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| Author: | Gomez-Lobo, A. |
| Title: | A new look at the incidence of public transport subsidies |
| Journal: | Journal of Transport Economics and Policy
2009 : SEP, VOL. 43: 3 p. 405-425 |
| Index terms: | public transport subsidies developing countries transport economics public services |
| Language: | eng |
| Abstract: | Most public transport subsidies in developing countries are justified for equity or social reasons. Nevertheless, it is unclear how well current subsidies meet these objectives. In this paper, several public transport subsidies are evaluated in the case of Santiago, Chile. In recent years, direct means-tested monetary transfers have been used to distribute public transport subsidies instead of using more traditional supply side sectoral subsidies. The results show that the general welfare system's performance to hand out transport subsidies is superior to traditional supply side subsidies, which are badly targeted and sometimes quite regressive. Together with recent evidence from other developing country cities, the results of this paper suggest that more effort needs to be directed to the analysis, design, and implementation of social subsidies in the transport field. |
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