Unravelling myths about subsidies in urban transport: a case study of Pune
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31/07/2008
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Prayas Energy Group
This paper by Prayas Energy Group exposes the hidden subsidies enjoyed by users of cars and two wheelers, thus marginalizing the needier sections. It uses a case study of urban transport in Pune to show that a bus user is much less subsidized than a car or a two-wheeler user.
This paper challenges the population perception that urban public transport, especially bus services in the country are subsidized while cars and two-wheelers are not. It demonstrates through a case study of urban transport in Pune, that a bus user is much less subsidized than a car user or a two-wheeler user when all costs imposed by transport modes are considered. In the process, it also examines some issues regarding municipal budgeting in the cities.
This paper challenges the population perception that urban public transport, especially bus services in the country are subsidized while cars and two-wheelers are not. It demonstrates through a case study of urban transport in Pune, that a bus user is much less subsidized than a car user or a two-wheeler user when all costs imposed by transport modes are considered. In the process, it also examines some issues regarding municipal budgeting in the cities.