Problems and opportunities of the public organisation of passenger transport on the example of bus transport in Estonia. Reisijateveo riikliku korralduse probleemid ja võimalused Eesti bussitranspordi näitel

Jüri Sepp, Eve Tomson


The purpose of the article is to show the need and opportunities for the public organisation of bus transport in Estonia. In order to achieve this goal, it is necessary to investigate Estonian and international experience in the organisation of passenger transport, its theoretical background and the resulting special measures. If we look at a specific transport service, the exclusion of the consumption thereof for a non-payer is no problem either in principle or technically. Here, public goods and market failure are not as much related to a specific transport service, but to the general availability thereof to the majority of the population. This is exactly the circumstance that the market may not necessarily guarantee. Here, the economic policy theory offers two solutions, which application in Estonian case are analysed in this article: 1) the cross-subsidisation of some lines at the expense of others, which, of course, presumes the prevention of the so-called price skimming with the establishment of regional monopolies and granting of special rights for them; 2) if cross-subsidisation cannot ensure a wide enough access to passenger transport, subsidisation must be added


Bus transport; transport policy; regulation public transport; county lines; commercial lines; market regulation; universal service; state subsidies to bus lines

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