The module provides the basis for the understanding of demand and supply in the transport sector, transport externalities and corrective instruments, investment and economic appraisal and transport management. It makes students aware of relevant microeconomic theory and solutions to transport problems.

1) conceptualise transport problems in economic terms; (2) apply economic theory to current transport problems such as for example traffic congestion and CO₂ emissions; (3) understand appraisal methods in transport; and (4) understand the main issues related to transport management.

The module consists of lectures, group and class discussions and group presentations. The group and class discussions promote skills in communication, as do the group presentations. Most topics throughout the module are illustrated with at least one example or case-study, which helps put the concepts together.

During the course of the module there will be plenty of opportunities to practise and master a number of skills. Students will be expected to:

1. be able to work in a group and prepare and deliver a presentation

2. debate a topic in class, justifying arguments in a reasoned way

3. read the latest research on a topic new to the student and be able to grasp the main points, regardless of the student’s background

4.  be able to write a critical essay with a clear structure

5. be able to answer specific questions on different transport economics topics under the pressure of an exam environment.

    

There will be 3 summative assessments supported by formative assessments. The formative assessments will consist of one group presentation, to take place in a session before the summative group presentation takes place, and linked to learning outcomes (1) and (2) and skills (1) and (3), and class and group debates and discussions, to take place virtually every week.

Group Presentation

25%

Essay

25%

1200 words

Exam

50%

1.5 Hours

Most of these assignments can be undertaken by students with almost any disability. However, individual cases will be catered for if a student were unable to complete any of the assignments described above due to a disability.

Appraisal of transport projects. Important concepts in (transport) economics. Demand, supply and elasticities. Externalities and policies to correct them. Parking policies and road pricing. Discrete choice models. Transport management.

Syllabus content

Appraisal of transport projects. Important concepts in (transport) economics. Demand, supply and elasticities. Externalities and policies to correct them. Parking policies and road pricing. Discrete choice models. Transport management.

Essential Reading and Resource List

Button, K. J. (2010), Transport Economics, 3^rd edition, Cheltenham, UK - Northampton, MA - USA: Edward Elgar.

Button, K. (2004), ‘The Rationale for Road Pricing: Standard Theory and Latest Advances’, in Santos, G. (Ed.), Road Pricing: Theory and Evidence, Research in Transportation Economics, Vol. 9, Oxford: Elsevier, pp. 3-25. [This is available as en e-journal].

Department for Transport (2011), Transport Analysis Guidance: Cost Benefit Analysis (TAG Unit 3.5.4), April

http://www.dft.gov.uk/webtag/documents/expert/pdf/unit3.5.4.pdf

and

HM Treasury (2003), Green Book, Appraisal and Evaluation in Central Government, London. http://www.hm-treasury.gov.uk/d/green_book_complete.pdf

Look at:

-Definition of CBA in the Glossary

-Discounting in Chapter 5

-Valuing non-market impacts in Annex 2

-Distributional impacts in Annex 5 (don’t go in detail but try to get the general idea)

-Discount rate in Annex 6

DTLR multi-criteria analysis manual [Chapters 2, 3 and 4]

This is an Internet publication from the former Department for Transport, Local Government and the Regions, available at

http://www.nera.com/nera-files/Multi-criteria_Analysis_Model.pdf

Goodwin, P., Dargay, J. and Hanly, M. (2004), ‘Elasticities of Road Traffic and Fuel Consumption with respect to Price and Income: A Review’, Transport Reviews, 24(3), pp. 275-292.

Handy, C (1993), Understanding Organisations, London: Penguin, 4^th edition. [Chapter 7]

Santos, G., Behrendt, H., Maconi, L., Shirvani, T. and A. Teytelboym (2010), ‘Externalities and economic policies in road transport’, Research in Transportation Economics, 28(1), pp. 2-45.

Small, K. and E. Verhoef (2007), Economics of Urban Transportation, London: Routledge. [Chapters 2 and 3 and 5.2]

Train, K. (2009), Discrete Choice Methods with Simulation, 2^nd edition, Cambridge: Cambridge University Press. http://elsa.berkeley.edu/books/choice2.html [Chapters 2 and 3]
 

van der Gun, M. and R. Jeuring (2009), ‘Public Transport & Marketing in Small and Medium Sized Cities’, paper presented at the European Transport Conference. http://abstracts.aetransport.org/paper/index/id/3095/confid/15

Varian, H. (1993), Intermediate Microeconomics, New York - London: W. W. Norton & Company. [Chapter 1]

Verhoef, E. T., Nijkamp, P. and P. Rietveld (1995), ‘The Economics of Regulatory Parking Policies: The (Im)possibilities of Parking Policies in Parking Regulation’, Transportation Research Part A: Policy and Practice, 29(2), pp. 141-156.