Elements in an Optimum Transport Policy

This report is a follow-up on a previous report dealing extensively with optimisation of transport policy for a simple example consisting of one hour morning peak traffic between a suburb and the CBD-area. Some of the restrictive assumptions used in the example are relaxed in this report. This permits for an analysis of peak spreading, the implications of captive travellers for transport policy and the implications of varying distance to the CBD-area. Optimation with embedded equilibrium is used to evaluate first best and different second best policies for pricing and public transport supply. This is done both with and without inclusion of a cost of public funds. Optimisation of public transport supply in a network setting is a challenging problem. Some issues that arise in this context is also discussed.