Transport, Welfare and Externalities: Replacing the Polluter Pays Principle with the Cheapest Cost Avoider Principle

This book discusses a paradigm shift for dealing with the internalization of external costs in transport. Crucial to the analysis is the insight that the polluters are not the only cost drivers; both pollutees and the state can also contribute to reducing social costs. The authors show that applying the Cheapest Cost Avoider Principle (CCAP) instead of the Polluter Pays Principle (PPP) can lead to substantial welfare improvements.

This book develops the foundations for the CCAP, which is sho...