Pavement conditions significantly influence the generation of nuisances that influence the environment and induces costs borne by society. This paper presents a new tool designed to monetize and incorporate environmental impacts in decision-making processes. The Pavement Environmental Impact Model (PEIM) is the first attempt to adapt the Impact Pathway Approach (IPA) to assess the emission, dispersion, and impacts of noise, air pollution, and greenhouse gases so that environmental impacts can be included in the economic model of pavement management units. Results of a simulation performed with PEIM for an urban collector road with an annual average daily traffic of 10,000 vehicles per day and a linear density of 240 people per kilometer show that, within the assumptions/limitations of PEIM, environmental costs were expected to range from 876,000 to 1,983,000 Canadian dollars per kilometer per year for pavement roughness ranging from 1 to 4 m/km. Moreover, although noise cost is consistently disregarded in pavement management, it was expected to represent 54% of the total environmental cost when pavement roughness was above 1.75 m/km. Results demonstrate that PEIM is a suitable tool to roughly estimate environmental costs and to help pavement management units choose the optimal alternative of management.