TRANSPORT ECONOMICS & INNOVATION

Degree course: 
Corso di Second cycle degree in GLOBAL ENTREPRENEURSHIP ECONOMICS AND MANAGEMENT
Academic year when starting the degree: 
2019/2020
Year: 
1
Academic year in which the course will be held: 
2019/2020
Course type: 
Compulsory subjects, characteristic of the class
Language: 
English
Credits: 
6
Period: 
Second semester
Standard lectures hours: 
52
Detail of lecture’s hours: 
Lesson (40 hours), Exercise (12 hours)
Requirements: 

Good knowledge of microeconomics fundamentals.

Final Examination: 
Orale

The final evaluation is composed by two elements: a) written examination (duration: 1 hour) that is structured in three open questions on a choice of four; b) participation to SP Lab and report/essay production, i.e.:
-for Italian-speaking students: interviews to an Italian sample of people and report on the survey outcomes;
- for not Italian-speaking students and not-attending students (for work reasons): preparation and presentation of an essay on SP literature review.
Both for attending and not-attending students, the final grade is a weighted average of (a) the written exam mark (70%) and (b) the student work on SP (30%).

Assessment: 
Voto Finale

The course will provide students with a solid grounding in the economics of the
transportation sector, covering the key principles governing transportation planning, investment and regulation and understanding how innovation affects transport and mobility.
Students should obtain basic skills in the analysis of travel demand and supply and of transportation system benefits. Students should also be able to understand the different internal and external components of transport costs, the basic pricing principles, the technological innovations and how these factors affect the market for transportation infrastructure and services and, consequently, the other industries.
Main course objectives:
- Understanding of the importance of transport for the economic development and of the relevance of innovation for mobility issues
- Understanding of special issues related to transport industries
- Provide theoretical and methodological basis to understand issues related to mobility in the globalization process and to firm innovation strategies in transport and logistics planning.
- Apply economic knowledge to specific transport and mobility problem
- learn how to give value to non-market goods in transport

Introduction to transport economics: basic definitions, growing importance of the role of transport for the economic development and globalisation and the main specific features of transport economics (4 h)
The demand for transport: consumer utility and the passenger and freight transport demand function, the notion of generalised transport cost index and the determinants of the demand for transport services (price, trip purpose, income levels, etc.) (5-6 h)
The transport supply and direct costs: transport industry organisation, application of the firm economic theory to transport services’ production, fixed and variables costs, economics of scale, scope and density, etc. (3-4 h)
Transport and sustainable development: the externalities of transport, the economic cost of congestion, policies and measures for transport sustainability (6 h)
Transport and logistics: the adoption of transport economic principles within a larger supply-chain concept (evolution of logistics and SCM, aim and strategies of the logistics system) (4 h)
Market structure and pricing of transport services: determinants and prevalent market structures, different types and forms of pricing determination (marginal cost pricing, price differentiation and discrimination, the peak problem, etc.) (3 h)
Public regulation of transport markets: theory of market regulation applied to transport industries (3 h)
Transport infrastructure and economic development: the importance of infrastructure, private and public investments in the economic development (5 h)
Innovation and transport: definition of innovation, technological changes in transport, influence of firm size and market structure on innovation, drivers, barriers and policies for stimulating innovation (6 h)

Lab on SP (12 h): Stated Preference Pricing Method to confer accurate economic values on non-market goods and services (time, externalities, environmental good, etc.).

Note: Variations to the duration of each topic may be expected

Main book: Button K., Transport Economics, 3rd edition, Edward Elgar, 2010, all the chapters except ch. 12.
Other recommended books:
Quinet E., Vickerman R., Principles of Transport Economics, Edward Elgar, 2004
Button K., Vega H., Nijkamp P., A Dictionary of Transport Analysis, Edward Elgar, 2010.

The reading material, the slides and other teaching material will be available on the web learning platform (http://elearning3.uninsubria.it/).

Convenzionale

In-class lectures, seminars and Lab on Stated Preferences Pricing Method with a field application.

Office hours
One hour a week on appointment

Coordinator of Lab: Dr. Daniele Crotti