Financing Local Public Transport: Costs and Benefits Evaluation

Financing Local Public Transport: Costs and Benefits Evaluation


G E Cantarella, S de Luca, University of Salerno, IT; M Di Gangi, University of Reggio Calabria, IT


The Italian LPT financing system with the new legislation has evolved greatly. In this paper estimates of transit benefits and costs are summarised, identifying a methodology for the operative cost evaluation.


Currently, an increasing consensus is endorsing the introduction of competition in public transport (PT), through public service contracts. At the same time, whilst in some countries subsidies (or financial compensation) are a well-established practice, in others they are considered unmotivated.

In this paper a framework is proposed to estimates and evaluate transit costs, benefits, and impacts to support transport planning and policy making as well as operator management. The proposed methodology aims at computing the (total operating) cost and the revenue resulting from the fares and the features of each option, thus allowing public transport service plan appraisal. In particular, the subsidies, or financial compensation, are given a clear socio-economic meaning.


Association for European Transport