As a result, Europe's entire economy bears the costs generated by transport, reducing its competitiveness proportionately. According to the Green Paper, internalization of transport costs, i.e. making all users bear the full social costs of their journeys, would reduce transport problems and, consequently, make Europe's economy more competitive. The objective is not to increase transport costs but to encourage users and manufacturers to change attitudes in order to soften the adverse side-effects of transport. The Commission seeks to measure all the external costs arising from transport, to define methods of expressing these costs in terms of price and to propose ways of allocating these prices fairly. Consequently, the objective is to introduce a fair, efficient pricing system, bringing prices closer to costs.
Congestion generates substantial external costs, largely in the road sector.
However, the only way to reduce congestion in the long run seems to be to charge explicitly for using infrastructure capacity. The Commission advocates variable charges linked as closely as possible to costs and designed to recover the full infrastructure and operating costs. In accordance with the polluter pays principle, drivers should pay in proportion to the risk they create. Pollution-related costs are high due to the repercussions on public health and the environment. The Green Paper outlines the existing regulations to reduce air pollution caused by transport, including technical improvements to vehicles and fuels or intermodality.