Title

Assessing standard costs in local public bus transport: Evidence from Italy

Document Type

Journal Article

Publication Date

2016

Subject Area

place - europe, mode - bus, economics - economies of scale, policy - equity

Keywords

Standard costs, Local public transport, Fiscal federalism, Cost models

Abstract

We present a regression model for estimating unit standard costs for the Italian local public bus transport services. We account for quantitative and qualitative characteristics, which contribute to explain the variability of the cost structure. Economic and transport data have been collected from companies producing more than 500 million of bus-kilometers. We find that commercial speed is the most important cost driver, while economies of scale are low and only present in small size services. Results prove a positive correlation between investments in bus fleet and the cost incurred in service provision. Finally, we show how the regression model can be augmented with policy targets in order to fairly allocate among Italian Regions the public funds yearly earmarked to the local public transport sector.

Rights

Permission to publish the abstract has been given by Elsevier, copyright remains with them.

Comments

Transport Policy Home Page:

http://www.sciencedirect.com/science/journal/0967070X

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