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Transport and Decentralisation

image of Transport and Decentralisation

Over the past decades, many OECD countries' transport sectors have become more decentralised.  This report examines whether the economic benefits and experiences of decentralisation have been positive.  It finds that the answers vary according to the mode of transport, the type of decentralisation, and transport users' representation in the process of decision-making.

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Taxing financing and the transfer of responsibilities in the transport sector

European Conference of Ministers of Transport

Transportation is, at least in part, a government responsibility. It is an area in which market failures abound: there may be declining marginal costs; positive and negative externalities; pure public goods; or merit goods. Left to itself, the sector will not lead to optimal outcomes. This may not necessarily justify a government intervention, as was thought thirty years ago, because government failures also have to be taken into account. But these market failures provide at least a presumption for government intervention. In practice, upon examination, this presumption is often transformed into justification, and in all countries “government” is an active player in the transportation field.

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