Skip to main content

FAH3461 Transport and Economics 7.5 credits

Course offerings are missing for current or upcoming semesters.
Headings with content from the Course syllabus FAH3461 (Spring 2013–) are denoted with an asterisk ( )

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

Course disposition

No information inserted

Literature and preparations

Specific prerequisites

Advanced Transport Modelling, Discrete Choice Econometrics, or similar

Transport Policy and Evaluation or course in Microeconomics

Recommended prerequisites

No information inserted


No information inserted


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

P, F


    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.


    Other requirements for final grade

    Term paper 4.0 Credits

    Written exam 3.5 Credits

    Opportunity to complete the requirements via supplementary examination

    No information inserted

    Opportunity to raise an approved grade via renewed examination

    No information inserted


    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.

    Further information

    Course web

    Further information about the course can be found on the Course web at the link below. Information on the Course web will later be moved to this site.

    Course web FAH3461

    Offered by

    Main field of study

    This course does not belong to any Main field of study.

    Education cycle

    Third cycle

    Add-on studies

    No information inserted


    Anders Karlström, amail@kth,se

    Postgraduate course

    Postgraduate courses at ABE/Transport and Systems Analysis