This study is based on an econometric model for public transport in Germany which explains and quantifies the complex relationship between prices, passenger transport, modal split, production costs, and deficits. After a short description of the model and its key concept and an evaluation of the impact of a fuel tax increase on modal split and tax revenues, a detailed review of the impacts of a tax increase on transit ridership, costs, and revenues of public transport is provided. A brief description of the cost structure precedes an explanation and quantification of the most important implications of fuel price increases. The paper concludes with a summary of the results
