Affordability and Subsidies in Public Urban Transport : What Do We Mean, What Can Be Done?

Subsidy policies on public urban transport have been adopted ubiquitously. In both developed and developing countries, subsidies are implemented to make transport more affordable. Despite their widespread implementation, there are virtually no quan...

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Main Authors: Estupiñán, Nicolás, Gómez-Lobo, Andrés, Muñoz-Raskin, Ramón, Serebrisky, Tomás
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2007/12/8879859/affordability-subsidies-public-urban-transport-mean-can-done
http://hdl.handle.net/10986/7562
id okr-10986-7562
recordtype oai_dc
spelling okr-10986-75622021-04-23T14:02:35Z Affordability and Subsidies in Public Urban Transport : What Do We Mean, What Can Be Done? Estupiñán, Nicolás Gómez-Lobo, Andrés Muñoz-Raskin, Ramón Serebrisky, Tomás ACCIDENTS AFFORDABILITY INDEX AFFORDABILITY INDICES AFFORDABLE TRANSPORT AIR AIR CONDITIONING AIR QUALITY ALTERNATIVE MODES ALTERNATIVE TRAVEL ALTERNATIVE TRAVEL MODES AUTOMOBILE BENCHMARK BUS BUS COMPANIES BUS COMPANY BUS FARES BUS OPERATORS BUS SERVICE BUS SERVICE OPERATORS BUS SERVICES BUS SUBSIDY BUS SYSTEMS BUS TRANSPORT BUSES CAPITAL SUBSIDIES CAR CAR USE CAR USERS CARS COMMUTER RAIL COMMUTING CONCESSIONARY FARES CONGESTION CONGESTION TOLLS CONSUMER PRICE INDEX CONSUMERS CONSUMPTION LEVELS CONSUMPTION TAXES COST OF TRAVEL CROSS SUBSIDIES CROSS SUBSIDY DIESEL DIESEL FUEL ECONOMIC EFFICIENCY ECONOMIC THEORY ECONOMIES OF SCALE ECONOMIES OF SCOPE ELASTICITY ELASTICITY OF DEMAND ENVIRONMENTAL EXTERNALITIES EXCLUSION EXTERNALITIES FARE STRUCTURE FARES FOR STUDENTS FLAT FARE FLAT RATE FLAT TARIFF FOOD SUBSIDIES FREE TRANSPORT FUEL FUEL DUTY FUEL DUTY REBATE FUEL PRICES FUEL TAX FUEL TAX REBATE FUEL TAX REVENUES FUELS GASOLINE GINI COEFFICIENT GOVERNMENT SUBSIDIES HIGHER FARE HOUSEHOLD TRAVEL INCOME INCOME GROUPS INDIRECT SUBSIDY INFRASTRUCTURE GRANTS INFRASTRUCTURE PROJECTS INFRASTRUCTURE SUBSIDY INTERURBAN TRANSPORT JOURNEYS LABOR MARKET LONGER TRIPS LORENZ CURVE LOW INCOME USERS LOW TARIFFS Subsidy policies on public urban transport have been adopted ubiquitously. In both developed and developing countries, subsidies are implemented to make transport more affordable. Despite their widespread implementation, there are virtually no quantitative assessments of their distributional incidence, making it impossible to determine if these instruments are pro-poor. This paper reviews the arguments used to justify subsidy policies in public urban transport. Using different tools to quantitatively evaluate the incidence and distributive impacts of subsidy policy options, the paper analyzes the findings of a series of research papers that study urban public transport subsidy policies in developed and developing countries. The available evidence indicates that current public urban transport subsidy policies do not make the poorest better off. Supply-side subsidies are, for the most part, neutral or regressive; while demand-side subsidies perform better-although many of them do not improve income distribution. Considering that the policy objective is to improve the welfare of the poorest, it is imperative to move away from supply-side subsidies towards demand-side subsidies and to integrate transport social concerns into wider poverty alleviation efforts, which include the possibility of channeling subsidies through monetary transfer systems or through other transfer instruments (food subsidies, health services and education for the poor). The general conclusion of the paper is that more effort should be devoted to improve the targeting properties of public urban transport subsidies using means-testing procedures to ensure a more pro-poor incidence of subsidies. 2012-06-08T18:52:36Z 2012-06-08T18:52:36Z 2007-12 http://documents.worldbank.org/curated/en/2007/12/8879859/affordability-subsidies-public-urban-transport-mean-can-done http://hdl.handle.net/10986/7562 English Policy Research Working Paper; No. 4440 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCIDENTS
AFFORDABILITY INDEX
AFFORDABILITY INDICES
AFFORDABLE TRANSPORT
AIR
AIR CONDITIONING
AIR QUALITY
ALTERNATIVE MODES
ALTERNATIVE TRAVEL
ALTERNATIVE TRAVEL MODES
AUTOMOBILE
BENCHMARK
BUS
BUS COMPANIES
BUS COMPANY
BUS FARES
BUS OPERATORS
BUS SERVICE
BUS SERVICE OPERATORS
BUS SERVICES
BUS SUBSIDY
BUS SYSTEMS
BUS TRANSPORT
BUSES
CAPITAL SUBSIDIES
CAR
CAR USE
CAR USERS
CARS
COMMUTER RAIL
COMMUTING
CONCESSIONARY FARES
CONGESTION
CONGESTION TOLLS
CONSUMER PRICE INDEX
CONSUMERS
CONSUMPTION LEVELS
CONSUMPTION TAXES
COST OF TRAVEL
CROSS SUBSIDIES
CROSS SUBSIDY
DIESEL
DIESEL FUEL
ECONOMIC EFFICIENCY
ECONOMIC THEORY
ECONOMIES OF SCALE
ECONOMIES OF SCOPE
ELASTICITY
ELASTICITY OF DEMAND
ENVIRONMENTAL EXTERNALITIES
EXCLUSION
EXTERNALITIES
FARE STRUCTURE
FARES FOR STUDENTS
FLAT FARE
FLAT RATE
FLAT TARIFF
FOOD SUBSIDIES
FREE TRANSPORT
FUEL
FUEL DUTY
FUEL DUTY REBATE
FUEL PRICES
FUEL TAX
FUEL TAX REBATE
FUEL TAX REVENUES
FUELS
GASOLINE
GINI COEFFICIENT
GOVERNMENT SUBSIDIES
HIGHER FARE
HOUSEHOLD TRAVEL
INCOME
INCOME GROUPS
INDIRECT SUBSIDY
INFRASTRUCTURE GRANTS
INFRASTRUCTURE PROJECTS
INFRASTRUCTURE SUBSIDY
INTERURBAN TRANSPORT
JOURNEYS
LABOR MARKET
LONGER TRIPS
LORENZ CURVE
LOW INCOME USERS
LOW TARIFFS
spellingShingle ACCIDENTS
AFFORDABILITY INDEX
AFFORDABILITY INDICES
AFFORDABLE TRANSPORT
AIR
AIR CONDITIONING
AIR QUALITY
ALTERNATIVE MODES
ALTERNATIVE TRAVEL
ALTERNATIVE TRAVEL MODES
AUTOMOBILE
BENCHMARK
BUS
BUS COMPANIES
BUS COMPANY
BUS FARES
BUS OPERATORS
BUS SERVICE
BUS SERVICE OPERATORS
BUS SERVICES
BUS SUBSIDY
BUS SYSTEMS
BUS TRANSPORT
BUSES
CAPITAL SUBSIDIES
CAR
CAR USE
CAR USERS
CARS
COMMUTER RAIL
COMMUTING
CONCESSIONARY FARES
CONGESTION
CONGESTION TOLLS
CONSUMER PRICE INDEX
CONSUMERS
CONSUMPTION LEVELS
CONSUMPTION TAXES
COST OF TRAVEL
CROSS SUBSIDIES
CROSS SUBSIDY
DIESEL
DIESEL FUEL
ECONOMIC EFFICIENCY
ECONOMIC THEORY
ECONOMIES OF SCALE
ECONOMIES OF SCOPE
ELASTICITY
ELASTICITY OF DEMAND
ENVIRONMENTAL EXTERNALITIES
EXCLUSION
EXTERNALITIES
FARE STRUCTURE
FARES FOR STUDENTS
FLAT FARE
FLAT RATE
FLAT TARIFF
FOOD SUBSIDIES
FREE TRANSPORT
FUEL
FUEL DUTY
FUEL DUTY REBATE
FUEL PRICES
FUEL TAX
FUEL TAX REBATE
FUEL TAX REVENUES
FUELS
GASOLINE
GINI COEFFICIENT
GOVERNMENT SUBSIDIES
HIGHER FARE
HOUSEHOLD TRAVEL
INCOME
INCOME GROUPS
INDIRECT SUBSIDY
INFRASTRUCTURE GRANTS
INFRASTRUCTURE PROJECTS
INFRASTRUCTURE SUBSIDY
INTERURBAN TRANSPORT
JOURNEYS
LABOR MARKET
LONGER TRIPS
LORENZ CURVE
LOW INCOME USERS
LOW TARIFFS
Estupiñán, Nicolás
Gómez-Lobo, Andrés
Muñoz-Raskin, Ramón
Serebrisky, Tomás
Affordability and Subsidies in Public Urban Transport : What Do We Mean, What Can Be Done?
relation Policy Research Working Paper; No. 4440
description Subsidy policies on public urban transport have been adopted ubiquitously. In both developed and developing countries, subsidies are implemented to make transport more affordable. Despite their widespread implementation, there are virtually no quantitative assessments of their distributional incidence, making it impossible to determine if these instruments are pro-poor. This paper reviews the arguments used to justify subsidy policies in public urban transport. Using different tools to quantitatively evaluate the incidence and distributive impacts of subsidy policy options, the paper analyzes the findings of a series of research papers that study urban public transport subsidy policies in developed and developing countries. The available evidence indicates that current public urban transport subsidy policies do not make the poorest better off. Supply-side subsidies are, for the most part, neutral or regressive; while demand-side subsidies perform better-although many of them do not improve income distribution. Considering that the policy objective is to improve the welfare of the poorest, it is imperative to move away from supply-side subsidies towards demand-side subsidies and to integrate transport social concerns into wider poverty alleviation efforts, which include the possibility of channeling subsidies through monetary transfer systems or through other transfer instruments (food subsidies, health services and education for the poor). The general conclusion of the paper is that more effort should be devoted to improve the targeting properties of public urban transport subsidies using means-testing procedures to ensure a more pro-poor incidence of subsidies.
format Publications & Research :: Policy Research Working Paper
author Estupiñán, Nicolás
Gómez-Lobo, Andrés
Muñoz-Raskin, Ramón
Serebrisky, Tomás
author_facet Estupiñán, Nicolás
Gómez-Lobo, Andrés
Muñoz-Raskin, Ramón
Serebrisky, Tomás
author_sort Estupiñán, Nicolás
title Affordability and Subsidies in Public Urban Transport : What Do We Mean, What Can Be Done?
title_short Affordability and Subsidies in Public Urban Transport : What Do We Mean, What Can Be Done?
title_full Affordability and Subsidies in Public Urban Transport : What Do We Mean, What Can Be Done?
title_fullStr Affordability and Subsidies in Public Urban Transport : What Do We Mean, What Can Be Done?
title_full_unstemmed Affordability and Subsidies in Public Urban Transport : What Do We Mean, What Can Be Done?
title_sort affordability and subsidies in public urban transport : what do we mean, what can be done?
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2007/12/8879859/affordability-subsidies-public-urban-transport-mean-can-done
http://hdl.handle.net/10986/7562
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