| Authors: | Odd I Larsen, Harald Minken |
| Report nr: | 1059/1997 |
| Language: | Norwegian |
| Attachments | Hele notatet |
The criterea for optimum transport policy with respect to pricing and investment are derived. The two main «rules» are the well known: «price = marginal social cost» and «accept all projects with social benefits ³ social cost». The implications of these rules for urban transport are elaborated. Economies of scale will usually prevent full cost recovery from user fees and fares. Some topics for future research are identified. The main challenge is practical applications of the rules stated above with due allowance for «second best» solutions.
