This paper describes a study undertaken to a) establish a simple economic model of urban transport operation in Britain, b) to estimate a theoretical optimal form of intervention in urban rail and compare it to current procedures and c) to investigate how improved procedures might be implemented in practice in the light of Section 56 appraisal data and to make suggestions for additional data collection. The methodology, which uses a microeconomic partial equilibrium model of stylised urban transport operations within a corridor, is outlined. The results of maximising welfare, maximising profit and maximising profit plus net benefit to car users are compared. It is concluded that current procedures do not take sufficient account of the interaction between rail, car and bus with the result that rail schemes for congestion relief may disbenefit bus usage.
Samenvatting