Public transport study: benefits three times as high as the costs

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The repeated discussions about the subsidized costs of the Deutschlandticket have shown that local public transport is often reduced to its direct benefit, i.e. public services of general interest, when considering costs and benefits. Calls for free public transport or an indefinite extension of the Deutschlandticket as a mobility flat rate have therefore always been rejected in the end.

A new mobility study carried out by the Technical University of Munich and its associated company MCube Consulting now aims to broaden the horizon of consideration. It concludes that the economic benefits of local public transport are three times higher than its annual costs of 25 billion euros.

DB Regio was the client

The study was commissioned by the Initiative Zukunft Nahverkehr, represented by the rail subsidiary DB Regio. According to the study, public transport in Germany generates around 75 billion euros in added value each year and is therefore underestimated as an economic service provider. The calculations were based on 2019 as the reference year. There were three scenarios for the calculations. Conservatively, an indirect value added of 39.3 billion euros was calculated, while progressive estimates even assume 109 billion euros.

159,000 people are considered to be directly employed by public transport, with direct value added amounting to 13.7 billion euros and indirect value added of around 7.1 billion euros – estimates vary between 4.4 and 10.9 billion euros. Added to this are 9.07 billion euros in saved external costs, such as avoided environmental pollution, accidents and traffic jams.

High impact on other economic sectors

The wages, salaries and profits of public transport companies are counted as direct value added. Indirect value creation includes, for example, vehicle manufacturers, maintenance companies, IT providers and energy suppliers who provide the necessary vehicles, build tracks, provide ticket and display systems or clean the vehicles.

However, the experts consider the impact on other economic sectors to be significantly higher. For example, it benefits the retail sector (4.6 billion euros) because it brings customers to the stores, enables tourist travel (12.1 billion euros) and increases property values (5.8 billion euros). The largest item in the calculation is commuter traffic with 21.8 billion euros in indirect added value. Public transport ensures higher productivity in cities and makes it possible for 1.3 million people without a driver's license to work.

Railroads want more investment

Through effects in the promotion of innovation, social participation and urban development, public transport also generates further added value, although this is not quantified in the paper.

Every euro invested in local public transport pays off threefold, concludes DB Regio board member Jan Schilling. From Deutsche Bahn's point of view, the new findings should give reason to invest far more in local public transport.

(mki)