Estimating marginal external costs of transport in Delhi

This paper develops the model and methodology to estimate the marginal external cost of urban road transport, which is necessary for analysing optimal urban transport prices. Four major marginal external costs analysed in this paper include the marginal external costs for congestion, air pollution, road accidents and noise. The paper estimates the marginal external costs for cars and buses in peak and off-peak periods for Delhi urban agglomeration for the year 2005.