Cost-benefit analysis of alternative public transport funding in four Norwegian cities

This report analyses the welfare implications of alternative funding schemes for public transport in the four largest cities of Norway. One of the main conclusions is that a welfare optimal public transport service level demands approximately twice the subsidy level of today. Certain urban characteristics, like housing density, parking restrictions or road user charges, will influence the optimal subsidy level both in short and long term. But “road pricing” will have a mixed effect. While increasing by 7.3 mill. Euro in the short run, the optimum subsidy level will decrease by 24 mill. Euro annually in the long run.