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Air Quality Average external costs from cars per 1,000 vkm by country. Click to enlarge.

Published on February 5th, 2013 | by Zachary Shahan

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EU Cars Put Up To $493 Billion Of Costs On Others, Study Finds

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February 5th, 2013 by Zachary Shahan
 

Average external costs from cars per 1,000 vkm by country. Click to enlarge.

If you’re not familiar with “externalities,” you really should be (click that link). The quick summary is that externalities are costs (and sometimes benefits) imposed on others but not included in the price of a good. As soon as you learn a bit more about them, you’ll learn than cars, trucks, and fossil fuel power plants are some of the worst culprits when it comes to externalities. As an example, take a look at the findings from a recent EU study:

A recent study from Technische Universität Dresden (TU Dresden) commissioned by the Greens/European Free Allianace (EFA) in the European Parliament concluded that the cars used within the EU-27 externalize up to about €373 billion (US$493 billion) per year (high estimate) of costs on to other people, other regions and other generations. The low estimate is external costs of €258 billion (US$341 billion).

The study focused on the larger environmental costs of car traffic (plus accident costs not covered by insurance)—i.e., air pollution; noise, upstream and downstream effects (covering all effects before and after the actual trip is performed); smaller other effects (land use, separational effects etc.); and climate change (focused on avoidance costs rather than damage costs). Neither infrastructure costs (area purchase, construction, maintenance, demolition, administration of infrastructure) nor congestion costs were included.

Costs for nature and landscape (water and soil pollution, resealing of land, habitat fragmentation and restoration, scenic beauty, biodiversity, etc.) were covered under “smaller other costs”, as were costs due to fragmentation of space and land use costs.


For more info on the study, read the study or this summary from Green Car Congress.

But the bottom line is this: cars cost much, much more than what we pay for them (and to run them). If we were an intelligent people, we would find ways to adequately price all of the externalities above, so that we don’t overvalue their benefits. That’s a difficult task politically… despite the fact that it would greatly benefit society. Funny world we live in, isn’t it.

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About the Author

spends most of his time here on CleanTechnica as the director/chief editor. Otherwise, he's probably enthusiastically fulfilling his duties as the director/editor of Solar Love, EV Obsession, Planetsave, or Bikocity. Zach is recognized globally as a solar energy, electric car, and wind energy expert. If you would like him to speak at a related conference or event, connect with him via social media. You can connect with Zach on any popular social networking site you like. Links to all of his main social media profiles are on ZacharyShahan.com.



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