Singapore University of Social Sciences

Transport Economics

Transport Economics (UTM505)


This course provides the working professional in the urban land transport sector with the basic economic tools and concepts that are directly useful to the analysis of a variety of urban land transport problems. Ideas that will be covered include the notion of a demand function for transport; the value of time; the costs of transport; the elasticity of transport demand and supply; the pricing of transport; congestion externality and various approaches to manage congestion. The basic analytics of social cost-benefit analysis and the economic appraisal of infrastructure projects will also be covered as will the government regulation of various aspects of urban transport.

Level: 5
Credit Units: 5
Presentation Pattern: Every July


  • Basic Tools and Concepts
  • The Demand for Transport and The Value of Time
  • The Direct Costs of Transport
  • The Pricing of Transport Services
  • Congestion Externality and the Theory of Road Pricing
  • Principles of Social Cost Benefit Analysis
  • Economic Appraisal of Transport Projects
  • Project Selection under Capital Rationing
  • The Regulation of Transport
  • Case Studies

Learning Outcome

  • Arrange the factors influencing demand
  • Examine the nature of the full cost of travel
  • Evaluate the concept of an externality
  • Assess the factors influencing supply
  • Distinguish between economies of scale and economies of scope
  • Contrast private CBA to social CBA
  • Inspect the principles of social cost benefit analysis
  • Estimate the value of time, life and intangibles
  • Construct criteria used in project evaluation
  • Analyze the impact of regulatory measures on the market
  • Design an economic appraisal scheme for transport projects
  • Propose the regulations for transportation
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