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Optimal supply of public transport: subsidising production or consumption or both?
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.ORCID iD: 0000-0002-5814-917X
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics, TEK.ORCID iD: 0000-0001-7976-5628
2014 (English)Report (Other academic)
Abstract [en]

This paper compares two approaches for providing public transport: competitive tendering and vouchers. The functioning of tendering is well known. The voucher alternative means that commercial operators charge passengers a fare and are also paid by the public sector principal for each. The paper establishes that it is also necessary to subsidize quality, here referring to the number of busses. Under full information, the two approaches would result in the same welfare maximizing outcome. Vouchers may be more expensive for taxpayers. The case for vouchers is shown to be stronger under an asymmetric information framework.

Place, publisher, year, edition, pages
Stockholm: Centre for Transport Studies , 2014. , 32 p.
Series
CTS Working Paper, 2014:27
Keyword [en]
Public transport, Financing, Subsidy, Procurement, Cost, Mathematical model
National Category
Economics
Research subject
00 Road: General works, surveys, comprehensive works, 02 Road: Economics
Identifiers
URN: urn:nbn:se:vti:diva-7454OAI: oai:DiVA.org:vti-7454DiVA: diva2:773135
Available from: 2014-12-18 Created: 2014-12-18 Last updated: 2017-02-22Bibliographically approved

Open Access in DiVA

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Nilsson, Jan-EricAhlberg, JoakimPyddoke, Roger
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Total: 164 downloads
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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf