This study aims to calculate the financial and economic benefits of the application of electric buses in an urban area in Egypt. This is done by estimating the benefits and disbenefits of using this system in Benha, Egypt. In Egypt, there is no clear method to determine the benefits and disbenefits of using electric buses. Therefore, a logical way is used to determine the benefits and disbenefits of this application and to set some policies. This is achieved through the application of the sequential method (4-step model), which consists of four stages as follows: trip generation, trip distribution, model split, and traffic assignment. The questionnaires were designed to determine the factors that affect the choice of electric buses. The data was analyzed and calibrated into a model which predicts the volume of demand for electric buses, the importance of each variable was studied, and the advantages and disadvantages of implementing the electric bus system in Egypt were studied. The questionnaire provided three suggestions for using electric buses. The logistic regression was used to find the best-proposed suggestion for using electric buses if it was the first suggestion or to choose another suggestion according to the following independent variables (travel time) and the following categorical variables (address, gender, age, education, vehicle ownership, income, and trip purpose). The three models were obtained and estimated to obtain the utility function of each suggestion. From the analysis, the best suggestion is the first, as the total number of trips using electric buses is larger than the other two suggestions. By comparing the air pollution with and without electric buses, it is clear that the use of electric buses will reduce air pollution by 69 %. The benefits of electric bus application in Benha, Egypt were estimated by evaluating the money value of air pollution and the value of time. The value of time was calculated by knowing the average travel time with and without electric buses, the average salary from the questionnaire, and the total working hour. Finally, the total reduction of the value of time was estimated and found to be 8.3 *10^5 LE.