ØSS119 Transport Economics

Contents and structure

This course covers central topics in transport economics. Students will learn which factors that determines individuals and companies demand for transport services, and how transport companies decide what transport services to supply and what prices to charge for their services. This knowledge is used to study the interaction between travellers, transport customers and transport companies in transport markets and systems. Public policies and regulations in order to improve economic efficiency and achieve sustainability are analysed, as well as cost-benefit analyses.

Learning Outcome

On completion of this course students will have:

Knowledge:

• Transport production, costs of production, generalised costs of travel and external costs
• Travel behaviour, demand and supply of transport services
• Equilibria in transport systems and transport markets
• Transport prices (fares and rates), transport capacity and quality
• Organization and regulation of the transport sector
• Cost-Benefit analyses in the transport sector

Skills:

• Be able to analyse how travellers and transport customers decides how and where to travel and ship their cargo based on demand theory and generalised costs of travel
• Be able to analyse how transport companies chose what service to supply and what price to charge based on costs of production, demand and the competitive environment
• Be able to analyse the interaction between travellers, transport customers and transport companies in transport markets and transport systems
• Be able to analyse how public policies and regulations have an impact on transport systems and transport markets
• Be able to identify and analyse situations where the transport sector is unable to allocate resources efficiently and achieve sustainability, and how public policies may improve efficiency and achieve sustainability
• Be able to conduct simple cost-benefit analyses

General competence:

• Be able to understand how economic models may be applied in order to analyse transport markets and transport systems, and how public transport policies may improve economic efficiency and sustainability
• Be able to collaborate with others in order to solve tasks

Entry requirements

None

Recommended previous knowledge

Basic microeconomics, eg. BØA203

Teaching methods

Lectures and assignments.

Compulsory learning activities

In order to take the exam, two written assignments must be approved. Students are obliged to collaborate in groups.

Assessment

4 hours written examination

Grading scale: A- F where F is fail.

Examination support material

Simple basic calculator of the following type:

- Casio fx-82, Casio fx-85 (all types of both fx-82 and fx-85 are allowed: CW, ES, ES Plus, EX, Solar etc.)

- TI-30Xa, TI-30XIIS, TI-30XS MultiView

- Sharp EL-531TG, Sharp EL-531TH, Sharp EL-531TS

More about examination support material