Application of microsimulation models in passenger transport: results from the Czech republic and abroad

This paper summarizes recent experience with microsimulation models applied to analyze economic and environmental impacts of transportation scenarios. First, relevant international studies from the European and North American countries are reviewed. Then, the paper introduces a microeconomic model calibrated and simulated for five largest cities in the Czech Republic. This model is the first attempt to apply a microsimulation model in the transport sector in the Czech Republic. Finally, results of simulations of different scenarios are discussed. Model simulations suggest that the increase in the excise tax on fuels is welfare improving. In cities, where operation costs of public transport are significantly subsidized, this tool should be accompanied with a fare increase as well, because of costs of public funds. A decrease in fares is not likely to be welfare improving because of small induced modal split and high requirements of public funds needed to cover such policy.