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This paper presents a pragmatic approach for reducing the environmental impacts of transport in the German Federal State Saxony. The aim is to use the potential of pricing measures for effectively reducing environmental impacts of transport. They are combined with less-effective but more accepted non-pricing measures in a policy package. The development of this approach starts with the calculation of the current external costs of transport in the case study area. Second, a policy package reducing these external costs is composed. Third, the development of the external costs is assessed and compared in two scenarios, a BAU-scenario and the policy scenario where measures reducing the environmental impacts of transport are implemented. Fourth, the public and political acceptability of this policy package are investigated. The results show that it is possible to develop a policy package that is effective for reducing the environmental impacts as well as acceptable to the public and politicians. Therefore, such a package approach is suitable to guide future political decisions and actions towards a more sustainable transport sector.
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