Welfare maximisation in public transport : an analysis of the development in 7 Norwegian cities : summary
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2001-01-01
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Alternative Title:Samfunnseffektiv Kollektivtransport. En Analyse av Utviklingen i Sju Norske Byer
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Abstract:Framework conditions for Norwegian public transport have changed substantially over
the past two decades. Operating subsidies in Norwegian conurbations have been cut
dramatically. Changes in the Transport Act, which allowed for competitive tendering of
public transport provision, were approved by the Government in 1991 and set in force
in April 1994. Central government transfers to county councils, which are responsible
for local public transport, have been reduced partly due to the expected efficiency gains
in the sector that would arise from the threat of competitive tendering. In addition the
county councils have adapted to their responsibility for local public transport in a
number of different ways.
The operators can compensate for subsidy cuts either by reducing service levels, by
increasing revenues or by improving cost efficiency. We will investigate the adjustments
made by public transport operators and passengers in order to see how they have
adapted to the new framework conditions.
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