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  • 1.
    Vigren, Andreas
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
    Competition in Public Transport: Essays on competitive tendering and open-access competition in Sweden2017Doctoral thesis, comprehensive summary (Other academic)
    Abstract [en]

    The results of this work show that the cost efficiency of tendered bus services is similar across all Swedish counties, except for the more high-density counties where efficiency is lower. Considerably lower efficiency is also found for contracts with services run in-house by the Public Transport Authority (PTA), compared to when the same service is run by a private actor. With respect to the competitive environment, it was found that many contract design factors have little or no effect on the number of bids that the PTA sees in their tenders. No measure that could be imposed by a single PTA was found to increase the total number of bidders by more than 0.5 bidders. However, the results suggest that PTAs as a collective could try to avoid tendering too many contracts at the same time because this was shown to reduce participation by up to about two bidders. In addition, these studies show that the local competitive environment is important for the PTAs to consider. The way in which contract areas are defined will also affect the participation rate as operators were found to participate in tenders to a lower extent the farther their workplaces are from the contract area. While larger operators appear to be less sensitive with respect to such distances, the fact that smaller operators are, and that they often bid as one unit as members of cooperation companies, makes the competitive environment important. The results suggest that depots could be included in the contract to stimulate participation, but this is by no means the only nor an easy solution.

    This thesis has also analyzed the entry made in 2015 by MTR Express (MTR) on the Stockholm-Gothenburg railway line. The overall conclusion is that customers are indeed facing lower prices one and a half years after the entry. MTR's prices are on average 100 SEK lower than the incumbent SJ's prices. Furthermore, the analysis shows that the incumbent’s prices have also gone down, by almost 13 percent, following the entry.

    List of papers
    1. Cost efficiency in Swedish public transport
    Open this publication in new window or tab >>Cost efficiency in Swedish public transport
    2016 (English)In: Research in Transportation Economics, ISSN 0739-8859, E-ISSN 1875-7979, Vol. 59, p. 123-132Article in journal (Refereed) Published
    Abstract [en]

    Over the last couple of years, costs in Swedish public transport have increased substantially, and there is little knowledge in what affects cost efficiency. This study aims at determining how different contractual and environmental factors affect cost efficiency, and whether cost efficiency differs between Public Transport Authorities (PTA). A stochastic frontier analysis is conducted using contract-level data for the 21 PTAs and year 2013

    The main findings are that cost efficiency is lower if a contract is operating in areas with high population density, or if the traffic is supplied by a publicly owned operator without using competitive tendering. Furthermore, no major differences in cost efficiency are found across PTAs, with the exception of the counties of Stockholm and Skåne, both counties with high population density, and the county of Västmanland, where all public transport is provided without competitive tendering. The finding of lower cost efficiency in high-density areas calls for further investigation into why this is. Potential explanations are the need for higher peak capacity, or more complex transportation systems. Finally, usage of direct-awarding of public transport should be clearly motivated, as this affects cost efficiency negatively.

    Keywords
    Public transport, Cost, Economic efficiency, Transport authority, Contract, Competition, Population
    National Category
    Economics
    Research subject
    00 Road: General works, surveys, comprehensive works, 02 Road: Economics; 10 Road: Transport, society, policy and planning, 111 Road: Public transport
    Identifiers
    urn:nbn:se:vti:diva-11337 (URN)10.1016/j.retrec.2016.05.009 (DOI)000391074400015 ()2-s2.0-84992697302 (Scopus ID)
    Available from: 2016-11-25 Created: 2016-11-24 Last updated: 2017-12-12Bibliographically approved
    2. How many want to drive the bus?: Analyzing the number of bids for public transport bus contracts
    Open this publication in new window or tab >>How many want to drive the bus?: Analyzing the number of bids for public transport bus contracts
    2017 (English)Report (Other academic)
    Abstract [en]

    This paper examines how different factors relating to contract characteristics, and the operational and tender environment affect the number of unique bidders placing bids in tenders for bus contracts. A generalized Poisson model is used with a comprehensive data set containing most of the recently tendered bus contracts in Sweden, spanning the period 2007-2015. The main finding from the analysis is that most contract characteristics change participation in tenders by around 0.1-0.5 bidders. Operator-restricting measures, such as special requirements on buses, have a similar limited effect. Further, the number of tenders that are open at the same time as a specific tender was shown to reduce participation by almost 2 bidders. Finally, there is evidence that the local competitive environment is of importance, and the public transport authorities therefore need to be concerned with entry barriers in their tenders.

    Publisher
    p. 36
    Series
    CTS Working Paper ; 2017:13
    Keywords
    Public transport, Contract, Tender, Operator, Bus, Characteristics
    National Category
    Economics Transport Systems and Logistics
    Research subject
    00 Road: General works, surveys, comprehensive works, 02 Road: Economics; 10 Road: Transport, society, policy and planning, 111 Road: Public transport
    Identifiers
    urn:nbn:se:vti:diva-12532 (URN)
    Available from: 2017-11-15 Created: 2017-11-15 Last updated: 2018-05-17Bibliographically approved
    3. The distance factor in Swedish bus contracts: How far are operators willing to go?
    Open this publication in new window or tab >>The distance factor in Swedish bus contracts: How far are operators willing to go?
    2017 (English)Report (Other academic)
    Abstract [en]

    One of the factors differentiating operators the most in bus services is, arguably, the respective distances from their workplaces to the area of a procured contract. More dead running kilometers implies higher costs, and the same should affect operators’ probability to participate in tenders. As previous studies have discussed, this is a relevant competitive factor, but the transport literature lacks studies aiming to assess the size of this distance factor. This paper examines what impact operators’ distance to tendered bus contracts has on their probability to participate in the tender, and how this probability differs across operator types.

    To address this, an econometric analysis was undertaken using probit regressions with data on tendered Swedish bus contracts over the period 2007–2015 along with operator workplace data. The results show that operators’ distance from a contract has a significantly negative effect on their probability of placing a bid for the contract. While being located near the contract gives, on average, an over 90 percent probability of participating, being 10 kilometers away results in a 30 percent probability. The rival’s distance to the contract also has an effect, but only to a limited extent. Large operators are found to be less affected by their distance to a contract, and they are also more inclined to bid if the procuring authority offers a depot to use.

    Publisher
    p. 30
    Series
    CTS Working Paper ; 2017:14
    Keywords
    Public transport, Contract, Tender, Probability, Location, Transport operator
    National Category
    Economics Transport Systems and Logistics
    Research subject
    00 Road: General works, surveys, comprehensive works, 02 Road: Economics; 10 Road: Transport, society, policy and planning, 111 Road: Public transport
    Identifiers
    urn:nbn:se:vti:diva-12533 (URN)
    Available from: 2017-11-15 Created: 2017-11-15 Last updated: 2018-05-17Bibliographically approved
    4. Competition in Swedish passenger railway: Entry in an open access market and its effect on prices
    Open this publication in new window or tab >>Competition in Swedish passenger railway: Entry in an open access market and its effect on prices
    2017 (English)In: Economics of Transportation, ISSN 2212-0122, E-ISSN 2212-0130, Vol. 11-12, p. 49-59Article in journal (Refereed) Published
    Abstract [en]

    The Swedish market for passenger railway services has been open to competition since the year 2010. Although minor entries have been made since this date, the incumbent SJ only faced substantial competition on the tracks when MTR entered the Stockholm-Gothenburg line in March 2015. Using unique Swedish ticket price data from operators' websites, this paper investigates what effects this entry has had on market prices.The results show that the incumbent's prices decreased by 12.6 percent on average between March 2015 and June 2016. The price level of the competitor is well below the average price that was offered in the pre-entry period. Further, the largest price reduction, in percentage terms, was found on tickets booked 13 days before departure date. Finally, the observed price decrease in the paper is most likely at a short-run equilibrium, or an ongoing process, implying that prices might adjust further in the long-run.

    Place, publisher, year, edition, pages
    Elsevier Ltd, 2017
    Keywords
    Railway network, Competition, Transport operator, Impact study, Passenger, Price, Change
    National Category
    Economics
    Research subject
    J00 Railway: General works, surveys, comprehensive works, J13 Railway: Economics
    Identifiers
    urn:nbn:se:vti:diva-12616 (URN)10.1016/j.ecotra.2017.10.005 (DOI)2-s2.0-85033224271 (Scopus ID)
    Available from: 2017-12-07 Created: 2017-12-07 Last updated: 2017-12-12Bibliographically approved
  • 2.
    Vigren, Andreas
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
    Competition in Swedish passenger railway: Entry in an open access market and its effect on prices2017In: Economics of Transportation, ISSN 2212-0122, E-ISSN 2212-0130, Vol. 11-12, p. 49-59Article in journal (Refereed)
    Abstract [en]

    The Swedish market for passenger railway services has been open to competition since the year 2010. Although minor entries have been made since this date, the incumbent SJ only faced substantial competition on the tracks when MTR entered the Stockholm-Gothenburg line in March 2015. Using unique Swedish ticket price data from operators' websites, this paper investigates what effects this entry has had on market prices.The results show that the incumbent's prices decreased by 12.6 percent on average between March 2015 and June 2016. The price level of the competitor is well below the average price that was offered in the pre-entry period. Further, the largest price reduction, in percentage terms, was found on tickets booked 13 days before departure date. Finally, the observed price decrease in the paper is most likely at a short-run equilibrium, or an ongoing process, implying that prices might adjust further in the long-run.

  • 3.
    Vigren, Andreas
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.
    Competition in Swedish passenger railway: Entry in an open-access market2016Report (Other academic)
    Abstract [en]

    The Swedish market for passenger railway services has been open to competition since the year 2010. Although minor entries have been made since this date, the incumbent SJ only faced substantial competition when MTR Express entered the Stockholm-Gothenburg line in March 2015. Using unique Sweden ticket price data from operators' websites, this paper investigates what effects this entry has had on market prices.

    The results show that the incumbent's prices decreased by 12.8 percent on average between March 2015 and June 2016. The price level of the competitor is well below the average price that was offered on the railway market in the pre-entry period. Further, the largest price reduction, in percentage terms, was found on tickets booked 10 days before the departure date. Finally, the decrease in the average price of the incumbent seems to be an ongoing process, and a further drop in price would not be unexpected.

  • 4.
    Vigren, Andreas
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.
    Cost Efficiency In Swedish Bus Contracts2015Conference paper (Refereed)
    Abstract [en]

    In Sweden, the 21 county-wise organized Public Transport Authorities (PTA)are in charge the local public transport provision. Since the 1990’s, the PTAshave used, almost exclusively, competitive tendering to arrange the traffic.When implemented, the competitive tendering process decreased costs, whilethe opposite effect was observed when the number of tendering rounds in-creased (Alexandersson and Pyddoke, 2010). National statistics now suggeststhat supply has increased with 30 percent during the last decade, while thetotal costs have increased with over 50 percent. Further, the process of de-signing contracts for traffic areas varies across PTAs, meaning that there arelittle consensus in how and when to use different contracting factors. For ex-ample, while some PTAs use incentives payment based on patronage, othersuse fixed price contracts. Another example of the heterogeneous manage-ment is that some PTAs choose to provide some, or in one case all, of theirtraffic using their own operators (that is, no competitive tendering round isissued). Due to the issues discussed above, there is a need for better under-standing in what drives cost inefficiencies. Accordingly, the purpose of thispaper is to estimate the cost inefficiency in bus contracts tendered by thePTAs, and determine how contract design factors affect the same.

  • 5.
    Vigren, Andreas
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.
    Cost efficiency in Swedish public transport2016In: Research in Transportation Economics, ISSN 0739-8859, E-ISSN 1875-7979, Vol. 59, p. 123-132Article in journal (Refereed)
    Abstract [en]

    Over the last couple of years, costs in Swedish public transport have increased substantially, and there is little knowledge in what affects cost efficiency. This study aims at determining how different contractual and environmental factors affect cost efficiency, and whether cost efficiency differs between Public Transport Authorities (PTA). A stochastic frontier analysis is conducted using contract-level data for the 21 PTAs and year 2013

    The main findings are that cost efficiency is lower if a contract is operating in areas with high population density, or if the traffic is supplied by a publicly owned operator without using competitive tendering. Furthermore, no major differences in cost efficiency are found across PTAs, with the exception of the counties of Stockholm and Skåne, both counties with high population density, and the county of Västmanland, where all public transport is provided without competitive tendering. The finding of lower cost efficiency in high-density areas calls for further investigation into why this is. Potential explanations are the need for higher peak capacity, or more complex transportation systems. Finally, usage of direct-awarding of public transport should be clearly motivated, as this affects cost efficiency negatively.

  • 6.
    Vigren, Andreas
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.
    Costs for Swedish public transport authorities in tendered bus contracts2014Report (Other academic)
    Abstract [en]

    The main objective of this paper is to investigate how different factors affect costs for Swedish Public Transport Authorities (PTA). A theoretical framework is presented for the empirics, a cross sectional regression analysis with cost and supply data from 20 Swedish counties for the year 2012. The most important results are that a one percentage increase in output yield a lower than one percentage increase in cost. The usage of incentives scheme contract do not increase total costs. Lastly, contracts operated by publicly owned operators seem to give higher costs for the PTAs.

  • 7.
    Vigren, Andreas
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.
    Costs in Swedish Public Transport: An analysis of cost drivers and cost efficiency in public transport contracts2015Licentiate thesis, comprehensive summary (Other academic)
    Abstract [en]

    During the last seven years, the total cost for Swedish public transport provision has increased by over 30 percent in real terms according to figures from the government agency Transport Analysis. A similar pattern is found if considering a longer time span. Part of the cost increase can be attributed to an increased supply, and part is due to price increases on input factors that are measured by an industry index produced by the public transport industry. The fact that about half of the costs in Swedish public transport are covered by public funds calls for responsibility in how these funds are used, and this means that information about cost drivers and cost efficiency is necessary. The lack of information about these factors in the Swedish public transport sector is the main motivation for the two papers included in this thesis.

    In this cover essay, the developments over the last decades in Swedish public transport are described, and there is a focus on the last ten years with the Doubling Project and the market in 2012. As mentioned, the costs as a whole, as well as per unit costs such as cost per vehicle kilometer, have increased in real terms since 2007. Even though parts of the cost increase can be attributed to an increased supply or the price of input factors, this development might be problematic for at least two reasons. First, the ambition of the industry to double the number of travelers by the year 2020 seems to have resulted in a supply increase around year 2010 and a similar increase in the number of boardings. However, the cost per vehicle kilometer and cost per boarding have both increased since then, which can bring into question whether the supply increases have been made at the right places and to the proper extent to have the desired effect on travel. Second, it is not clear whether a price increase for input factors can be viewed as an ``acceptable'' explanation for the cost increase. To the extent that the Public Transport Authority (PTA) or operator can affect the price of input factors such as buses (detailed or environmental requirements, etc.) or labor (demands on take-over of previous staff), an endogenous relationship is possible, which could disguise these potentially cost-driving factors as general price increases. At the end of this essay, a discussion about the lack of publicly available data highlights the non-compliance with EU regulations related to this. More data resources, perhaps with open access, would enable more comparisons between contractual forms, PTAs, and operators, which would provide examples of good and poor solutions and concepts in the industry and would have the potential to ensure better use of public funds.

    Below is a summary over the two paper included in this licentiate thesis.

    Papper I - “Costs for Swedish Public Transport Authorities” - uses contract-level data for the year 2012 and econometric methodology to investigate how contract factors affect costs for bus contracts. A theoretical framework is established to show some of the cost mechanisms that are at work in the two most popular contractual forms in Sweden, and the paper provides some insights into what results to expect from the empirical analysis. The most important results from the econometric analysis are that higher population density and a contract being operated by a publicly owned (municipal or county council) operator are both associated with having higher costs. Also, no statistically significant differences could be found when using incentive payments in the contracts.

    Papper II - “Cost Efficiency in Swedish Public Transport” -has a similar perspective as Paper I, but it uses stochastic frontier analysis to focus on cost efficiency and differences across PTAs. Data for the year 2013 are used, along with other data sources, to derive a cost frontier from which some of the deviations from this can be attributed to cost inefficiencies. The results are similar to those of Paper I, namely that cost efficiency is lower in high-density areas and in contracts that are directly awarded to a publicly owned operator. When comparing the cost efficiency of the PTAs (or counties), most exhibit small differences. The difference between the 1st and 15th-ranked county is only about 8 percent. The difference is somewhat larger when turning to the third and second least efficient counties of Stockholm and Skåne. The least efficient county of Västmanland is about 30 less cost efficient than the 1st-ranked county.

    List of papers
    1. Costs for Swedish public transport authorities in tendered bus contracts
    Open this publication in new window or tab >>Costs for Swedish public transport authorities in tendered bus contracts
    2014 (English)Report (Other academic)
    Abstract [en]

    The main objective of this paper is to investigate how different factors affect costs for Swedish Public Transport Authorities (PTA). A theoretical framework is presented for the empirics, a cross sectional regression analysis with cost and supply data from 20 Swedish counties for the year 2012. The most important results are that a one percentage increase in output yield a lower than one percentage increase in cost. The usage of incentives scheme contract do not increase total costs. Lastly, contracts operated by publicly owned operators seem to give higher costs for the PTAs.

    Place, publisher, year, edition, pages
    Stockholm: Centre for transport studies, 2014. p. 26
    Series
    CTS Working Paper ; 2014:22
    Keywords
    Public transport, Transport authority, Cost, Tender, Reward (incentive), Contract, Procurement, Calculation, Mathematical model
    National Category
    Economics
    Research subject
    00 Road: General works, surveys, comprehensive works, 02 Road: Economics
    Identifiers
    urn:nbn:se:vti:diva-7411 (URN)
    Available from: 2014-11-06 Created: 2014-11-06 Last updated: 2016-08-12Bibliographically approved
    2. Cost Efficiency In Swedish Bus Contracts
    Open this publication in new window or tab >>Cost Efficiency In Swedish Bus Contracts
    2015 (English)Conference paper, Oral presentation with published abstract (Refereed)
    Abstract [en]

    In Sweden, the 21 county-wise organized Public Transport Authorities (PTA)are in charge the local public transport provision. Since the 1990’s, the PTAshave used, almost exclusively, competitive tendering to arrange the traffic.When implemented, the competitive tendering process decreased costs, whilethe opposite effect was observed when the number of tendering rounds in-creased (Alexandersson and Pyddoke, 2010). National statistics now suggeststhat supply has increased with 30 percent during the last decade, while thetotal costs have increased with over 50 percent. Further, the process of de-signing contracts for traffic areas varies across PTAs, meaning that there arelittle consensus in how and when to use different contracting factors. For ex-ample, while some PTAs use incentives payment based on patronage, othersuse fixed price contracts. Another example of the heterogeneous manage-ment is that some PTAs choose to provide some, or in one case all, of theirtraffic using their own operators (that is, no competitive tendering round isissued). Due to the issues discussed above, there is a need for better under-standing in what drives cost inefficiencies. Accordingly, the purpose of thispaper is to estimate the cost inefficiency in bus contracts tendered by thePTAs, and determine how contract design factors affect the same.

    Keywords
    Contract, Bus, Public transport, Economic efficiency, Characteristics
    National Category
    Economics
    Research subject
    00 Road: General works, surveys, comprehensive works, 02 Road: Economics; 10 Road: Transport, society, policy and planning, 111 Road: Public transport
    Identifiers
    urn:nbn:se:vti:diva-8029 (URN)
    Conference
    ITEA Annual Conference and Summer School, Kuhmo Nectar. June 15-19, 2015. Oslo, Norge.
    Available from: 2015-10-12 Created: 2015-10-12 Last updated: 2016-08-19Bibliographically approved
  • 8.
    Vigren, Andreas
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
    How many want to drive the bus?: Analyzing the number of bids for public transport bus contracts2017Report (Other academic)
    Abstract [en]

    This paper examines how different factors relating to contract characteristics, and the operational and tender environment affect the number of unique bidders placing bids in tenders for bus contracts. A generalized Poisson model is used with a comprehensive data set containing most of the recently tendered bus contracts in Sweden, spanning the period 2007-2015. The main finding from the analysis is that most contract characteristics change participation in tenders by around 0.1-0.5 bidders. Operator-restricting measures, such as special requirements on buses, have a similar limited effect. Further, the number of tenders that are open at the same time as a specific tender was shown to reduce participation by almost 2 bidders. Finally, there is evidence that the local competitive environment is of importance, and the public transport authorities therefore need to be concerned with entry barriers in their tenders.

  • 9.
    Vigren, Andreas
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics. CTS, Stockholm, Sweden..
    How many want to drive the bus?: Analyzing the number of bids for public transport bus contracts2018In: Transport Policy, ISSN 0967-070X, E-ISSN 1879-310X, Vol. 72, p. 138-147Article in journal (Refereed)
    Abstract [en]

    This paper examines how different factors related to contract characteristics and the operational and tender environments affect the number of unique bidders placing bids in tenders for bus contracts. A generalized Poisson model is used with a comprehensive data set containing most of the recently tendered bus contracts in Sweden, spanning the period 2007-2015. The main finding from the analysis is that most contract characteristics change participation in tenders by approximately 0.1-0.5 bidders. Operator restricting measures such as special requirement on buses have a similar limited effect. Further, the number of tenders that are open at the same time as a specific tender was shown to reduce participation by almost two bidders. Finally, there is evidence that the local competitive environment is of importance, and the public transport authorities therefore need to be concerned with entry barriers in their tenders.

  • 10.
    Vigren, Andreas
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.
    Kostnader i upphandlade busskontrakt2014Conference paper (Refereed)
    Abstract [en]

    The main objective of this paper is to investigate how different factors affect costs for Swedish Public Transport Authorities (PTA). A theoretical framework is presented for the empirics, a cross sectional regression analysis with cost and supply data from 17 Swedish counties for the year 2012. The most important results are that a one percentage increase in output yield a lower than one percentage increase in cost. The usage of incentives scheme contract do not increase total costs. Lastly, contracts operated by publicly owned operators seem to give higher costs for the PTAs.

  • 11.
    Vigren, Andreas
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
    The distance factor in Swedish bus contracts: How far are operators willing to go?2017Report (Other academic)
    Abstract [en]

    One of the factors differentiating operators the most in bus services is, arguably, the respective distances from their workplaces to the area of a procured contract. More dead running kilometers implies higher costs, and the same should affect operators’ probability to participate in tenders. As previous studies have discussed, this is a relevant competitive factor, but the transport literature lacks studies aiming to assess the size of this distance factor. This paper examines what impact operators’ distance to tendered bus contracts has on their probability to participate in the tender, and how this probability differs across operator types.

    To address this, an econometric analysis was undertaken using probit regressions with data on tendered Swedish bus contracts over the period 2007–2015 along with operator workplace data. The results show that operators’ distance from a contract has a significantly negative effect on their probability of placing a bid for the contract. While being located near the contract gives, on average, an over 90 percent probability of participating, being 10 kilometers away results in a 30 percent probability. The rival’s distance to the contract also has an effect, but only to a limited extent. Large operators are found to be less affected by their distance to a contract, and they are also more inclined to bid if the procuring authority offers a depot to use.

  • 12.
    Vigren, Andreas
    et al.
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.
    Ljungberg, Anders
    Trafikanalys.
    Public transport authorities’ use of cost-benefit analysis in practice2017Report (Other academic)
    Abstract [en]

    Public transport services in Sweden are in 2016 worth over 40,000 million SEK annually, and the planning is carried out mostly by the Public Transport Authorities (PTA). Given the national goals for transport and infrastructure, economic efficiency is essential also in public transport operations. In 2003, Ljungberg (2007) sought to answer to which extent PTAs use Cost-Benefit Analyses (CBA), a methodology to assess economic efficiency, in their planning of operations and infrastructure. It was found that CBA is seldom used. This paper tries to answer the same question, but for the year 2016. The aim is, like Ljungberg (2007), to see to what extent PTAs are using CBA today, but also to investigate whether there have been any changes compared to the previous study.

    A survey was sent to all Swedish PTAs with questions regarding current, previous, and projected future use of CBA. Questions about knowledge of reference materials and why the organization use (or do not use) CBA was asked. The main results are that most PTAs are not using CBA as decision support. For those who does, the method is used mostly for investments in payment systems and major line or traffic changes. When comparing the usage of CBA across different investment categories, the only statistically significant change from the 2003-study is an increased usage when changing fare structure. The PTAs seem not regard a lack of economic resources a reason for not using CBA. Rather, lack of knowledge and more reliance on other types of decision support are the reasons.

  • 13.
    Vigren, Andreas
    et al.
    Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
    Ljungberg, Anders
    Trafikanalys.
    Public Transport Authorities’ use of Cost-Benefit Analysis in practice2018In: Research in Transportation Economics, ISSN 0739-8859, E-ISSN 1875-7979Article in journal (Refereed)
    Abstract [en]

    Given the Swedish national goals for transport and infrastructure, economic efficiency is essential also in public transport. In 2003, Ljungberg (2007) sought to answer to which extent PTAs use Cost-Benefit analyses (CBA), a methodology to assess economic efficiency, in their planning of operations and infrastructure. It was found that CBA was seldom used. This paper tries to answer the same question, but for year 2016. The aim of this paper is to see to what extent PTAs are using CBA at the time of the survey, and investigate whether there are any changes with the previous study. A survey was sent to all Swedish PTAs with questions regarding current, previous, and projected future use of CBA. Questions about knowledge of reference materials and why the organization use (or do not use) CBA was asked. The main result is that most PTAs are not using CBA as decision support. For those that do, the method is used mostly for investments in payment systems and major line or traffic changes. The PTAs seem not regard a lack of economic resources a reason for not using CBA. Rather, lack of knowledge and more reliance on other types of decision support are the reasons.

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