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5 Cato J. 219 (1985-1986)
Deregulating Urban Transportation

handle is hein.journals/catoj5 and id is 221 raw text is: DEREGULATING URBAN TRANSPORTATION Robert Cervero The nation's air, rail, trucking, and intercity bus industries have all been deregulated in recent years with generally bipartisan support. The lifting of controls over fares, routing, and market entry has taken place in the name of economic efficiency-getting government out of the friendly skies and busy highways of this nation so that private market forces can prevail. Strangely, however, deregulation has been largely limited to intercity and transcontinental modes of transpor- tation. There is no reason, however, why the same principles cannot be succesfully applied to urban transportation as well. Current Problems in Urban Transportation Present-day urban transportation problems are all too familiar to most Americans. Many of our nation's cities are plagued with over- congested and undermaintained highways and financially crippled transit systems. Maintenance and restoration of major arteries and freeways have routinely been deferred over the past several decades, even though private automobile and truck travel has steadily increased since the 1950s. Few municipal bus systems in the United States today recoup more than 40 percent of their costs from fares, relying instead largely on government bailouts to make up the difference. Yet transit wage rates have outpaced the rate of inflation over the past 15 years (one of the few employment sectors to accomplish this feat), even though service quality and overall productivity have Cato journal, Vol. 5, No. 1 (Spring/Summer 1985). Copyright @ Cato Institute. All rights reserved. The author is Assistant Professor of City and Regional Planning at the University of California at Berkeley. A condensed version of this paper appeared in the May/June 1984 issue of Regulation. 219

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