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Cost-Benefit Criteria for Urban Public Transport Subsidies

Author

Listed:
  • J S Dodgson

    (Department of Economic and Business Studies, University of Liverpool, POB 147, Liverpool L69 3BX England)

  • N Topham

    (Department of Economics, University of Salford, Salford M5 4WT, Lancs, England)

Abstract

In this paper cost-benefit rules for public transport subsidies are considered. Recent applications of cost-benefit analysis to the appraisal of bus service provision are surveyed, and justifications for public transport subsidy considered. The authors derive the cost-benefit ratio appropriate for considering the benefits to public transport users of a fare reduction financed through increased local taxation on housing services. The cost-benefit rules are then extended to allow for the impact of Central Government assistance through grants-in-aid, and to incorporate allowances for external benefits in the form of reduced road traffic congestion and for income distributional considerations. A cost-benefit rule appropriate for assessing the case for service-level improvements which reduce passenger waiting times is also noted.

Suggested Citation

  • J S Dodgson & N Topham, 1986. "Cost-Benefit Criteria for Urban Public Transport Subsidies," Environment and Planning C, , vol. 4(2), pages 177-185, June.
    • Handle: RePEc:sae:envirc:v:4:y:1986:i:2:p:177-185
    DOI: 10.1068/c040177
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    References listed on IDEAS

    as
    1. Wildasin, David E, 1984. "On Public Good Provision with Distortionary Taxation," Economic Inquiry, Western Economic Association International, vol. 22(2), pages 227-243, April.
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