URBAN PUBLIC TRANSPORT SUBSIDIES IN WESTERN EUROPE AND NORTH AMERICA

Abstract

This article examines the broad spectrum of public policies and their outcomes in Western Europe and North America, in order to identify sources of success and failure, and thus determine ways of improving the effectiveness of transit subsidization. Empirical evidence suggests that decentralization of transit finance and decision making may enhance the effectiveness of subsidies. Transit subsidies are as important as government policies affecting the costs of auto ownership and use. In the United States large transit subsidies have led to negligible ridership growth and no increase in the proportion of tripmaking by mass transit. Greater decentralization of decision making and financing might be an approach to increasing its effectiveness.