# external costs

*Last updated: 2026-06-26*

> External costs are economic burdens generated by an actor that are not borne by that actor but fall instead on third parties or society as a whole.

External costs are economic burdens generated by an actor that are not borne by that actor but fall instead on third parties or society as a whole. In transport, typical examples include air pollution, noise, greenhouse gas emissions, accident costs, and wear on public infrastructure. Because these costs are absent from market prices, transport services are effectively underpriced relative to their true societal impact. External costs stand in contrast to internal costs, which appear directly in a company's accounts. Quantifying them is a prerequisite for policy instruments such as road pricing, emission charges, or carbon taxes that aim to make transport users pay the full cost of their activities.

**Source:** [https://ec.europa.eu/transport/themes/sustainable/studies/external-costs_en](https://ec.europa.eu/transport/themes/sustainable/studies/external-costs_en)

## Quick Facts

| Property | Value |
|---|---|
| Term | external costs |
| Language | EN |
| Word count | 109 |
| Last updated | 2026-06-26 |
| Source | https://ec.europa.eu/transport/themes/sustainable/studies/external-costs_en |

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