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Sustainable funding sources and related cost benefit measurements
Stanley, John and David Levinson (2016) Workshop 3 report: Sustainable funding sources and related cost benefit measurements. Research in Transport Economics. [doi]
Recognising that public transport services generally deliver substantial benefits for society but frequently require operating and capital funding support, this Workshop sought to find ways to bridge this benefit/funding gap, particularly through benefit monetization. It elaborated a wide range of benefits from public transport services, to both users and non-users. In regard to non-users, there was a particular focus on the role of public transport in promoting positive external benefits, such as agglomeration economies, and reducing the negative external costs of car use. A number of ways in which the service funding requirement might be reduced by improved system management were considered, such as better fare evasion practices and more effective public private partnerships. A range of funding opportunities was then reviewed, from which two preferred bundles were developed. Value capture was seen as a vital funding opportunity, both for supporting operating funding and capital funding requirements. Funding circumstances that were seen as more properly a governmental responsibility were identified.
Keywords: Benefit measurement; Externalities; Fares; Marginal social cost pricing; public private partnership; value capture.
This was developed at a Workshop at the 2015 Thredbo Conference in Santiago, Chile.