Transport, Welfare and Externalities Replacing the Polluter Pays Principle with the Cheapest Cost Avoider Principle
Replacing the Polluter Pays Principle with the Cheapest Cost Avoider Principle
- New Horizons in Law and Economics series
This book discusses a paradigm shift for dealing with the internalization of external costs in transport. Crucial to the analysis is the insight that the polluters are not the only cost drivers; both pollutees and the state can also contribute to reducing social costs. The authors show that applying the Cheapest Cost Avoider Principle (CCAP) instead of the Polluter Pays Principle (PPP) can lead to substantial welfare improvements.
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