Causal justice

The synonymous terms causal justice and cost truth describe a state of affairs in economics in which, according to the causation principle, all costs that arise as a result of an action or omission are borne by those who cause it. Causal justice is thus the result of the internalization of all costs, and internalized external effects can be an indicator of causal justice. A lack of causal justice (like externalities) can lead to market distortions and failures and require state intervention.

The word fairness is wrongly used as a synonym for fairness of costs .

History of the term true cost

Cost truth first emerged in the 1990s in the negotiations on the transit agreements between Austria and the European Economic Community. At that time there was talk of “cost untruthfulness”, which would arise from the fact that truck transit traffic would not be charged the “real costs”, but the railways would have to bear the entire costs itself. Road transport would therefore have the advantage that it does not have to finance 100% of its costs itself.

In fact, truck traffic only bears around 30% of the costs it causes. In the subordinate road network, the cost recovery is only 18%.

In Switzerland, heavy vehicle traffic covers its external costs 100% with the performance-based heavy vehicle fee (LSVA). An increase in 2009 by the competent authority led to years of legal dispute over the calculation methods, in particular accident and traffic jam costs. The Federal Court confirmed on August 8, 2013, the legality of the increase.

Finding causal justice

When measuring or estimating the amount of the costs or the causation injustice - depending on the procedure - differences can arise. Influenced by economic interests or political intentions, further disagreements can arise and, consequently, what is part of the cost and how much is typically controversial. In other words, there is no universally valid causal justice.

The economists Reiner Eichenberger and David Stadelmann declared at the beginning of 2020 that the climate problem would be “surprisingly easy to deal with” if the costs were true. For this purpose, future damage would have to be scientifically estimated and invoiced to all of today's causers via a CO ₂ tax .

Quotes

It is unreasonable to cart potatoes from Germany to Italy, clean them there and then transport them back to make french fries. Such a calculation can only work economically if heavy traffic on the road does not have to cover its full costs. Because mobility is generally too cheap, there is an incentive for more and more questionable traffic.

Moritz Leuenberger (Swiss Minister of Transport), ENVIRONMENT 1/2001, on the problem of the lack of truth in costs in heavy traffic and with reference to the corrective HVF .

Individual evidence

1. ^ Compendio Educational Media : Economy, Environment and Space 1st edition 2009 p. 92
2. ↑ google.ch/books The Lean City: True Costs as a Possible Control Instrument for Spatial Planning; by Dr. Reinhard Steinlechner; P. 5
3. ↑ Reinhard Steinlechner: The slim city. True cost as a possible control instrument for spatial planning. GRIN Verlag, 2008, ISBN 9783638927284 , p. 23
4. ↑ Federal Ministry: Transport in Figures 2007. Chapter 11: Travel costs - external costs. P. 220 ( PDF; 888 kB )
5. ↑ HVF Federal Supreme Court approves increase . In: Neue Zürcher Zeitung . 22nd August 2013
6. ↑ Guest comment: If politicians approached the climate problem honestly and efficiently, it would be easy to deal with - by means of cost truth. In: nzz.ch. January 3, 2020, accessed January 11, 2020 . 
7. ↑ Page can no longer be called up , search in web archives: bafu.admin.ch Now the railway is on its way; Interview with Moritz Leuenberger. Retrieved January 30, 2010
8. ^ Compendio Bildungsmedien : Wirtschaft, Umwelt und Raum 1st edition 2009 p. 97