Transport economics

Aims of the course

Students gain knowledge of the application of economic theory to the transport sector. Students gain knowledge of the social benefits and costs of transport, including the negative environmental impacts of transportation. Students also gain theoretical and practical knowledge of the role that transport policy plays, including knowledge of transport regulation and liberalisation.

By the end of the course, students will: 1) understand concepts, theories, and findings from the respective fields of study, 2) be able to apply these ideas and insights in solving practical problems, 3) be able to give a reasoned opinion on fundamental questions from the field.

Course syllabus

1. The role of transport for business and the economy: a global picture, EU and Slovenia

2. Demand for transport 2.1 Transport as derived demand 2.2 Demand for freight and passenger transport 2.3 Factors affecting transport demand 2.4 Elasticity of demand

3. Supply and direct costs of transport 3.1 Supply 3.2 Fixed and variable costs 3.3 Economies of scale and scope 3.4 Costs and economic efficiency

4. Externalities 4.1 Social costs and benefits 4.2 Negative environmental externalities 4.3 Valuation of externalities

5. Pricing of transport services 5.1 The principles of pricing 5.2 Price differentiation and discrimination 5.3 Peak-load pricing

6. Cost-Benefit Analysis and investment decisions

7. Transport and public policy
7.1 Transport and economic development
7.2 Regulation and liberalisation
7.3 Taxes and subsidies

Course director(s)