Improvement of external transport cost evaluation in the context of Lithuania's integration into the European Union

Abstract

This paper starts by reviewing the main components of social marginal costs and environmental costs in the context of transport, and it draws on the experience in Europe concerning the means by which these costs can be valued. That experience is then translated to the situation in Lithuania, where many of the same issues are now being debated. A multicriteria method is proposed to internalize these costs, both from the perspective of the state and of the carriers. Costs need to be raised substantially if the social and environmental factors are to be paid for by the transport users, and such action would bring Lithuania closer to the best practice currently in operation in the European Union.