r t 1
T r a n s p o r t 2
P r o d u c t io n 1
P r o d u c t io n 2
C o n s u m p t io n
Fig. 2.10 Illustration of supply chain based internalization of external costs
2 The Influence of Logistics Decisions on Transport Decarbonization: Lessons from. . .
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