Transport Economics - 2016

Unit summary


  • Level of Study: Undergraduate Level 2
  • Study load: 0.125 EFTSL
  • Delivery method: Fully Online
  • Prerequisites: Yes
  • Duration: 13 weeks
  • Government loans available: FEE-HELP
  • Availability for 2016: SP1 , SP3
  • Availability for 2017: SP2
  • Assessment: Assignment 1 (20%) , Assignment 2 (30%) - Learn more

Unit provided by

2016 Fees
Domestic 1,305.00
International 1,555.00

This unit is intended to provide you with an understanding of the basic microeconomic principles applicable to transport in Australia.

It also seeks to develop an understanding of various contemporary techniques of managerial economics that facilitate transport related decision-making in the areas of production and costs, demand, pricing and investment.

At the completion of this unit students will:

  1. appreciate the derived nature of the demand for transport
  2. be able to use a software package - widely applied in industry - to forecast the future movement of economic variables that will have an impact on the future demand for a transport facility or service
  3. be able to use a software package to estimate both a time series and a regression model of the demand for a particular transport mode
  4. be able to interpret various empirically derived demand elasticities and to understand how such elasticities can be used for decision-making and policy purposes. understand the peculiarities of transport cost behaviour and the difficulties such behaviour poses for the pricing of transport services and facilities
  5. understand the peculiarities of transport cost behaviour and the difficulties such behaviour poses for the pricing of transport services and facilities be able to construct as well as employ the classical break-even model to determine the break-even level of use of a transport service or facility
  6. be able to empirically measure operating leverage (within the context of a break-even model of a privately owned transport operation) and to use this measure to provide advice to management on the sensitivity of profits to the operation’s activity level of use
  7. be competent in the application of financial mathematics formulae to evaluate the costs and benefits of a transport investment from both a private and a social perspective
  8. be able to use a software package to conduct transport and logistics related project evaluations
  9. be conversant with the various spillover effects associated with the use of various transport modes and facilities and the implications these have for the capacity of the market mechanism to allocate resources efficiently to and within the transport sector
  10. have a sound understanding of why governments continue to intervene as well as regulate some areas of the transport industry whilst in other sectors of this industry, the government has moved toward de-regulation and privatisation.
  • Assignment 1 (20%)
  • Assignment 2 (30%)
  • Invigilated Exam (50%)
For more information on invigilated exams see Exams and results

Recommended prerequisites

You are recommended to have completed the following unit(s) or have equivalent knowledge before starting this unit:

Prices and Markets or equivalent first year university micro-economics. Entry level first year university statistics, specifically hypothesis testing and multiple-regression and use of spreadsheets.

This unit addresses the following topics.

1Brief revision of microeconomic concepts and introduction to Transport Economics
2Transport Demand: concepts, forecasting techniques, elasticities
3Costs: meanings , types, microeconomic analysis, empirical studies in transport
4Profitability measurement and market structure analysis
5Transport investment evaluation analysis: Cost Benefit Analysis
6Pricing Transport Services
7Government intervention in transport

This unit is delivered using the following methods and materials:

Online materials

  • Printable format materials
  • Resources and Links

This unit is part of a major, minor, stream or specialisation in the following courses:

This unit may be eligible for credit towards other courses:

  1. Many undergraduate courses on offer through OUA include 'open elective' where any OUA unit can be credited to the course. You need to check the Award Requirements on the course page for the number of allowed open electives and any level limitations.
  2. In other cases, the content of this unit might be relevant to a course on offer through OUA or elsewhere. In order to receive credit for this unit in the course you will need to supply the provider institution with a copy of the Unit Profile in the approved format, which you can download here. Note that the Unit Profile is set at the start of the year, and if textbooks change this may not match the Co-Op textbook list.
This unit does not have a prescribed textbook(s).

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