Torben Holvad

Railway Reforms: Do They Influence Operating Efficiency?

This paper considers railway operations in 23 European countries during 1995-2001, where a series of reform initiatives were launched by the European Commission, and analyses whether these reform initiatives improved the operating efficiency of the railways. Efficiency is measured using Multi-directional Efficiency Analysis, which enables investigation of how railway reforms affect the inefficiencies of specific cost drivers. The main findings are that the reform initiatives generally improve operating efficiency but potentially differently for different cost drivers. Specifically, the paper provides clear empirical evidence that accounting separation is important for improving operating efficiency for both material and staff costs, whereas other reforms only influenced one of these factor.

The whole-life impacts of transport-charging interventions on business performance: A time-marching framework

A major concern of business with respect to transport-charging interventions is the context of revenue-investment policy, particularly how the timing of improvements may alter the time lags between fewer car journeys and more public transport journeys, and the problems for business in the intervening periods. The authors present a conceptual framework and case study of the whole-life effects on business performance. The impacts of charging occur as a sequence of gradually interacting changes, rather than as a single set of impacts, and positive amenity effects brought about through revenue hypothecation occur incrementally, taking years to achieve full effect. In the case study, a Delphi panel of business leaders predicted the time-marching effects of workplace-parking levies and road-user charging over a 24-year period in Nottingham. The findings revealed that the temporal nature of hypothecation results in minor fluctuations in performance for some business sectors in the first few years, but that these tail off as benefits gradually overwhelm disbenefits resulting in modest increases in performance for most sectors in the medium to long term. Many local authorities are reluctant to implement charging interventions due to concerns about economic vitality; it is expected that the results will inform policy and future research in this area.

Contingent Valuation Methods: Possibilities and Problems

Valuation of external costs created from transport is important to undertake in order to improve the decision-making basis for transport policy. In particular, this information could be utilised with respect to policy measures for the internalisation of external costs as well as with respect to appraisal of specific transport investment projects. A number of methods towards the valuation of external costs have appeared in recent years in parallel with the increased awareness about the environmental problems created by transport. These methods include approaches based on assessing the resources required to reduce the costs as well as utility-based approaches. In particular, the so-called contingent valuation method has been put forward as a way to determine the willingness to pay for various environmental goods/functions for a sample of individuals. This method has been applied in a wide range of empirical context in the last two decades. This paper will provide a critical assessment of contingent valuation methods. In particular, the paper will consider the theoretical and empirical possibilities and problems provided by this method. The paper will include the following sections. Section 1 will identify the need to valuate external costs. In section 2 an overview of contingent valuation methods will be given. This will be followed in section 3 by an examination of the possibilities and problems involved in this method. Section 4 concludes with final remarks and suggestions for further research to improve the method.

Metro Systems in Europe: A Comparison of the Copenhagen and Bucharest Metros

This paper discusses how a substantial number of metro systems have been constructed in major cities throughout Europe during the last three decades. Metros offer large urban areas significant increases in the capacity of the public transport systems both in terms of quantity and quality. On the other hand these systems require substantial capital costs. Therefore, careful consideration to the expected usage and benefits delivered from a metro system should be undertaken in order to ensure the economic feasibility. Two metro systems will be examined in this paper, the Copenhagen Metro and the Bucharest Metro. The Copenhagen Metro was opened in 2002 and the Bucharest Metro was opened in 1979. These two cases are interesting because they can highlight differences regarding metro systems in Eastern and Western Europe. Key information regarding both metros will be highlighted in terms of background to the decision of developing the metro systems, construction and financing arrangements, current operations and plans for future extensions. Further assessment regarding the integration of the metro within the overall public transport system will be given, including ticketing and information integration as well as the interchange facilities. Particular focus will be on the impacts of the metro systems in terms of patronage and modal shift effects as well as consideration to the possible wider economic implications.