REGULATORY BARRIERS TO INNOVATION AND THE KNOXVILLE EXPERIENCE

This paper makes the point that urban transportation is shifting to services that are more flexible and labor intensive and that use smaller vehicles. It is also noted that existing regulation was designed to protect those who are dependent on public transportation with little regard for fuel and highway efficiency. The transportation regulatory commissions have no power or authority other than that of prohibiting the operation of for-hire carriage that is not consistent with the desires of the regulatory agency. The regulatory agencies are virtually powerless to ensure passenger service to the public, and they are reluctant to allow experimental demonstrations for fear the public will be left without even the minimal service after funding for the demonstration is terminated. Since regulatory authorities are bound by very specific laws, regulatory exemptions must come from the state legislature rather than from the regulatory bodies themselves. Perhaps the most restrictive regulatory bodies currently in existence are the regional transportation authorities, which may have very broad regulatory powers as well as operational authority. The development of simpler more specialized services is traced in 3 overlopping stages. The ways in which regulations strived to achieve their goals are described, and the regulatory power of local transport authorities is discussed. In Knoxville, Tennesse, a brokerage concept is in operation in which the role of transit is to meet public needs rather than promote one type of service. This concept developed because of the close cooperation between the Knoxville Transit Authority (KTA), several firms in the city and the University of Tennessee.

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  • Supplemental Notes:
    • This paper appeared in Transportation Research Board Special Report No. 181, Urban Transportation Economics. It contains proceedings of Five Workshops on Pricing Alternatives, Economic Regulations, Labor Issues, Marketing, and Government Financing Responsibilities held by Transportation Research Board. Sponsored by Office of the Secretary, Federal Highway Administration, and Urban Mass Transportation Administration of DOT; Environmental Protection Agency; and Federal Energy Administration.
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    Transportation Research Board

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  • Authors:
    • Davis Jr, Frank W
  • Publication Date: 1978

Media Info

  • Media Type: Print
  • Features: References;
  • Pagination: pp 129-133
  • Monograph Title: URBAN TRANSPORTATION ECONOMICS
  • Serial:

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Filing Info

  • Accession Number: 00176507
  • Record Type: Publication
  • Files: TRIS, TRB, ATRI
  • Created Date: Nov 14 1981 12:00AM