Rethinking the economic appraisal of rail freight

This collection on The Economics of Transport: Smarter Transport – Better Cities makes a large contribution to thought about Australia’s urban infrastructure, and especially its public transport problem. The collection seeks to challenge lazy thinking that for too long has accepted uncritically, such established beliefs as “public transport is heavily subsidised compared with roads”. In this volume, some excellent analysts apply sound concepts and techniques to assessing various aspects of our urban transport. Good outcomes depend on sound policy, and good policy depends on sound analysis. The ideas presented in this volume are an important starting point on a road to good outcomes. One straightforward point from mainstream economics is that public choice on urban infrastructure requires rigorous comparison of the social costs and social benefits of a decision. This requires assessments of good and bad “externalities” - effects of a decision that are enjoyed by or imposed on people, other than those who make the decisions.