Workshop 3 report: Sustainable funding sources and related cost benefit measurements

John Stanley, David Levinson

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


Recognising that public transport services generally deliver substantial benefits for society but frequently require operating and capital funding support, this Workshop sought to find ways to bridge this benefit/funding gap, particularly through benefit monetization. It elaborated a wide range of benefits from public transport services, to both users and non-users. In regard to non-users, there was a particular focus on the role of public transport in promoting positive external benefits, such as agglomeration economies, and reducing the negative external costs of car use. A number of ways in which the service funding requirement might be reduced by improved system management were considered, such as better fare evasion practices and more effective public private partnerships. A range of funding opportunities was then reviewed, from which two preferred bundles were developed. Value capture was seen as a vital funding opportunity, both for supporting operating funding and capital funding requirements. Funding circumstances that were seen as more properly a governmental responsibility were identified.

Original languageEnglish (US)
Pages (from-to)143-150
Number of pages8
JournalResearch in Transportation Economics
StatePublished - Nov 1 2016

Bibliographical note

Funding Information:
Where funding of public transport service improvements (capital) is being considered, land (and to a lesser extent property) again should figure prominently as a means of beneficiary pays funding, through developer charges and other value capture mechanisms, based on project specific value capture estimates for projects like CBD rail, light rail and Bus Rapid Transit, which can have substantial revenue raising potential. Placing the onus on land, rather than property, provides an incentive for more intensive land development, which is consistent with the idea of the compact city. User fees plus beneficiary pays for net external benefits, based on land/property, provides a solid base for funding urban public transport, supported by specific government funding for social inclusion benefits.

Publisher Copyright:
© 2016 Elsevier Ltd


  • Benefit measurement
  • Externalities
  • Fares
  • Marginal social cost pricing
  • Public private partnership
  • Value capture


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