Table 2: Summary of the FATIMA objective functions
Objective function | Acronym | Description |
Economic Efficiency Function that considers environmental costs |
EEFP |
A measure of net present benefits to travellers, operators and government. A shadow price on the net outlay and generation of public funds (compared to the do-minimum strategy) is included, as is a shadow priceon the local environment and safety. |
Sustainability Objective Function |
SOF |
A measure of net present benefitsto travellers, operators and government in a future target year. It imposes a very high shadow price on fuel and has the constraint thatfuel consumption is less than for the do-minimum strategy. |
Benchmark Objective Function |
BOF |
An idealised economic function which balances the interests of the current generation with those of future generations.BOF is a weighted sum of EEFP and SOF. |
Constrained Objective Function |
COF |
An extension of BOF, but which assumes that public finance is constrained to the do-minimum level. |
Regulated Objective Function |
ROF |
An extension of COF, which recognises that extra (private) finance can be input to the transport systemthrough value capture. |
Deregulated Objective Function |
DOF |
An extension of COF which assumesthat full control of public transport is handed to the private sector, with no public subsidy. |
Half-regulated Objective Function |
HOF |
An extension of DOF but whichpermits subsidy to privately-run public transport to be made, but only if the present value of finance is positive. |