Market Efficient Public Transport? An Analysis of Developments in Oslo, Bergen, Trondheim. Kristiansand and Tromsø

During the period 1986-97 is the subsidies to the public transport in Norway reduced by 1,2 bill NOK. One of the main objectives of this report has been to discuss the consequences of this reduction concerning market efficiency and development of the service. The study concludes that there has been a significant internal cost efficiency, above 20 per cent in Oslo, Trondheim and Kristiansand, mainly due to increased productivity. On the other hand is the net savings only 166 mill NOK of a total of 592 mill NOK reduced subsidies in the five cites. The reason is that 72 per cent of the reduced subsidies is transferred to increased road traffic (13 per cent) and increased fares (59 per cent).