Financing local public transport: costs and benefits evaluation

Document Type

Conference Paper

Publication Date


Subject Area

economics - appraisal/evaluation, economics - benefits


Currently, an increasing consensus is endorsing the introduction of competition in public transport (PT), through public service contracts. At the same time, whilst in some countries subsidies (or financial compensation) are a well-established practice, in others they are considered unmotivated. In this paper a framework is proposed to estimates and evaluate transit costs, benefits, and impacts to support transport planning and policy making as well as operator management. The proposed methodology aims at computing the (total operating) cost and the revenue resulting from the fares and the features of each option, thus allowing public transport service plan appraisal. In particular, the subsidies, or financial compensation, are given a clear socio-economic meaning


Permission to publish abstract given by AET.