4861769
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Mind Map by chloepryce7, updated more than 1 year ago
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Transport Economics-basics
- The nature of
transport
- Transport infrastructure
- The physical and
immovable transport
routes
- e.g. roads, railways,
airports, sea ports,
canals etc
- Generally provided by
government due to the
problems arising from
public goods and the
externalities caused
- The physical and
immovable transport
routes
- Mode/ type of transport
- e.g. walking, cars, trains,
bike, plane, boat etc
- e.g. walking, cars, trains,
bike, plane, boat etc
- Derived demand
- "When a good is
demanded as a result
of demand for another
product"
- Factors affecting
demand for transport
- Physical characteristics
of the good being
transported
- Low quantities
of high cost
goods - air
- High quantities of
low cost goods -
rail/ ship
- Low quantities
of high cost
goods - air
- Price of transport
- Relative prices of
different modes of
transport
- Passenger income
- Quality of service
- Consumer choice
- Physical characteristics
of the good being
transported
- "When a good is
demanded as a result
of demand for another
product"
- Transport infrastructure
- Ownership and organisation of transport
- Public ownership
- Government owns the
means of production and
takes responsibility for it
- Government owns the
means of production and
takes responsibility for it
- Private ownership
- Ownership of resources
rests with the private sector
- Ownership of resources
rests with the private sector
- Direct government provision
- Government
strategically provides
goods and services on a
non-commercial basis
- e.g. new motorways and
roads funded either by
central or local government
through tax revenues
- Government
strategically provides
goods and services on a
non-commercial basis
- Public-Private partnerships (PPP)
- Private enterprise joins the
public sector in sharing some
of the financial and operational
risk of running the service
- e.g. Tube Lines (private company)
responsible for maintenance and upgrade
of London's underground, commissioned
by Transport for London (public body)
- Private enterprise joins the
public sector in sharing some
of the financial and operational
risk of running the service
- State-owned company
- Operates commercially, profits
returned to public ownership for
re-investment into the capital and
infrastructure of the service itself
- e.g. Network Rail
- Operates commercially, profits
returned to public ownership for
re-investment into the capital and
infrastructure of the service itself
- Private ownership
- Economic value generated
remains in private hands
- Either fully self-funding
or rely on subsidies from
the government
- e.g. UK port authorities/
train operation
- Economic value generated
remains in private hands
- Public ownership
- Forecasting road transport demand
- The National Transport
Model (NTM)
- Three drivers of road use demand:
1) Gross Domestic Product 2) Fuel
Efficiency and fuel prices 3)
Population growth
- Three drivers of road use demand:
1) Gross Domestic Product 2) Fuel
Efficiency and fuel prices 3)
Population growth
- The National Transport
Model (NTM)
- Costs and Revenues
- Types of firm
- Sole proprietor
- Owned and often run by one
person who makes all the
decisions and bears all the risks.
- Have unlimited liability -
can lose all they own in the
event of bankrupcy.
- Owned and often run by one
person who makes all the
decisions and bears all the risks.
- Partnerships
- 2 to 20 people jointly bearing
decision making and risks
- Have unlimited liability
- 2 to 20 people jointly bearing
decision making and risks
- Joint stock companies -
issue shares
- Private limited companies (Ltd.)
- Split into shares giving
shareholders partial ownership
and a right to a share in profits
- Shares sold in private exchanges with
specific contact between buyer and
seller not on stock market
- Generally smaller than PLCs
- Split into shares giving
shareholders partial ownership
and a right to a share in profits
- Public limited companies (PLC)
- Sell (at least a proportion) of shares
on the stock exchange.
- Anyone can buy shares
- Anyone can buy shares
- Owned by shareholders, run by directors
who are elected by shareholders
- Limited liability- can only
lose what you invested
- Sell (at least a proportion) of shares
on the stock exchange.
- Private limited companies (Ltd.)
- Sole proprietor
- Types of firm
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