Applied Transport Economics : Policy, Management and Decision Making

by Cole, Stuart

• ISBN13: 9780749441029
• ISBN10: 074944102X
• Edition: 3rd
• Format: Hardcover
• Copyright: 2005-09-18
• Publisher: Kogan Page Ltd

Summary

This third edition of "Applied Transport Economics" has been completely revised and updated to cover the latest developments and thinking in transport economics. Professor Stuart Cole examines the application of economics techniques first to commercial transport operations, and second to public policy issues such as investment, integrated transport and competition, and third to the role of transport in its wider economic context. The style and approach, which proved so popular in the first two editions has been retained. This approach provides a transport economics text book for managers who are not familiar with economics techniques, students preparing for examinations in transport and other areas of business and public policy where an applied approach to economics is required, and economists entering the transport field.

Author Biography

Professor Stuart Cole is a member of the First Great Western Stakeholders Advisory Group representing travellers, business and academia. Professor Cole is a regular broadcaster on BBC radio and television and on S4C in both Welsh and English

Table of Contents

About the Author	p. xi
Acknowledgements	p. xiii
Introduction	p. 1
Transport Market Dynamics
Market Demand	p. 5
Transport as a Derived Demand	p. 5
Factors Determining Demand	p. 6
Urban Bus Operations	p. 15
Demand Patterns Not Influenced by Operators	p. 17
Operator Attempts to Influence Demand	p. 20
Peak Demand	p. 21
References	p. 34
Elasticity of Demand	p. 36
Price Elasticity of Demand	p. 36
Transatlantic Fares	p. 37
Coach/Rail Competition	p. 39
London Commuters	p. 50
The Measurement of Price Elasticity	p. 57
Income Elasticity	p. 64
Service Elasticity	p. 70
Analysis of Eurostar and Eurotunnel Markets, 1992-97	p. 70
Factors Determining the Magnitude of Elasticity	p. 83
References	p. 85
The Supply of Transport	p. 89
Introduction	p. 89
Elasticity of Supply	p. 91
Conclusion	p. 94
References	p. 94
Pricing Policy	p. 95
Introduction	p. 95
Price Discrimination	p. 95
Railways - Market Segmentation/Price Discrimination	p. 101
Airline Pricing	p. 111
The Low Cost Airline Market (Europe)	p. 114
MA Airways Ltd	p. 121
Solutions for Low Profitability and Loss of Market Share	p. 126
Eurostar	p. 134
Coach Pricing	p. 135
Bus Pricing	p. 137
Under-18 Market	p. 139
References	p. 144
Further Reading	p. 145
Cost Levels and Structure - Road Transport	p. 146
Price versus Quality	p. 146
Bus Operating Costs	p. 147
Cost Reduction (Bus Industry)	p. 161
References	p. 161
Cost Levels and Structure - Railways	p. 163
The Privatised/Disaggregated Railway	p. 170
Costing the Integrated Railway - A Lesson for 'New' (2004) EU Member States	p. 172
Avoidable Cost (Railways)	p. 175
References	p. 179
Cost Levels and Structure - Airlines	p. 183
References	p. 197
Forecasting Transport Demand, Revenue and Expenditure	p. 199
Economic Forecasting	p. 199
Forecasting Bus Costs and Revenue in a Shire County Funding Context	p. 201
The Impact of Channel Tunnel International Trains on Domestic Commuter Services	p. 207
Road Traffic Forecasting - Macro Economic Forecasts	p. 217
Forecasting Rail Passenger Demand - Elements in the Model	p. 220
Forecasting for an Integrated Transport Policy	p. 223
Forecasting Air Traffic Demand	p. 225
Eurotunnel: Forecasts of Freight and Passenger Traffic	p. 230
Conclusion - Forecasting	p. 235
References	p. 235
Public Policy
Economic Appraisal - Techniques	p. 241
The Argument for Government Investment in Public Transport	p. 241
Cost Benefit Analysis	p. 243
Cost Benefit Analysis of Bus Subsidy	p. 259
Great Britain - Central London Rail Study	p. 261
Great Britain - Strategic Rail Authority	p. 264
European Commission - Socially Necessary Railway Services	p. 272
Sweden - Rail Infrastructure Company, Banverket (BV)	p. 280
Germany - Federal Traffic Infrastructure Plan	p. 281
The Netherlands - Rail Service Evaluation	p. 283
European Bank for Reconstruction and Development (EBRD)	p. 285
References	p. 290
Further Reading	p. 293
Economic Appraisal - Valuation of Elements	p. 295
Purpose of Investment	p. 295
An Appropriate Evaluation Technique	p. 295
Environmental Considerations in New Infrastructure (Road, Rail, Airports) Investment	p. 309
Definition of the Environment	p. 314
Transport Investment Areas	p. 316
The Valuation of Time Savings	p. 317
Winners and Losers	p. 321
Private Capital Schemes	p. 324
Road Pricing: Market Forces in Public Policy	p. 327
References	p. 328
Public Private Partnership (PPP) Investment	p. 332
PPP Funding - Additional Investment or a Substitute for Public Sector Investment?	p. 332
Value for Money	p. 333
Transfer of Risk and Commercial Risk Premiums	p. 334
Private Sector Enthusiasm for PPPs	p. 334
Solutions to Primary Private Sector Concerns	p. 336
Analysis of Bidders' Views	p. 337
Financial Appraisal versus Cost Benefit Analysis	p. 338
Funding a PPP Scheme (Major Urban Railway)	p. 339
East West Crossrail (London)	p. 340
Manchester Metrolink	p. 341
CBA/FA in TEN PPPs - Some Current Views	p. 342
Speed Raising Proposals for Regional Trains and Inter City Links between Regions within the European Union	p. 343
References	p. 346
Funding an Integrated Transport Policy	p. 347
Definition of an Integrated Transport Policy	p. 348
Governance of an Integrated Transport Policy	p. 350
Application of an Integrated Transport Policy	p. 351
The 4 I's	p. 354
Questions	p. 357
The European Union Context	p. 357
European Union Policy	p. 358
The Congestion Problem	p. 359
Market Forces and an Integrated Transport Policy	p. 363
Evaluation and Financing of Railway and Road Investment within an Integrated Transport Policy	p. 366
Cost Benefit/Multicriteria Evaluation	p. 373
Conclusion	p. 380
References	p. 381
Regulation or Competition?	p. 384
Introduction	p. 384
The UK Bus Market	p. 385
Effects of Deregulation	p. 386
Concerns about a Dergulation Policy	p. 388
A Supply-Side Competitive Franchising System	p. 396
References	p. 399
Transport and Development
19th Century Britain	p. 403
The Need for Transport	p. 403
Transport and the Development of 19th Century London	p. 404
Metroland	p. 408
Economic Impact of the Railways outside London	p. 412
Conclusion	p. 414
References	p. 415
Transport and Economic Activity	p. 416
Definition	p. 416
Options for Growth	p. 416
Forms of State Aid	p. 417
Government Policy in Britain and in Ireland	p. 418
The Atlantic ARC	p. 420
Location Criteria - The Position of Transport	p. 421
Do Roads Really Bring Economic Success?	p. 424
Policy in Other EU Member States	p. 428
Conclusion	p. 429
References	p. 431
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