Alternative urban transport funding: Cost-benefit analysis of alternative public transport funding in four Norwegian cities
Overview
Background & policy context:
One of the main challenges for public transport in larger cities is to ensure stable and sufficient revenue flows. An optimal level of service within the public transport system typically presupposes revenue from more sources than the passengers alone. Such funding may take the form of lump sum subsidies, output-based subsidies, or designated contributions from toll rings or road pricing schemes. To obtain political acceptance for such funding arrangements one will have to present the different funding arrangements as a whole.
The Norwegian Ministry of Transport and Communications administers a research programme aimed at financing projects with the purpose of improving the basis for work with national and local transport policy. For many years it has been discussed what will be the best way of financing public transport in urban areas. This can also be related to the question of what service level should be provided.
Objectives:
The objective of the project was to analyse the welfare implications of alternative urban transport funding schemes in the four largest cities in Norway (Oslo, Bergen, Trondheim and Stavanger).
Methodology:
The study involves four reports, covering the following:
- A description of the decision-making processes behind the different transport policy packages in the four largest Norwegian cities, assessing the extent to which the approach taken in each package is a result of the way in which it has been organised.
- A study of the preferences of politicians and decision makers regarding different funding packages for the four cities.
- A study of framework conditions and development trends for the funding of public transport in these cities.
- A study on how an economically optimal public transport service can be developed.
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