Skip to content

Back to overview

Parking charges, urban tolls, land value capture: Which concepts for co-financing by beneficiaries can serve a key part of the turnaround in transport?

At international level, there are many approaches in place for beneficiaries to co-finance public transport: One well-known example is the urban toll in place in Europe, for instance, in London or Stockholm. The "Viennese Approach" for financing public transport by expanding parking management as well as through an employer contribution was critically analysed in detail recently in the matters study entitled ‘The best offer is not the price’.

The question as to which from of co-financing by beneficiaries can significantly influence Germany’s turnaround in transport was discussed by civity on the basis of current consultancy projects at two events hosted by VDV Academy (the 2nd VDV Fares and Sales Symposium and the VDV Conference on “public transport financing”).

In their presentations, the speakers pointed out that there are many other instruments in addition to the ones regularly discussed: The rising value of real estate through improved public transport connections, not only in China, but also in European cities, has already been used to finance public transport. There are also approaches outside Eurasia to have public transport co-financed by beneficiaries, such as the use of vehicle registration tax for public transport in Nigeria’s capital Lagos.

The lectures show that these findings can also be useful for discussions in Germany: Some instruments, such as the expansion of parking space management, can already be implemented within the framework of existing legislation in Germany. For other specific instruments of co-financing by beneficiaries, the legal framework will have adapted, in most cases at federal-state level. The current project results show that the instruments can generate a substantial and continuous contribution to financing public transport. The future financing mix could therefore include beneficiaries more to finance an attractive public transport system.