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...

One of the main unanswered questions in the field of urban economics is to which extent subsidies to public transit are justified. We examine one of the main benefits of public transit, a reduction in car congestion externalities, the so-called congestion relief benefit, using quasi-natural...

The provision of public transit is thought to reduce travel time losses that are due to car congestion. For this reason, it is economically justified to subsidise public transit from a welfare perspective as it creates a congestion-relief benefit. The main goal of this paper is to quantify the...