A Review of Public Transport Economics

Abstract

Public transport provision requires substantial organisational efforts, careful planning, financial contributions from the public, and coordination between millions of passengers and staff members in large systems. Efficient resource allocation is critical in its daily operations. Therefore, public transport has been among the most popular subjects in transport economics since the infancy of this discipline. This paper presents an overview of the literature developed over the past half century, including more than 300 important contributions. With a strong methodological orientation, it collects, classifies, and compares the frequently used analytical modelling techniques, thus providing a cookbook for future research and learning efforts. We discuss key findings on optimal capacity provision, pricing, cost recovery and subsidies, externalities, private operations, public service regulation, and cross-cutting subjects, such as interlinks with urban economics, political economy, and emerging mobility technologies.

An examination of current sociopolitical issues in the United States of America

“…Those least able to pay would be excluded. If unprofitable runs were eliminated; this would have a similar exclusionary effect as there would be those unable to afford alternative transportation (Blampied, 2020;Horcher & Tirachini, 2021;Montreal Economic Institute, 2003). Infrequent public transportation runs would create long travel times and unknown hardships for those just able to afford the needed service.…”

The innovative mobility landscape

“…The nature of trade-offs between competition, state intervention and desired consumer and social outcomes are generally well known, though regulatory approaches may differ across different urban contexts. A healthy debate is also under way on optimal pricing of public transport services and the structure and scale of subsidies provided for their operation, even if there is broad acceptance of the basic business model underpinning these services (Hörcher and Tirachini, 2020). There is also a broad consensus on the desirability for these services to play a central role in urban areas, and for strategic guidance and investment by public authorities to ensure their long-term presence.…”