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- W612833403 abstract "Transport is one of the most heavily subsidized sectors. This subsidization includes subsidies as defined in Standard System of National Accounts statistics, further direct and open financial support from the state, and indirect and hidden subsidies. Subsidies are usually initially justified for normative reasons but often continue after the normative reasons have disappeared. This phenomenon results from all the players in the transport market--politicians, industrialists and customers--all trying to maximize their individual profits and benefits, regardless of the consequences for social welfare. This paper analyzes the original goals of supportive actions of the state on the one hand and the incentives for rent-seeking parties on the other hands. The particular market effects on the existing practices of subsidizing transport are illustrated, and counterproductive impacts with respect to sustainability goals are worked out. Examples of the distortion effects in the airline, railway and road haulage markets are given. It is almost impossible to cut subsidies that were introduced when they were justified normatively because powerful coalitions will form to protect the subsidized institutions against change. Reductions of transport subsidies seem to be only politically feasible in times of financial crisis in the public budget, and when there is a rising perception of the risk to sustainable development if the environmentally risky modes of transport continue to be subsidized." @default.
- W612833403 created "2016-06-24" @default.
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- W612833403 date "2001-01-01" @default.
- W612833403 modified "2023-09-23" @default.
- W612833403 title "TRANSPORT SUBSIDIES. IN: HANDBOOK OF TRANSPORT SYSTEMS AND TRAFFIC CONTROL" @default.
- W612833403 hasPublicationYear "2001" @default.
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