THE BENEFITS AND COSTS (AT THE NATIONAL LEVEL) OF GOVERNMENT IN THE NORMAL PROCESS OF SETTING FREIGHT TRANSPORT PRICES

This Round Table consists of a preliminary report, plus a summary of the discussion which followed its presentation. The report notes the lack of uniformity in types and methods of price controls, which vary with the aim of the policy and implementation considerations. Different sections consider price control policy as it might apply to railways as a monopoly, or to inland waterway and road transport only. In these hypothetical cases, optimal pricing policies, and hence methods of price control, differ. When all forms of transport are considered, it must be kept in mind that the market is, in large part, competitive, and any price controls may produce modal substitution. It is suggested that monopolistic modes, such as railways, should be required to charge enough to cover their marginal costs. Finally, the political considerations of transport policy are considered. Regional policies, for example, may alter price control policy. The discussion summary centers around the relationship between general economic and social policies and transport policy, the theory of optimum pricing of practical value for economic policy, and the quantitative and qualitative evaluation of costs and benefits from government intervention.

• Supplemental Notes:
  • This publication is the result of an ECMT Round Table on Transport Economics held in Paris, France, March 15-16, 1973.
• Corporate Authors:

  European Conference of Ministers of Transport

  2 rue Andre Pascal
  F-75775 Paris Cedex 16,   France 
• Publication Date: 0

Media Info

• Features: References;
• Pagination: 40 p.

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Competition; Economic analysis; Economics; Foreign; Freight traffic; Freight transportation; Highway transportation; Inland waterways; Modal diversion; Monopoly; Policy; Prices; Pricing; Qualitative analysis; Quantitative analysis; Railroad transportation; Rates; Regulations; Tariffs; Transportation; Transportation modes; Transportation policy
• Uncontrolled Terms: Freight rates
• Old TRIS Terms: Government policies; Government regulations; Heavy equipment
• Subject Areas: Economics; Law; Policy; Society; Transportation (General);

Filing Info

• Accession Number: 00072044
• Record Type: Publication
• Source Agency: Transportation Systems Center
• Report/Paper Numbers: #22
• Files: TRIS
• Created Date: Mar 6 1975 12:00AM