TAXES AND SUBSIDIES IN TRANSPORT: SOME UNSETTLED ISSUES

Relative prices play an important role in user selection of transport mode. Prices do not reflect relative real costs partly because governments influence rail and road transport prices unequally. The concept of a "non-political price" is developed as a benchmark against which actual prices can be measured. Rail and road transport are examined. Large rail deficits are argued to result in part from inability to pass on cost increases because intermodal competition prevents this, coupled with unwillingness to relinquish traffics for which out-of-pocket costs exceed revenue. Resources are not efficiently allocated because rail prices include a subsidy, while road prices include a tax. /Author/TRRL/

  • Availability:
  • Supplemental Notes:
    • Australian Transport Research Forum, Fourth Annual Meeting, May 24-26, 1978, Perth, Forum Papers.
  • Corporate Authors:

    Western Australia Director General of Transport

    68 St. Georges TCE
    Perth, Western Australia,   Australia 

    Director General of Transport Western Australia

    68 St Georges Terrace
    Perth, Western Australia,   Australia 
  • Authors:
    • DOCWRA, G E
    • KOLSEN, H M
  • Publication Date: 1978

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00183318
  • Record Type: Publication
  • Source Agency: Transport and Road Research Laboratory (TRRL)
  • Report/Paper Numbers: Book
  • Files: ITRD, TRIS, ATRI
  • Created Date: Nov 14 1978 12:00AM