A New Look at the Incidence of Public Transport Subsidies: A Case Study of Santiago, Chile

Abstract

This paper evaluates a number of public transportation subsidies in Santiago, Chile. The author looks at how direct means-tested monetary transfers have been use in recent years to distribute public transportation subsidies rather than using more traditional supply side sectoral subsidies. It is shown that using the general welfare system to distribute subsidies has better results than traditional supply side subsidies. The results of this research, along with recent evidence from other developing country cities, suggest that more efforts needs to be placed on the analysis, design, and implementation of social subsidies in the transportation sector.

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