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Implementing Optimal Supply of Public Transport The Choice between Tendering and Targeted Subsidies
KTH, School of Architecture and the Built Environment (ABE), Centres, Centre for Transport Studies, CTS.
KTH, School of Architecture and the Built Environment (ABE), Centres, Centre for Transport Studies, CTS. Swedish Natl Rd & Transport Res Inst VTI, Box 55685, S-10215 Stockholm, Sweden..
KTH, School of Architecture and the Built Environment (ABE), Centres, Centre for Transport Studies, CTS. Swedish Natl Rd & Transport Res Inst VTI, Box 55685, S-10215 Stockholm, Sweden..
2016 (English)In: Journal of Transport Economics and Policy, ISSN 0022-5258, E-ISSN 1754-5951, Vol. 50, p. 21-38Article in journal (Refereed) Published
Abstract [en]

This paper compares two approaches for providing public transport: competitive tendering and targeted subsidies. The subsidy option means that commercial operators charge a fare, and are paid by the public sector principal both per passenger and per bus in service. This is the case since quality (the number of buses) would otherwise be sub-optimal. Under full information, the tendering and targeted subsidies would establish the same welfare-maximising outcome, while subsidies typically are more expensive for taxpayers. The case for targeted subsidies is stronger under an asymmetric information framework.

Place, publisher, year, edition, pages
UNIV BATH , 2016. Vol. 50, p. 21-38
National Category
Transport Systems and Logistics
Identifiers
URN: urn:nbn:se:kth:diva-269186ISI: 000370560500002Scopus ID: 2-s2.0-85032739422OAI: oai:DiVA.org:kth-269186DiVA, id: diva2:1412531
Note

QC 20200306

Available from: 2020-03-06 Created: 2020-03-06 Last updated: 2020-03-06Bibliographically approved

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Nilsson, Jan-EricAhlberg, JoakimPyddoke, Roger
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