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Introduction
The existence of external costs in transport creates many distortions in the transport market. Transport users are not given the right incentives as a result of which they are not taken socially optimal decisions. As a consequence scarce resources like energy and infrastructure are not used in an economic efficient way. Moreover, the level playing field between transport modes is adversely affected. The competiveness of modes that cause relatively few external costs, like railways and inland waterways, is harmed by the existence of external costs.
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