In 1986 the Madrid Regional Transport Consortium was set up to manage all means of public transport within Madrid Region. A number of initiatives to improve coordination of services, fare integration and better quality of services have produced an increasing demand for public transport after 12 years of decreasing. From 1986 to 1993 the demand has been incremented by 27%. In this framework the social benefits due to the public transport system have been evaluated. Two scenarios have been designed: one with the share of public transport in 1986 and the present one. In the two cases a number of externalities have been considered and quantified: travel time, energy consumption, running costs, pollution, noise and safety. The comparative valuation of these two scenarios has been put in relation with the cost of the public transport system in terms of subsidised fares and grants for new investments in infrastructures and rolling stock. The results support the policy of Madrid Region as far as social benefits of public transport are higher than its social and monetary costs. This social appraisal has been developed following the principles of social economy already settled in other cases such as France and Germany.
Abstract