The Short and Long-Run Cost of Bus Transport in Urban Areas

Key Points

• This research investigates how costs associated with municipal bus operations change over time.
• Analysis of bus operation costs from 1961 to 1971
• Examination of peak mile cost in relation to total costs
• Assessment of scale inefficiencies in municipal bus systems
• Evidence of diseconomies of scale in bus operations
• Peak mile costs increase in relation to total operating costs over the studied period
• Indicates that larger scale operations may not lead to cost savings