ABSTRACT
This chapter considers the types and extent of public transport subsidisation, with particular reference to England although international comparisons made throughout. The effectiveness of public transport subsidisation will then be assessed using a variety of approaches. Another argument for public transport subsidy stems from user economies of scale known as the Mohring effect. As more people use public transport, more services will be provided. In extremis, some public transport facilities may have an existence value, particularly heritage and/or scenic services such as San Francisco's cable cars or the Settle and Carlisle railway. England provides an illustration of the different types of public transport subsidies and the difficulties in calculating the extent of such subsidisation which has been exacerbated by changes in governance structures related to devolution. From a TDM perspective the effectiveness of public transport subsidy largely stems from the extent to which it leads to reductions in car use.
