AN ANALYSIS OF PRICE-SUBSIDY ISSUES IN PUBLIC TRANSPORTATION AND SOME SUGGESTIONS OF PRACTICAL IMPORTANCE

This report is directed to highway and transportation officials and other state and local government officials faced with questions of public transit subsidies. The questions are very real ones and require well founded answers. In this report, the author provides the above audience with several conclusions, recommendations and analytical points of view which are of practical importance. First, the author establishes that the great majority of arguments usually offered in support of subsidization are weak and unfounded. Whereas two economically justifiable arguments can be identified, their validity depends upon empirical proof that significant long-run average cost reductions arise through increased ridership. Secondly, the report provides an explicit set of criteria which are useful in judging alternative subsidy mechanisms by their ability to provide the incentives necessary to cause firms to increase their ridership and service levels. Thirdly, an exhibit is presented, based upon Virginia data, which shows the relative real cost to the locality of providing a subsidy under various mechanisms.

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  • Corporate Authors:

    Virginia Highway and Transportation Research Council

    Charlottesville, VA  United States 

    Virginia Department of Highways

    Traffic and Planning Division, 1221 East Broad Street
    Richmond, VA  United States  23219

    University of Virginia, Charlottesville

    Center for Transportation Studies, P.O. Box 400742
    Charlottesville, VA  United States  22904-4742
  • Authors:
    • Allen, G R
  • Publication Date: 1975-2

Language

  • English

Media Info

  • Pagination: 26 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00675393
  • Record Type: Publication
  • Source Agency: Virginia Transportation Research Council
  • Report/Paper Numbers: VHTRC 75-R34
  • Files: NTL, TRIS, STATEDOT
  • Created Date: Mar 29 1995 12:00AM