ABSTRACT
The different ways and forms in which subsidy can be paid to the operators of transport
services.
Subsidy plays a vital role in the operation of transport markets, possibly more so than in any other industry. This is because transport markets are made up of a combination of market forces and the actions of transport planning authorities, with subsidy playing the pivotal role in reconciling these two ‘forces’ in the actual market place. An understanding of the uses of subsidy in transport industries, and perhaps more importantly the issues that surround the payment of it, is therefore vital to any analyst of transport markets.
