EFFICIENT REGULATION: THEORY AND PRACTICE IN AUSTRALIA. 14TH AUSTRALIAN TRANSPORT RESEARCH FORUM, PERTH 20-22 SEPTEMBER 1989; FORUM PAPERS. VOLUMES 1 AND 2

The aim of this paper is four fold. First, it reviews the key concepts of market failure, efficient regulation, and regulatory failure. Second, it surveys the current regulatory networks impinging on freight transport by road and rail in Australia. Third, it develops a simple model to explain welfare losses due to regulatory and other encumbrances in the freight transport markets. Fourth, this model is used to determine which regulations in Australia are worth keeping and which should be dismantled. In this simplified model we assume that the railway industry is a rent seeking monopoly. Under this scenario, monopoly rents accruing to railway systems and their employees are real social costs. These costs may be an expression of technical inefficiency exemplified by say over employment of certain factors of production. The measurement of these social welfare losses boils down to calculating areas of well defined trapeziums. This is done for each of those regulated freight tasks for which data can be obtained in Australia. Conclusions are made as to which regulations need dismantling and which need maintaining. The results are based on rough estimates because of limited availability of the relevant information (a). For the covering record of the forum, see IRRD no 822808.

  • Availability:
  • Corporate Authors:

    Western Australia Department of Transport

    136 Stirling Highway
    Nedlands, Western Australia,   Australia 
  • Authors:
    • Lubulwa, A
  • Publication Date: 1989-9

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00497830
  • Record Type: Publication
  • Source Agency: Transport and Road Research Laboratory (TRRL)
  • ISBN: 0-7309-2663-X
  • Files: ITRD, TRIS
  • Created Date: Sep 30 1990 12:00AM