Impact Of Road Transport On Air Pollution Essay

1544 Words Dec 7th, 2016 7 Pages
Development of road transport has brought several advantages. It made people to save time, trade scarce resources and even travel the areas that could not be explored before. However, it is also clear that road transport causes several external costs simultaneously. External cost is the cost of adverse side-effects that all production and consumption of services produce and the producers are not obliged to pay for. (Persson and Ödegaard, 1995) The main external costs related to road transport can be defined as three kinds. First of all, it causes traffic congestion inevitably due to the high demand. Second, it leads to a lot of people’s death by traffic accidents. Last but not least, road transport has critical influence on air pollution. South Korea, a country this essay will analyse, is one of the countries that have a well-developed transport infrastructure and is faced with those problems seriously. The way to solve the external cost problem is to make them internal. It can be achieved by imposing a charge on the producer or consumer large enough to equalize the marginal cost in production with the marginal value in consumption. (Persson and Ödegaard, 1995) Fiscal policy of a nation, through which government controls revenue and expense in a way of taxation or subsidy, is of importance to solve the problem. It is because government is the only institution large enough to deal with it. This essay will address the three main external costs of road transport in South Korea…

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