The module provides the basis for the understanding of demand and supply in the transport sector, transport externalities and corrective instruments, investment and economic appraisal and transport management. It makes students aware of relevant microeconomic theory and solutions to transport problems.

• conceptualise transport problems in economic terms; 
• apply economic theory to current transport problems such as for example traffic congestion and CO₂ emissions;
• critically evaluate transport policies and programs;
• understand the main issues related to transport management.

Students will also improve a number of skills they hopefully already have, and:

• be able to orally present group work on a specific topic; 
• be able to debate issues related to transport externalities, transport policies and transport projects appraisal; 
• be able to write a critical essay with a clear structure; 
• be able to answer specific questions on different transport economics topics under the pressure of an exam environment.

The module consists of lectures, group and class discussions and group presentations. The group and class discussions promote skills in communication, as do the group presentations. Most topics throughout the module are illustrated with at least one example or case-study, which helps put the concepts together.

During the course of the module there will be plenty of opportunities to practise and master a number of skills. Students will be expected to: 

• be able to work in a group towards a presentation
• debate a topic in class, justifying arguments in a reasoned way
• read the latest research on a topic new to the student and be able to grasp the main points, regardless of the student’s background.

Assignment 1 - Individual Essay (25%)

Assignment 2 - Group Presentation  (25%) The group presentations will also get detailed group AND individual feedback, which will be part of the formative assessment of this module and will help students to improve their group work and presentation skills for other modules.

Exam (50%)

Peer Review and PPT file Pass/Fail (0%)

Appraisal of transport projects. Important concepts in (transport) economics. Demand, supply and elasticities. Externalities and policies to correct them. Parking policies and road pricing. Discrete choice models. Transport management.

Button, K. J. (2010), Transport Economics, 3^rd edition, Cheltenham, UK - Northampton, MA - USA: Edward Elgar.

Button, K. (2004), ‘The Rationale for Road Pricing: Standard Theory and Latest Advances’, in Santos, G. (Ed.), Road Pricing: Theory and Evidence, Oxford: Elsevier, pp. 3-25.

Department for Transport (2011), Transport Analysis Guidance: Cost Benefit Analysis (TAG Unit 3.5.4), April
http://www.dft.gov.uk/webtag/documents/expert/pdf/unit3.5.4.pdf

and

HM Treasury (2003), Green Book, Appraisal and Evaluation in Central Government, London. http://www.hm-treasury.gov.uk/d/green_book_complete.pdf