89025 Copyright © 2014 International Bank for Reconstruction and Development / The World Bank Group 1818 H Street NW, Washington DC 20433 All rights reserved The views expressed in this publication are those of the authors and not necessarily those of the World Bank. The findings, interpretations, and conclusions ex- pressed in this report are entirely those of the authors and should not be attributed to the World Bank or Ener- gy Sector Management Assistance Program (ESMAP), or their affiliated organizations, or to the members of their board of executive directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in the report and accepts no responsibility whatsoever for any consequences of their use. The boundaries, colors, denominations, and other information shown on any map in the report do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the en- dorsement or acceptance of such boundaries. Cover Photos by Sam Zimmerman FOREWORD More than half the world’s population now lives in its cities. The urban population continues to grow, especially in developing countries. As a result, the demands on the transport system are also growing, often at a faster pace than the population. Unfortunately, the increasing demand for travel has had adverse conse- quences on the health and well-being of the people and the economic efficiency of cities. Severe congestion, air pollution, traffic accidents and a fast rising energy bill have become serious concerns for public policy. Greenhouse gas (GHG) emissions from the urban transport sector have risen rapidly with adverse impacts on climate change. There has been an explosive growth in the consumption of non-renewable petroleum fuels. Nearly 1.2 million people are killed in road accidents every year. And the increasing difficulty of accessing jobs, education and healthcare has had adverse effects for the urban poor. Unfortunately, urban transport planning is very complex and, to be effective, urban mobility solutions need to be multi-dimensional. Planning for urban mobility is not just about good construction of facilities, but also needs to integrate numerous aspects, among others land use planning, traffic management, human behav- ior, safety, gender, disability, affordability, and the impact on jobs. A comprehensive and holistic approach is needed, requiring a combination of both supply side and demand side measures. Most importantly, it must accommodate the needs of the poor. All of these require a supporting policy framework that seeks to maximize the travel demand it can accommo- date while minimizing the resources needed to do so. Such a framework would take into account optimal land use patterns and energy efficiency in transport systems. Few countries have so far formulated such policies and, in the absence of such a guiding policy, inappropriate interventions continue to be made. It is in this context that this guidebook has been developed by the World Bank as a possible support to formu- lating policies for urban transport. It highlights the key policy issues that need to be considered, the options that exist and the factors that influence a choice between the options. It recognizes that situations differ from country to country and even from city to city. Choices depend on the local context and so a “one size fits all” cannot apply. Recognizing this diversity, it refrains from making prescriptions. Its target audience is senior policy makers and recognizing their time constraints, it is short and crisp and also keeps the discussion simple. It is also useful to students of transportation and public policy as it helps highlight fundamental issues for policy makers. Marc Juhel Rohit Khanna Sector Manager, TWITR Program Manager, ESMAP 1 ACKNOWLEDGMENTS This guidebook has been written by a team led by O.P. Agarwal, Lloyd Wright and K. Sakamoto of the Asian Development Bank made Senior Urban Transport Specialist at the World Bank, and compris- significant contributions to the November 2012 version, and the ing Gouthami Padam, consultant, and Cholpon Ibraimova, program authors appreciate their help. assistant. The team worked under the guidance of Jose Luis Irigoyen, Thanks are also due to Jose Luis Irigoyen, Marc Juhel, and Rohit Transport Sector Director, Marc Juhel, Transport Sector Manager, and Khanna for their constant guidance and advice; to Ivan Jaques, a Rohit Khanna, ESMAP Program Manager. constant source of strength and advice; and to Sam Zimmerman, the This guidebook follows up on an earlier paper of November 2012 fountain of information on urban transport, who greatly supported that was written jointly by the World Bank and the Asian Develop- this effort by contributing several pieces. The team would especially ment Bank for the G-20. The previous paper was reviewed by several like to thank Marc Juhel, Rohit Khanna, Arturo Ardila Gomez, and colleagues within the World Bank and the Asian Development Bank, Ajay Kumar for reviewing the draft a second time. who gave very useful comments. The Organisation for Economic Co- The financial and technical support provided by the Energy Sector operation and Development and the International Transport Forum Management Assistance Program (ESMAP) is gratefully acknowl- (ITF) also gave very valuable feedback. The authors wish to thank Ajay edged. ESMAP, a global knowledge and technical assistance program Kumar, Arturo Ardila Gomez, and Thierry Desclos, all from the World administered by the World Bank, assists low- and middle-income Bank; Zhi Liu, Lincoln Institute of Land Policy (ex–World Bank); Alexis countries in increasing their know-how and institutional capacity Robert, OECD; and Jose Viegas, Mary Crass, Steve Perkins, and Phillipe to achieve environmentally sustainable energy solutions for pov- Crist, all from the ITF. erty reduction and economic growth. ESMAP is funded by Australia, This follow-up effort was able to incorporate several suggestions Austria, Denmark, Finland, France, Germany, Iceland, Lithuania, the received from the reviewers at that time that could not be incorporate Netherlands, Norway, Sweden, the United Kingdom, and the World into the November 2012 version due to time constraints. This version Bank Group. of the guidebook has received additional comments from three The findings, interpretations, and conclusions expressed in this paper practitioners with several years of experience in formulating and do not necessarily reflect the views of the World Bank or the govern- implementing policies. These have been extremely useful, as these ments it represents. The authors are solely responsible for them. individuals were able to contribute the perspective of those for whom this guidebook is primarily intended. Thanks are due to Anil Baijal, I.P. Gautam, and Ramon Arevalo for these comments. Sincere thanks are due to Prof. Jose Gomez-Ibanez of the Harvard Kennedy School of Government for his extensive and helpful com- ments. The authors are grateful to him for having taken the time to review this guidebook despite his busy teaching schedule. 2 CONTENTS Abbreviations and Acronyms.......................................... 6 Instruments for Implementation.....................................34 Executive Summary...................................................... 7 5. Modes of Transport.............................................. 37 Governance...............................................................9 Background.............................................................. 37 Land Use and Transport.................................................9 Instruments for Implementation.................................... 40 Modes of Transport.....................................................10 6. Personal Motor Vehicles......................................... 41 Personal Motor Vehicles................................................10 Background.............................................................. 41 Public Transport......................................................... 11 Motorized Two-wheelers (M2W).................................... 44 Para-transit.............................................................. 12 7. Public Transport................................................ 49 Non-motorized Transport (NMT)...................................... 12 Background............................................................. 49 Parking................................................................... 13 Pricing................................................................... 49 Supply vs. Demand Management.................................... 13 Quality-versus-Cost Trade-offs.......................................52 Alternative Fuels........................................................ 13 Technology...............................................................52 Financing................................................................. 13 Coverage................................................................. 56 Role of the Private Sector.............................................. 14 Capacity...................................................................57 Process and Implementation......................................... 14 Industry Structure and Regulatory Rigor........................... 58 1. Introduction...................................................... 15 8. Para-transit....................................................... 61 The Problem............................................................. 15 Background..............................................................61 The Multidimensionality of Urban Transport....................... 15 Desirable and Undesirable Features.................................61 Need for Policies........................................................16 Options for Public Policy...............................................62 What Is a Policy?........................................................ 17 9. Nonmotorized Transport.......................................65 Objectives of an Urban Transport Policy............................ 18 Background............................................................. 65 Purpose of This Guidebook........................................... 20 Issues for Public Policy................................................ 65 Target Audience and Presentation Style............................ 20 Influencing Factors.................................................... 66 Structure.................................................................. 21 Instruments for Implementation.................................... 66 2. Comprehensive Framework.................................... 22 10. Parking.............................................................67 3. Governance....................................................... 25 Background..............................................................67 Background..............................................................25 Options...................................................................67 Which Level of Government?..........................................25 Influencing Factors.....................................................67 Which Sector Should Lead the Responsibility?..................... 27 Instruments for Implementation.................................... 68 Nature of the Lead Agency............................................ 28 11. Supply versus Demand Management....................... 69 4. Land Use and Transport........................................ 31 Background............................................................. 69 Background.............................................................. 31 Policy Issues and Options..............................................70 Relationship between Land Use and Transport....................32 12. Alternative Fuels................................................. 71 Key Questions for Public Policy and the Options Available.......32 Background.............................................................. 71 3 Policy Issues............................................................. 72 Figure 10: Transport Modes Commonly Used to Meet Instruments for Implementation..................................... 72 Travel Needs............................................................. 37 13. Financing.......................................................... 75 Figure 11: Policy Issues Relating to Modes of Background..............................................................75 Transport to Be Promoted............................................ 40 Policy Issues.............................................................76 Figure 12: Options for Policies Relating to Accommodation Influencing Factors.....................................................76 of Personal Motor Vehicles............................................43 Additional Sources of Revenue.......................................76 Figure 13: Role of Motorized Two-wheelers........................47 14. Role of the Private Sector.........................................79 Figure 14: Mode Share of Public Transport......................... 50 Background..............................................................79 Figure 15: Policy Issue, Options, and Influencing Factors Instruments for Implementation.................................... 80 Relating to the Pricing of Public Transport.......................... 51 Influencing Factors.....................................................81 Figure 16: Quality-versus-Cost Issues Relating to Public 15. Process and Implementation.................................... 85 Transport.................................................................53 Background............................................................. 85 Figure 17: Policy Issues and Options Relating to Formulation............................................................. 85 Public Transport Technologies....................................... 56 Implementation........................................................ 86 Figure 18: Policy Options Relating to the Coverage of Public References..................................................................87 Transport.................................................................57 Figure 19: Policy Options Relating to the Capacity of the Public Transport System.......................................... 58 FIGURES Figure 20: Policy Issues Relating to the Industry Structure Figure 1: The Roadmap—From Vision to Policy to Projects........19 for Public Transport.................................................... 60 Figure 2: Number of People Killed by Different Causes...........19 Figure 21: Issues Relating to Para-transit............................63 Figure 3: Comprehensive Framework of Policies...................23 Figure 22: Issues Relating to NMT.................................... 66 Figure 4: Key Policy Issues Relating to the Governance Figure 23: Policy Issues Relating to Parking........................ 68 of Urban Transport..................................................... 30 Figure 24: Strategies for Reducing Travel Demand................ 69 Figure 5: Comparative Average Population Densities in Figure 25: Policy Issues Relating to Alternative Fuels..............74 Built-up Areas in Select Metropolitan Areas........................ 31 Figure 26: Role of the Private Sector................................ 83 Figure 6: Relationship between Population Density and Mode Share of Public Transport.................................32 TABLES Figure 7: Relationship between Population Density and Table 1: Which Sector Should Lead the Effort?..................... 28 Share of NMT.............................................................33 Table 2: Source of Funding for Lead Institutions...................29 Figure 8: Relationship between Population Density Table 3: Key Features of Different Transport Modes............... 38 and Per Capita Energy Consumption.................................33 Table 4: Comparative Congestion, Fuel Consumption, Figure 9: Issues and Options Relating to Land Use and and Pollution Impacts of Different Vehicles........................39 Transport.................................................................35 4 Table 5: Growth of Motor Vehicles in Select Countries............ 41 Table 15: Advantages and Disadvantages of Various Table 6: Growth of Motor Vehicle Use between 2002 and Alternative Fuels and Vehicle Technologies......................... 71 2011 in Select Cities in India............................................42 Table 16: Examples of Who Should Pay for a S Table 7: Marginal Cost of a 10-km Journey by Motorbike ample of Transport related Costs..................................... 77 and by Bus.............................................................. 44 Table 17: Some Possible Options for Raising Table 8: Percentage of Road Accident Fatalities, Additional Revenue....................................................78 by Type of Vehicle...................................................... 45 Table 18: Options and Factors........................................ 82 Table 9: Mitigation Measures for the Negative Table 19: Basic Principle for Deciding Investments............... 83 Externalities of Motorbikes............................................47 Table 10: Basic Principle for Determining the Pricing BOXES of Public Transport...................................................... 51 Box 1: The Triple Convergence Principle.............................16 Table 11: Examples of Different Categories of Public Box 2: Gauge for Metro Rail Systems................................. 21 Transport Services....................................................... 51 Box 3: Positive and Negative Influence of Table 12: Some Important Features of Alternative Some Interventions..................................................24 Mass Transit Technologies............................................ 54 Box 4: Copenhagen’s Finger Plan....................................55 Table 13: Aspects Regulated by a Public Agency Box 5: Use of Electric Vehicles near the Taj Mahal.................74 in Different Public Transport Industry Models.................... 59 Table 14: Basis for Choosing between Policy Options............. 68 5 ABBREVIATIONS AND ACRONYMS BRT Bus Rapid Transit CNG Compressed Natural Gas FAR Floor Area Ratio GHG Greenhouse Gases ITF International Transport Forum LAMATA Lagos Metropolitan Transport Authority LRT Light Rapid Transit LTA Land Transport Authority (Singapore) M2W Motorized two-wheelers NMT Nonmotorized transport OECD Organization for Economic Co-operation and Development P/ha Persons per hectare STIF Syndicat des Transports Îles-de-France (Paris) TOD Transit-Oriented Development TfL Transport for London WHO World Health Organization All dollar amounts are U.S. dollars unless otherwise indicated. 6 EXECUTIVE SUMMARY As the developing world urbanizes, the demands on transport It also delves deeper into specific aspects of transport, such as: systems grow—often at a faster pace than the population does. This zz What are the pros and cons of motorbike use and what role they increasing demand for travel has had adverse consequences on the should have in the overall transport system in a city? economic efficiency of cities as well as the health and well-being of the people who live in them. Severe congestion, air pollution, green- zz What are para-transit and non-motorized modes, and how can house gas emissions, traffic accidents, and a fast-rising energy bill they be integrated into a city’s overall transport system? have become serious public policy concerns. The primary reason for The first two sections of this guide—the Introduction and Compre- this trend is the increasing dependence on personal motor vehicles, hensive Framework—establish the background of what a policy is necessitated by longer travel distances and made affordable by rising and how policies and subpolicies work together. The figure below, income levels. explored further as figure 1 in the Introduction, is a roadmap display- Jurisdictions looking to reverse this trend must start by setting policies ing how a vision leads to objectives, policies, plans, and, ultimately, that lay out the guiding principles for more detailed downstream projects. planning. Merely building facilities and adding to infrastructure capacity is rarely an adequate or durable response to the growing demands for mobility; it has to be complemented by several other interventions that channel demand in a desired direction simultane- ously. Policy is what guides those interventions in the right direction. The guide addresses broad topics, such as: zz What is policy and how is it different from a plan? zz Why and how should the government be involved in urban mobility? zz How can policy makers balance the issues of land use and trans- port? Of supply (expanding capacity) versus demand (reducing demand)? zz What modes of travel would be best? zz Who should bear the costs of urban transport systems — for example, just the bus passengers, or also the car drivers who benefit from less congestion on the road? zz What instruments can a jurisdiction use to implement its policies? 7 THE ROADMAP—FROM VISION TO POLICY TO PROJECTS The more detailed diagram of the policy level is shown below and explored as figure 3 in the Comprehensive Framework section. COMPREHENSIVE FRAMEWORK OF POLICIES This shows the relationships between policies and subpolicies, including the three clusters of “Avoid,” “Shift,” and “Improve” policies. It is in this context that this guidebook seeks to be a support to countries, provinces, regions, and cities in formulating their urban transport policies. 8 The lessons learned in the other sections of the guidebook are sum- The key issues that arise when considering a coordinating institution marized below. Users will note that the longest two sections—Per- are (1) the agency’s scope of responsibilities (i.e., comprehensive, sonal Motor Vehicles and Public Transport—are devoted to the two limited to managing the public transport system alone, or limited to most important pieces of urban transport systems. Policies that affect strategic planning only); (2) how the agency should be empowered these two components of urban transport will greatly affect the (i.e., dedicated legislation, generic statute, executive order, or agree- overall system, so it is important that jurisdictions understand what ment); and (3) how the agency is financed (i.e., public subsidies, makes them run and how they are intertwined. The guidebook con- dedicated taxes, or authorization to collect taxes and raise revenue cludes with some suggestions for how to formulate and implement from commercial exploitation of property). Again, a choice depends an urban transport policy. to a large extent on the current constitutional philosophy and inter- governmental fiscal relationships. GOVERNANCE Given the complexity of urban transport, market forces will not nec- LAND USE AND TRANSPORT essarily lead to the best solutions for society; therefore, government The pattern of land use has a strong influence on travel demand. has a very important role to play. Governance-related policies should Compact cities have shorter trip lengths and, therefore, lower travel address these three issues: demand, especially for motorized travel. On the other hand, sprawl- ing cities may allow larger landholdings and bigger homes, but travel zz Which level of government should be responsible for urban distances increase and necessitate a greater reliance on motorized transport: national, provincial, metropolitan, or local? travel. The key question for public policy, therefore, is: zz Which government sector should take overall responsibility for zz Is there a need for specific interventions to control sprawl, urban transport: urban planning, transport, or construction? or can a city be allowed to grow as per demand? zz What kind of institution is needed to coordinate all efforts? Land-rich developed countries, where urbanization rates are already The choice of level of government depends on the current structure of very high, may be able to allow market forces to determine the city’s the government, and functions may have to be shared across differ- growth. However, in land-poor cities, and those at relatively lower ent levels. In general, in large countries with several levels of govern- levels of urbanization, there will be a need to accommodate a much ment, the national level could focus on functions such as national larger urban population in the years to come. Therefore, public policy policies and standardizing regulations and practices. Provincial and interventions will need to channel the growth in a socially optimal lower levels could focus on aspects like strategic planning, route manner, promoting more sustainable modes of transportation. The network design, and enforcement. thrust of the efforts would therefore be toward reducing the length of trips and maximizing the use of public transport and non-motor- The overall responsibility may change as urbanization progresses. At ized modes. early stages of urbanization, the construction sector could lead, as the dominant issues relate to the construction of facilities and infra- There are three main policy instruments available to channel growth structure. At slightly more advanced stages, the linkages between in the desired direction. Standards for floor area ratio can be relaxed land use and transport become important, and so the land use to allow more intensive land use, or tightened, leading to more planning sector could take the lead. At more mature levels—where sprawl. Mixed-use planning “or transit-oriented development” land use plans are virtually frozen—the technical complexities of a can be used to intersperse living and working locations and therefore transport system become important, and so the transport sector could shorten travel distances. Finally, defining urban-growth boundar- take the lead. ies, such as by having wide green or no-development zones just 9 outside the boundary, helps make development more contiguous zz Whether personal motor vehicles that consume large amounts of and compact. fuel need to be discouraged by public policy or whether such a choice can be left to user preference. MODES OF TRANSPORT Land-rich cities that have often grown in a sprawling manner may have no option but to accommodate personal motor vehicles liber- People use several modes of transport to meet their travel needs. On ally. If alternative modes of travel are adequate and acceptable, then a per-passenger basis, public transport and non-motorized modes cities can afford to restrain personal motor vehicles in some way. But require less urban space for their right of way, emit less pollutant, if land is scarce, then strong restraints are inevitable. and consume less fuel compared with personal motor vehicles. However, non-motorized modes are not suitable for long trips, and In terms of vehicle size and fuel consumption standards, dense cities public transport is viable only in areas where there is relatively high with limited space will prefer their residents to own smaller vehicles demand. The key questions for an urban transport policy are: that need less space to park and use. Similarly, cities that import a lot of their fuel and have concerns about energy security will prefer fuel- zz Should all modes of travel be allowed for use as preferred by efficient vehicles. Areas without serious space constraints and those their users, or should specific modes of travel be promoted, that produce fuel may not feel the adverse impacts of large-sized and through targeted incentives and disincentives? high-fuel-consuming vehicles. zz If only specific modes of travel are promoted, how should they be Motorized two-wheelers, typically motorbikes, are a special field chosen? within the broader category of personal motor vehicles. They are Individual preferences often tend to conflict with the public good, convenient and affordable, but unsafe. They also use more road leaning toward the convenience of personal motor vehicles (cars or space and cause more pollution than buses, even if they are, gener- motorbikes), without regard for the disproportionate use of road ally, preferable to cars on these factors. The policy question, there- space, energy consumed, and emissions when compared with public fore, is the kind of role that should be defined for them within a transport. Which mode to promote depends largely on the level of city’s overall transport system. The options are to: demand for transport services and the travel distances involved. For zz Mitigate the negative externalities of motorbikes and allow them short travel distances, non-motorized modes would seem to be a to be used freely thereafter. better option; for high-density routes, it would be public transport. However, in low-demand areas with long travel distances, there may zz Limit their use to only some areas of the city. be no alternative to personal motor vehicles. zz Mitigate the negative externalities and then allow use in some limited areas only. PERSONAL MOTOR VEHICLES Mitigation can be achieved by setting safety standards such as helmet Primarily, rapid motorization in urban areas has taken place due to laws or environmental standards. But if negative impacts, such as the growth in use of personal motor vehicles. Public policy should safety and pollution, are very severe, then there may be a case for determine: banning use in some parts of a city, especially where public trans- portation is readily available. On the other hand, their use may be zz Whether such growth can be allowed to take place unhindered difficult to ban if they are the predominant mode of personal trans- or whether it should be restrained in some way, and if it should port for income or access reasons. be restrained, then to what extent. 10 PUBLIC TRANSPORT zz Quality vs. cost trade-offs. Public transport remains a very important component of the greater If a very high share of the population is already using public transport, transport system in a city, especially larger cities. For cities in the then increasing costs would adversely impact many who value afford- developing world, in particular, it is the backbone of the transport ability. But if the current share is not very high, or is sharply declin- system. Important public policy issues are: ing, then improving quality will be a good way to attract those who use personal motor vehicles or to slow the declining trend in public zz Pricing. transport use. To attract car users, public transport may need different The main pricing issue is the extent to which the costs of public classes of service, where one class is subsidized as a basic service and transport need to be recovered from fares. An additional concern the other is fully paid for by the user as a premium service. is whether a case can be made for nonusers to pay some part zz Coverage and reach of the public transport system, in terms of of the costs, because they too benefit from public transport. both space and time. The most commonly chosen option is the one where costs are shared. Typically, several cities aim to cover capital costs through Generally, coverage issues relate to how much geographical area the public budget, whereas the operating costs are met from of a city should have easy access to public transport and how fre- user fees. quently services should be provided. In the core city area, access to 11 public transport within 500 meters would be desirable for the entire tured contracts with the public entity. This model seems to have population because these areas have limited space and tend to be emerged as a viable intermediary and is the current global trend. already congested. However, as one moves out toward the fringes of the city, space limitations as well as congestion are less severe and cost implications of increasing coverage go up. Therefore, access PARA-TRANSIT standards could be higher and frequency of service standards lower. As the name implies, para-transit (or intermediate public transport) refers to the set of transport services that fall between a city’s struc- zz Which technology to choose. tured and formal public transport system and the personal transport that people use. Typically, the vehicles are not used exclusively by the A variety of public transport technologies exist, with varying owners and are available to others for use, for a fee; their routes are flexibility, cost, and capacity. The choice is usually determined by flexible and change based on demand. The key public policy ques- level of demand and carrying capacity required, as well the capital tion is how should para-transit be positioned within a city’s overall and operating costs, but spatial patterns of a city and its growth transport system? The options are: projections are also relevant. Cities that are linear, with relatively zz As a complement to the current public transport system. long travel distances, may prefer metro rail systems that have a high carrying capacity; however sprawling cities may need a wide zz As an independent system to serve a high-cost and high-quality bus-based network. Cities sensitive to aesthetics may prefer under- market. ground systems or bus systems. Cities with tall building bylines and zz As an independent system to serve a unique clientele. narrow streets usually prefer underground systems or monorail systems, as the right of way on the roads would be a constraint. Urban transport plans should work toward positioning para-transit as a complement to public transport, not as a competitor. Options for zz Capacity considerations. accomplishing this include limiting para-transit vehicles in areas that Should capacity requirements be based on current requirements are congested and already served by public transport; controlling the or on future projections? Because the future is uncertain, there number of para-transit vehicles licensed to operate in any area; and is a risk of wasteful investment if projections are made too far developing a fare structure that would not create competition with in advance; however, economies of scale may warrant higher public transit, yet allow for affordable service in places not reached investments today to obviate a much higher investment tomor- by public transportation. row. Growth trends and cost differences between expanding now or in the future must be studied. NON-MOTORIZED TRANSPORT (NMT) zz Industry structure and regulatory rigor. Non-motorized modes are the most fundamental of transport modes There are three broad industry structures for public transport. In and the most sustainable. They are also an important method of the Unified Public Model, a monolithic public entity owns and transport for the poor. But increasing travel distances and increasing affordability of personal motor vehicles are driving their share down. operates public transport services in the city. This model tends to The choices for public policy makers to consider are: be expensive and requires a high level of public subsidy. In the Loosely Supervised Private Model, there is no centralized or coor- zz Should this declining trend be allowed to continue? dinated planning and there are multiple independent opera- zz Should policy seek to contain, or aggressively reverse, the decline? tors, which may lead to oversupply or undersupply. The Closely Supervised Private Model, planning is done by a public entity If policy makers promote NMT, this will require improved infrastruc- and services are provided by a separate entity based on struc- ture and therefore incur a cost. That cost would be worthwhile, 12 especially in cities that are compact, already have high NMT use, and measures ensure a basic level of infrastructure capacity. The key have lower-income populations who cannot afford other modes of demand-side measure at this stage of development will be in spatial transport. planning that emphasizes a compact city and mixed land use. How- ever, as urbanization reaches a higher level of maturity, there will be a case to slow down the supply-side measures and use demand-side PARKING measures that seek to more actively reduce the number of motorized Parking is an essential component of any urban transport system, but trips. It is expected that supply-side measures would, by this stage, the questions before public policy are: have added adequate capacity, and demand-side measures should work toward a more optimal use of this capacity. zz How much parking needs to be provided? Should supply match demand, or should it be limited to try to restrain the use of personal motor vehicles? ALTERNATIVE FUELS zz Who should pay for parking—public agencies, users, or a combi- Concerns such as air quality and import bills for petroleum fuels can nation of both? be addressed through the use of alternative fuels, but there are sig- nificant costs to doing so. Energy security concerns regarding petro- The basic principle is that parking is needed, but restricting parking leum fuels could make higher-cost alternatives attractive for strategic availability is a good tool to discourage the use of personal motor reasons. Fuel alternatives are at various stages of development and vehicles. Furthermore, charging for parking is a fair policy, given that require investment in infrastructure. Public policy, therefore, needs to it uses up valuable urban space. However, in areas where alterna- decide whether to: tives (i.e., public transport systems) do not exist, such restraints will adversely impact accessibility, and some users cannot take public zz Take no action and let fuel choices be determined by the market. transport and must use personal vehicles. Therefore, public policy zz Make a concerted effort to shift to an alternative. needs to balance these conflicting needs: the need to restrain the use of personal motor vehicles with the need to accommodate those The choice depends on how important and urgent the use of the alternative fuel has become. If a gradual shift is adequate, then a travelers and those areas that lack other options. provision of incentives would be adequate to let the market make the shift happen; if there are more urgent needs, then legal enforce- SUPPLY VS. DEMAND MANAGEMENT ment or stiff penalties may become necessary. Two ways of matching the supply and demand for transport are to increase infrastructure capacity to meet demand or to reduce the demand to levels that the current capacity can accommodate. Policy FINANCING Urban transport needs huge investments, for both one-time capital makers must decide whether to focus on: expenses and annual operating expenses. A key public policy ques- zz Increasing supply by increasing infrastructure capacity tion is who is responsible for these expenses: zz Reducing travel demand by reducing the average length and zz Should expenses be paid only by users of the systems? number of trips that people make zz Should expenses be paid by all beneficiaries? And who are the zz A combination of supply and demand measures beneficiaries? Are they only the users of a system, or do some nonusers also benefit? A key determinant seems to be the level of urbanization. At early stages of urbanization, cities need to build capacity, as the popula- In some cases—for example, a parking facility—the only beneficiaries tion is expected to grow many times over. Therefore, supply-side are the users. But in other cases, nonusers also benefit—a bus system 13 benefits riders and also nonusers who drive on less-congested roads. PROCESS AND IMPLEMENTATION Nonusers could be within the city or within a larger jurisdiction, such as the region, the country, or even the world. Therefore, it is Any policy, once formulated, needs to be acceptable to all stake- appropriate for all users to pay for these costs. Generally, payment holders if is to be successfully implemented. To ensure such buy-in, from users would be recovered via fares and user fees; payment from exhaustive participatory practices and processes must take place nonusers is recovered via generic taxes or specific levies. Generic taxes during policy formulation. These include the following: are appropriate when the beneficiaries are not clearly identifiable, zz Prepare an initial policy draft. but when they can be identified, specific levies—on only them—are more appropriate. zz Invite suggestions, concerns, and feedback from the public and key stakeholders. zz Decide the policy’s form. ROLE OF THE PRIVATE SECTOR Typically, an initial draft is prepared by specialists tasked to do this. Transport services can be offered by the public sector or the private This draft needs to be so simple that any citizen can understand its sector. Services that can be provided in a competitive market and are implications. Further, it is important to ensure, at the drafting stage profitable will attract the private sector; services that are not profit- itself, that the policy choices are both practical and doable. able will have to remain a public sector responsibility, but the public A good consultation process is essential in order to get valuable feed- sector can contract the private sector on terms that would attract back to improve the draft and make it more applicable, to explain them. A key issue for public policy is the extent to which the private why certain choices were made and thereby secure greater accep- sector should be involved. The options for an urban transport system tance, and recruit key champions. are: Once the final draft is ready, it is important to decide the policy’s zz Services are provided by the public sector with assets it owns. form. The options are (1) formal legislation or decree; (2) a policy zz Services are provided by the private sector with assets owned by document that also spells out the incentives for abiding by the policy; the public sector. and (3) a policy document or a white paper, with no statement of incentives but with a statement of the government’s intent. The zz Services are provided by public–private partnerships. choice depends on the degree of importance the government intends zz Services are provided by the private sector with assets it owns. to give to the policy implementation. Legislation is certainly the most powerful option, but it runs the risk of a drawn-out process—both The private sector can bring in performance efficiencies that reduce in its first promulgation and in any later changes. A policy document the cost of transport services. Often the private sector has financial with financial incentives could be equally powerful and less cumber- resources that can supplement public budgets. So, win-win oppor- some, but it cannot penalize noncompliance. Besides, inadequate tunities need to be structured: the private sector makes profits, and financial incentives will not attract interest. A policy document with- the public sector secures “public value.” There is usually a trade-off out a statement of available incentives is a good way of conveying a between the public value of the service and the level of return it government’s preference, but it cannot ensure compliance. can offer to an investor. High public value and low returns would be a case for public provision, whereas good returns and limited The choice will ultimately depend on the specifics of each situation. public value would be a case for services to be in the private sector. If the current problems are acute and urgent mitigation essential, A country’s political ideology and historical factors can have a strong then legislation or financial incentives are crucial. If the problems are influence on the choice. foreseen for the future and the objective is only to set the right direc- tion, then a policy statement could meet the objectives. 14 INTRODUCTION THE PROBLEM THE MULTIDIMENSIONALITY As the developing world rapidly urbanizes, the demands on transport OF URBAN TRANSPORT systems also grow—often at a faster pace than the population. Because cities are complex and multifaceted, urban mobility Unfortunately, the increasing demand for travel has had adverse planning needs to be multidimensional. Though this approach is effects on the health and well-being of the people and the economic intricate, it is not difficult. It simply calls for more holistic thinking efficiency of cities. Severe congestion, air pollution, GHG emissions, and comprehensive planning. In other words, construction of mass traffic accidents, and a fast-rising energy bill have become serious transit systems need to be backed up by complementary transit- concerns for public policy. Congestion has led to travel speeds dimin- oriented development, the right kind of feeder systems, pricing ishing considerably. The air we breathe has become more polluted, signals that discourage personal motor vehicles, and public aware- adversely affecting our health. Rapidly rising GHG emissions from the ness campaigns. Further, transport infrastructure and services need to urban transport sector have adversely affected global climate change, be provided in an integrated manner so that seamless travel—across and we have seen an explosive growth in the consumption of different modes—becomes possible. They need to be affordable for energy, especially nonrenewable petroleum fuels. All of these issues the poor and at the same time be financially sustainable; they need have led to serious concerns about the sustainability of our planet. to be designed to accommodate the needs of women, children, the The increasing difficulty in accessing jobs, education, and health care elderly, the disabled, and other vulnerable populations. Thus, they has affected the urban poor most adversely. need to be universally accessible. The primary reason for these problems is the growing dependence on Rarely is building facilities and adding to infrastructure capacity an personal motor vehicles, necessitated by longer travel distances and adequate or durable response to the growing demands for mobil- made affordable by rising income levels. As a result, many devel- ity. It has to be complemented by several other interventions that oping countries have seen a rapid growth in the number of motor simultaneously channel demand in a desired direction. Without this vehicles. China has seen a 224% growth in the number of motor cohesion, additions in infrastructure capacity will not result in the vehicles in the short period between 2003 and 2009. Turkey, India, desired outcomes. Mexico and Malaysia have seen growths of 69%, 66%, 47% and 44% The comprehensive and holistic planning approach requires a during the same period. Most other developing countries have also combination of supply-side and demand-side measures. It must seen considerable growth. Reversing this trend requires a systematic consider land use planning, urban geography, environment, human and well-coordinated plan of action. A policy (or a set of converg- behavior, local culture, economics, finance, public policy, political ing policies) for dealing with these problems would offer a much- economy, governance, health, safety, gender, disability, affordability, needed guiding framework for developing plans of action—plans that livelihoods, communication, information technology (IT), and a host not only provide the required capacity to meet the growing travel of other things. It is important to fully understand the links between demand but do so in a manner that is equitable, sustainable, afford- the different dimensions in order to secure the best outcomes. Often able, safe and energy efficient. the most obvious remedies are not the most appropriate ones. For 15 Box 1: The Triple Convergence Principle The triple convergence principle predicts that additional road capacity will soon be erased: zz As more people decide to use a car given the additional road space now available: spatial convergence. zz Others decide to travel during the peak hour, in the belief that they can leave later given the additional capacity: time convergence. zz And others who used transit think they can now drive and congestion will not be that bad: modal convergence. Source: Downs (2004) example, the most obvious remedy for congestion is to create more Such a policy would usually start with a vision statement of where a city road space; however, the benefits that are initially secured by easier would like to see itself in the years to come. For example, Vienna, Van- travel are soon lost as more vehicles come on the road and conges- couver, Melbourne, and Auckland seek to be the most livable cities in the tion resurfaces (see Box 1). world. Similarly, Curitiba, Singapore, Seoul, Barcelona, and Copenhagen pride themselves on their “green initiatives.” Some cities seek to become The capacity to adequately deal with such a multidimensional a tourist destination of choice; others seek to be the preferred destina- subject is generally lacking in many cities—particularly, though not tion for manufacturing or economic activities. Some seek to become an exclusively, those of the developing world. Very often, institutional education hub, others a health care hub, and yet others an IT hub. structures are highly fragmented and not conducive to coordinated planning. Several agencies undertake initiatives, which then conflict A typical vision statement would be followed by a specific set of and compete with each other, thus constraining the ability to secure objectives, which could include such factors as: the best out of any investment. Legal and administrative frame- zz Access levels—maximum time to access jobs, education, and other works are not in place to handle this problem effectively. Further, needs; policy makers and political leaders charged with the responsibility of dealing with the problem often lack transport or urban planning zz Affordability levels—maximum costs in accessing jobs, education, backgrounds. Sometimes they seek expert opinions, which at times and so on; conflict, leaving them confused and unsure of what to do. zz Public transport mode share; zz Maximum emission levels; NEED FOR POLICIES zz Energy efficiency levels; and Given the above tendency, an effective and coordinated approach to zz Safety standards. urban transport requires that sound policies be put into place. Such policies enunciate the direction that a government wants to take; Once these fundamental objectives have been set, a policy framework they lay the basic framework for downstream planning as well as would set the directions for future land use patterns, the preferred project identification and prioritization. transport modal patterns, preferences between public and private 16 transport, principles for pricing transport services, rules and incen- Investment plans of governments are also focused more on meeting tives for engaging the private sector, and a host of others items that the rapidly growing needs of passenger transport. Subsequent ver- would converge to reach the desired objectives. Thus, policies could, sions of this document may, however, like to look at freight transport for example, promote the following: issues as well. zz Land use plans that work toward the growth of compact cities, It is hoped that formulating a comprehensive urban transport policy with higher “floor area ratios,” mixed use, and greater conve- will facilitate the development of well-integrated plans for making nience in using public transport travel within cities safe, clean, convenient, quick, affordable and efficient in terms of the energy consumed. zz Investments in improving public transport rather than in increas- ing road capacity for all motorized vehicles zz Investments in safer walking and cycling areas WHAT IS A POLICY? The word “policy” tends to be used in many contexts. This document zz Preference for renewable fuels has been written with the understanding that a “policy” lays out the zz Financial support for clean fuels in order to help them grow to guiding principles for more detailed downstream planning. A “plan”, commercial scale and compete with traditional fuels on the other hand, is a set of specific interventions derived from the “policy”. A policy helps one choose among multiple approaches that zz Measures to curtail the use to personal motor vehicles can be taken to achieve a desired objective. zz Preference for using the private sector to operate service. A desired objective may be to reduce nonrenewable and imported zz Use of nontraditional means to raise finances, especially those fuel consumption; a policy may be to do so by securing a shift to the that get all beneficiaries to pay for facilities and services that they use of public transport and nonmotorized modes. The plan would may not even use (for example, the owner of a property close to contain a set of actions that together would achieve the objective. a metro station even if he or she does not use the metro system) Examples include enhancing mass transit capacity, levying of road user fees or higher fuel taxes on personal vehicle users, or allocating zz A well laid-out policy helps a planner to choose among multiple a higher degree of road space to pedestrians and cyclists. Another options and to develop plans that are well coordinated and objective may be to make access to employment and education focused. affordable for the poor. Associated policies may require public trans- So far, few jurisdictions have formulated such guiding policies. In port services to be priced below their cost of production and the gaps their absence, uncoordinated, unfocused, and short-term interven- paid for by nonuser beneficiaries. tions tend to be made. Therefore, urban transport policies need to Another way of looking at it is that policies do not have a univer- be formulated by countries, regions and cities. It is with a view to sal right choice: the choice varies from situation to situation. For support the formulation of such policies for urban mobility that this example, a public transport system may be operated by the public guidebook has been written. It has focused primarily on policy issues sector or the private sector. Neither can be considered the universal relating to passenger transport rather than freight transport. How- right choice; however, a jurisdiction would make a policy decision ever, for some of the issues, such as governance, alternative fuels, on this issue in the larger local context, such as the political ideol- and role of the private sector, the options presented would apply to ogy, private sector capacity, market structure, potential for competi- freight transport as well. The focus on passenger transport has been tion, and regulatory capacity of public administration. Once this largely because it is this segment that accounts for a large part of the decision is made, it guides future action. Similarly, one city may fix congestion, pollution and energy consumption problems that we public transport fares very low and provide subsidies from the public see today. This is evident from the fact that the number of passenger budget; others may prefer higher fares to enable higher cost recovery vehicles has been growing faster than the number of freight vehicles. 17 from users. This choice would depend on the general income levels, mated 1.3 million tuberculosis-related deaths in 2007, and 1 million the emphasis proposed to be given to the use of public transport, the malaria-related deaths in 2008). Road accidents can have a serious affordability of subsidies from public revenues, and so forth. impact on families, driving them into poverty for up to three genera- tions (The Economist, 2014). Thus, road accident deaths are a serious Thus, a policy is a higher-level set of principles that the operational or problem worldwide. design levels take into account in planning their actions. (see Figure 1) A city’s transport system needs to meet several very important social objectives. Most significant is universal access—meaning that the OBJECTIVES OF AN URBAN system should be available to everyone. People need transport to TRANSPORT POLICY help them access jobs, education, health care, and other day-to- As noted earlier, there are several negative consequences in satisfy- day needs. Lack of access to transport can lead to exclusion from ing the urban travel demand. As more people move, travel longer economic and social opportunities. Integrating the social dimensions distances, and use personal motor vehicles, the available road space into urban transport planning—to benefit all users—requires that is choked, slowing everyone down and hampering mobility in the three main aspects be considered: process. zz Affordability: Can users afford to use the system and pay the fares? The increased use of motor vehicles has led to environmental degra- zz Accessibility: Can users access the services and rely on them to be dation in cities. Poor air quality has had adverse impacts on people’s available when needed? health, and GHG emissions have contributed to climate change. Because the poor are most exposed to motor vehicle exhaust, they zz Quality and personal security: Are the transport services of rea- are particularly vulnerable to these adverse impacts. sonable quality, and are they safe to use? Road safety is also a serious challenge. According to World Health These transport systems also need energy, with the predominant Organization (WHO) estimates (Figure 2), about 1.24 million people fuels today being nonrenewable. In addition, several countries need die every year on the world’s roads, and another 20 to 50 million to import this fuel and often fall victim to price fluctuations over sustain nonfatal injuries as a result of road traffic crashes (compared which they have little or no control. This instability threatens their with an estimated 1.8 million AIDS-related deaths in 2008, an esti- energy security so policies need to address this challenge. Photos: Sam Zimmerman 18 FIGURE 1   THE ROADMAP—FROM VISION TO POLICY TO PROJECTS FIGURE 2   NUMBER OF PEOPLE KILLED BY DIFFERENT CAUSES 19 Thus, improvement of mobility, environmental quality, universal buses, the fuel to be used, and scores of similar issues. Though access, safety, and energy security are fundamental objectives of any these concerns are more technical in nature, they do involve larger urban transport policy. Although each country or jurisdiction may policy issues (see Box 2 for an example). The scope of this guide- adopt a different approach, based on the local context, they will book does not permit going into such detailed levels of policy need to work toward the above objectives. choice. In the interest of being practical and useful, we have limited discussion to the higher-level policy issues in the expecta- tion that more detailed issues, which tend to be comparatively PURPOSE OF THIS GUIDEBOOK technical, would be easier to decide on once the broader policy This guidebook is intended to be a practical support for formulat- issues are settled. ing urban transport policies at the national, provincial, and local Further, we realize that guidebooks like this one will have to evolve levels. To this end, it highlights some of the important issues that and go through multiple updates as new knowledge becomes avail- arise when creating an urban transport policy. For each of issue, able. Wider consultation and review will help enrich them further, the guidebook presents the existing options and suggests the fac- and so this guidebook will have to be an ongoing exercise. In fact, tors that need to be taken into account when choosing between this current document itself is an upgrade; while its predecessor had those options. The guidebook will also be useful to students of the benefit of extensive comments from colleagues within the World public policy, because it presents a relevant framework—for many Bank, the Asian Development Bank, the OECD, and the International sectors—of policy issues, options, and factors that influence deci- Transport Forum, this newer version has benefited from an additional sions. review by practitioners who have had years of valuable experience in It must be recognized that urban transport policies are usually how policies function at an implementation level. needed at multiple levels—national, provincial, regional, and local— each with its own areas of responsibility. For example, national levels will be responsible for setting fuel and vehicle standards, TARGET AUDIENCE AND and a framework for the national government’s financial support PRESENTATION STYLE for investments. Provincial levels would be involved with taxation The target audience for this guidebook is those charged with the policies and those relating to investment financing, and could be responsibility of developing an urban transport POLICY (NOT a PLAN) involved with regulatory issues and safety standards. Regional and/ for a country, province, region, or city. or local levels would be involved with formulating policies on land use, mode share, and parking, among others. There is no hard and Because we recognize that senior policy makers lack the time to read fast rule about this allocation of responsibilities between the different long documents, we have written this guidebook in a style that is levels of government, and it would vary from country to country brief, crisp, simple, and yet comprehensive. It seeks to be a practical based on constitutional provisions and political philosophies. Further, guide to policy making in urban transport; it is NOT a guide to the such urban transport policies are best formulated within the ambit of more detailed planning exercises that typically happen downstream. a larger policy for urban development—one that encompasses land This book contains several sections. Each addresses one important use, housing, jobs, and so forth. policy issue that generally comes up in policy making. It briefly It also needs to be recognized that a very large number of presents the problem, the key question to be answered, and the policy issues come up as one delves deeper into the process. For choices that exist. Then it goes on to suggest the factors that can be example, policy choices may be made at a higher level to decide taken into account in making a decision, without being prescriptive. between the rail and road options for mass transit systems. It recognizes that policy makers know their respective situations bet- However, at a deeper level, policy choices would have to be made ter than the authors do, and so are better placed to make the right with regard to the gauge of metro rail systems, the floor height of choices. 20 STRUCTURE Following this introductory section, section 2 presents a framework of Box 2: Gauge for Metro Rail Systems possible actions, highlighting the “Avoid—Shift—Improve” classifica- tion that has become common in professional practice. Section 3 talks A policy on the gauge for the metro rail systems in India about the governance of urban transport: which level of government was discussed at length. While one view was that metro should be responsible for it, which sector should lead it, and how systems in India should adopt the broad gauge, which was different aspects should be coordinated. Section 4 highlights policies the dominant gauge for the long-distance Indian railway relating to land use planning and the benefits of integrating them system, another view was that there was no possibility with transport planning. Section 5 discusses the different modes of of any integration between the urban metro systems and transport and whether there is a need for policies to promote any the long-distance railway systems. So, the standard gauge particular mode in preference to others. Section 6 delves into issues should be preferred, being the dominant gauge in metro relating to personal motor vehicles and, more particularly, the extent systems worldwide. Issues as diverse as safety certifica- to which policies should accommodate the car within the overall tion, easy availability of rolling stock, ease in aligning the transport system. This section also goes deeper into motorized two- routes with the road network, capital and operating costs, wheelers, which are fast becoming the dominant mode of transport carrying capacity, national interest, possibility of domestic in many developing countries. It looks at the benefits and problems manufacture, and extent of rehabilitation needs came up of increased motorbike use and tries to help define a role for them. in making a decision on this rather technical issue. Sections 7 and 8 present policy options relating to public transport and para-transit, covering issues relating to pricing, coverage, technolo- gies, etc. Section 9 presents options relating to nonmotorized modes. Section 10 presents issues relating to parking, and section 11 suggests a balancing of supply-side measures and measures to contain demand. Section 12 highlights options relating to alternative fuels. Sections 13 and 14 cover the financing of urban transport and the role of the pri- vate sector. Finally, section 15 covers issues relating to the process for formulating such policies, and options for their implementation. 21 COMPREHENSIVE FRAMEWORK As stated earlier, the problems of urban transport are multidimen- cies that encourage telecommuting or a reduced number of workdays sional and require action on several fronts. Therefore, it would be can be put into place. Reducing the length of each trip typically takes useful to understand a comprehensive framework of policies and place when cities are designed to be more compact and have mixed sub-policies, including their mutual relationships. Such a framework land use. presents a simple way of looking at the different types of interven- tions in a comprehensive manner and understanding how they link “Shift” policies aim at getting people to shift to more sustainable with each other. modes of travel, like public transport and non-motorized modes. This could happen through a combination of investments in improved Urban transport policies primarily seek to enable people and goods public transport, safer infrastructure for non-motorized modes, and to meet their travel demands but by imposing the least negative disincentives for the use of personal motor vehicles. externalities on society. Broadly, the policies fall into three clusters: (1) Avoid, (2) Shift, and (3) Improve. “Improve” policies seek to reduce the negative effects of motor “Avoid” policies focus on reducing the demand for travel, especially vehicle use, such as fuel consumed or pollutants emitted, per unit of by motorized modes. This could mean reducing the number of travel. This could be either through improving/expanding road capac- required trips or reducing the length of each trip, or a combination of ity to allow improved traffic flow or through improving vehicle and both. Reducing the number of trips can happen, for example, if poli- fuel quality so that they pollute less and are more energy efficient. FIGURE 3   COMPREHENSIVE FRAMEWORK OF POLICIES 23 In general, a combination of approaches is adopted, as each inter- vention has its positives and negatives. Box 3 gives some relevant examples. Policy makers should understand the trade-offs so that the net impact of these positive and negative influences are appro- priately balanced to secure a net positive outcome. Box 3: Positive and Negative Influence of Some Interventions zz Road widening helps to improve traffic flow (at least in the short run) and thereby reduce emissions, but it encourages the use of personal motor vehicles. zz Using alternative-fuel buses improves air quality, but if the buses are more expensive, then the number of buses that can be deployed is reduced, thereby reducing public transport supply. zz Improving sidewalks enhance safety for pedestrians but take space away from the road and reduce its carrying capacity. zz Adding parking spaces will reduce the time spent finding parking, thereby improving air quality, but it will encourage the use of personal motor vehicles. zz Increasing fares will make public transport financially sustainable, but it will make it unaffordable to the poor. zz Using bus-only lanes and high-occupancy lanes will promote a better use of motorized vehicles, but it will worsen traffic flow for the vehicles that use the regular lanes and thereby add to emissions. zz Increasing fuel prices will discourage personal motor vehicles but will make public transport more expensive. 24 GOVERNANCE BACKGROUND 4. Urban transport infrastructure needs land, which is often very difficult to get in urban areas. It is usually the government that There are four major reasons for the government to be involved in the is best placed to assemble this land. Furthermore, strong links provision of urban transport services: between land use planning and transport planning exist, and 1. There are several negative externalities to meeting the travel because the government is responsible for land use planning, it demand. Because individual travel preferences can have a harm- would be best placed to undertake transport planning also. ful impact on society, it must be regulated. Just one example: Public policy questions that usually arise include: people who use personal motor vehicles impose a cost on others using the available road space by adding to congestion, and so zz Which level of government should be responsible for urban they should pay for it. Similarly, the vehicles cause pollution and transport? deplete a nonrenewable source of energy. Governments need zz Which sector should lead the effort? to get involved to ensure that such negative externalities are controlled. zz What kind of institution is best placed for coordinating the diverse actions? 2. Access to jobs, education, health care, and other social needs The sections below address each question. should be available to all residents, regardless of where they live, at all times of day. Public transport services are often necessary to meet the needs of those who cannot afford or cannot use per- WHICH LEVEL OF GOVERNMENT? sonal motor vehicles (children, the elderly, the disabled, and so For the purpose of this paper, we consider government to be on). Because the private sector is motivated by profit, it is difficult organized at up to four levels: national, provincial, regional/metro- to entice it to providing public transport services in low-demand politan, and city. The actual pattern varies from country to country. areas and at low-demand times. This is where the government In some cases, such as Singapore, there is only a national govern- needs to step in to ensure that services are available universally, ment; in other places, like the United Kingdom, there is a national either by offering incentives that are attractive enough to private government and a city government. In yet others, like the United entities or by operating such services through public agencies. States, China, Russia, and India, there are national, provincial, and city. In some areas, two or more cities are aggregated to form an 3. There are strong economies of scale in several urban transport intermediate (metropolitan/regional) level between the province services. For example, there would be economies of scale if only and the city. a few operators providing mass transit services, like metro rail, in a city (per unit inventory requirements will be lower, admin- It is also important to recognize that responsibility for urban transport istrative costs will be amortized over a larger number of users, means responsibility for several actions, such as: etc.). However, with only a few operators there is a likelihood zz Strategic planning, which involves policy making as well as long- of monopoly power being abused. This scenario needs to be term planning, say, with a 15- to-20-year time horizon; controlled or regulated by a public agency. 25 zz Investment planning and procurement, which involves short- responsibilities could be based on historical reasons, the size of term planning, say, with a four-to-five-year time horizon, the country, the diversity and dispersal of cities and provinces, identification of specific projects to be taken up, related procure- ethnic and linguistic diversity of the citizens, and so on. Mutual ment, and so on; relationships, as enshrined in the respective constitutions, will not be changed for the purposes of transport alone, and so deci- zz Setting standards for safety, fuel quality, vehicles, road design, sions will need to be made within the framework of the existing and so on; power structures. zz Formulating the regulatory laws for licensing, fare fixation, and zz The geographic boundary of the jurisdiction responsible for urban so on; transport should ideally coincide with the geographic boundary zz Service planning and procurement for the design on routes and of the benefits and costs of transport policies. If a larger jurisdic- operation of services; tion benefits from urban transport actions, then that jurisdiction should take responsibility; however, if the benefits accrue only to zz Operation of facilities, such as depots, terminals, parking facili- the city, then only the city should be responsible for it. ties, and so on; zz Economies of scale also become relevant. Some functions should zz Operation of services, such as public transport services; be uniform for all cities. For example, vehicle design standards zz Enforcement of regulations and penalization of offenders; would apply to all cities in the country—perhaps they would also be common to several cities around the world. Fuel standards will zz Financing of the capital and operational costs; and also be common to all cities in a country, as it would be uneco- zz Capacity building. nomic for oil refineries to produce fuel of different specifications for different cities. On the other hand, certain functions—like So, which level of government should be responsible for urban strategic planning or infrastructure planning and procurement— transport? would be specific to each metropolitan region or city and need not It may not be possible for all the functions to be performed by the be uniform in all metropolitan regions or cities within a country. same level of government; these functions may have to be distrib- zz Availability of technical skills is another factor. If the skill require- uted, or shared, across multiple levels. For example, it may not be ments are highly specialized and not easy to get, then it makes practical for each city to set fuel or vehicle standards, so it may be sense to house such skills in one center in order to use it opti- necessary to do this at the national level to create a uniform standard mally for all cities. In this model, skill sharing becomes possible. for the entire country. Strategic plans may be best prepared at the metropolitan level, especially if municipal areas are small and their As an example, in large countries with several levels of government, boundaries contiguous. Regulatory laws may also be best if they are national governments could focus on: uniform for the entire country. Financing may have to come from zz National policies and programs for the transport sector; multiple levels, especially for the capital investments. zz Integration of transport sector with wider economic, social, and The important factors in determining which level of government environmental policies; should be responsible for each action follow: zz Standardization of regulations and practices; zz Each country has its own political philosophy of which level of government should be the most empowered. Some countries zz Capital financing and sharing the cost of large capital investments; have a strong national government; others prefer to delegate zz Research and development; and a significant share of the responsibilities to subordinate juris- dictions. The diverse reasons behind the current allocation of zz Capacity building and knowledge exchange. 26 The responsibilities at the provincial and subordinate levels would WHICH SECTOR SHOULD LEAD THE depend on the extent to which responsibilities were delegated to them, and this can vary significantly. For example, they could RESPONSIBILITY? include: A question often asked is whether urban transport is “more urban or more transport.” Urban transport encompasses several dimen- zz Strategic planning; sions, and therefore several government agencies are involved. Land zz Investment planning and procurement; use planning, public works, and transport are perhaps the most important among them. Transport might house the technical skills zz Public transport route network design and service planning; and legal authority to regulate and manage the transport systems, zz Operation of public transport services; and but land use determines the demand on the transport system and the shape it needs to take. In some cases, transport leads land use zz Enforcement. decisions, such as in Copenhagen’s five-finger plan. In most others, it follows land use plans. Public works houses the capability for procuring and constructing infrastructure facilities needed in urban areas. Therefore, a logical question that arises is which sector should lead the urban transport function. 27 The pattern varies from country to country. In some, like India, it is led zz What should be its scope of responsibilities? by the ministry of urban development in the national government, but zz How should it be empowered to carry out its functions? the pattern varies at the provincial level. In China it is led by the ministry of construction. In Vietnam, South Africa, Ghana, Russia, and several zz How should it be financed? other countries, it is the ministry of transport that leads the effort. With regard to the scope of responsibilities, there are three broad So, what is the best option? models of such institutions around the world: Perhaps, an answer lies in the level of urbanization. At relatively zz Only a strategic planning entity that also sets investment priorities early stages of urbanization, when the primary focus is on the but has a limited role in regulation and operations. Thus, the construction of roads, sidewalks, drainage systems, and so on, the lead agency would only draw up long-term investment plans construction function would play a leading role. However, at slightly and set priorities; it would then leave it to other agencies to more advanced stages, when urban population growth tends to rise implement these plans. The long-term plans become a basis for sharply and systematic planning for the urban form and land use securing investment approval. Examples of this model are the becomes important, the land use function would have a significant metropolitan planning organizations in the United States. link to or influence on the shape of the transport system. At more zz Only an entity responsible for managing the public transport mature levels of urbanization, when land use plans are locked in system but not the physical infrastructure, like roads and bridges. and not subject to much change, the technical skills of managing the Even here, it does not operate the public transport system but transport system become more influential in transport-related deci- only regulates it. Typically, the local municipality is responsible sion making. Therefore, the stage of urbanization influences which for the fixed infrastructure. An example of this model is STIF (Syn- agency will take the leading role. There is no precise definition of dicat des Transports Îles-de-France) in Paris, France. the three stages of urbanization and how the shift in leadership role should take place. Decisions will need to be made in the local context zz An entity with a comprehensive responsibility for urban transport and will vary from country to country and from city to city. However, that oversees and directs the public transport system and also has the broad principles could be as those given in Table 1. a responsibility toward planning, construction, maintenance, and management of the physical infrastructure, like roads, sidewalks, and parking. Examples are Transport for London (TfL) in the United NATURE OF THE LEAD AGENCY Kingdom and the Land Transport Authority (LTA) in Singapore. Because transport is such a complex issue with so many different agen- The Lagos Metropolitan Transport Authority (LAMATA) would also cies involved, it is essential that there be a lead agency responsible for fall in this category, though its responsibilities do not extend to bringing all stakeholders together. Three major questions arise in set- the entire public transport system or to the entire road network. ting up such an agency (see World Bank’s Institutional Labyrinth, 2013): However, it does have a responsibility for strategic planning. TABLE 1  WHICH SECTOR SHOULD LEAD THE EFFORT? Sector that would lead the responsibility Possible determining factor for urban transport Construction / public works agencies Dominant focus is on construction of roads, sidewalks, drains, and so on—typically at very early stages of urbanization Land use agencies When rapid urbanization is projected and land use decisions would dictate the shape of the transport system Transport agencies Relatively mature stage of urbanization, when land use patterns have more or less stabilized and the technical skills of transport planning become dominant 28 A choice among these options also tends to, again, lie in the level of zz The agency is set up through an executive order and draws its urbanization. At relatively early stages, fewer agencies are involved, and powers from that order (usually not having the force of law, the negative effects of urban transport have generally not manifested only executive backing). Examples are the Unified Metropolitan themselves. Therefore, the need for inter-institutional coordination may Transport Authorities in several cities in India. not be as important. But as urbanization progresses, the city needs to zz The agency is set up under an agreement between two or more develop a vision and work toward it. This is the critical stage when there jurisdictions, and the agreement spells out its responsibilities and is a need for stronger coordination between different sectors working powers. An example is the 1992 agreement between the munici- together toward a common goal. At more mature levels, these agen- palities of Pereira, Dosquebradas, and La Virginia, in Colombia, to cies could even be separated for day-to-day operational functions, and establish the Area Metropolitana de Centro Occidente, which func- coordination at a strategic level alone would be adequate. However, it is tions as the lead agency for transport in the metropolitan area. important to recognize that coordination needs to be across all transport modes. For example, leaving transit with one agency and parking with In terms of financing, there are three broad models. Financing could another would be a recipe for ineffectiveness, as parking policies can be (1) entirely from the public budget, by way of annual subventions, have a strong influence on public transport ridership. or (2) by way of taxes and fees collected by a public agency but dedi- With regard to how the agency should be empowered, there are four cated to the lead agency, or (3) taxes and fees allowed to be collected models: by the lead agency itself and used by it. TfL and LTA get significant funds from the public budget, whereas STIF gets the proceeds of a zz The agency is set up under a special statute and draws legal transport tax collected from employers. TransLink has been allowed authority from it. The statute generally spells out its responsibili- to collect specific taxes for its use. Table 2 below details the sources ties as well as the powers to discharge these responsibilities. of funding for some of the well-known lead institutions around the Examples are TfL in London, LTA in Singapore, and TransLink in world. Vancouver, Canada. The current constitutional philosophy and the structure of intergov- zz The agency is set up under a generic law that governs similar enti- ernmental relationships influence the choice. A constitutional phi- ties across the country. The listing of responsibilities and powers losophy that seeks greater concentration of power at higher levels of would not be specific to that agency alone but to all agencies of a government may prefer annual grants to the lead institution; how- similar nature in the jurisdiction covered under the law. Examples ever, a constitutional philosophy that promotes greater decentraliza- are the Indore City Transport Services Ltd in India and lead agen- tion may be willing to allow dedicated taxes and decentralization of cies in various cities in France, other than Paris, that have been set tax collection authority and commercial exploitation of property. up under a framework law that empowers the establishment of “Organizing Authorities for Public Transport” in the country. Figure 4 summarizes the key policy issues that come up. TABLE 2  SOURCE OF FUNDING FOR LEAD INSTITUTIONS City Lead Agency Source of Funds Lagos LAMATA State budget; license fees (hackney permit, road taxes, license plate registration, and vehicle registration); bus concession fees London TfL Congestion charges; central and local government general revenue Paris STIF Dedicated employer tax; local, regional, and department general revenue Singapore LTA National (local) government general revenue (derived from auto registration, gas tax, parking, congestion charges) Vancouver TransLink Dedicated gasoline, property tax, parking tax 29 FIGURE 4   KEY POLICY ISSUES RELATING TO THE GOVERNANCE OF URBAN TRANSPORT 30 LAND USE AND TRANSPORT cities of Europe and Japan, which, in turn, were roughly half of those BACKGROUND in cities of developing countries. For example, in 2000, the average As urbanization takes place, cities struggle to accommodate an built-up area density was 23 p/ha in 13 cities of the land-rich devel- ever-increasing population by expanding their geographical area. oped countries, 67 p/ha in 19 cities of Europe and Japan, and 136 p/ha The desire for more spacious living, made possible by rising income in 88 cities in the developing countries. levels and more affordable personal motor vehicles, has contributed Figure 5 shows the average population density in the built-up space to the growth in city areas, with densities showing a declining a of 49 metropolitan areas around the world and confirms the finding trend. A study of 120 cities around the world (Angel, 2011) found that that cities in developing countries of Asia have higher densities than between 1990 and 2000, the density of the built-up area declined those in Europe—which, in turn, have higher densities than those in from a mean of 144 persons per hectare (p/ha) to 112 p/ha. The the United States, Canada, and Australia. average densities, however, showed considerable variation across continents. In land-rich developed countries like the United States, As seen from the figure above, cities in developing countries are Canada, and Australia, average densities were one-third of those in relatively dense and should strive to remain so. FIGURE 5 COMPARATIVE AVERAGE POPULATION DENSITIES IN BUILT-UP AREAS IN SELECT METROPOLITAN AREAS Source: Bertaud (2003). 31 RELATIONSHIP BETWEEN LAND and non-motorized modes go up as the density of cities goes up. Figure 8 shows how the per-capita energy consumed comes down USE AND TRANSPORT as density increases. Each type of city generates a unique demand pattern for transport services. The variations tend to be in terms of the distance that people need to travel as well as the modal choice for such travel. KEY QUESTIONS FOR PUBLIC This has implications on the energy consumed in meeting the travel needs. Low-density and sprawling cities require longer travel dis- POLICY AND THE OPTIONS tances, which, in turn, necessitate a larger share of motorized travel, AVAILABLE and higher energy consumption. The low density also means that the From a policy perspective, it is important to note that the urban land demand on any origin–destination pair tends to be low and there- and real estate market, on their own, would develop at a lower density fore not viable for public transport. As a result, the use of personal than is socially optimal (residents of low-density and sprawled devel- motor vehicles tends to dominate the share of motorized travel. opment tend to generate more congestion and pollution externalities Higher-density and more compact cities, on the other hand, require than do the residents of more compact communities). While experts shorter trip lengths and, therefore, a lower dependence on motor- have advocated containing this growth and developing compact cities ized modes, and lower energy needs. Even within the motorized with higher density, studies have found that this has not occurred in the trips, public transport tends to have a higher share than in low-den- 120 cities that were studied (Angel, 2011). Therefore, containing growth sity cities. Figures 6 and 7 show how the share of public transport would be desirable but there could be challenges in implementation. FIGURE 6 RELATIONSHIP BETWEEN POPULATION DENSITY AND MODE SHARE OF PUBLIC TRANSPORT Mode Share of Public Transport vs. Population Density 80 Hong Kong 70 Mode Share of Public Transport (%) Seoul 60 Paris 50 Mexico City Tokyo Mumbai Madrid Barcelona 40 Pune Buenos Aires Vienna Bangalore Sao Paulo DelhiNew York Geneva 30 London Stockholm Jaipur Amsterdam 20 Vancouver Copenhagen Kunming Washington DC Johannesburg 10 Hanoi Chicago Melbourne 0 Ho Chi Minh City 0 5000 10000 15000 20000 25000 Population Density (Population/km2) Source: World Bank calculations using data from Urban Transport Data Analysis Tool. 32 FIGURE 7 RELATIONSHIP BETWEEN POPULATION DENSITY AND SHARE OF NMT Share of NMT vs. Population Density 35 Mumbai Mode share of nonmotorized transport (%) London 30 25 Mexico City Pune Barcelona Copenhagen Delhi 20 Berlin Madrid 15 Johannesburg Geneva 10 Rome Toronto 5 0 0 5000 10000 15000 20000 25000 Population Density (population/km2) Source: World Bank calculations using data from Urban Transport Data Analysis Tool. FIGURE 8 RELATIONSHIP BETWEEN POPULATION DENSITY AND PER CAPITA ENERGY CONSUMPTION Source: Newman and Kenworthy, 1989 33 The key question for public policy is whether any conscious effort is INSTRUMENTS FOR necessary to contain such sprawl or whether an expansion in the city boundary can be accepted. If an expansion can be accepted, then IMPLEMENTATION should market forces be allowed to determine the directions in which Three main policy instruments can be used to enable the kind of it grows, or should such growth be accommodated in certain pre- spatial growth that is desired. One is densification by permitting a determined directions? more intensive use of the land. This can be done either by relaxing the floor area ratio (FAR) standards that most cities have, or by limit- The most important determining factor in making a choice between ing holding sizes. Both would encourage compact city development the above options is the availability of land and the future pro- and shorter trip lengths. Low FARs and large holdings will lead to jections of urban growth. Land-rich developed countries, where sprawl and longer trip lengths that necessitate a greater reliance on urbanization rates are already very high, may be able to allow market personal motor vehicles. forces to determine the city’s growth. This is because there will not be too much growth and there would be enough land to support the The second is mixed land use planning, which allows travel distances growth. However, in land-poor cities, and those at relatively lower to be shorter as living and working locations are interspersed and, levels of urbanization there will a need to accommodate a much therefore, closer to one another. This often allows trips to be under- larger urban population in the years to come. Therefore, public policy taken on foot or on bicycles. On the other hand, segregated land use will need to intervene in a manner that channels the growth in a planning increases trip lengths and enhances the need for personal socially optimal manner —implying that increases in travel demand motor vehicle use. It also heightens social exclusion. do not necessitate very rapid motorization and, instead, promotes Further, “transit-oriented development” (TOD) can support city more sustainable modes of travel. The thrust of the efforts would development around a public transit corridor. Transit stations become therefore be toward reducing the length of trips and maximizing the centers of local commercial activity, regrouping shopping and use of public transport and non-motorized modes. recreational facilities within or around them. As population density This decision can also be influenced by historical and cultural factors and economic activity increase around the corridor, public transport as well as soil conditions and vulnerability to natural calamities. In services become commercially viable and easier to use. Reliance on certain cases, urban aesthetics—especially in cities with significant cars is reduced. heritage value—dictate that buildings be low-rise. In others, there Finally, the third is defining urban growth boundaries, which helps may be cultural and social barriers to rich households being located to make development more contiguous and compact. This could be very close to poor households that obstruct densification. In yet done either by having wide green or no-development zones just others, people may want to live close to their workplace; this would outside the boundary or by providing utility services only within make a strong case for mixed-use planning. However, large manu- these boundaries. facturing plants may have to be segregated from residential areas because of noise and air pollution impacts, making a case against Regardless, it is also important to ensure that adequate land is set mixed-use planning. Policy makers need to think about all of these aside from meeting transport needs (typically about 15 to 20 percent aspects when making policy choices. of the total area) at early stages of development because retrofitting a city at a later stage is extremely difficult. Figure 9 summarizes the key policy issues related to land use and transport, the existing options, the influencing factors, and the instruments that can be used to implement the policies. 34 Photo: Sam Zimmerman. FIGURE 9 ISSUES AND OPTIONS RELATING TO LAND USE AND TRANSPORT 35 36 MODES OF TRANSPORT BACKGROUND Each mode has unique characteristics in terms of the kind of travel demand it can best serve, the extent of land it requires, the pollution People can use several modes to meet their travel needs. These it causes, the amount and kind of energy it consumes, the number modes can be classified into two broad categories: motorized and of people it can transport, and the capital and operating costs it non-motorized. Motorized modes can be further classified into requires. personal transport and public transport. A number of other sub- classifications exist, as Figure 10 shows. Table 3 highlights some of the main features of each of these modes. FIGURE 10 TRANSPORT MODES COMMONLY USED TO MEET TRAVEL NEEDS 37 Photo: Sam Zimmerman TABLE 3  KEY FEATURES OF DIFFERENT TRANSPORT MODES Car Motor- Para- Public Bus Light Tram Metro Cycling Walking bikes transit buses Rapid Rail Transit Capital Cost To Gov’t M* M* M* L M M-H M H L L To User H M Nil Nil Nil Nil Nil Nil L Nil Usage cost To Gov’t L* L* L* L L-M M-H M H L L To User M L H L L L L M Nil** Nil Capacity L L L L-M M-H M-H L-M H L L Route flexibility H H H M L L L L H H Coverable distance H H H H H H M H L L Extent of urban space H M H M M L L L L L used Door-to-door H H H M L L L L H H connectivity Congestion impact H M-H H L L L M L L L Emissions impact H H H M M L L L Nil Nil Fuel consumption impact H M-H H L L L L L Nil Nil Negative safety impact H H H L L L L L M-H H H = High, M = Medium, L = Low * This refers to the capital and maintenance cost of providing the required road space. ** There is a marginal maintenance cost for the bicycle, but it is so low that it is shown as Nil. 38 Generally, personal motor vehicles are smaller than public trans- such choices mean disproportionate use of road space, energy port buses, and they consume less fuel; however, they also carry far consumed, and emissions when compared with public transport. fewer people. As a result, on a per-passenger basis, personal motor Besides, not everyone can afford or use personal vehicles; those citi- vehicles need more road space, consume more fuel, and emit more zens would get excluded from social and economic activities in the pollutants. Therefore, they are said to have higher negative exter- absence of suitable public transport. Fortunately, these preferences nalities. Very precise comparisons are difficult, because the relative are changing in some countries towards higher densities and public differences in road space occupied and fuel consumed depend on transport. This is the direction that public policy needs to encourage traffic flow conditions. In any case, Table 4 gives a rough indication elsewhere too. of how they compare. There are also limits to the urban area land that can be provided Thus, public buses are preferable over personal vehicles, because to meet transportation needs, because there are other competing they have a lower road and fuel consumption impact on a per- demands. Motor vehicles need road space, pedestrians need side- passenger basis. Lower fuel consumption also implies a lower walks, cyclists need cycle tracks, bus rapid transit (BRT) systems need emission of pollutants, but these benefits are lost if the buses carry a separate lane, and rail-based transit needs rail tracks. All of these few passengers. A public bus that can carry 60 passengers will have modes need land, which is limited and has many other demands more negative externalities than a car if that bus carries, say, only 5 on it. Therefore, some kind of priority needs to be accorded to those people. Therefore, in low-demand areas, personal modes may be modes that offer the highest benefit at the lowest cost to society. the better option. Clearly, public transport and non-motorized modes would be The key question for an urban transport policy is whether any partic- preferred over personal motor vehicles when it comes to energy effi- ular mode of travel needs to be actively promoted or whether all the ciency, lower pollution, and lower requirement of urban land; how- different modes can be allowed for use as preferred by their users. ever, non-motorized modes have limits on the travel distances they When a particular mode is to be encouraged, which one should can serve, and public transport would not make sense if the demand that be? The options are either to encourage specific modes of travel were low. Therefore, in low-demand areas, personal vehicles would through targeted incentives and disincentives or to allow all modes to be a better option than public transport. be used with no biases introduced as a public policy measure. Therefore, which mode to promote depends largely on the level of Although the typical response would be to allow all modes equally demand for transport services and the travel distances involved. For and not to interfere with people’s preferences, this route is often short travel distances, non-motorized modes would seem to be a dysfunctional, as individual preferences often tend to conflict with better option; for high-density routes, it would be public transport. the public good. Individual preferences often lean toward the con- However, in low-demand areas with long travel distances, there may venience of personal motor vehicles (cars or motorbikes); however, be no alternative to personal motor vehicles. TABLE 4 COMPARATIVE CONGESTION, FUEL CONSUMPTION, AND POLLUTION IMPACTS OF DIFFERENT VEHICLES Passengers carried Road space occupied Fuel consumed Road space used / Fuel consumed / (PCU) per 100 km (liter) passenger (km) 100 passenger - kms Car 1.5 1 8 0.67 5.33 Motorbike 1 0.5 2 0.5 2 Bus 60 2.5 33 0.042 0.55 PCU: Passenger Car Unit – This is the average area occupied by a car and is used to compare the relative congestion effects of different types of vehicles 39 preference for personal vehicles. Adequate availability of land may also encourage a higher allocation of space for transportation needs. INSTRUMENTS FOR IMPLEMENTATION Three major instruments can be deployed to give effect to policies for encouraging a particular mode of transport: 1. The right of way allocated for that mode; 2. The fees charged for using the right of way; and 3. The extent of convenience in using the mode vis-à-vis competing modes. Thus, good sidewalks, cycle tracks, and narrower road width for cars encourage nonmotorized modes. High parking fees or limited parking availability of space discourages use of personal motor vehicles. Tolls also discourage car use. For many users, high-quality public transport Photo: Roberta Franchuk, The Pembina Institute with a dedicated right of way, low fares, high frequency of service, good coverage, reliable service, a safe environment, and comfortable Social and cultural factors also influence the choice. In some countries, seating makes the mode more convenient than personal vehicles. public transport has a very negative social image and so there is a strong preference for personal vehicles among those who can afford them. Figure 11 summarizes the policy issues, options, and influencing fac- Countries with relatively higher income levels would also have a greater tors related to modes of transport. FIGURE 11 POLICY ISSUES RELATING TO MODES OF TRANSPORT TO BE PROMOTED 40 PERSONAL MOTOR VEHICLES growth of the use of personal motor vehicles that has been largely BACKGROUND responsible for the problems faced in urban transport systems. In Typically, personal motor vehicles are of two types: four-wheelers countries like China, motorization has been dominated by the growth and two-wheelers. They are a very convenient form of mobility, in car use. In others like India, Indonesia, and Vietnam, it has been allowing safe, quick, and comfortable door-to-door travel. Though motorbike-led growth. In fact, motorbikes are making their pres- ownership was relatively expensive some decades ago, it has become ence felt in several countries in Latin America and Africa as well. A big increasingly affordable over the past 20 years. Therefore, urban concern is that cities in the developing world will continue to grow residents in developing countries have taken to these personal motor and the situation will worsen. vehicles in a big way. Table 5 shows the growth in these vehicles’ use in a few countries around the world, and Table 6 shows the growth in some cities of India between 2002 and 2011. It is this rapid TABLE 5  GROWTH OF MOTOR VEHICLES IN SELECT COUNTRIES Country Total Number of Motor Vehicles Total Number of Motor Vehicles Percent Increase (thousands) (thousands) 2003–2009 2003 2009 Australia 12,812 15,074 18 Canada 18,435 20,472 11 Chile 2,159 2,956 37 China 19,326 62,569 224 France 36,972 38,692 5 Germany 47,539 46,193 –3 Greece 4,993 6,882 38 India 13,125 21,838 66 Jordan 516 911 76 Malaysia 6,770 9,726 44 Mexico 21,935 32,177 47 Romania 3,845 4,940 28 Turkey 6,000 10,116 69 United Kingdom 29,545 32,327 9 United States 230,926 246,031 7 Source: World Bank, World Development Indicators Database. 41 TABLE 6  GROWTH OF MOTOR VEHICLE USE BETWEEN 2002 AND 2011 IN SELECT CITIES IN INDIA   Total number of regis- Total number of registered Percent increase in registered motor tered motor vehicles, motor vehicles, 2011 vehicles, (2002–2011) 2002 (thousands) (thousands) Bangalore 1680 3791 126 Bhopal 333 755 127 Chennai 1356 3456 155 Coimbatore 448 1241 177 Delhi 3699 7228 95 Greater Mumbai 1069 1870 75 Hyderabad 1241 3033 144 Indore 550 1213 121 Jaipur 693 1051 52 Kanpur 385 1002 160 Kochi 152 409 169 Lucknow 556 1211 118 Madurai 240 603 151 Nagpur 459 1157 152 Patna 313 658 110 Pune 658 2094 218 Visakhapatnam 364 617 70 Source: http://mospi.nic.in/mospi_new/upload/SYB2013/ch20.html. In such a scenario, the key question for public policy is the extent to which personal motor vehicles should be accommodated within the transport system: Should they be accommodated unhindered, or should they be restrained in some manner? And if they are to be restrained, then should such restraints be only on vehicle use, or should they also extend to ownership? Also, should there be a pref- erence for vehicles of a certain size and fuel consumption standard, or should this matter be left to people’s preferences. (see Figure 12) Unhindered motorization growth will place corresponding demands Photo: O.P. Agarwal on roads and, consequently, the land required for transportation purposes. zz How the city is laid out; and With regard to how much personal motor vehicles can be accommo- zz Whether alternative modes are adequate and acceptable in quality. dated, the important determining factors would be: Land-rich cities that have often grown in a sprawling manner may zz Whether the city has enough land to allow a continued supply of have no option but to accommodate personal motor vehicles liber- it for increasing road capacity; ally. If alternative modes of travel are adequate and acceptable, then 42 they can afford to restrain personal motor vehicles in some way, but Instruments that discourage only use are: if land is scarce, then strong restraints are downright inevitable. zz High fuel taxes; In terms of whether restraints should be placed only on the use of zz Road tolls; personal vehicles or whether restraints should extend to their own- ership, these factors become important: zz Limits to road space; zz Whether there is an active auto industry that would be adversely zz Physical restraints on parking and high parking fees; affected by a reduced demand for such vehicles—especially in zz Car-free days; and terms of the people they employ; and zz High-occupancy vehicle lanes (lanes that only vehicles with a set zz Whether there is a positive social image attached to personal number of riders can use) and car sharing. motor vehicle ownership that people value and use as a means to demonstrate their social and economic status. Instruments that also discourage ownership are: In such cases, it would not be wise to take any policy measures that zz Limitations/restraints to purchase of personal motor vehicles, such discourage ownership. However, it may be feasible to discourage as requiring an authorization; ownership and instead encourage the use of publicly provided trans- zz Requirement to prove ownership of parking space before a per- portation services if there are severe limitations in the availability of son can buy a personal motor vehicle; land, even for parking purposes; good-quality public transport is available; no large auto manufacturing industry would be adversely zz High vehicle taxes; and impacted; and people do not particularly treat personal motor zz High registration fees. vehicle ownership as a status symbol. FIGURE 12 OPTIONS FOR POLICIES RELATING TO ACCOMMODATION OF PERSONAL MOTOR VEHICLES 43 In terms of vehicle size and fuel consumption standards, size affects nant mode of transport in some cities. However, they are unsafe. both the space required for the vehicle as well as the amount of fuel Besides, if they use the 2-stroke technology, they are polluting. Policy it consumes. Fuel consumption standards, on the other hand, affect makers must ask, “What should be done about motorbikes—are they only the amount of fuel the vehicle consumes. The need to actively beneficial or damaging to a city?” promote a certain size and standard would depend on the severity of the negative externalities in any city. Dense cities with limited space THE POSITIVES will prefer their residents to own smaller vehicles that need less The rise of motorbikes as a popular mode of transport is directly space to park and use. Similarly, cities that import a lot of their fuel associated with their affordability. Today, a 50-cc motorbike can cost and have concerns about energy security will prefer fuel-efficient as little as $500. Additionally, their low fuel consumption makes their vehicles. Those areas without serious space constraints and those that daily use fairly inexpensive—often cheaper than taking a city bus produce fuel may not feel the adverse impacts of large-sized and in terms of the marginal cost. Table 7 compares the cost of using a high-fuel-consuming vehicles. motorbike with the cost of using a bus for a 10-km journey in some cities in India and elsewhere in Asia. MOTORIZED TWO-WHEELERS Further, M2W enable riders to go from almost place in the city to any (M2W) other at any time, without being limited by public transport routes and schedules. Because motorbikes can negotiate congestion better Certain special policy issues relate specifically to M2W. The rapid rise than cars can, they are often faster than cars. And they can be parked of motorbikes as a mode of transport has been a common phenom- almost anywhere. Workers can take shifts that start early in the enon in many cities of the developing world. In Vietnam, motorbikes morning or end late at night and know that they can get to work or constitute almost 75 percent of the daily motorized trips; in several make it home in good time. They can even take a second job, making Indian cities, they comprise almost 65 percent of the total vehicle it swiftly from one place of work to another, and commuters can take fleet. Their numbers are growing in Africa and Latin America as well. a quick detour on their way home to pick up some groceries or other Because motorbikes provide very efficient transport at relatively low household needs. Generally, users can link trips with ease, like going cost, they are becoming very popular. In fact, they are the predomi- to the bank or the doctor after work, and then picking up a child TABLE 7  MARGINAL COST OF A 10-KM JOURNEY BY MOTORBIKE AND BY BUS   *Petrol price **Fuel effi- *Cost of riding a *Cost for a motorcycle *Bus fare for 10-km / liter ciency (km/ motorcycle for a dis- for a distance of 10 km journey on regular bus liter) tance of 1 km Delhi 73.2 60 1.22 12.2 15 Bangalore 80.2 60 1.34 13.4 16 Chennai 76.5 60 1.27 12.8 8 Pune 82.5 60 1.38 13.8 12 Mumbai 82.1 60 1.37 13.7 16 Kolkata 81.0 60 1.35 13.5 9 Ho Chi Minh City 23,830 60 397.17 3,971.7 5,000 Hanoi 25,400 60 423.33 4,233.3 7,000 Bangkok 49.0 60 0.82 8.2 12 Manila 54.3 60 0.9 9.0 19.25 * All prices and costs are in the local currency. ** Taken as average of some popular brands, from the manufacturer websites. 44 Photo: O.P. Agarwal Photo: World Bank from school. Motorbikes also allow for greater personal safety: riders Further, motorbikes occupy more road space, consume more fuel, are not exposed to having their wallets stolen in a crowded bus, or and emit more pollutants than does public transport on a per- being groped by strangers. In all, owning a motorbike can be very passenger basis. Yet they are strong competitors to public transport liberating and empowering, creating a remarkably positive impact and easily draw passengers away from that mode. As seen in Table 7, on the general welfare of owners. The bikes also occupy less road on a marginal cost basis M2W are often cheaper than buses. So, space and consume less fuel than does a car. Thus, they seem to be someone who already owns a motorbike will find it cheaper to use beneficial. than riding a bus. M2W ease of use has also attracted bicycle users and pedestrians. THE NEGATIVES The biggest concern with increased motorbike use, however, is their safety. Unlike cars, motorbikes lack a shell to protect riders in case TABLE 8 PERCENTAGE OF ROAD ACCIDENT of an accident. Instead, their bodies are exposed to collisions, or FATALITIES, BY TYPE OF VEHICLE they can be catapulted for meters on impact and suffer severe head Country Percentage of 2–3-wheeler injuries. Aggravating the situation are such practices as the swerving fatalities in total fatalities and squeezing between cars that many motorbike riders attempt, and carrying more than two passengers on a single motorbike— India 32 often, they are little children who cannot hold tightly to an adult. Brazil 25 As a result, motorbike riders are among the most vulnerable to road Cambodia 67 accident fatalities. Lack of capacity to implement safety standards China 35 makes the situation worse. Table 8 shows the share of road accident Colombia 39 Dominican Rep 58 fatalities of M2W users in the total road accident fatalities of some Indonesia 36 countries. Laos 74 Several M2Ws use two-stroke engines, which create high levels of Malaysia 59 pollution; the carbon in the fuel is not fully burnt in a two-stroke Paraguay 41 cycle and gets emitted as particulate matter. This has a serious nega- Korea, Rep 20 tive impact on the local air quality and the health of the people. Thailand 74 Source: WHO (2013). 45 Yet another problem with a predominance of motorcycles is that it zz The extent to which they are the predominant mode of travel enables low density growth and thereby promotes life-style choices today—if they are the predominant mode of personal transport, which make it very difficult to support public transport. then it may be difficult to ban them in any part of a city, but efforts could focus on minimizing their negative impacts; The most important negative feature of motorbikes that needs to be addressed is its poor safety record. The key to this is to ensure zz Income levels and the affordability of alternative modes of per- safer driving practices and mandatory use of safety equipment, like sonal transport—if income levels are relatively low, a large section helmets. of the population may be unable to afford cars and so motorbikes may become the dominant mode and, again, difficult to ban in DEFINING A ROLE any area; and What kind of role can be defined for motorbikes? The options seem to be: zz Availability of good-quality public transport—the availability of good-quality public transport may justify restricting the use of zz Do nothing and let them operate freely as one of the forms of motorbikes in areas that are well served by public transport. motorized transport; zz Capacity to implement and enforce safety standards zz Mitigate the negative externalities of motorbikes and allow them to be used freely thereafter; Some policies that could be considered for each of these negative impacts are given in Table 9. zz Limit their use to certain areas of the city; If policies seek to limit motorbike use to some areas, the following zz Mitigate the negative externalities and then allow use in some choices could apply: limited areas only; or zz Restrict their use in the core city areas that may be well served by zz Ban their use entirely. public transport; The choice really depends on the seriousness of the negative impacts zz Restrict their use during peak periods so that people do not use in any city. The options above are a progression of choices that can them for daily work trips, only for non-work trips that are less be made as a situation worsens. Given M2W’s negative impacts, the frequent in nature or for multi-stop trips; and first option would not be desirable. Similarly, given the mobility enhancement features of motorbikes, banning their use completely zz Design facilities that allow them to be used conveniently as feed- would also not be desirable. The best choices seem to lie among the ers to mass transit. remaining three options. Figure 13 summarizes the key policy issues, options, and influencing A choice among the remaining three options really depends on: factors. zz The severity of their negative impacts—if negative impacts, such as safety and pollution, are very severe, then there may be a case for banning use in some parts of the city; 46 TABLE 9 MITIGATION MEASURES FOR THE NEGATIVE EXTERNALITIES OF MOTORBIKES Negative externality Mitigation measures Safety zz Require the use of helmets zz Limit the number of riders that can use them zz Discourage high engine power, to limit high speeds, with higher taxes zz Prescribe speed limits zz Use separate lanes for motorbikes Pollution effects zz Restrict or ban production and sale of two-stroke engines zz Discourage high engine power, to limit fuel consumption, with higher taxes Noise zz Discourage high engine power, to limit noise, with higher taxes Drawing people away from zz Link to public transport so that it offers a complementary service public transport zz Raise fuel prices zz Raise parking fees in areas served by public transport and free parking when linked to public transport as a complementary service FIGURE 13 ROLE OF MOTORIZED TWO-WHEELERS 47 48 PUBLIC TRANSPORT Some key issues that arise when formulating public transport policies BACKGROUND in this new environment are: Public transport is an extremely important component of the trans- zz Pricing—who should pay for public transport; port system in most large cities, especially in the developing world. In many cities, public transport carries a significant share of the travel zz Quality versus cost trade-offs; demand, as Figure 14 shows. zz Coverage and reach of the public transport system, both in space The importance of public transport stems largely from the following and time; issues: zz Which technology to choose; zz As cities grow, travel distances increase, and a large share of the zz Capacity considerations; and travel need can no longer be met by walking and cycling; how- ever, not everyone can afford a personal motor vehicle, and those zz Industry structure for the provision of public transport services individuals need a low-cost mode of motorized travel. and regulatory rigor for making it safe and affordable. zz Public transport occupies less road space per passenger carried than a car or a motorcycle and thereby helps ease congestion. Similarly, public transport uses less energy per passenger carried PRICING Public transport systems cost significant amounts to build and oper- compared with personal motor vehicles and thereby emits fewer ate. Yet, the people who use them come from the poorer sections pollutants and GHGs. and cannot afford personal motor vehicles. Therefore, an important In the past, public transport planning largely focused on keeping the policy issue relates to how much they should pay for it. Should it be services available and affordable, because it was needed mostly by the full cost of the services or only a partial cost? In other words, at those who could not afford personal vehicles. But in recent years, it what level should public transport be priced? has become increasingly important for public transport to draw peo- The options are that the full cost, namely the capital and operating ple away from personal motor vehicles in order to mitigate the nega- costs, be: tive impacts of rapid motorization. This shift compels public transport to serve a very different market as well—a market where quality of zz Recovered fully from the users of the system, implying that fares service outweighs affordability. Therefore, the plans need not only be set high enough to recover these costs entirely from them; to provide an affordable service to those with no other option but zz Recovered only partially from the users: also to make it the mode of choice for those who do own personal motor vehicles. This shift implies a need for superior quality in terms –– Fares only recover part of the cost—for example, the operating of convenience, safety, comfort, cleanliness, and so on—qualities that costs but not the capital cost would attract even those who can afford personal vehicles. 49 FIGURE 14 MODE SHARE OF PUBLIC TRANSPORT Mode Share of Public Transport Hong Kong Seoul Bogota Paris Mexico city Tokyo Singapore Guangzhou Mumbai Barcelona Madrid Buenos Aires Cairo Pune Santiago Hyderabad Bangalore Sao Paulo Shanghai Berlin Delhi New York London Toronto Wuhan Beijing Milan Ahmedabad Washington DC Johannesburg Chicago Hanoi Ho Chi Minh City 0 10 20 30 40 50 60 70 80 90 100 Source: World Bank calculations from the Urban Transport Data Analysis Tool. –– Some users receive targeted subsidies and so pay lower fares, Transport Policy in India have all adopted this principle, but it is not while the rest pay the full fare always possible to implement it everywhere. Very often, fares cannot be fixed at a level that is adequate to cover the operating costs, so the zz Paid for fully or largely from the public budget, implying that the gap needs to be covered from other sources. fares are set very low or the services are free. The most important factors that influence a pricing decision are: The most commonly chosen option is the one where costs are shared, though the other two options are used in certain cases. Typically, zz Affordability—how much the users can afford to pay; and several cities aim to cover capital costs through the public budget, zz Public value—how much value the service has for the larger whereas the operating costs are met from user fees. The Transmilenio society as a whole. in Bogota, the metro system in Singapore, and the National Urban 50 Table 10 presents a possible framework for consideration while ties, and the contexts in which they may be applicable, are given in taking pricing decisions. Some examples of the kinds of services that the section 13 on financing. would fall into each category have been presented in Table 11. Figure 15 summarizes the key policy issue, options, and influencing In terms of who pays the component not recovered from users and factors related to pricing public transport. how this is collected, there are several possibilities. These possibili- TABLE 10 BASIC PRINCIPLE FOR DETERMINING THE PRICING OF PUBLIC TRANSPORT Low Affordability High Affordability High Public Value High public subsidy—low or zero fares Pricing helps to recover only partial costs – such oper- ating costs but not capital costs Low Public Value Pricing helps to recover only partial costs – such Full cost recovery from the user—high fares operating costs but not capital costs TABLE 11 EXAMPLES OF DIFFERENT CATEGORIES OF PUBLIC TRANSPORT SERVICES Low Affordability High Affordability High Public Value zz School buses zz Premium public transport services, such as high-qual- zz Services for the disabled ity buses (air conditioned, seating only) zz Basic level of public transport services zz Special services to railway stations zz Basic services to carry lower- income employees zz Shuttle services from parking locations Low Public Value zz High-quality express services to the airport zz Premium bus services to carry senior-level executives zz Luxury services for tourists FIGURE 15 POLICY ISSUE, OPTIONS, AND INFLUENCING FACTORS RELATING TO THE PRICING OF PUB- LIC TRANSPORT 51 QUALITY-VERSUS-COST TRADE-OFFS As stated earlier, public transport is becoming increasingly important for its ability to help reduce congestion, air pollution, and energy consumption by drawing people away from personal vehicles. For this shift to take place, public transport’s quality needs to be adequately enhanced to attract users of personal motor vehicles. However, improved quality means increased costs, which adversely affect fares and affordability. Thus, a conflict arises between the needs of those who do not own personal vehicles and those who do. Those who do not own a personal motor vehicle are the ones who need an afford- able service and have no other options; therefore, they tend to be Photo: O.P. Agarwal willing to compromise on quality in exchange for an affordable ser- vice. On the other hand, personal motor vehicle owners can afford a age, and higher frequency of stops. But if the target group is car higher fare but typically require improved quality (reduced crowding, users, then it may mean better seating and air-conditioning. air-conditioning, reduced number of stops, more comfortable seating, These additional costs would be an important factor in determin- and so on). Public policy needs to address this conflict. ing which options should be adopted. To attract car users, public Possible options are: transport may need different classes of service, where one class is subsidized as a basic service and the other is fully paid for by the zz Focus on quality even if it means a higher cost and higher user user as a premium service. fees; zz Is it possible to provide different kinds of service at different zz Compromise on quality to keep user fees low; prices? Examples include first-class and ordinary coaches on zz Improve quality but subsidize user fees – either for all users or for metro systems, premium and ordinary bus services, special bus targeted users; services for airline passengers and business executives, and so on. zz Have two levels of service and charge different user fees for each level. Figure 16 summarizes the key quality-versus-cost trade-offs related to public transport and the options that exist. The key influencing factors are: zz What is the current mode share for public transport? If a very high share of the population is already using public transport, then TECHNOLOGY increasing costs would adversely impact many who value afford- Several technologies for public transport exist. At one end of the ability. But if the current share is not very high, or is sharply spectrum are buses operating on a shared right of way; at the other declining, then improving quality will be a good way to attract end of the spectrum are heavy rail underground metro systems. those who use personal motor vehicles or to slow the declining Buses on a shared right of way are generally the backbone of the trend in public transport use. public transport system, but higher-capacity systems are often needed on high-demand corridors. While buses on a shared right of zz How much more expensive would it be for the services to be way cost the least amount and have a high degree of flexibility in the brought to a level that is attractive to personal motor vehicle routes they serve, they have a limited carrying capacity. Underground users? If the target group is motorbike users, then this may not be metro rail systems, on the other hand have a very high carrying much and may largely require better routing, improved cover- capacity but no flexibility with regard to the routes they serve. They 52 FIGURE 16 QUALITY-VERSUS-COST ISSUES RELATING TO PUBLIC TRANSPORT also cost many times more than bus systems. Within these extremes A choice depends on the likely demand on the corridor to be served, are a range of technologies with varying carrying capacities, costs, the shape and size of the city, the terrain, the weather, investment and route-flexibility characteristics. This range of commonly used capacity, users’ ability to pay, ease and speed of construction, among technologies is: other factors. In many cities, it makes sense to use more than one of these technologies to cover different parts of its terrain. A “Hierarchi- zz Buses on a shared right of way; cally Integrated Transport System” (HITS) is what a city needs. zz Trolley buses; Cities that are linear and have relatively long travel distances, with zz Buses with a “high level of service”; limited alternative roads, may prefer metro rail systems that have a high carrying capacity; however, cities that are sprawling may need zz Dedicated bus ways; a wide network but with a relatively moderate capacity on any one zz BRT systems; zz Monorail systems; zz Trams; zz Light rail transit systems; and zz Metro rail transit systems. Essentially, the choices can be classified into high-capacity/low-flex- ibility and low-capacity/high-flexibility systems. Table 12 gives some of the broad features of each of the well-known technologies. Photo: World Bank 53 TABLE 12 SOME IMPORTANT FEATURES OF ALTERNATIVE MASS TRANSIT TECHNOLOGIES Capital cost/km Carrying capacity (PHPDT) Requirement of urban land Buses on a shared right of way L L L Trolley buses L-M L M Bus with high level of service L-M L–M M Dedicated bus way L L–M M Bus rapid transit L–M M–H M Monorail M M L Tram M M L Light rapid transit M–H M–H L Metro rail H H L L = Low, M = Medium, H = High; PHPDT = Peak Hour Peak Direction Trips segment. In such cases, bus-based systems would be better. Cities systems; those with lower growth projections may prefer lower- sensitive to their aesthetic appeal may prefer systems that do not capacity systems. create visual clutter through overhead wires or elevated viaducts; zz Other factors that influence the choice, though to a lesser they would prefer underground systems or bus systems. Cities with extent, are: difficult terrain, especially with severe gradients, tend to prefer bus systems because rail systems would have difficulty negotiating steep zz Preferred fuel—for those who import a large part of the petro- gradients. Cities with tall building bylines and narrow streets usu- leum fuel, reduced import burden may require a preference ally prefer underground systems or monorail systems, as the right for electrical energy. In particular, for those with considerable of way on the roads would be a constraint. Thus, a choice between amounts of hydro power, electrical energy would be preferred the options is a complex one, requiring a consideration of several even from a pollution point of view. However, those with signifi- variables. cant petroleum reserves of their own may prefer the traditional fuel, namely diesel. Some of the influencing factors are: zz Environmental sensitivity—areas that are environmentally sensi- zz Corridor volume—the travel demand on a particular corridor tive may prefer electrical energy to petroleum fuels. is the most important factor that determines the choice of mass transit technologies. zz Land use policies—cities that are willing to adopt land use poli- cies that promote densification along pre-identified corridors (see zz Spatial pattern—typically, linear cities would have a small num- Box 4) would prefer high-capacity systems along such corridors. ber of very high-demand corridors, whereas cities with a more However, those who adopt policies favoring a more uniform radial-grid pattern would have a larger number of medium- density across a larger area would prefer low/medium capacity demand corridors. systems with greater route flexibility. zz Costs—the capital cost and the annual operating cost of the dif- ferent technologies are important factors. zz Growth projections—cities that are expecting a high level of growth would prefer to invest in systems that offer sufficient capacity for future demand and thus may prefer high-capacity 54 Box 4: Copenhagen’s Finger Plan Copenhagen is famous for its urban planning concept, which has promoted sustainable lifestyles and sustainable modes of mobility. The Finger Plan for Greater Copenhagen was introduced in 1947, when a group of town planners realized that Greater Copenhagen was beginning to spread uncontrollably. Greater Copenhagen is a vast area consisting of 34 municipalities. The spreading of the area created difficulties for the public transport system, which was in danger of reaching its capacity. It was necessary to control urban growth and develop a citywide network of railways and arterial roads. The idea of the plan was to concentrate urban development of Greater Copenhagen in the urban “fingers” created around the railway network. At the same time, green wedges between the fingers would remain undeveloped. Greater Copenhagen resembles a hand, where the city of Copenhagen covers the palm and five larger cities and their railway routes represent the fingers. Since 1947, the plan has been the main guiding principle of city planning in Copenhagen. In 1989, the planners for Greater Copenhagen implemented a “Close to Station” structure, where areas for additional building devel- opments were limited to within 1 kilometer of a railway station. Buildings would thus be concentrated around the 25 large railway stations in Greater Copenhagen. The aim was to favor public transport at the expense of private car use. This “Close to Station” structure allowed for sustainable lifestyles and minimized environmental impact, because transportation and developments were concentrated in conveniently accessible areas. In 2007, the Danish Ministry of the Environment created Finger Plan 2007, where this proven concept was written into national law and had judicial binding over Greater Copenhagen and its planning initiatives. Source: http://www.norden.org/en/theme/theme-2012/rio-20-1/sustainable-consumption-and-production/sustainable-lifestyles/city- planning-denmark. 55 Figure 17 summarizes the key issues related to choosing a technology for public transport and the factors that influence a choice between options. FIGURE 17 POLICY ISSUES AND OPTIONS RELATING TO PUBLIC TRANSPORT TECHNOLOGIES COVERAGE vehicles and, therefore, a higher cost. So, there is again a trade-off One important policy issue relates to how much of the city area between cost and frequency of service (quality). should be served by public transport and the frequency of service Given this situation, the question for public policy is what share of that should be provided at different times of the day. It is gener- the city’s population should have access to public transport within a ally believed that people do not like to walk more than about 500 reasonable distance and at a reasonable frequency of service. Associ- meters to reach public transport stations. However, this figure will ated questions are: vary from city to city, with weather, terrain, sense of safety, kind of activity along the walking route, and similar factors playing a part. zz What is a reasonable standard for access distance and frequency Better coverage of the city area will mean a higher proportion of the of service? households can reach public transport within the acceptable walking zz Will this standard be the same throughout the city and at all distance; however, this has cost implications, as higher coverage times of the day? means a larger network and more vehicles. Thus, there is a trade-off between cost and coverage (quality). zz Should this standard extend to the suburbs and satellite cities as well or be limited to the main city only? Similarly, people prefer more frequent service over service with larger time gaps. This gives them greater flexibility in timing their trips. As seen above, there are cost implications and trade-offs involved. It also allows people to accept jobs that involve travel early in the The key is in thinking of a well-integrated multimodal system that morning or later at night, if a reasonable frequency of service can be allows low-density areas to be fed by low-cost and flexible systems provided at those times. However, higher frequency requires more and high-density areas by higher-cost and high-capacity systems. 56 Choices are exercised based on how many people really benefit from on the volume of demand, the costs involved, affordability among the improved coverage and the extent to which they take advantage the people living in the fringe areas, and a range of other consid- of it vis-à-vis the additional costs involved. In the core city area, erations. Typically, access is at a shorter distance and services are at access to public transport within 500 meters would be desirable for a higher frequency in the core city areas, but these access distances the entire population. This is because the core city areas have limited increase and frequencies come down as one moves to outer areas. space and tend to be already congested. Therefore, limiting personal Figure 18 summarizes the policy issues relating to the coverage of motor vehicles in such areas is desirable. However, as one moves out public transport, the options that exist, and the factors that influence toward the fringes of the city, space limitations as well as congestion a choice. are less severe and cost implications of increasing coverage go up. Therefore, the access standards could be higher and frequency of service standards lower. CAPACITY Formal and informal feeder systems may have to serve the last mile In developing countries, the urban population is growing rapidly connectivity needs via either motorized or non-motorized modes. and placing an increasing demand on the urban transport system. So The needs could also be met via personal vehicles or publicly an important issue for consideration is the time horizon for plan- provided services. The provision of good parking facilities would ning future transport capacity. Should planning seek to satisfy the encourage those who have personal vehicles to use them only for demands for the near term of say 2-3 years, or should it aim to cover the last mile connectivity instead of for the entire trip. Also, feeder future demand over a longer time horizon of say 10 years or 15 years. services with lower-capacity public transport modes, like minivans, Often these questions and answers have an impact on technology would be good last mile connectivity for all mass transit users. Safe choices and cost implications. and sheltered sidewalks are good last mile connectors for those who The future is uncertain. Demand patterns may change. Trip patterns live within walking distance but hesitate to walk because of unsafe may change. The projected demand may not materialize for a variety walking environments or poor weather conditions. of reasons. Therefore, there are risks in making high investments in Thus, there is a wide spectrum of options with different combinations anticipation of demands too far into the future. However, there are of mode, access distance, and feeder systems. Choices tend to depend economies of scale in establishing a higher capacity in one go as the FIGURE 18 POLICY OPTIONS RELATING TO THE COVERAGE OF PUBLIC TRANSPORT 57 FIGURE 19 POLICY OPTIONS RELATING TO THE CAPACITY OF THE PUBLIC TRANSPORT SYSTEM costs of expanding capacity in smaller instalments would be more INDUSTRY STRUCTURE higher. It is this trade-off that poses a challenge for public policy. AND REGULATORY RIGOR The key factors that need to be taken into account in making these With regard to the industry structure for urban public transport, there choices seem to be the following: seem to be three broad models around the world. They are: zz What has been the historical population growth trend, and how 1. Unified Public Model—a monolithic public entity owns and oper- likely is it to continue? ates public transport services in the city. This entity organizes and zz What are the likely cost differences in adding the new capacity operates all the modes of public transport. It plans all services; now as opposed to adding it later, when the demand reaches a decides the routes, frequencies, and service levels; and also certain level? manages the entire associated infrastructure. Most cities in the United States and some in Canada (Toronto being one) have this zz Is a modular approach to adding capacity feasible? For example, arrangement. metro stations may have to be designed to accommodate eight coaches even if the current need is only for four. 2. Closely Supervised Private Model—the planning and coordina- tion functions are separated from the operations functions. The zz What is the possibility that somewhat excess capacity would help planning functions are generally with a public entity responsible shift people from personal modes to public transport, or help for making decisions on the kind of service the consumers need. channel growth of the city along a public transport corridor? Operations are carried out by a separate agency (public or private) zz What is the marginal cost of operating at excess capacity? typically under structured contracts. The planning entity does not have to worry about the day-to-day operational concerns, Figure 19 summarizes the policy issues relating to the capacity of the such as availability of buses and crew, scheduling, and so forth. public transport system, the options that exist, and the factors that On the other hand, the operator concentrates only on keeping influence a choice. the operations going and does not have to make decisions on 58 the routes to be served and on the service levels. These are done Model has the problem of competition in the market and the typical by the planning entity and given to the operator to carry out. problem of oversupply on high-demand routes and undersupply This industry structure reflects competition “for the market.” on uneconomic ones. The Closely Supervised Private Model seems to Examples of this model are found in London, Lyon (France), and have emerged as a good intermediary and is the current global trend. Curitiba (Brazil), among other cities. The public agency performs the role of planning and contracts opera- tions from the private sector, which is better placed in undertaking 3. Loosely Supervised Private Model—there is no centralized or coor- commercial functions. dinated planning, and there are multiple independent operators. Each of the operators undertakes its own service plans and carries The key to making a choice is the historical situation and how well out operations as per its own plans after obtaining a permit from the current system is functioning. If it is functioning well, then there a regulatory authority. There is no integration in their services. would be little reason to change. However, public policies relating Each owns the infrastructure, equipment and support systems to subsidies and competing claims on the public budget would often that it needs for its own operations. Generally, there are no persuade a shift from Model 1 to Model 2. Similarly, poor quality and common facilities or services across operators. This model reflects unsafe operations would persuade a shift away from Model 3. Model competition “in the market” and leads to the kind of “penny 2 seems an optimal choice, but such choices are largely determined wars” witnessed in several cities. This is the most common struc- by the political willingness to change the existing order. ture in many countries in Africa and Asia. Figure 20 summarizes the policy issues relating to the industry struc- The regulatory rigor also varies across these models. Aspects regulated ture, the options that exist, and some of the factors that can be taken by a public agency in each of these are as shown in Table 13. into account in making a choice. The policy question is: Which model should be followed? The Unified Public Model tends to be expensive and requires a high level of public subsidy, often owing to its inherent operational inefficiencies and certain inevitable compulsions faced in public sector operations. On the other hand, the Loosely Supervised Private TABLE 13 ASPECTS REGULATED BY A PUBLIC AGENCY IN DIFFERENT PUBLIC TRANSPORT INDUSTRY MODELS Unified Public Model Closely Supervised Private Loosely Supervised Private Model Model Safety Y Y Y Emissions Y Y Y Route authorization Y Y Y Fares Y Y Y Route and network design Y Y N Schedules Y Y N Detailed vehicle specifications Y Y N 59 FIGURE 20 POLICY ISSUES RELATING TO THE INDUSTRY STRUCTURE FOR PUBLIC TRANSPORT 60 PARA-TRANSIT BACKGROUND As the name implies, para-transit (or intermediate public transport) refers to the set of transport services that fall between a city’s struc- tured and formal public transport system and the personal transport that people use. Typically, the vehicles are not used exclusively by the owners and are available to others for use, for a fee. Yet their routes are flexible and change based on demand. The types of para-transit services vary across a wide spectrum and range from taxis and cabs at one end to boda-bodas, tuk-tuks, auto-rickshaws, and cycle- rickshaws at the other. They could be motorized or non-motorized. Informal and flexi-route minibus services can also be classified as para-transit. Typically, para-transit modes are regulated for safety—that is, the Photo: World Bank vehicles are registered, they need to be road-worthy, and the drivers must be licensed (often to higher standards of capability). Most often, the fares they can charge are also regulated; at times the regulation DESIRABLE AND UNDESIRABLE prescribes only an upper ceiling. However, unlike formal bus services, FEATURES their routes are not prescribed in great detail, and they are allowed to operate as an on-demand service, on any route, but within a DESIRABLE FEATURES prescribed area. zz They fill an essential gap that formal public transport cannot. In some cities, the para-transit services available are minimal, typi- Public transport systems may not be able to serve remote areas, cally limited to taxis. In other cases, para-transit is the dominant or late-night hours, due to inadequate demand; in such cases, mode of transport, often boasting the highest modal share in the city. para-transit could fill the gap. Thus, the key question for public policy is whether these modes zz Often, in smaller cities, public transport is not viable because need to be promoted or discouraged. In other words, do they serve the city is too small to generate adequate demand even though a useful purpose, or are they a barrier to sustainable transport? How it may be large enough to necessitate motorized travel for many should public policy deal with them? trips. In such cases, para-transit is the only option for those who cannot own or use a personal motor vehicle. To answer the above questions, a good starting point would be to look at the desirable and undesirable features of para-transit. zz In some cases, public transport is difficult to use. For example, people traveling to the airport or the rail station with a lot of 61 baggage, patients who need to be rushed to hospital, and the OPTIONS FOR PUBLIC POLICY elderly find it difficult to use the normal public transport system. In Given the desirable and undesirable features of para-transit, it is for such cases, para-transit fills the gap that public transport cannot. public policy to clearly define a role for para-transit. Possible options zz They offer a service that places a lower demand on the park- seem to be: ing system in a city, compared with the personal vehicle. For zz A flexible and on-demand service that serves only areas not example, taxis would drop one passenger and pick up another served by public transport; without the need to park. zz A higher-quality service that serves a high-cost and high-quality zz They offer a service that reduces the fuel consumed in empty need and attracts personal motor vehicle users; haulage. For example, people who use their own cars to go to the airport would need the car to be driven back empty. On the zz A service for tourists who may not be familiar with the public other hand, taxis would bring another passenger back and not transport network; and waste fuel in empty haulage. zz An extension of the public transport service that serves low- zz They are useful for tourists who find the regular public transport demand areas. system complicated and prefer the door-to-door convenience of Some of the important factors that would determine a choice among para-transit. the options are the following: zz They are an opportunity for gainful employment. zz Quality and coverage of the existing public transport system; UNDESIRABLE FEATURES zz Spatial patterns and layout of the city; zz In many cities, vehicles are driven by inadequately trained driv- zz Extent of tourist inflows; and ers, who tend to be undisciplined and cause undue congestion zz Income levels. and accidents. Apart from this problem, many drivers tend to drive long hours and their fatigue compromises safety. The three main instruments for implementing policies relating to para-transit are: zz They are often polluting, due to inadequate maintenance in an effort to reduce costs. zz The number of para-transit vehicles licensed to operate in any area—licensing a large number would create all the attendant zz Often people tend to prefer a taxi or other lower-cost para-transit problems associated with destructive competition, such a lower- options (like the auto-rickshaw in India) to public transport. In ing prices and compromising on safety, whereas permitting too such cases, para-transit tends to compete with public transport, few would enable the exercise of monopoly power, such as not complement it. charging an illegal premium or refusing passengers who wish to zz They are often the scene of criminal activity. There are several travel to certain destinations. instances of crime, especially against women using them late zz License conditions with regard to the vehicle maintenance stan- at night. Apart from this, there are cases of over-charging and dards, driver training standards, area of operation, and so on— misbehavior with vulnerable passengers. para-transit vehicles are sometimes not allowed in the city center on the grounds that public transit is available and the congestion caused by para-transit is less tolerable there. 62 FIGURE 21 ISSUES RELATING TO PARA-TRANSIT zz The fare structure—a low fare structure would make para-transit Figure 21 summarizes the policy issues relating to para-transit and the a competitor to public transport, whereas a high fare structure options that exist. would make it unaffordable as a service to fill the gap that public transport cannot. 63 64 NONMOTORIZED TRANSPORT BACKGROUND ISSUES FOR PUBLIC POLICY Nonmotorized transport (NMT) encompasses the most fundamental of transport options: walking, bicycles, tricycles, and other human- powered vehicles. NMT modes cause the least pollution, use the least road space, and consume the least amount of nonrenewable energy. NMT also directly relates to gender equity, as low-income women are particularly dependent on NMT options, and many women have daily schedules that are not adequately served by public trans- port services. Moreover, the viability of public transport systems is significantly enhanced by accessible NMT links to key origins and destinations. In fact, NMT accounts for a fairly large share of the trips in many cities around the world: it ranges from about 55 percent in Beijing to about 25 percent in Barcelona and Mexico City, to a low of about 4 percent in Chicago. Cities tend to become more livable when pedestrian friendly environments are put in place. Pedestrian only Photo: O.P. Agarwal shopping areas tend to have increased commerce. The question for policy makers, therefore, is whether to allow the Unfortunately, as urbanization takes place, cities have tended to current trends to continue or to arrest them—or to go even fur- enlarge their areas, and travel distances are growing. As a result, ther and try to reverse them. Obviously, there are costs to these there is an increasing shift from NMT to motorized modes. This is approaches, but the benefits in terms of reduced pollution and further reinforced by the fact that as income levels go up, people congestion, reduced energy use, and lower levels of road accident are able to afford motorized modes of travel. This shift is having an fatalities may outweigh them. adverse impact on congestion, local air quality, and GHG emissions. It also has important effects on overall health, as beneficial physical For policy makers, the trade-off between the needs of motor activity from active travel is replaced by more sedentary motorized vehicles and NMT becomes a bone of contention: How much of the travel. It is in this context that there is a need to prevent this decline available right of way should be allocated to NMT and to vehicles? in the share of non-motorized modes in the overall travel demand. Similarly, with limited budgets, the question becomes how much to spend on improving sidewalks and how much to spend on Part of the reason for the declining share of NMT has been the poor improving road surfaces. Both space and money are limited, and infrastructure for its use. In their enthusiasm to provide adequate the needs of one group cannot be met without compromises from right of way for the growing number of cars, many city managers the other. have compromised on the needs of pedestrians and other NMT users. 65 zz Income levels and affordability of motorized modes of travel— NMT is often the only option for the poor and so investments in NMT infrastructure cannot be compromised in low-income cities. zz Level of economic development—in developing economies, growing use of motor vehicles is inevitable to allow access to employment and education and to allow an efficient distribu- tion of goods. Hence, motor vehicle use cannot be completely constrained, because it would stifle growth. However, NMT infrastructure cannot be entirely ignored either, because it would have adverse impacts on the transport needs of the poor. A bal- ance needs to be struck. Photo: Sam Zimmerman zz Terrain—for example, in hilly terrains, walking infrastructure is INFLUENCING FACTORS extremely important, as it is often the most important mode of A choice among the options is influenced by the following: travel. Narrow streets may constrain the use of motorized modes. zz Current levels and trends in NMT use—if the current share of NMT use is high or if public policies seek to be very aggressive with regard to reversing the trend of increasing car use, then a higher INSTRUMENTS FOR share would be allocated to NMT. IMPLEMENTATION The most important instrument for implementation is the priority zz Nature of the city—compact cities would tend to focus more on accorded to investments in safe infrastructure for NMT: sidewalks and NMT than would cities that have been locked into land use pat- bicycle paths. In addition, instruments that discourage the use of terns that require greater car use. motorized modes serve to encourage NMT. Figure 22 summarizes the policy issues relating to NMT, the options that exist, and the factors that influence a choice. FIGURE 22 ISSUES RELATING TO NMT 66 PARKING BACKGROUND It is believed that for each car purchased by a resident, a city needs to provide more than two parking spaces for it: one at the owner’s residence, another at the owner’s workplace, and some more to cover parking needs at other places visited— shopping malls, enter- tainment centers, airports, and so forth. If this level of parking is not provided, then car users tend to take up space provided for other uses: sidewalks are often used as parking spaces, and narrow streets tend to get clogged with parked vehicles. Enforcing parking rules requires significant time and resources. Yet, as the number of cars grows, the lack of parking space becomes a serious problem for city Photo: O.P. Agarwal leaders. Providing parking takes land—extremely limited in a city— and money. Therefore, the key questions policy makers face are: zz How much parking space should be provided? INFLUENCING FACTORS There is a trade-off between how important it is to have parking zz Who should pay for it? (“essentiality”) and how much users can afford to pay (“affordabil- ity”). It is this trade-off that shapes policies with regard to how much OPTIONS parking to provide and how much to charge for it. In terms of the amount of parking to be provided, the options are: Essentiality is determined by several factors, such as: zz Provide enough to meet the demand; or zz The availability of alternatives to personal motor vehicles—in areas with poor public transport service, use of personal motor zz Limit parking as a means to curb the demand for personal motor vehicles becomes inevitable and so parking becomes essential. vehicles. zz The nature of users: In terms of who should pay for parking, the options are: zz Patients going to a hospital would find it difficult to use public zz A public agency should pay for it, meaning it is free for the user transport and would need some kind of door-to-door service, and paid for fully by the general taxpayer; typically a personal motor vehicle. zz Costs should be shared between the user and a public agency; or zz People going to a large mall for shopping will find it difficult to zz Costs should be fully paid for by the user. bring back their purchases on public transport. 67 TABLE 14 BASIS FOR CHOOSING BETWEEN POLICY OPTIONS High Affordability Low Affordability High Essentiality zz Adequate quantity zz Adequate quantity zz High price zz Low price Low Essentiality zz Limited quantity zz Limited quantity zz High price zz Low price zz Extent to which parking enables use of more sustainable sys- INSTRUMENTS FOR tems—parking at transit stations in fringe areas is an essential IMPLEMENTATION form of last mile connectivity. The three main policy instruments for implementing a parking policy In all such cases, parking is essential, and there would be a sound are: rationale to provide adequate parking. On the other hand, afford- 1. The number of parking spaces to be provided; ability determines how much can be charged for the parking. 2. The fee to be charged for use of the parking space; and The matrix presented in Table 14 could be a possible guide for choos- ing between the options: Figure 23 summarizes the key issues related to parking, the options that exist, and factors that go into influencing the choices. FIGURE 23 POLICY ISSUES RELATING TO PARKING 68 SUPPLY VERSUS DEMAND MANAGEMENT BACKGROUND More recently, some cities have adopted measures that seek to reduce the demand for travel. Fuel taxes have been increased, parking fees Two sets of strategies can be used to meet the travel demand: imposed, parking availability has been limited, and special fees have 1. Create adequate capacity in the transport system to meet the been imposed on cars entering the core parts of a city. Similarly, high demand (supply management); and vehicle-registration fees and the need to buy expensive certificates even to be eligible to buy a personal motor vehicle have sought to 2. Reduce the demand to levels that the available capacity can restrain even the ownership of vehicles. accommodate (demand management). The main concern for policy makers is the demand for motorized Most cities have tended to increase capacity. New roads have been travel, and so demand-management efforts are primarily aimed at built, and existing roads have been widened. Flyovers and mass reducing this. Thus, measures that allow the same travel demand to transit systems have been constructed. Buses have been added to be met but with fewer motorized vehicles (say, when people shift the public transport fleet, and many more para-transit vehicles from personal motor vehicles to public transport) are a powerful have been licensed to operate. These are all supply-management form of demand management. Similarly, carpooling is also a form of measures. demand management. Figure 24 presents some demand-manage- ment strategies. FIGURE 24 STRATEGIES FOR REDUCING TRAVEL DEMAND 69 POLICY ISSUES AND OPTIONS An important issue for urban transport policy is how to balance sup- ply management with demand management. Possible options are to focus on: zz Supply-side measures only; zz Demand-side measures only; or zz A combination of supply-side measures and demand-side measures. The obvious choice is a combination of measures, but how much of each side is a question policy makers must address. A key determinant seems to be the level of urbanization. At early stages of urbanization, cities need to build capacity, as the popula- tion is expected to grow many times over. Therefore, supply-side measures ensure a basic level of infrastructure capacity. The key demand-side measure at this stage of development will be in spatial planning that emphasizes a compact city and mixed land use, which will go a long way to ensure sustainable mobility at later stages in the city’s growth. However, as urbanization continues and reaches a higher level of maturity, there will be a case to slow down the supply-side measures and use demand-side measures that seek to more actively reduce the number of motorized trips. It is expected that supply-side measures, would, by this stage, have added adequate capacity and demand-side measures should work toward a more optimal use of this capacity. 70 ALTERNATIVE FUELS category of renewable fuels; electricity, natural gas, biomethane, BACKGROUND biofuels, and fuel cells are among them. The most common fuels used in urban transport systems are nonre- Table 15 sets forth the advantages and disadvantages of some of newable, petroleum-based fuels: gasoline and diesel. Lately, several these fuels. cleaner alternatives have emerged. Some of them also fall into the TABLE 15 ADVANTAGES AND DISADVANTAGES OF VARIOUS ALTERNATIVE FUELS AND VEHICLE TECH- NOLOGIES Advantages Disadvantages Electric zz No tailpipe emissions zz Battery-related challenges, such as driving range, recharge time, zz Less noise and vibration cost, bulk, and weight zz Stronger acceleration zz May increase GHG emissions, depending on the source of elec- zz Less energy loss tricity generation (e.g., coal) zz zz Reduced safety of pedestrians due to lack of audibility zz Need for battery charging infrastructure Natural gas in com- zz Supports energy diversification and there- zz Requires new infrastructure pressed or liquefied fore fuel security zz Limited supply in some regions forms (CNG/LNG) zz Less air pollutants zz Safety concerns zz Lower fuel/running costs zz Higher vehicle purchase costs zz Possible increase in GHGs due to leakage of methane Biomethane zz Converts and reduces what is otherwise zz Requires high level of cross-sector coordination (among agricul- waste ture, urban waste management, water and sanitation, transport, zz Less air pollutants (similar to CNG) and energy) zz Offsets vehicle emissions and release of methane from waste zz Creates local jobs Biofuels zz Readily usable in existing engines zz Possible competition with food production zz Reduced air pollutants zz Can add to GHGs, depending on source zz Can reduce GHGs, depending on source zz Increased energy security 71 Some of the influencing factors are: zz Is there a fuel that is available in plentiful supply within the country? Would there be strategic advantages in using an alternative fuel even if the costs are higher now? For example, a plentiful supply of electricity, especially hydroelectric power, may persuade a preference for electric vehicles (as is the case in Georgia). Similarly, abundant supply of the metals used in the production of electric batteries may be a good reason to encour- age greater use of electrically powered vehicles (in China, for Photo: Alan Trotter example). zz Are there strong environmental sensitivities that require lower- ing of pollution levels, especially in some pockets? For example, POLICY ISSUES there is a high degree of sensitivity to increased sulfur content Unfortunately, the cost of using these alternative fuels tends to be in the atmosphere near the Taj Mahal in India, which is causing high. The question before policy makers is how to balance the ben- a yellowing of the world famous monument’s white marble. efits of these alternative fuels with these increased costs. Often there Therefore, the use of electric vehicles is being required in the can be positive impacts on one front but negative impacts on others. building’s vicinity (see Box 5). For example, fuel cells are a clean source of energy and a renew- zz Have pollution levels become acute, and is there a need to able source; however, the use of fuel cell buses can be extremely reduce them even at a very high cost? For example, extremely expensive and the high cost may lead to operating entities being poor air quality in Delhi, India, persuaded the government to unable to provide an adequate number of buses. This would reduce mandate the use of CNG in all public transport vehicles within the the availability of public transport, making it a counter-productive city. initiative. Thus, trade-offs need to be considered by policy makers in determining the extent to which alternative fuels secure benefits. zz Would temporary subsidies allow for costs to come down, with commercial manufacture becoming possible? For example, temporary subsidies on electric batteries may encourage greater INSTRUMENTS FOR use and create demand for manufacture on a commercial scale, IMPLEMENTATION which will bring down costs. The policy options seem to be the following: zz Is there an adequate distribution network for the fuel in the city? If so, then it is a viable option. But if a distribution network does zz Business as usual, with no specific actions to promote alternative not exist, then investments must first be made to create such a fuels; network. The costs of these investments will have to be taken zz Promote them only in pockets where conventional fuels can into account by public policy. cause unacceptable damage (see Box 5); zz Does the use of a certain alternative fuel have benefits in a zz Offer temporary subsidies that help alternative fuels to be pro- more optimal use of some resource? For example, availability duced to commercial scale and to compete with traditional fuels; of substantial off-peak power may make a case for greater use or of electric vehicles if charging during off-peak periods can be incentivized via lower prices for off-peak power. zz Aggressively promote alternative fuels even at a high cost. 72 zz Are there strong security concerns that necessitate use of fuels that clarify the fuel economy of the vehicle, CO2 emissions, and, that can be obtained from alternative sources? For example, a importantly, the estimated running costs of the car. country with strong concerns about the volatility of oil supplies Leadership through public procurement - Develop procurement and prices may be willing to invest in ensuring a stable supply of guidelines for public fleets alternatives. Governments directly purchase, or directly influence the purchase of, Some of implementation instruments are given below: vehicles for public use, including municipal buses, trucks for waste Fiscal incentives - Provide tax incentives for cleaner vehicles and disposal, taxis, and official cars. By developing guidelines on the fuels types of vehicles that can be purchased for such purposes, govern- ments can take a leading role in bringing relatively new technologies Taxation structures that lower the cost of the preferred fuel can be a to market. powerful incentive for its use. In particular, this is very useful when a new fuel is to be given preference and needs to compete against an Reducing cost differentials - Promote research and development established fuel. To allow such effective competition, reduced prices Governments can also provide grants or other in-kind support for through tax policies will go a long way to enable production on a research and development in critical areas. For example, the cost and commercial scale and to establish the requisite distribution network. technical performance of batteries is currently a large barrier to the Stringent regulation - Enact vehicle standards uptake of electric vehicles. Public research can support breakthroughs in such fields. Over the past few decades, standards on vehicle performance— including those on fuel economy, air pollutants, and safety—have Reducing infrastructure gaps for new technology - Develop driven advancements in the vehicle industry. An example is the harmonized standards for new infrastructure CAFE standards in California, which have drastically improved fuel With new technologies and fuels comes the need for modifications economy of cars sold in the state. Standards on air pollutants, such as to or construction of new infrastructure. For example, electric cars the EURO standards, have drastically reduced the level of air pollut- require charging stations at workplaces, homes, and public places. ants, including nitrogen oxides, hydrocarbon, carbon monoxide, and To ensure interoperability across different service providers, manu- particulate matter. facturers, and regions, governments in association with industry can User sensitization - Provide consumer information and labeling develop technical standards or guidelines to mitigate duplication and inconsistencies. Governments can also enact legislation to make it mandatory for vehicle manufacturers to provide information on the fuel efficiency of Figure 25 summarizes the policy issues relating to alternative fuels, the vehicle; this way, consumers can make an informed choice at the the options that exist, and the influencing factors. point of purchase. This information can come in the form of labels 73 FIGURE 25 POLICY ISSUES RELATING TO ALTERNATIVE FUELS Box 5: Use of Electric Vehicles near the Taj Mahal The Taj Mahal, one of the seven wonders of the modern world, is in danger of being damaged by air and water pollution. Agra, India, where the monument stands, has been heavily polluted by industries and traffic over the past decades: illegal factories have sprung up around the Taj Mahal, more vehicles visit the area, and construction around the monument is uncontrolled. At the end of the past century, the government of India real- ized the growing problem and started a program to save the monument’s shiny white marble façade from turning yellow. To help control pollution, the Indian government has set up the Taj Trapezium Zone (TTZ), a 10,400-square-kilometer (4,000-square-mile) area around the monument where strict emissions standards are in place. Pollution stations around Photo: Jaymis Loveday Agra monitor air quality around the clock. Car traffic has been banned within 2 kilometers of the Taj Mahal. Electric and battery-driven cars and buses take tourists to the site. Source: http://www.english-online.at/news-articles/environment/pollution-endangers-taj-mahal.htm. 74 FINANCING With regard to financing needs, there are also two types: BACKGROUND 1. Capital expenses—one-time expenses needed to either build Urban transport requires significant investments. While costs vary something or get it started. These are typically lump sums that significantly from project to project, as indicative numbers, building sustain for several years. Examples would be the cost of building a metro rail system could cost around $100 million per km, and BRT a road or a flyover, the cost of constructing a metro or BRT system, systems could cost around $5-10 million per km. Buses alone could or buying buses for public transport services. cost from $100,000 to 200,000 depending upon their specifications. In addition, there are operating costs that depend on the price of fuel 2. Operating expenses—recurring annual expenses and needed and the wage rate in the city. to keep the facilities operating and in a state of good repair. Examples are the cost of maintaining roads or the cost of operat- A recent study by the High Power Expert Committee in India has ing a metro or bus system. projected the investment needs for urban transport in the country at $400 billion over the next 20 years. In China, estimates indicate Here it would be good to distinguish between “users” and “benefi- that $5.3 trillion needs to be spent in the next 10 years on urban ciaries.” Users are those who use a service; beneficiaries are those infrastructure, a sizable portion of which will have to be on transport who benefit from a service even if they do not use it. For example, infrastructure. Other developing countries also have large needs. a passenger using a metro rail system is a user; however, a person In addition, there are needs for maintaining the infrastructure and who owns commercial property close to a metro system could be a operating the services. These large amounts cannot be sustained beneficiary, even without using the system, because the value of the entirely through prices or even the current public budget. Therefore, property would go up significantly because of its closeness to the in this section we look at policy issues related to the financing of metro rail system. Similarly, a bus passenger is a user of the bus ser- urban transport infrastructure and services. vice, but a car user benefits when others use the bus and thus relieve congestion on the roads. At the outset, the types of facilities and services required for urban transport can be classified into: Some benefits accrue only to those located close to the system; others accrue to those spread across the city, region, country, or world. For 1. Those that are not generally paid for by the users—for example, example, reduced congestion may be beneficial to only the residents use of sidewalks and pedestrian underbridges are usually not in the city; however, reducing GHG emissions benefits people all over paid for; similarly, in most cases, even the use of city roads is the world. Improved air quality would benefit residents of the city free. Typically, these are public goods, and it is difficult to stop as well as surrounding areas, but not across all countries. Improved anyone from using them. mobility would enhance economic efficiency of the city and thereby 2. Those that are normally paid for by the users—for example, the could secure benefits even at the national level. use of parking facilities and public transport systems, even if the full costs are not recovered from such charges. 75 POLICY ISSUES institution or the public has paid for these investments. At times, even the private sector contributes by way of equity for some of the capital A key question that arises in public policy is who should pay for the investments; however, these are investments made in the expectation investments/expenses of urban transport. Three primary options exist: of a return and do not mean that the private sector has paid the cost. zz Only the users of the system; The ultimate test of who pays is determined by who repays the debt or who provides the revenues for the returns on equity. If debt repay- zz All beneficiaries of the system; or ment or equity returns come from the fares collected, then the user has zz Shared cost between the users and the beneficiaries. financed the system; if it comes from out of the public budget, then those who contribute to the public budget have financed the system. Typically, if the cost is to be paid entirely by the user, then it happens in the form of a user fee or fare. If it is paid by beneficiaries, then it is usually done via taxes (general or dedicated) collected from such beneficiaries and paid through the public budget. Again, the public ADDITIONAL SOURCES OF REVENUE Existing public budgets are usually committed. So how can the public budget could be the budget of the city or the budget of a larger juris- budget find additional resources to meet the costs of urban transport diction, such as the provincial budget or the national budget, or even facilities and services? Are there possible sources of revenue beyond the budgets of several countries. the fares and fees currently being charged and beyond the general tax revenues already being collected? INFLUENCING FACTORS The options seem to be: Affordability and extent of public value are the two main factors that zz Enhancing the existing user fares and charges; determine who should pay for urban transport. Although fairness and equity would require that many of these costs be paid by ben- zz Enhancing the existing general taxes; eficiaries and not just users, practical difficulties in identifying users zz Levying a specific charge on nonuser beneficiaries of transport and the complications of determining the extent of benefit often systems; and make it difficult to have beneficiaries pay the entire cost. Besides, in some cases, such as the use of sidewalks, it will be difficult to prevent zz Raising funds from the commercial exploitation of property used use by someone who does not pay and so levying a user fee may in transport systems. be difficult. In such cases, there may be no option but to cover costs Factors that influence a choice would be: through general taxes. zz Feasibility of levying a user fee for services not being charged for Situations differ considerably from context to context, so it is difficult at present – in some cases it may not be possible to levy a user to offer a one-size-fits-all model of who should pay. Table 16 shows fee as it may be difficult to collect the fee (collecting tolls within a some examples of transport-related costs, who should pay for them, city) or it may be difficult to prevent access to someone who does and how these payments can be realized. It also gives a brief ratio- not pay (for example the use of sidewalks within a city); nale for this suggestion. This table should not be treated as a manual that can be applied in all situations; it is only a guide to the basic zz Whether there is enough public value to continue funding from principles in deciding who should pay the costs involved. the public budget – for example good public transport helps to reduce congestion and improve air quality that benefits all city In this context, it needs to be recognized that for many investments, residents; the full payments do not come directly from the public budget. Often, the public sector borrows funds from financial institutions (loans) or zz Whether users can afford to pay a higher price – this brings in the even from the public (bonds), but this does not mean that the financial question of affordability; 76 zz Whether a higher price will lead to a shift toward unsustainable zz Possibility of commercial ventures using the assets of the modes (for example, increasing public transport fares makes transport systems that could generate additional revenues, for motorbike use more attractive); example using the air rights on metro terminals to build com- mercial space that can be leased out to earn revenues. zz Whether there are nonuser beneficiaries of the investments; Table 17 presents some options for raising additional revenues, the zz Whether nonuser beneficiaries can be clearly identified and contexts in which they can be used and also some examples of cities made to share the cost of the investments; and where they are being used. TABLE 16 EXAMPLES OF WHO SHOULD PAY FOR A SAMPLE OF TRANSPORT RELATED COSTS Item of Cost Who should pay Mechanism for realizing the Rationale payment Parking in core city areas User Parking fees zz Typically used by those who can afford it zz Public transport is available, but they still prefer personal vehicles Parking in fringe areas User + City residents Parking fee + Subsidy from the city zz Typically used by those who can afford it zz Typically public transport is not available City roads and sidewalks in Personal vehicle users Road user fee for personal vehicle users zz Used by all and difficult to charge a user fee from all core city areas + City residents + Subsidy from the city zz Typically public transport is available, and personal vehicles should be discouraged City roads and sidewalks City residents Subsidy from the city zz Used by all and difficult to charge a user fee from all outside core city areas zz Typically public transport is not available Cost of public transport User + Personal Fares + Subsidies from fuel taxes, con- Users benefit directly, but personal motor vehicle users also motor vehicle users gestion charges, and land value capture benefit from reduced congestion. Property owners benefit + Property owners in from increased property prices and employers benefit due to the vicinity + Local easier access for their employees employers Cost of clean vehicles for All city and regional Subsidies from the city, regional, and Benefits of cleaner air accrue throughout the region public transport residents national government Cost of clean technology for User + All city and User pays a discounted cost price, with Benefits accrue to user as well as to all residents of the region personal motor vehicles regional residents discount covered by subsidies from the city, regional, and national government Losses due to concessions All city residents A discounted user fare is paid by the It is a social responsibility for all city residents for the elderly, the physi- traveler, with the loss on account of cally handicapped, and the discount coming from subsidies by students the city Cost of special bus/metro User User fares Users are typically those who can afford it and also benefit services to the airport from the convenience of these services; if a shift to public transport is required, then a lower fee with a subsidy from the city is justified Cost of school buses User + All city resi- A monthly fee on users + Subsidies from Users benefit, but all city residents benefit from better access dents the city government to education Cost of special services for User + All city resi- A monthly fee on users + Subsidies from Users benefit, but all city residents have a social responsibility women dents the city government toward safer travel for women Cost of services in low- User + All city resi- A monthly fee on users + Subsidies from Users benefit, but all city residents have a social responsibility demand areas and off- dents the city government toward ensuring access for all peak hours 77 TABLE 17 SOME POSSIBLE OPTIONS FOR RAISING ADDITIONAL REVENUE Possible source for Explanation Contexts in which they can be used Examples of use additional revenue Increase in fares and user The charges of specific services If there are increases in input costs, such as Fuel price increase leading charges are increased. fuel price, wage rate, etc. to fare increase is a common practice all over the world Congestion charging/ Use of roads in the core part of Generally possible if a good alternative is in London and Singapore levy road user fee the city requires a fee to be paid. place, such as a mass transit system. Also, it a congestion charge in the should be possible to clearly delineate the area central parts of the city to be covered by such a fee and have all access points covered by collection/charging facilities. High parking fee Parking fees are levied at a high Can be used in all situations, though are good Most cities levy a parking fee rate, especially in core city areas. to use for areas where alternative modes of in core city areas. Washington, travel are available. DC, charges $10–$12 a day. Betterment levy/ land A higher tax is levied on proper- Can be used if it is possible to clearly delineate Colombia value capture ties that benefit from mass the areas that benefit from the investment transit investments. and also assess, in a fair manner, the extent to which each unit of property benefits Employment tax Levy a tax on employers who Can be used in any situation where mass France benefit from improved access for transit systems are operational and used by their employees. employees. Commercial exploitation Property in prime areas is devel- Land should be available to the public agency Hong Kong, Singapore, Delhi, of land oped and used for sale or rental at prime locations and it has the resources to and several other cities income. invest in new development on this land. Certificate of entitlement The right to buy a car is sold Can be used if a policy to strongly restrain car Singapore through auctions, which raises ownership is adopted, resources. Increase vehicle registra- Fees charged for the initial regis- Can be used if a policy to strongly restrain car Singapore tion fee tration of vehicles is increased. ownership is adopted, Generally, additional or new taxes would be used when it is difficult country, or the world could be asked to pay for this. However, the to identify a clear set of beneficiaries. However, if the beneficiaries benefits of enhanced property value accrue only to those who own can be clearly identified, then a dedicated fee on such beneficiaries property around the transport systems, and so a dedicated charge on would be more appropriate. For example, benefits of improved air them would be more equitable. quality are secured by all and so all the residents of the city, region, 78 ROLE OF THE PRIVATE SECTOR It is true that, compared with the public sector, the private sec- BACKGROUND tor tends to be more efficient in managing commercial operations. Transport services in cities around the world are provided by both Long-term maintenance contracts for urban roads with the private the public sector and the private sector. Typically, services that can sector enable a better optimization between maintenance costs and be provided in a competitive market are chargeable and profitable, resource availability. Similarly, contracting the private sector in bus making them attractive to the private sector; those that are not prof- operations helps secure more cost-efficient operations. The private itable will not attract the private sector. Those that are monopolistic sector also does a better job in providing facilities that are com- may be preferred in the public sector; those that are not chargeable mercially attractive, such as parking facilities and public transport will need to be provided by the public sector. As examples, public terminals. transport services in the United States, China, Russia, and several But there are situations where use of the private sector may not be other countries are provided by state-owned entities, whereas in desirable. In particular, an unregulated private sector could conflict much of Africa and Latin America, and in the Philippines, they are with public good. For example, providing bus services in a competi- provided by a large number of private operators. Most other countries tive market has led to dangerous driving practices to capture the mar- have a mix of public entities and private operators providing these ket. This has led to severe compromises on safety. Furthermore, it has services. Similarly, several parking facilities are provided by the left some parts of the city overserved and some parts underserved, private sector; the city government provides others. Para-transit depending on the relative profitability of different routes. This services, like taxi services, are mostly provided by the private sector. imbalance leads to an inefficient public transport network, which is Roads and sidewalks are mostly provided by public agencies. not a desirable situation. On the contrary, there are situations when It is possible to get the private sector to provide services that are unviable services could be made viable by the public sector offering generally the responsibility of the public sector through arrangements some subsidies or some form of partial payment to help reduce costs. where the private sector is compensated for losses or offered funds for This can entice the private sector to providing services that may not providing the service. otherwise be attractive to them. There are two major reasons the private sector is sought for such The private sector is in a position to bring in additional financial services: resources, but the cost of capital for the private sector tends to be higher than that for the public sector. This is because the public sec- 1. It can bring in performance efficiencies that help reduce the cost tor is considered by lenders to be the least risky and therefore secures of operations and yet offer similar or better services; and the lowest interest rates. A more compelling alternative need for 2. It can bring in financial resources that the public budgets may public resources may, however, justify greater use of private resources not be able to provide. for urban transport. 79 Photo: World Bank INSTRUMENTS FOR The available options are: IMPLEMENTATION zz Services are provided entirely by the public sector through assets Given the above information, an important issue that arises in pro- it owns entirely; viding transport services in cities is the role that the private sector can zz The public sector builds and owns the capital assets, but the play. More specifically, the kinds of questions that come up are: private sector is contracted to operate the services; zz Can the private sector be entrusted with services that are of a zz Services are provided through public–private partnerships, where monopoly nature, or should such services be provided only by a the capital as well as the operating costs are shared between the public operator? two entities; and zz Will competition be desirable and cost effective in all cases? zz The private sector is allowed to provide all the services with only zz Should the private sector be involved only in operating services limited regulation. (because they tend to be more efficient than the public sector in managing commercial functions), or should they also be involved in making capital investments (because the public budget has limited funds)? 80 INFLUENCING FACTORS right incentives and environment for the private sector to come into the market. Some basic facts need to be kept in mind when making a choice: zz Historical factors. Often, historical factors play a role in determin- zz The private sector is interested in profits and not in public value ing private sector involvement. There are situations when the (which is the domain of the government). services were started by the private sector, but for various reasons zz Often, public value and profit are conflicting objectives. For the public sector stepped in to fill a gap and then stayed. In other example, the private sector will not be interested in low-demand cases, the public sector started a service but, due to its poor per- routes for bus services, because they do not get a profit, but the formance and accumulated losses, the private sector was brought government has a responsibility to provide public transport ser- in to correct the situation. vices for all residents. It is important to resolve these conflicts. Given the above considerations, the options and factors that could zz Financial institutions usually consider the government (or the be taken into account when determining the private sector’s role are public sector) as the “least risky” borrower and so interest rates shown in Table 18. tend to be the lowest for the government; therefore, the cost of Speaking more broadly, there is a trade-off between the public value capital is lower for the government. of a service and the level of return it can offer to an investor. High zz Private monopolies may be worse than public monopolies. public value and low returns would be a case for public provision, whereas good returns and limited public value would be a case for zz Regulation often needs a very high degree of competence, and it services to be in the private sector. High public value and high returns is not easy to find people with such competence. would suggest that public–private partnerships are best. Table 19 zz Regulatory capture is a problem, especially when the stakes for offers a quick guide to deciding where the private sector could be the regulated entity are high. How does one ensure that a regu- more useful. lator is truly fair and neutral? In short, a private provider would be useful if: While there are several examples of equally successful public and zz There is good reason to believe it can deliver a comparable or a private operations, a choice between them is often made on broader better service at a lower or a comparable cost; policy considerations, such as: zz A competitive procurement process can be carried out to ensure zz The political and economic ideology followed in the country. the terms being offered by the private sector are fair; and In some countries, the political and economic ideology favors a larger role for the public sector in providing basic services, and so zz The public agency has the capability to supervise the private the first attempts are for the public sector to take on this respon- provider to make sure it is adhering to its commitments. sibility. In other countries, there is a more favorable climate for Figure 26 summarizes the policy issues related to the role of the the private sector, and so the attempts are to look at creating the private sector. 81 TABLE 18 OPTIONS AND FACTORS Option Factors / Situation / Scenario Possible example Completely in the public sector zz Very high public value zz Metro rail system zz Low profitability or large operational losses zz High degree of monopoly power zz High investments and very long gestation period zz Very complex regulation Capital investment by the zz High public value zz Management contracts for light public sector but operations zz Possibility of profit from operations but not on capital investment rapid transit/bus rapid transit (LRT by the private sector (man- zz Potential of competition “for” the market / BRT) operations agement contract / service zz Somewhat complex regulation contract) Capital investment and opera- zz High public value zz Parking facilities, terminals, some tions by the private sector, but zz Possibility of returns on capital investments LRT systems for a limited period zz Simpler regulation zz Some competition exists Completely in the private sec- zz High public value zz Citywide bus services tor, but with tight regulation zz Potential for abuse of monopoly power (regulation of routes, sched- zz Affordability is a concern ules, fares, level of service, zz Existence of potentially profitable and potentially non-profitable safety, emissions, etc.) submarkets zz Limited competition zz Some economies of scale zz Good possibility of profits zz Simple regulation Completely in the private zz Reasonable public value zz Parking facilities sector, but with medium zz Some potential for abuse of monopoly power regulation (regulation of fares/ zz Bus operations in some areas zz Affordability is a concern fees and safety) zz Reasonable competition is available zz No economies of scale zz Good possibility of profits zz Simple regulation Completely in the private sec- zz Limited public value zz Parking facilities in core areas tor, with very light regulation zz Limited potential for abuse of monopoly power only (regulation of safety) zz Adequate competition zz No economies of scale zz Competition would not have negative externalities (such as over- supply leading to congestion or unsafe practices) zz Good possibility of profits zz Simple regulation 82 TABLE 19 BASIC PRINCIPLE FOR DECIDING INVESTMENTS High return Low return High public value Public–private partnership Public investment Low public value Private investment FIGURE 26 ROLE OF THE PRIVATE SECTOR 83 84 PROCESS AND IMPLEMENTATION Experts cannot always draft documents in nontechnical language BACKGROUND and keep it devoid of jargon. Good editing can address this problem. Any policy, once formulated, needs to be acceptable to all stake- It is important to ensure, at the drafting stage itself, that the policy holders if is to be successfully implemented. Sensible participatory choices are practical and “doable.” A mere wish list serves no useful practices and processes during its formulation and implementation purpose. For example, a policy that every city of more than 0.5 mil- can ensure such stakeholder buy-in. In this section, we examine the lion residents would have a metro rail system—without a statement two relevant phases: formulation and implementation. of where the financing would come from or how the required labor to manage such systems would get developed—would make little FORMULATION sense. Similarly, a policy that personal motor vehicle users would be charged a congestion fee for use of the city center would meet stiff The formulation phase can be divided into three broad stages: resistance unless adequate public transport systems were provided as zz Drafting; acceptable alternatives. As another example, a policy that every city would prepare a comprehensive land use and transport plan would zz Consultation; and not be doable unless adequate technical personnel are groomed and zz Refinement equipped to undertake such a task. DRAFTING CONSULTATION Typically, once a decision is made to develop an urban transport pol- A good consultation process is essential in order to: (1) obtain com- icy, an initial draft is prepared by an individual expert, a committee ments and suggestions to improve the draft and make it more appli- of experts, or an organization. It is important to keep in mind that cable; (2) explain why certain choices have been made and thereby this sort of policy document is a public document and not one that is secure greater acceptance; and (3) secure some important champions. limited for use within the professional or academic community; any Typically, comments are first invited through public notice. A chal- city resident should be able to read, understand, comment on, and lenge lies in ensuring that there is an adequate response but that appreciate it. This alone will help secure wider acceptance and allow frivolous responses do not mire the process. To ensure an adequate successful implementation. Therefore, the nature of the language response, it may be necessary to repeat the call multiple times. It used is very important. It must be simple and devoid of technical jar- will also be useful to send requests for review to some influential gon. It should also not be very lengthy. Few have the time to read a individuals; securing their support becomes very useful. Including long document. Therefore, brevity and clarity are critical. Enhance its a provision for rewarding good suggestions is also helpful, because readability by including simple charts, graphs, and pictures— rather it gets a better response and also secures champions. Encouraging than just tedious text—to make it appealing. a public debate and allowing a reasonable time for it helps to get greater acceptability for the policy. In some cases, getting back to 85 responders with questions helps convey a message that their sugges- the most powerful, but it runs the risk of a long drawn-out legisla- tions have been taken into account. This goes a long way to winning tive process, both in its first promulgation and in any changes that their support. become necessary later. A policy document with financial incentives could be equally powerful in and less cumbersome, though it will A second stage of the consultation process could be to have multiple not be able to penalize noncompliance or enforce implementation workshops and seminars with key stakeholders, as another opportu- of the policy. A policy document, without a statement of available nity to explain the rationale for certain choices and to win support. incentives, may not attract immediate interest in implementation, Feedback received during this process can be very useful and practi- but is a good way of conveying government’s preference in the cal. longer term. It could slowly gain acceptability, but it will be unable REFINEMENT to ensure compliance. A choice between the above options will depend on the specifics of Once this consultation process is over, the suggestions, concerns, and each situation. If the current problems are acute and urgent mitiga- feedback need to be reviewed with an open mind and the initial, or tion essential, then legislation or financial incentives are crucial. If a second, draft refined to a final document. the problems are foreseen for the future and the objective is only to set the right direction, then a policy statement could meet the objec- IMPLEMENTATION tives. At times, a policy document could even be the first step to sub- sequent legislation. Such a two-step process helps to test the waters Once the final policy has been agreed upon, ensuring its effective and win greater support before embarking on a more stringent legal implementation requires three aspects to be addressed: document and the more cumbersome enactment process. zz Form that the policy takes INSTITUTIONAL OVERSIGHT zz Institutional oversight, and The institutional mechanism to oversee the implementation of the zz Capacity Building policy is important. Otherwise, it runs the risk of just remaining a FORM THAT THE POLICY TAKES paper document with no agency responsible to make sure that it is implemented. In the United States, the Federal Transit Administration The form that a policy document takes determines its effectiveness. under the Department of Transportation administers the provisions Several options exist: of the Urban Mass Transportation Act by way of channeling federal funds in accordance with the act. In India, the Ministry of Urban zz Formal legislation or decree—such as the U.S. Urban Mass Trans- Development administers the National Urban Transport Policy by portation Act; offering financial incentives under a national urban infrastructure zz A non-legal policy document that specifies incentives for imple- improvement program known as the Jawaharlal Nehru National mentation or for abiding by the policy—such as the National Urban Renewal Mission. Urban Transport Policy of India (2006); and CAPACITY BUILDING zz A non-legal policy document or a white paper, with no state- ment of incentives but with a statement of the government’s If a policy is to be implemented effectively, it is essential to ensure intent—such the “China State Council Document #46 (2005)” or that there is adequate capacity to do so. Manpower needs to be the “New Deal for Transport (2000)” in the United Kingdom. properly trained and equipped to deal with the tasks. Arrangements are also needed to ensure a continuous stream of manpower through A choice depends on the degree of importance the government well designed educational programs. intends to give the policy implementation. Legislation is certainly 86 Capacity building is not limited to manpower training and skill devel- and would be a useful exercise before upscaling or replication at mul- opment alone, but also encompasses financial resources and decision tiple locations. It helps to make sure that mistakes are not repeated. support systems that are required. For example, the lack of a good Finally, it needs to be recognized that a good policy is one that is well database is often a barrier to effective monitoring and oversight. This implemented, not just well written. Therefore, ensuring good imple- needs to be created as part of the capacity building effort. Pilot projects mentation through appropriate institutional mechanisms is extremely help get a better understanding of the challenges in implementation important. REFERENCES 1. Angel, Shlomo. 2011. Making Room for a Planet of Cities. Lincoln Institute of Land Policy. 2. Bertaud, Alain. 2003. Order Without Design 3. China State Council. 2005. Decree # 46. 4. Downs, A., 2004. Why Traffic Congestion is here to Stay – and will get Worse. Access # 25, Fall 2004. 5. Dutzik, Tony, 2013. A New Direction – Our Changing Relationship with Driving and the Implications for America’s Future, U.S. PIRG Education Fund and Frontier Group. Spring 2013 6. Govt. of India, Ministry of Urban Development, 2006. “National Urban Transport Policy”. 7. Govt. of UK, Department of Environment, Transport and Regions, 2000. “A New Deal for Transport”. http://webarchive.nationalarchives.gov. uk/+/http:/www.dft.gov.uk/about/strategy/whitepapers/previous/anewdealfortransportbetterfo5695 8. Newman, P.W.G. and Kenworthy, J.R. 1989. Cities and Automobile Dependence: An International Sourcebook. Aldershot, UK: Gower 9. The Economist, 2014. Driving to an Early Grave. January 25 edition, 2014 10. World Bank, 2013. Institutional Labyrinth: Designing a Way out for Improving Urban Transport Services. 11. World Health Organization. 2013. Global Status Report on Road Safety. 87