Until recently the main function of urban bus transport was to satisfy the individual needs of the less affluent members of society, but now it has to contribute for congestion relief and environmental preservation. This requires a fundamental change of emphasis to fulfill its new role of...

We use applied microeconomics to examine several salient problems of urban transportation: traffic congestion, air pollution, the costs of motor vehicle accidents and the future of public transportation. Throughout this chapter, we focus on analytic methods and findings that bear on current...