EFFECTS OF SUBSIDIES ON URBAN PUBLIC TRANSPORT

Because of a general trend of increasing costs of public transport operations and higher subsidies (in some cases accompanied by falling patronage) the European Conference of Ministers of Transport (ECMT) initiated a study of subsidisation and sought the help of the Transport and Road Research Laboratory. The study, in which eighteen countries took part, was concerned with the aims of subsidy, the sources and conditions attached to subsidy, trends in subsidies and the effect of subsidies on patronage, fares, service levels, costs and productivity. The qualitative information concerning the aims of subsidy was analysed in relation to the likelihood of achieving such aims, taking into account current experience of attempts to switch car drivers to public transport. The quantitative information on trends referred to public transport stage services covering where possible the entire country and relating to the period 1965-77; these data were supplemented by data from 59 cities in different parts of the world collected in the course of a TRRL-sponsored study of travel demand factors. The relationship between patronage and service levels, and between subsidies and various operating factors, including costs and productivity, were studied using regression analysis. Performance was measured in terms of unit costs and output per employee. Analysis of the data indicated that increases in subsidies tended to lower fares, increase vehicle miles of service, raise operating costs, and reduce labor productivity as measured by vehicle miles per employee.

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  • Corporate Authors:

    Elsevier

    Radarweg 29
    Amsterdam,   Netherlands  1043 NX
  • Authors:
    • Bly, P H
    • Webster, F V
    • Rounds, S
  • Publication Date: 1980-12

Media Info

  • Features: Figures; Tables;
  • Pagination: p. 311-331
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00330835
  • Record Type: Publication
  • Source Agency: Transport Research Laboratory
  • Files: ITRD, TRIS
  • Created Date: Aug 15 1982 12:00AM