FAH3461 Transport and Economics 7.5 credits
Content and learning outcomes
Course contents
The course will cover analysis of transport pricing, economic valuation of non-market goods such as travel time and reliability, social cost-benefit analysis of transport investments and policy measures, and transport externalities such as congestion and emissions. Emphasis is on the use of analytical techniques to study real-world urban transportation problems and policy-making.
- Value of time, theoretical derivation and applied econometric methods
- Travel time reliability and variability, theory and applied econometric methods, and unresolved issues
- Congestion and road pricing
- Valuation and pricing of externalities
- Subsidization of public transport
- Welfare economics
- Principles for applied cost benefit analysis
Intended learning outcomes
After completing the course the student should be able to
- choose and use relevant concepts and tools of microeconomics for research topics in the field of transport economics including regulations, externalities, and pricing
- use methods to analyze real-world problems in transportation planning and policy-making
- use methods used in transport engineering and other disciplines, including models for traffic assignment and travel demand
- relate sustainability goals and measures to relevant concepts and methods in economics
- apply theoretical constructs to derive cost-benefit rules
- use cost-benefit analysis to evaluate transport investments and policy measures, and value the strengths and weaknesses of applied cost benefit analysis
- discuss how transport pricing is affected by externalities and cost structures
- axiomatic neoclassical approach, and fundamental assumptions of welfare economics in relation to the field of transport
Literature and preparations
Specific prerequisites
Advanced Transport Modelling, Discrete Choice Econometrics, or similar
Transport Policy and Evaluation or course in Microeconomics
Recommended prerequisites
Equipment
Literature
Eliasson, J., CBA walk through, Kompendium
Small, K.A., and Verhoef, E.T., 2007, The Economics of Urban Transportation, Second Edition.
Hensher, D.A., and Button, K.J., 2000, Handbook of Transport Modelling, Elsevier.
Winston, C., "Conceptual developments in the economics of transportation: An interpretive
survey", Journal of Economic Literature XVIII(1), 1985, 57-94.
Button, K.J., 2010, Transport Economics, third edition Edward Elgar, Cheltenham, UD, Northampton, Mass. 2010.
Quinet, E. and R. Vickerman (2004), Principles of Transport Economics, Cheltenham and Northampton, Mass: Edward Elgar
Selected paper
Examination and completion
If the course is discontinued, students may request to be examined during the following two academic years.
Grading scale
Examination
Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.
The examiner may apply another examination format when re-examining individual students.
P/F
Other requirements for final grade
Term paper 4.0 Credits
Written exam 3.5 Credits
Opportunity to complete the requirements via supplementary examination
Opportunity to raise an approved grade via renewed examination
Examiner
Ethical approach
- All members of a group are responsible for the group's work.
- In any assessment, every student shall honestly disclose any help received and sources used.
- In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.