A Transport Economist analyzes the economic aspects of transportation systems, including the impacts of policies and infrastructure projects on travel behavior, costs, and environmental factors.
They use economic principles and modeling techniques to assess the benefits and costs of different transportation options, predict demand, and inform decision-making related to transportation infrastructure and policy.
We asked CIHT Member, Shipra Samanta about her career as a Transport Economist
The typical day in the life of a transport economist is balancing the confluence of innovation and long-term transportation strategy with the demands of rapidly changing climate and constrained government budgets. It often involves collaborating with colleagues from internal departments like engineering and social research as well as external stakeholders including the Government, industry, and academia. We play a crucial role in decision-making by ensuring that outcomes are innovative, forward-thinking, capable of achieving the targeted return on investment, and contribute meaningfully to society.
In my current position as Senior Consultant (Transport Economics), I operate across two principal domains:
My academic background is in transport planning and modelling, which led to my early roles focusing on travel demand forecasting and the development of business cases for sustainable transport initiatives. I developed transport modelling and traffic management skills during that phase. I got drawn into transport economics as it was the missing part of the puzzle in my career. It answered the key question: does it make economic and financial sense to undertake a big new infrastructure project or develop an innovative or new mode of transport in a world where cost overruns are politically damaging? It was the field where technical analysis was directly linked with policy decisions, and one could have a significant impact on a landmark infrastructure project.
A recent project I worked on evaluated the feasibility of establishing an electric vertical take-off and landing (eVTOL) ecosystem as part of the Air Mobility Ecosystem Consortium (AtkinsRealis, Skyports Instructure Ltd, NATS, Cranfield University, Heathrow Airport, London City Airport, Bristol Airport, University of Warwick, Vertical Aerospace and Connected Places Catapult).
My analysis included systematically mapping the potential economic and societal impacts of advanced air mobility and assessing their significance for various stakeholders and decision-makers. Employing both quantitative and qualitative methodologies, I analysed the magnitude, scope, and nature (positive or negative) of these impacts across economic, social, and environmental domains. The resulting outputs equipped the decision-makers with comprehensive insights into the wider implications of eVTOL adoption.
While InnovateUK can use it to define the need for further projects, CAA can evaluate their focus on different work streams related to eVTOLs. Private eVTOL developers can use the findings to strengthen their business case and identify mitigation strategies for the potential negative impacts. This work therefore offered analysis relevant to shaping the ecosystem to maximise societal benefits while proactively mitigating associated risks.
It was also presented in Modelling World 2024.
>>> More information on the project is available here
Economists entering the highways and transport sector are encountering a landscape that is both demanding and fulfilling. Key current challenges include:
These factors are compounded by shifts in funding mechanisms, changes to international trade agreements, and alignment with climate goals and objectives, all of which will shape future policy directions. However, this position also presents opportunities to actively participate in decision-making processes.
The results of the proposed interventions are observed more rapidly compared with other economic sectors. Economists assume a pivotal role in developing tools for measuring and communicating overall project value and will be responsible for:
An economics professional studies trends, uses statistical models to analyse data, and forecasts developments to guide economic decisions for businesses, governments, and individuals. For professionals with a background in economics, a career in the highways and transportation sector offers valuable insight into an established industry that supports essential connectivity for people and goods. This sector is fundamental to the national economy as it can enhance productivity and function as a gateway for international trade.
It is well known that economics has a diversity problem. Traditionally, economics has faced challenges related to diversity of background, gender, and perspective, which can influence both research priorities and the kinds of solutions proposed. Promoting diverse and inclusive perspectives within transport economics is essential for:
However, efforts to broaden participation are gaining momentum, with academic institutions, industry bodies, and professional associations increasingly recognising the value of inclusive recruitment and representation. To ensure that the profession stays inclusive, the recruitment process should ensure a diverse slate, and the organisational evaluation and promotional pathways should have in-built objectives that encourage diverse representation.
Currently, adoption of sustainable forms of transport may take the form of:
My work has highlighted that promoting the adoption of both established and innovative sustainable transport options requires modifications in travel behaviour. These changes can potentially be facilitated by revising strategies for developing integrated communities and enhancing planning methodologies. The analysis has also pointed to a mix of carrot (economic and/or financial benefits) and stick (parking restrictions) approaches serve as important motivators for increased uptake.
When paired with adequate infrastructure investment, these approaches may support the transition towards more sustainable modes of transportation.
As a transport economist I also assess the strategic and economic aspects of existing and proposed options related to planning and design for sustainable transport. I evaluate potential effects of these options on current and future stakeholders, providing information to support ecosystem planning and decision-making.
This work contributes to the development of sustainable transport infrastructure, identification of incentives and informs future potential options for market introduction.
As digital transformation accelerates across industries, it is increasingly important for leaders to re-imagine the definition of mobility - it can no longer be limited to being characterised as “physical movement” but needs to be seen as a means of “generating value.” This shift in perspective requires policymakers and planners to:
Furthermore, comprehensive planning that spans transport, health, education, housing, and industry has become paramount. The Department for Transport’s Integrated Transport Strategy (INTS) will provide an initial framework; however, achieving systemic value creation will require greater inter-sectoral collaboration.
Additionally, this integration should be aligned with the decentralisation of funding for local transport initiatives. This will in turn lead to empowering local transport authorities to design and implement networks, with increased flexibility, to help advance economic inclusion. In addition to policy changes, leaders need to acknowledge the importance of data in decision-making processes.
Improvements in computing power, telecommunications, and data security have contributed to increased recognition of data's role in digital transformations within the transport and highways sector.
As previously outlined, the growing emphasis on evaluating public projects through more than conventional economic indicators requires that economists formulate comprehensive methodologies to develop business cases. These approaches will assess total value addition across economic, social, environmental, institutional, and cultural dimensions.
Furthermore, it will be essential for economists to enhance their analysis to incorporate the interdependencies between the transport sector and other sectors such as housing, health, education, trade and industry. The transport sector is also experiencing a period of significant transformation due to the introduction of innovative technologies poised to enter or already entering the market.
These advancements include large-scale solutions such as the development of sustainable fuels like hydrogen, carbon capture systems, autonomous vehicles, connected mobility solutions and digital twins. Meanwhile, smaller-scale innovations are aimed at retrofitting vehicles, travel apps or integrating digital products to enhance efficiency. Economists will have to not only maintain awareness and develop an understanding of these modern technologies but also formulate new methods to assess their efficient deployment and evaluate their potential benefits.
Adoption of technology in the form of Artificial Intelligence (AI) and machine learning will have a significant impact on the transportation sector just like the broader society. As transportation economists, to harness the power of AI, the key focus will be to train the models with suitable data to implement the relevant use cases across the transportation and highway industry. Decentralised funding and innovation funding are two emerging trends in the transport sector. Economists may need to evaluate the benefits and limitations of these funding mechanisms and consider areas for further development to optimise future funding structures.
As the use of green fuels increases and reliance on fossil fuels decreases, it will be necessary to develop new tax and revenue models. In addition, new forms of financing i.e. impact financing and private financing (pension fund/sovereign wealth fund) continue to emerge due to the inability of sovereign nations to borrow from the market after the recent COVID-19 period.
As transport systems become more integrated and dynamic, transport economics must evolve from a purely analytical discipline to one that also exercises strategic judgment and ethical foresight. The future lies in a hybrid model — one that honours data and human experience equally in pursuit of equitable, efficient, and impactful mobility outcomes.
Transport economists are hence encouraged to adopt a multidisciplinary approach, refine their quantitative and analytical capabilities, and engage with digital transformation while understanding the interconnectedness among various sectors and systems. It is equally important to develop effective communication skills and stay informed about ethical and equity considerations. Expanding professional networks, seeking mentorship opportunities, committing to continuous learning, and staying updated by participating in professional organisations such as CIHT will be extremely useful.
Transport economics fundamentally concerns the linkage between individuals, locations, and economic opportunities. Through the application of intellectual rigor, analytical skills, and a dedication to advancing the field, professionals can develop fulfilling careers while contributing to the evolution of mobility for future generations.
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