The trade‐off between efficiency, effectiveness, and social feasibility of regulating road transport externalities

Abstract

This paper discusses the tension between the theory and practice of the regulation of road transport externalities from the viewpoint of the trade‐off between efficiency, effectiveness and the social feasibility of regulation. Various possible types of regulatory instruments, subdivided into ‘direct’ demand management, ‘indirect’ demand management and ‘supply side’ oriented policies, are evaluated qualitatively according to these criteria. Attention is then directed towards the trade‐off between efficiency, effectiveness and feasibility within the field of ‘direct’ demand regulation of road transport.

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