New Danish study shows transfer from private to public transport to be expensive
Publication date: 11 April 2016
A new memorandum, recently released by the Danish Ministry of Transport, reveals that transferring people from their private cars to public transport is much costlier than expected.
According to the report, the average cost for the government every time a driver decides to start using the train, is 25 cents per person per kilometre. A mere 20% overall shift in the mode of transport used will cost the state approx. 3 billion EUR yearly; the cost calculations include costs associated with the environment, climate, noise, accidents and congestion. Such a shift would cause a dramatic rise in state expenses, as the need for subsidies for public transport would grow, while at the same time causing state revenue from motorists to shrink.
According to experts, this makes popular plans for almost universal shift to public transport seem unrealistically expensive and unsustainable. In the context of these findings, the Transport Minister, Hans Christian Schmidt, announced that a change in the state policy in the field is necessary. He stated: "The calculations in the memo show that the one-sided focus on public transport, which the previous government pursued, is not sustainable in the long run. Therefore, I call for negotiations on new investments in the road network as soon as is room in the budget."