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Price and subsidy policies for urban public transport and water utilities in transition economies (English)

This paper addresses price and subsidy policies for urban public transport and water utilities in transition economies of Europe and Central Asia. The subject of this paper is the three-way interaction among the suppliers (service companies), governments, and customers (primarily individuals and households) of urban public transport and water/sewerage services in transition countries. The focus is on the realm of prices, subsidies and revenues, seen mainly through the prism of World Bank assistance programs. The paper starts with a brief section on the impact of transition processes on the economy, as a background to a section on initial conditions in water and public transport utility companies, as found at the diagnostic stage of Bank assistance efforts to these utilities. The approaches used in the current portfolio of such projects are then summarized, to provide the framework within which price and subsidy reforms were undertaken. Specific approaches to price and subsidy reforms are reviewed, as is the relevant implementation experience. The last two sections discuss the sources of resistance to change and reform, and present a proposed approach to the development of assistance strategies for the future.

Details

  • Author

    Mitric, Slobodan

  • Document Date

    1999/03/31

  • Document Type

    Working Paper (Numbered Series)

  • Report Number

    19884

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Europe and Central Asia,

  • Region

    Europe and Central Asia,

  • Disclosure Date

    2010/07/01

  • Doc Name

    Price and subsidy policies for urban public transport and water utilities in transition economies

  • Keywords

    urban public transport;gross national product per capita;real per capita income;privatization of service provision;price elasticity of demand;service company;cost of supply;public transport company;price structure;purchasing power parity;public transport sector;return on asset;average household income;public transport usage;public transport service;urban transport company;transition economy;Transition economies;water company;cost of provision;public transport agency;urban water service;future bank;internationally accepted accounting;maintenance and repair;alternative service provider;forms of ownership;unit of output;division of labor;Check and Balances;Local Government Finance;water and electricity;public transport passenger;aggregate income data;water and sewage;private sector entry;cost recovery ratio;private sector operator;point of production;local government reform;general price level;quantity of water;asset replacement cost;public transport operator;investment and development;public transport market;urban water sector;social assistance program;local government expenditure;frequency of travel;removal of barrier;ownership of land;water and sewerage;investments in infrastructure;management of service;resistance to change;liberalization of prices;increase in inequality;terms of trade;impact on price;urban utilities;utility company;

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Citation

Mitric, Slobodan

Price and subsidy policies for urban public transport and water utilities in transition economies (English). ECSIN Europe and Central Asia Infrastructure Unit working paper ; no. 5 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/161171468771622485/Price-and-subsidy-policies-for-urban-public-transport-and-water-utilities-in-transition-economies