Transport continues to present considerable challenges for both policymakers and economists throughout the world. This book provides a rigorous analytical approach to transport economics and transport policy, showing how economic principles can be applied to problems and practical solutions derived. As well as providing detailed coverage on the conventional topics of demand, costs, market structure, externalities, investment appraisal and regulation, the book also examines the wider role of transport in the economy as a whole. In addition, the authors address the important link between transport and issues of location, urban and regional development, and economic growth. Throughout the book there are frequent references to policy issues at both the national and EU level, complemented by a comprehensive discussion on the different ways in which policy has evolved in various European countries. The concluding chapter draws together some of the problems encountered in moving from the theories and models developed in the book to the actual implementation of specific policy measures. The authors believe that only policies based on a thorough understanding of the economics of transport can help solve some of the pressing problems facing governments across Europe. This unique book addresses a wide range of issues and makes use of cutting-edge data to provide a set of universal tools to analyse and inform policy at all levels. It assumes only a basic knowledge of economics and will be essential reading for students at advanced undergraduate and postgraduate level following courses on transport economics, regional science, urban studies and geography. It will also prove a valuable source of reference for policymakers involved in the provision and regulation of transport and researchers interested in transport planning and policy.