Cost developments in Norwegian public transport – key observations

Public transport use in Norway is at all-time high. This high usage level is a result of political priorities, and represents a cost in terms of subsidies to public transport. These costs are mostly borne by the local governments, at county level. In parallel with increased purchase of public transport the last decade, unit cost in public transport has increased, mostly due to factors outside the control of local government, such as wages and fuel prices. The combination if increased volume of purchase of public transport services and increased unit prices has resulted in higher public expenditure.New vehicle technologies have so far proven to be more expensive than conventional technologies. However, looking ahead to 2020 and 2025, there is a real possibility that zero local emission vehicles, in the form of battery electric busses, can be competitive also on price, for urban bus lines. Still, political priorities and demographic developments point towards increased need for public transport, and therefore, increased subsidies, in the foreseeable future.