THE ECONOMIC EFFECTS OF PUBLIC TRANSPORT. PAPER FOR THE INTERNATIONAL WORKSHOP ON ENVIRONMENT, TRAFFIC AND URBAN PLANNING, DELFT, JUNE 1993

This paper discusses the organisation and financing of public transport, and the effects of changes in its provision on patronage and urban development. It draws on studies of rapid transit and its effects on public transport and urban development in Western Europe, North America, and various developing countries. Although it concentrates on rapid transit, its general findings should apply, perhaps on a smaller scale, to other improvements in public transport, such as busways. Its discussion of public transport financing considers: (1) funding from revenues; (2) funding from taxation; (3) funding from land value capture; (4) the advantages and disadvantages of assured funding; (5) the involvement of private capital. The most important objective of rapid transit systems - metro and light rail - is to improve public transport, but these systems can also improve the environment and 'image' of a city, change the urban form, and encourage urban development. Their effects on public transport, land use, urban development, and safety are discussed, together with costs and forecasts. Bus deregulation in the UK is also discussed, as an attempt to apply commercial market disciplines to bus operation, and as an indication of how privatisation might affect public transport. Finally, the authors present some conclusions for transport planners in East European countries.