Local public transport on the basis of social economic criteria

Applying the welfare economic approach it is demonstrated what the effects of certain supply changes in the local public transport will be and the potential of innovative demand management measures are examined. Straighter bus routes would reduce the average travel time from door to door. The travel time on the buses decreases and the frequency increases, which reduces waiting times at bus stops. Using smaller buses and more of them would also increase the net benefit, but increase the need for subsidisation. The peak within the peak in the morning is hard to handle by price policy alone. Introducing a small variation of the start of the school-day for high-school pupils would make investment- and operation cost savings possible, and the inconvenience costs for the pupils could be limited. It is only during peak hours in the main direction of peak travel and in the critical section of the line that optimal price becomes high relative to the present level. Zero fares in off-peak will be social profitable, but an increase in subsidy is needed. An introduction of these policy changes would give rise to a net social benefit of 30 million SEK per year in Linköping.     

Land use/transport models and economic assessment

This paper discusses the economic assessment of policies using land use/transport models. It argues that conventional forms of assessment focussing only on transport changes can underestimate the economic benefits of a policy. The paper argues that the benefits need to be measured by the changes of prices at the end of a trip and not just by the changes in travel costs. Models that do not estimate the changes of prices at the end of a trip cannot properly assess the impact of a policy.The model used in this paper is based on the MEPLAN software and estimates the location of households and employment and the interaction between them. It also estimates the cost of living for households and the production costs for employment. With these costs, it is possible to calculate the wider economic benefits beyond transport.The paper illustrates the assessment of policies for the Cambridge sub-region involving investment in public transport, orbital highway and congestion charging policies. The results forecast by the model are assessed in terms of the conventional cost-benefit using traveller’s surplus as benefits and compared with a wider assessment measure of compensation variation. It demonstrates that the last measure encompasses the wider benefits associated with transport policies which are not taken into account in conventional cost-benefit analysis.     

Sustainable procurement and environmental life-cycle costing in maritime transport

Transportation sector, including maritime transport, exerts significant environmental impact. Public procurement as a policy strategy instrument which applies to the purchase of transport means, construction of infrastructure and the provision logistic services in supplying the goods, services and executing of works must integrate environmental considerations in the contract award procedures. While conventional life-cycle costing (LCC) is based on four categories to be assessed e.g. investment, operation, maintenance and end-of-life disposal expenses, the environmental LCC method also takes into account the external environmental costs. The paper is focused on sustainable public procurement and environmental life-cycle costing aspects of EU 2014 Directive. Analysis is made of the real cost of procurement, the externalities and the impact of maritime transport sector on the environment. The purpose of this research is to propose the framework for assessment of integral impact on the environment which combines environmental LCC approach with TBL concept using non-monetary units for measuring externalities. The authors advocate clean and energy-efficient maritime transport ensuring effective implementation of environmental policy objectives and targets and emphasize the role of public authorities and entities in fostering the inclusion of environmental externalities in calculation of LCC.     

Commuting times – The role of gender,children and part-time work

It has been widely established in the UK and other developed countries that men commute longer than women and that fathers travel furthest to work while mothers travel least. This paper models a wide variety of factors that affect commuting times including gender, presence of children and working hours (part- and full-time work). It finds that of particular importance to the length of commute are the worker’s age, having children, the age of their youngest child, occupation, weekly pay, and mode of transport (with public transport being associated with longer commutes). The region of residence was important for men and women working full-time but not for part timers (except for women in London), while ethnicity and owner occupation were associated with commuting length for full-time men only. The results suggest that while gender, working hours and childcare responsibility are often inter-related, it is useful to disaggregate their effects when modelling or developing policy.     

The relevance of international transport costs on food prices: Endogenous and exogenous effects

The paper addresses the problem of transport costs and their influence on food prices for South American imports. While transport does not seem to be in the focus of existing analyses, its impact on food prices might be underestimated and even closely linked to the development of commonly mentioned drivers of food prices. Since transport price formation is a function of demand and supply, drivers of food prices are also expected to impact on transport prices. The authors argue that a number of relevant factors that drive transport costs - and in consequence food prices - can be influenced by policy makers. Based on empirical analysis, the authors explain the functioning of the determinants of transport costs in the segment of international shipping, trying to describe their exogenous and endogenous components. These results are discussed in reference to policy development in the region.     

The place of transport in facilitating social inclusion via the mediating influence of social capital

Social policy makers rarely associate the ability to be mobile with having a role in the facilitation of social inclusion. This paper provides an initial exploration of the association between a person’s travel patterns and their risk of social exclusion. Information is drawn from a major Australian Research Council transport study which interviewed 535 people from Metropolitan Melbourne, Australia. It includes an analysis of the extent of the person’s bonding and bridging social networks, their connectedness to the community, self-assessed level of well-being and their beliefs about whether or not they are able to control outcomes in their life. It was found that those who had the greatest risk of social exclusion, travelled less often and less distance, owned fewer cars and used public transport less, than those who were more socially included. However, those who were more at risk of social exclusion did not identify their lower trips as due to either a lack of transport, or problems with the public transport system. The ability to have good bridging networks appears to be related to increased trip-making and promotion of social inclusion but not necessarily self-assessed well-being which is satisfied by bonding networks.     

Part II: Policy instruments for sustainable road transport

Without questioning the fact that to achieve efficiency emitters should pay for the true costs of their actions (a core principle of economic policies such as pollution taxes), we find sufficient evidence in the literature to demonstrate that many other policy instruments can be used in combination with taxes and permits to ensure that the transport needs of the present generation can be met without compromising the ability of future generations to meet any needs of their own.The policies and policy aspects considered in this paper broadly fall into three categories: physical policies, soft policies, and knowledge policies. All three aim to bring about changes in consumers’ and firms’ behaviour, but in different ways. The first category includes policies with a physical infrastructure element: public transport, land use, walking and cycling, road construction, and freight transport. We also consider the particular challenges for mobility in developing countries, and how these may be addressed. Soft policies, on the other hand, are non-tangible aiming to bring about behavioural change by informing actors about the consequences of their transport choices, and potentially persuading them to change their behaviour. These measures include car sharing and car pooling, teleworking and teleshopping, eco-driving, as well as general information and advertising campaigns. Finally, knowledge policies emphasise the important role of investment in research and development for a sustainable model of mobility for the future.The main findings can be summarised as follows.

Physical policies

An increase in the use of public transport, combined with a decrease in the use of private cars, can reduce traffic congestion and, more importantly, carbon dioxide (CO₂) emissions, as public transport generally causes lower CO₂ emissions per passenger kilometre than private cars. Public transport fares are subsidised in most places, which can be justified by economies of scale and by the fact that public transport can reduce total road transport externalities. London, Singapore, Portland and Curitiba are all examples of good practice at government level, having achieved reliable, frequent and integrated public transport.Policies to increase public transport use must be part of an integrated policy. Integrated policy refers to integration across different modes of transport, different government objectives (such as the economy, health and the environment), considering the needs of different social groups, and coordinating action between the relevant government institutions. There is evidence that a lack of coordination can jeopardise the achievement of policy objectives.A sustainable model for transport policy also requires integration with land-use policies. These may be somewhat limited within the bounds of existing cities, but as cities grow and new cities are built, urban planners must put more emphasis on land use for sustainable transport in order to reduce congestion and CO₂ emissions. Sustainable land-use policy can direct urban development towards a form that allows public transport as well as walking and cycling to be at the core of urban mobility.Walking and cycling, which improve general health and produce no tailpipe emissions, constitute an excellent alternative to motorised transport on short-distance trips within towns and cities. The policies which can incentivise walking and cycling include crime reduction to make streets safer, well-maintained and clean pavements, attractive street furniture, safe crossings with shorter waiting times, dedicated cycle paths, showers in offices, and lower speed limits, to name but a few.Road construction and expansion used to be seen as one of the most promising ways to reduce traffic congestion. However, in the mid-1990s, the issue was reassessed and it was found that building and expanding roads, increased, rather than decreased, congestion, and ultimately induced higher levels of travel demand. The reason for this is that the extra capacity reduces the general cost of travelling and the less expensive the travel, the more it will be demanded. Regarding freight modal shift, road transport is much more polluting than rail per tonne-km of goods transported and therefore a shift towards greater use of rail in freight transport is desirable. Inadequate infrastructure is the main obstacle preventing this modal shift taking place.Developing countries face great mobility challenges: rural areas are often extremely poorly connected to transport infrastructure, such that, in contrast to the situation in developed countries, the benefits of road construction can strongly outweigh the total costs (including environmental ones). The main challenge, however, is to develop a solution to the problems arising from the combination of urbanisation and motorisation. Integration of transport and land-use policy will be key to rising to this challenge.

Soft policies

Car sharing and car clubs can also potentially reduce CO₂ emissions, although the aggregate reduction in congestion and emissions has not been measured with an adequate degree of precision in the literature. Teleworking and teleshopping can potentially reduce congestion and also CO₂ emissions. However, the evidence for this reduction is rather mixed, as it is unclear whether these measures lead to overall reductions in road transport.Eco-driving campaigns aim to inform and educate drivers in order to induce them to drive in a fuel-efficient and thus environmentally friendly way. There seems to be some consensus in the literature that eco-driving could lead to reductions in CO₂ emissions of around 10 per cent.Information and education policies have often been advocated as instruments which may affect behavioural change. We find in this paper that these types of measures are necessary, but not sufficient for behavioural change. Advertising and marketing may go a long way in changing peoples’ behaviour. In California, for example, Kahn (2007) finds the “Prius” effect: the Toyota Prius is preferred by consumers relative to other similarly green vehicles, probably due to extensive marketing and celebrity endorsements. Family life changes are also found to trigger changes in behaviour ( [Goodwin, 1989] and [106]). People whose lives are being changed by some important development (birth of a child, retirement, etc) tend to respond more to changes in the relative attractiveness of different transport modes. Advertising campaigns promoting a modal shift towards public transport, for instance, may thus be more successful if targeted at people in the process of important life transitions.

Knowledge policies

Research and Development is crucial for developing sustainable and low-carbon transport for the future, and it is essential that governments provide incentives to undertake R&D, so that new low-carbon technologies in the transport sector can be demonstrated and applied at a large scale.Finally, we consider the issue of policy combination and integration. There is evidence that the combination and integration of policies can lead to positive side-effects and synergies. Policy integration is crucial in order to rise to the challenges we face in moving towards a sustainable mobility model. We conclude that classical economic policies may be successfully combined with a number of policy measures discussed in this paper in order to achieve sustainability in transport.     

What’s so funny about peace, love and transport integration?

The 1998 White Paper proposed integration as the solution to Great Britain’s land transport problems. Most commentators agree that this much vaunted New Deal for Transport has been a failure. Yet some ten years later policy papers from bodies such as the Institution of Civil Engineers and the Centre for Cities are still proposing integration as a possible panacea.There are a number of reasons for the failure of integrated transport over the last decade. The first is the failure to define the concept. The second is the failure to operationalise the concept. The third is the lack of an evidence base on the success of integrated transport policies. Evidence is now emerging in Britain on the benefits (and indeed the costs) of some aspects of integrated transport policies. The fourth, and perhaps the most crucial, is the lack of will in terms of politicians, civil servants and the public at large, to adopt the behavioural changes necessary for an integrated transport policy to be successful. A series of organisational and funding changes are proposed that could advance the prospects for integration.     

Investigating links between transport disadvantage, social exclusion and well-being in Melbourne - Updated results

This paper updates results of an international study aimed at quantifying the links between transport disadvantage (TD), social exclusion (SE) and well-being (WB) in Melbourne, Australia. The study extends knowledge associated with SE and transport by quantify social and behavioural implications of lack of public and private transport and the nature of the social WB benefits associated with improving services.Study aims and methodology are outlined. Recent findings covered relate to car ownership on the urban fringe, patterns of transport disadvantage, the analysis of time poverty related to transport disadvantage, measuring the economic value of additional mobility and use of a Structural Equation Model (SEM) to relate WB and SE to TD and a series of explanatory factors.Overall results suggest that those without a car on the urban fringe adjust well with their circumstances by living close to activity centres. They demonstrate sustainable choices, trading off budgets and home location to balance mobility and accessibility. Poorer households with high car ownership value mobility and cheaper more remote fringe dwellings but demonstrate numerous strategies to reduce high car costs which are acknowledged as a significant burden. Analysis identifies 4 key types of transport disadvantage including a ‘vulnerable/impaired’ group which should be of much greater concern for targeted policy than others due to poor scoring on SE and WB scales. The economic value of new mobility is also explored with results suggesting $AUD 20 per average new trip which is four times larger than conventional values for generated travel.Analysis has also suggested that transport disadvantage can relate to socially advantaged as well as socially disadvantaged groups through time poverty. This was found to be an important mitigating factor when relating TD to WB. A statistically reliable structural equation model is developed suggesting the SE-WB link is strong (−.87) with a modest link between TD-SE (.27).Areas for future research in the project are also summarised.     

Recent developments in Flexible Transport Services

This paper focuses on recent experiences in the evolution of Flexible Transport Services (FTS). It describes how previous manifestations of FTS provided dedicated solutions for special groups, often in parallel to the conventional public transport network, but highlights that in numerous countries across Europe there is now a discernable trend towards open access FTS providing services for the whole community and often feeding the conventional public transport network to provide wider access and opportunities. This is as a result of policies intended to mainstream services for people with disabilities and moves to tackle social exclusion amongst other groups while at the same time reducing the very high costs per trip associated with STS.To meet these policies, and the higher expectations and different travel behaviours of citizens to-day, it is suggested that FTS will need to radically reposition itself in terms of scale, so that there is mass coverage and ability to function as a full transport mode. This will require breakthroughs in concepts; business models; organisational and operational models; and in supporting technologies. A proposed solution to this is the Flexible Agency for Collective Mobility Services (FAMS) which provides an organisational structure and business model for FTS that incorporates the required supporting technologies.     

Workshop 5: Network and system planning

A renewed interest in public transport analysis and development has triggered a debate among policy makers, practitioners and stakeholders regarding technologies, design, pricing, subsidies and contract forms for optimal policy, including social well-being and the financing of public transport reform. Here we present contents and conclusions of workshop 5 of the Thredbo 12 Conference held in Durban, South Africa, where we analysed a series of recent theoretical developments on the links among demand, technology and the design of public transport systems, which we coupled with the examination of several case studies in order to feed the discussion regarding the relations among the strategic, tactical and operational elements that should be considered when designing a public transport policy.     

Activity based travel demand models as a tool for evaluating sustainable transportation policies

India is in the course of an economic transition. The economic growth nurtured the life in the cities and cities have become a major livelihood destination for everyone. This migration of people contributed to the increased urbanization of Indian cities. The booming economy fostered the well-being and shaped the lifestyle of people in such a way that the dependency on private vehicle has become an unavoidable affair. Along with population growth, the increased vehicle ownership gave rise to overall spurt in travel demand. But the supply side lagged behind the demand adding to many of the transport related externalities such as accidents, congestion, pollution, inequity etc. The importance of sustainability is understood in the current urban transport scenario leading to the development and promotion of sustainable transport polices. The core agenda of these polices is to target the travel behavior of people and change the way they travel by creating a different travel environment. However, the impacts of many such policies are either unknown or complex. Hence, before adopting and implementing such policies, it is important for the decision makers to be aware of the impacts of them. The role of travel demand models comes here as they predict the future travel demand under different policy scenarios. This paper reviews the ability of travel demand models applied in India in analyzing the sustainable transport policies. The study found that the conventional model system in India, which is trip based four step aggregate methodology, is inadequate in analyzing the sustainable transport policies. A review of alternative approach, known as activity based travel demand modeling found that they are capable of handling such policies better than conventional models and are assistive to the decision makers in arriving at right mix of polices specific to the situations. Since there is no operational activity based travel demand model system developed in India, the study at the end envisaged a conceptual framework of an integrated activity based travel demand model based on the requirements identified from the review. This can potentially replace the existing travel demand models and can be used for planning applications once the modification & validation have been done according to the existing activity-travel behavior of individuals.     

Road pricing and parking policy

The starting point of this paper is that the collection costs of urban road pricing have turned out to be unexpectedly high. A comparative cost analysis of the congestion charging system of London, Stockholm, Oslo and Singapore also shows that there are large collection cost differences. The most striking difference is between Oslo and London. Oslo, like Stockholm has the necessary, natural, qualities for a central city toll ring with a limited number of entrances; just 18 and 19 tollgates are required. For large historic cities like London with hundreds of inlets to the central city, tollgates at every entrance would involve high investment costs and be very obtrusive in the street scene. The problem is, however, that the present London charging system, with no tollgates, shows high running costs, ten times higher than in Oslo, in spite of the fact that the charged number of vehicles is the same in the two cities. This is a formidable obstacle to alleviating urban traffic congestion in many big cities.The charging technology could hopefully be developed, however, another approach is to develop and combine other measures including traffic regulation, parking policy and public transport subsidisation, which would be only second-best in a hypothetical situation where road pricing is without costs. This paper focuses on parking policy. Two strands of parking policy reform are discussed; fringe benefit taxation of free workplace parking which has recently been introduced in Sweden and a two-part tariff at parking meters, which is suggested as an extension of congestion charging to all day traffic within the central city.     

Overview of public transport policy developments in South Africa

Public transport in South Africa is one of the most burning issues in the transport sector. The government is faced with huge public pressure to improve public transport systems in the face of rising fuel costs, the pending implementation of expensive urban toll road systems in the Gauteng province, and elsewhere in urban environments, public transport safety issues, public transport fleet renewal, especially the commuter rail services, as well as limited resources to fund public transport. As a developing country, the South African Government has pressing funding issues such as funds needed to improve housing for the poor to improve schooling and public health services. Government is also faced with a vocal minibus taxi industry that transports an estimated 65% of all commuters in the country that is also insisting on subsidies for its services.     

Ground travel mode choices of air arrivals at regional destinations: The significance of tourism attributes and destination contexts

The aim of this paper is to examine the air leisure arrivals’ ground travel mode choice in the context of their decision to disperse beyond the gateway. A stated choice experiment was designed to examine the dispersal and travel mode choice of leisure visitors arriving on air transport at Cairns. Results show that for a hypothetical public bus alternative, attributes such as ‘sightseeing opportunities’ and ‘driver quality’ were significant for trips made to less known destinations located south of Cairns, compared to destinations north of Cairns. Findings suggest that while travel mode attributes and trip characteristics are significant determinants of the mode choice of air leisure arrivals, the extent of their significance varied markedly across destinations. Although the data examined in this paper were collected in Cairns, this research should be of relevance to many regions interested in understanding the relationship between destination transport and dispersal of air arrivals.     

The efficiency of congestion charging: Some lessons from cost–benefit analyses

This paper addresses methodological issues in cost–benefit analysis (CBA) regarding congestion charging schemes. Despite suspicion on the reality of travel time savings, it is argued that these savings are a conservative value of surplus gained from a congestion scheme. The methodology of measurement of travel time reliability is not yet stabilised, but the literature review suggests that it may take a growing share of benefits in the future. Sensitivity tests performed on the London and Stockholm case studies with a simulation model underline the need to accurately measure speeds, while the value of travel time appears less critical. Finally, the impact of costs of public funds on public accounts is greatly significant and may increase in the future.     

Workshop report - Public policy and transport

This workshop considered the wider public policy goals of a range of transport interventions. Particular attention was paid to assessing the role of integration of the different components of the transport system and of the integration of transport with other economic sectors. This assessment was informed by Ray Pawson’s realist evaluation approach, with its emphasis on the inter-relationships between context, process and outcome. The context was provided by case studies covering small urban areas, large urban areas and inter-urban corridors. The three key processes identified related to a regulated system with public ownership and control, a deregulated system with private sector ownership (‘competition in the market’) and a system in which there was public planning of the transport system but private provision (‘competition for the market’). Outcomes can be assessed using cost-benefit analysis tools to determine impacts on economic welfare or more qualitative approaches can be used to determine the extent to which accessibility or sustainability goals have been achieved. The evidence provided suggests that wider public policy goals are more important for urban than for inter-urban transport and it thus in urban areas where integration should be pursued with most vigour. The most relevant process for achieving this would seem to be variants of the competition for the market model. Some policy recommendations are made and implications for further research and for future conferences assessed.     

Regulating the regulator: The impact of professional procuring bodies on local public transport policy and its effectiveness

During the past 15 years competitive tenders have become a common procedure when procuring local bus services in Europe. In particular, tenders with gross cost contracts and the so-called Scandinavian model have gained popularity, resulting in a vast amount of research on optimal contractual relationships between government and operators. This paper pays attention to a rather neglected part of the Scandinavian model: the construction of professional procuring bodies and their relationship to the local public administration, focusing on its implications for policy steering and service performance.The paper outlines briefly two different perspectives of analyses of organisational models: one perspective is anchored in principal-agent theory and institutional economics; and the other perspective in political science. Empirically, the article is based on an evaluation of the relation between two Norwegian counties and the administrative company responsible for planning and procuring public transport services. This evaluation indicates, firstly, important common challenges for the county administration due to lack of regional administrative competencies in relation to the administrative company, which also hampers the county’s role as coordinator of policy areas of importance for public transport. Secondly, due to increased transaction costs, the establishment of administrative companies does not seem compatible with contracts relying on net cost solutions with huge scope for operator initiatives.     

Urban transport lending by the World Bank: The last decade

Over the preceding decade, the World Bank committed about US$7.5bn in loans for urban transport projects in its client countries, involving total project costs of nearly US$13bn. Projects are designed by the client city/national governments and the World Bank in an interactive, give-and-take process. As is common in development finance, urban transport projects entail an investment program and a set of policy and institutional initiatives. A majority of Bank-funded operations in this period focused on public transport modes. A clear and overarching strategic thrust is evident, favoring private delivery of services with a strong public role through city-specific regulatory agencies. Depending on the context, projects involved efforts to introduce private operators and competition into an all-public set-up, or tighten up weakly regulated, “informal” public transport markets. A notable feature of many projects in the latter context is the use of investments in bus rapid transit infrastructure to reach multiple goals: improve transport services, maintain affordability for low-income passengers, attract new passengers, reduce negative environmental impacts, and leverage complementary reforms of policies and institutions. The Bank’s program in China, unique in its local context of a dynamic urban society moving away from a near-universal reliance on bicycles, initially did not focus on public transport but on urban roads and traffic management. Towards the end of the last decade, the motorization process and the outlook of decision makers entering a more mature stage, projects in China started to converge towards what the rest of the Bank’s program was doing – searching for a more sustainable path to urban transport development.     

Public vs private management of public utilities - The case of urban public transport in Europe

This paper analyses the determinants of the performance differential between the private and public management of urban public transport in Europe. Our analysis supports the view that private management is associated with a lower operating cost. We show, however, that the size of the costs' differential can depend on the interaction of the local authorities' capacity for expertise and the private operators' autonomy margin. In particular, we show that, in certain situations, there might be little difference in operating costs. Thus, in terms of total costs (production and transaction costs), no systematic advantages should be expected from private management.