Optimal Urban Transport Pricing and Sustainability

External costs of transport are real costs not taken into account by consumers when they decide on transport usage. Transport activities are not sustainable when such externalities are not internalised. In this paper we integrate different sorts of urban transport problems in a consistent framework. With a partial equilibrium representation of urban transport markets we model external costs of air pollution, noise, accidents and congestion. The model, named TRENEN URBAN, which was developed within projects funded by the EU commission, is applied in case studies for Brussels and Dublin for assessment of the welfare effects of alternative policy instruments.