This paper draws on the results of various projects undertaken by the European\ud Commission regarding transport pricing reform in Europe. It begins with an account of\ud current European policy and practice. It then considers the issue of measurement of\ud marginal social cost, the remaining controversies that surround it, and the barriers to its\ud implementation. Finally it draws on case studies to consider what would be the\ud implications for prices and levels of traffic on the various modes if marginal cost pricing\ud was implemented in practice
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