Where there is a choice between public and private transport in a crowded country like Holland the perceived cost of travel must promote optimal allocation of scarce goods. Regarding an integral fare-policy in person transport the trip-cost must serve two goals: the reduction of negative external effects; provide a guide-line for mode-choice. Public transport fare must be deducted from the travel cost by private car. The difference should be the higher cost of the negative effects of the private car compared to public transport.
Abstract