A PROCEDURE FOR ESTIMATING TRANSIT SUBSIDIZATION REQUIREMENTS FOR DEVELOPING COUNTRIES
place - urban
Urban transit, Under developed countries, Third world, Subsidies, Productivity, Production rate, Less developed countries, Expenditures, Estimation, Estimating, Developing countries
This paper presents a procedure that has been developed for estimating subsidization requirements for urban transit services in developing countries. The procedure is based on a subsidization policy of reducing transport expenditure burden on the average commuter, by maintaining his transport expenditure-income ratio at a reasonable level. It is designed for both regulated and deregulated transport markets. It requires, as input, historical data (previous year) on fare, productivity, and load factor for the transport service or mode concerned, the transport expenditure-income ratio distribution of the commuters, and the current level of commuter personal transport allowance. It is based on the premise that transport expenditure-income ratio is inversely related to income.
OSULA, DOA, (1998). A PROCEDURE FOR ESTIMATING TRANSIT SUBSIDIZATION REQUIREMENTS FOR DEVELOPING COUNTRIES. Transportation Research Part A: Policy and Practice, Volume 32, Issue 8, p. 599-606.