Public-Private Partnerships in Public Transportation: A Comparative Analysis of Japan and Europe

Abstract

This study aims to identify more efficient and versatile ways to subsidize public transportation by comparing Japan and Europe, both of which maintain unprofitable public transportation systems through government-private partnerships. Europe has gradually introduced private operators into government monopolies, while Japan has introduced government involvement into private monopolies. Despite this opposite approach, both aim to establish an optimal government-private partnership. The comparison focuses on task distribution, policy objectives, and modes in public transportation subsidies. Europe, with extensive government tasks and market competition through service tendering, maintains versatility with many policy objectives and modes. In contrast, Japan's deficit compensation subsidies lack clear government roles and contractual content, limiting policy objectives and modes. However, public service contracts similar to those in Europe are becoming popular in Japan, proving more efficient and versatile than deficit compensation subsidies. The systems in both regions are converging on public service contracts.