Pollution, accidents and congestion all cause unnecessary welfare losses, and while transport services are an essential component of economic and social development, their negative side effects are drawing increasing political attention. Internalisation aims to create incentives to reduce these external costs by factoring them into markets. This report summarises the theoretical and practical dimensions to internalisation; reviews recent estimates of external costs; explores the mix of policies that might be used to promote internalisation successfully; and estimates the size of incentives required in monetary terms.

Conclusions and Recommendations
1. Executive Summary
2. The Concept of Internalisation
3. Estimates of External Costs .
4. Policy Options
5. Economic Impact .
6. Internalisation in Transition Economies 
TECHNICAL ANNEXES
A. Valuation Methods for the Environmental Externalities of Transport
B. Details of the Estimation of External Costs
C. Infrastructure Costs
D. Data on Road Transport
Hearing of International Organisations
Participants in the ECMT Task Force on the Social Costs of Transport
Bibliography
Glossary
List of Abbreviations