Analysis of congestin toll project in Prague from internalization of externalities perspective

This paper is about introduction of congestion toll in centre of Prague. I look at the toll as an internalization of externalities instrument. Car transport causes high externalities in centres of cities, so there exists a tendency to solve this problem by different arrangements. Altough particular congestion toll project in Prague brings internalization of automobile externalities, this project is not profitable for the society because of high costs.