The paper "The Costs Associated with Road Freight Transport and Their Effects in the Transportation Industry " is a good example of a business capstone project. This thesis is trying to explore the estimation of the cost for freight modes that do involve trucks in European regions. It has provided the description of transport category methods of estimations employed and the costs drivers aiming at gathering the information concerning the estimation of the cost of the truck freight mode in the European Union trade. A literature review has been provided to explore various aspects concerning freight mode transport in the European Union.
The study of the freight modes transport has been conducted based on the available data with the aim of obtaining average costs estimations for the European Union. Different kinds of literature have been explored in the process of gaining in-depth knowledge concerning transportation costs. These costs considered in this thesis can include congestion, costs related to external costs noise, air pollution, downstream upward processes, infrastructure costs, change costs, water and soil pollution. The internal costs associated with freight mode of transport can include fuel costs; parking costs vehicle costs and even toll costs. The government policies that have been established concerning the external transport costs have been explored.
The way the freight mode has been affected by the changes taking place in the requirements globally has been discussed. The changes can be associated with the various developments that have been taking place in the transportation industry. Besides, the effects of the changes in the transportation industry have been explored in the thesis. Such changes that have been explored include the increasing number of vehicles despite the slow expansion of the existing roads.
The thesis also tries to explore the potential of improving communication by utilizing innovations available while considering the constraints associated with infrastructure capacity coordination. The policy and regulatory issues concerning the management of the infrastructure have been explored to make the reader gain a deeper understanding concerning the freight mode. Besides, the future investments concerning the new developments in infrastructure have been given a broader consideration. As a result, the thesis is trying to explore the effects of systems used in freight estimates and changes in costs. The need has been identified in the process of estimating the costs of transport that might be necessary for the process of conducting research that does analyze various cost categories.
Studies have been analyzed concerning the internal costs while assessing whether the costs of transport are high compared to the external costs where the externalities have been internalized using Pigovian taxes. These taxes are usually concerned with the harmful side impacts considering the current polarized political atmosphere hence Pigovian taxes provide realistic hope.
The European Union has been recommended to employ upstream taxes especially on fossil fuels and refunds for downstream emissions, local pollution emissions and reduce carbon. Fuel taxes need to be considered in the congestion and any other externality that can be associated with vehicle uses that need to be considered until the introduction of taxes based on mileage.