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The paper considers two approaches to the measurement of transport subsidies. The first is to compare total costs and total revenues, in order to see how far users pay the total costs, and how far explicit or implicit subsidies are provided. Often only money costs are examined, but we will argue that in a sector such as transport, where externalities are very important, total social cost should be examined. The second approach is to consider the relationship between marginal social cost and price, and to regard the failure of price to cover marginal social cost as a subsidy." |
