On behalf of NHO Transport, Oslo Economics has assessed the efficiency in public transport in Norway.
Although tender provides good operating efficiency, there is a risk of reduced supply efficiency and increased administrative costs. The sector is heavily regulated, and product development is initiated by local monopolists, which can inhibit innovation and lead to cost increases.
Meanwhile, governance is necessary because public transport has positive externalities on the environment, congestion and regional development. The challenge for the regulator is to ensure the best possible public transport with scarce resources.
Contact: Karl Rikard Løvhaug.