The basis of a national economic analysis for public transport is the endeavour to achieve effective utilisation of resources. Costs must be weighed against benefits. Resources are valued according to their alternative use value; only resources with an alternative use are considered. Taxes are regarded as merely a transfer from one sector to another. Road maintenance costs, travellers' time, accidents and environmental effects are also considered, although evaluation of the last two in monetary terms is very difficult. Travellers' time is valued on the basis of how much extra they would pay to travel faster; this, however, gives only average figures since the value placed on time varies greatly in different circumstances. As regards benefits, these are estimated by finding how much extra travellers would pay in fares to retain a route threatened with closure, and thus obtaining a demand curve. Examples are given of applying this method. It is considered that development of models which give a better representation of demand and thus traffic benefit, is most urgent. /TRRL/

  • Corporate Authors:

    Svenska Lokaltrafikforeningen

    P.O. Box 6301
    S-11381 Stockholm,   Sweden 
  • Authors:
  • Publication Date: 1975


  • Swedish

Media Info

  • Features: Figures; Tables;
  • Pagination: 4 p.
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00137570
  • Record Type: Publication
  • Source Agency: Swedish National Road and Transport Research Institute (VTI)
  • Files: ITRD, TRIS
  • Created Date: Oct 26 1981 12:00AM