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Topic: Business
Number of pages / Number of words: 5 / 1200
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These costs derive from 'negative externalities', which occur when transport consumers/ producers impose higher costs on society at large than they bear themselves.

Some of the economic benefits produced by transport are also 'external' in the sense that they accrue to economic actors beyond the original consumers/ producers of the services in question...


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Although there is no conceptual difference in the basic definitions of external costs and benefits, different incentives are inherently at work in each case. Specifically, there are built-in might generate, thereby 'automatically' internalising these effects in the form of lower prices or higher economic rents/ profits...


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