01047585

Component

Although the bus transit operators with deficit routes have been directly subsidized by the government in Taipei city, the present criteria for subsidy allocation among the bus transit operators are not quite reasonable from the point of economy. Therefore, in order to locate the resource of subsidy more reasonable and fair, this study aims to develop a model of subsidy allocation, which is established based on the maximized social welfare under the constraint of subsidy budget of government. The operational data of eleven bus transit operators in Taipei are employed in the model to calculate the reasonable distributed subsidy for the deficit routes. Comparing with the existing condition of subsidy distribution, the model shows that eight private operators were subsidized insufficiently and the others including the public operator had been over-distributed. The theory of the Minimum Efficient Scale is applied to estimate the optimal output via the cost function of the route and the reasonable amount of subsidy for each route is also suggested while the optimal scale of output is estimated. By using the approach, the re-allocated subsidy estimated by the model can improve the producer¡¦s surplus for most of bus transit operators to reach the reasonable level.

01042056

07-3227

English

11p

2007

Transportation Research Board 86th Annual Meeting

CD-ROM

Figures (2) ; References (16) ; Tables (4)

Bus transit; Bus transit operations; Bus transportation; Deficits; Operating subsidies; Public transit; Routes; Routes and routing; Subsidies; Transit operating agencies

Taipei (Taiwan)

Motor Carriers; Operations and Traffic Management; Public Transportation

Transportation Research Board Annual Meeting 2007 Paper #07-3227

TRIS, TRB

Feb 8 2007 7:56PM