Positive feedback is needed between higher bus use and revenue and investment in further measures to increase use. It is argued that, as maximizing profit and passengers is different, fare and service level need control and public investment in bus priority should not leak into higher profits. Comparison of the models in and out of London shows that both have had similar effect on unit cost, extra mileage and reduced subsidy but are different in terms of changes to passengers and passenger revenue and how the net effect is shared between society and bus operators. Fuel duty increases have applied to bus and car, so there is no equalization at the margin. Central government has a crucial role in delivering Marginal Cost Equalization.
Indirect or push variables are more effective than direct or pull variables in mode switch from car to bus. It starts from the premise that the bus market is rapidly consolidating, with attendant effect on competition. It analyses the attributes needed for such models but does not recommend the final model form. This paper looks at and contributes to the debate about alternative models. It cannot do so under current models of operation and legislation outside London. The bus is the most viable form of urban public transport and has to play a major role in the delivery of sustainable transport objectives.
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