External Transport Costs and Implications for Sustainable Transport Policy

This study investigated the external costs of different transport modes and their implications for sustainable transport policy. Utilising the INCONE60 Cargo Flow Model, we quantified and compared road and maritime transport’s environmental and health impacts within European logistics networks. Our findings revealed that road transport incurred external costs up to four times higher than sea transport due to greater emissions and health-related impacts. By implementing strategic modal shifts and optimising routes, we demonstrated the potential to reduce external costs by up to 80%. These results underscore the importance of integrating external costs into decision-making processes, aligning with global sustainability goals, and providing actionable insights for policymakers to promote sustainable practices in global trade.