Impact of indirect user participation on public transport financing

Abstract

The regional public transport performs with around 11 billion passengers a part of approx-imately 16.3 % of all passenger transports in Germany. It is financed from tariff revenues (user financing) and, for the most part, through public subsidies. The costs for the regional public transport are only covered by 50 % by direct users. Further 50 % are covered by public funds. The demographic development in Germany and with it declining passenger numbers, legal changes at European and national level as well as the over-indebtedness of public authorities result in a significant change of the framework conditions for the regional public transport. The aim of the paper was to draw up reform proposals for public transport in Germany so that it could continue to meet the four main objectives set. The results of those proposals for reform are transferred to a defined project area enabling to measure specifically the monetary impact. By forecasting the results of the project across the country, we want to verify whether the four main public transport objectives can be achieved using possible additional financial instruments involving indirect users, even under changing conditions, provided the proposed reforms are applied.