ABSTRACT
This chapter presents a technique that estimates and compares the economic benefits, narrowly defined, of subsidy to public transport in the English metropolitan areas. It investigates the extent to which it might be possible and useful to incorporate the measurement of economic benefits and costs of revenue support in the annual process of determining the guidelines. The model traces the effects of changes in public transport fares and service levels on the transport system in each of the major urban areas. It will be noted that there are five modes: commercial vehicles (CV), private cars (CAR), bus (BUS), London Transport rail (LT) and British Rail (BR). BR rail travel is treated as one of the interdependent modes. In London, a change in LT policies will have implications for BR revenues and on user benefits accruing on BR rail. These effects enter the economic evaluation but, of course, they do not figure in the account of the implications for LT finances.
