Public Transport Fare Subsidies for Children and the Elderly in Developing Countries

Abstract

A modification to an earlier formula for estimating public transport subisidisation requirements for developing countries is presented. The modification has been made to make the formula cater for the travel money expenditure needs of school going children and the elderly. As with the earlier formula, the present one is designed for both regulated and deregulated transport markets. It yields a subsidy level that is commensurate with the level of control a government is able to exercise over public transport operation. The modification is based on subsidizing school trips by school children as a matter of course, but giving subsidy for trips by the elderly conditional upon it being determined in the first instance that subsidy is required.