ELIMINATE, DECREASE, OR IMPROVE REGULATION OF URBAN PUBLIC TRANSPORTATION?

The constraints that regulation represents and the concepts on which they are based are discussed, and the merits and limitations of the free market in urban transportation are evaluated. The family of urban transportation modes, the characteristics of each mode and the regulatory conditions necessary to yield the best service are reviewed. The paper noted that discussions of regulation in urban transportation actually focus only on paratransit and are therefore relevant only to small cities and low-density areas, with the exception of taxis, which are applicable to all cities. Urban transportation is an area where free market does not exist. The paper also notes that revision of some regulatory practices (decrease in some areas and increase in other areas) is desirable. It is pointed out that conditions in Western European cities are very similar to our cities, and therefore experiences in cities with better transportation than ours are highly relevant to us. The goal of public regulation is to ensure adequate public service and protect public interest; this can be achieved by full coordination between modes, between public and private transportation, as well as coordination of regulation with short-and long-range planning.