ALTERNATIVE LOCAL FINANCING SCHEMES FOR ENVIRONMENTAL TRANSPORT SYSTEMS

The development of more environmentally friendly transportation system in the cities, in particular public transit and bicycle, is today limited by a shortage of financial resources. Other surveys show that the same transportation means need continuous improvements to maintain or increase their competitiveness versus car. The report discusses the possibilities and consequences of an alternative financing scheme for envirnmentally friendly transportation means, based on five elements: environmental transportation funding; shared cost between state funding and local transportation taxes; sustainable investments; quality dependent public transit subsidies; and local financial responsibility and risk.