INTERCITY PASSENGER BUS REGULATION IN CANADA. PROJECT REPORT

This report documents the results of a comprehensive evaluation of Intercity Bus Regulation in Canada. The project purpose was to analyze the rationale for, and evaluate the effects of, intercity bus regulation in Canada. This included: a portrait of the Canadian Intercity Bus Industry; a description of the main provincial regulatory regimes; an examination of the socio-economic objectives of regulation; an analysis of the economic effects of regulation in the light of these objectives, specifically the impact on efficiency, prices and quality of service; evaluation of other policy instruments that might be available to meet the objectives; examination of concerns that have been expressed relating to the dismantling of current regulatory arrangements; and an examination of changes in other areas of federal and provincial policy that may be necessary in the event of a decision to reduce direct regulation of intercity bus transportation. The research approach included a literature review, a survey of intercity bus carriers, a survey of regulatory authorities, and a case study of deregulation in the State of Michigan. The report is organized in five sections: (I) Introduction; (II) The Canadian Bus Industry; (III) Economic Regulation; (IV) The Effects of Regulation; and (V) Findings and Conclusions. Appendices are: (A) Selected Bibliography; (B) List of Contacts; (C) Deregulation in Other Countries; and (D) Michigan Intercity Bus Programs.