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The Economic and Environmental Effects of Local Bus Service Deregulation in Britain

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The Economic and Environmental Effects of Local Bus Service Deregulation in Britain 251517 THE ECONOMIC AND ENVIRONMENTAL EFFECTS OF LOCAL BUS SERVICE DEREGULATION IN BRITAIN VOLUME II: APPENDICES Peter J. Romilly A thesis submitted in partial fulfilment of the requirements of the University of Abertay Dundee for the degree of Doctor of Philosophy. October 2000 I certify that this thesis is the true and accurate record of the thesis approved by the examiners. Signed: Datv dies) CONTENTS VOLUME II: APPENDICES Table of Contents APPENDIX 1 LEGISLATIVE AND STRUCTURAL CHANGES IN LOCAL BUS SERVICES 1947-1985.......................................................................1 1.1 The Transport Act 1947.......................................................................................................................1 1.2 The Transport Acts of 1953, 1960 and 1962.................................................................................. 2 1.3 Structural Changes in the Bus Industry: a suinmaiy.....................................................................4 1.4 The Transport Act 1968.....................................................................................................................6 1.5 The Local Government Act 1972.....................................................................................................9 1.6 The Transport Act 1978................................................................................................................. 13 1.7 The Transport Act 1980: purpose and provisions........................................................................15 1.8 Bus Industiy Structure, Trends and Performance 1974-84....................................................... 19 1.9 The Provisions of the 1985 Transport A ct................................................................................... 23 1.9.1 Road Service Licensing.......................................................................................................... 23 1.9.2 Local Services......................................................................................................................... 24 1.9.3 Registration of Services.......................................................................................................... 24 1.9.4 Services, Subsidy and Competitive Tendering...................................................................25 1.9.5 Privatisation and the National Bus Company (NBC)........................................................27 1.9.6 The Metropolitan Areas.........................................................................................................28 1.9.7 The Non-metropolitan Areas................................................................................................. 30 1.9.8 Anti-competitive Practices.................................................................................................... 31 1.9.9 Quality Control........................................................................................................................ 32 1.9.10 Other Provisions......................................................................................................................33 References for Appendix 1...........................................................................................................................33 APPENDIX 2 MEASURES TO PREVENT STRATEGIC ENTRY DETERRENCE .........................................................................................................35 2.1 The “Half-headway” R ule.....................................................................................................................35 2.2 The Predatory Pricing Guideline................................................................................................... 38 2.3 The Role of the OFT and the MMC............................................................................................. 41 References for Appendix 2 .......................................................................................................................... 44 APPENDIX 3 EXHAUST EMISSION VALUATION: METHODOLOGICAL DETAILS........................................................................................45 3.1 Derivation of Table 7.1 (Volume I) Results.................................................................................45 3.2 Vehicle Distributions and Emission Factors for 1992, 1995 and 1999...................................47 3.3 Calculation of Changes in Vehicle Kilometres...........................................................................48 3.4 A Note on Data Revisions...............................................................................................................52 3.5 An Example of the CarBus Model Spreadsheet..........................................................................53 References for Appendix 3 ................................................................ :....................................................... 60 ii APPENDIX 4 THE DATA SET 61 4.1 Variable Sources.................................................................................................................................... 61 4.2 Variable Descriptions............................................................................................................................. 61 4.2.1 Passenger Journeys................................................................................................................... 61 4.2.2 Vehicle Kilometres................................................................................................................. 63 4.2.3 Public Transport Support.......................................................................................................63 4.2.4 Concessionary Fares...............................................................................................................64 4.2.5 Population.................................................................................................................................64 4.2.6 Personal Disposable Income.................................................................................................. 65 4.2.7 Motoring Cost Index...............................................................................................................65 4.2.8 Bus Fares Index....................................................................................................................... 66 4.2.9 Consumer Price Index.............................................................................................................67 4.2.10 Operating Costs.........................................................................................................................67 4.2.11 Bus Fleet Stmcture.................................................................................................................... 68 4.3 The Data Set: variables and observations.....................................................................................69 4.3.1 Key to Variables........................................................................................................................69 4.3.2 Observations.............................................................................................................................70 APPENDIX 5 AN ALTERNATIVE ESTIMATION STRATEGY........................ 74 References for Appendix 5 ...........................................................................................................................77 List of Tables 1.1: The bus industry by type of service 1959-69...............................................................................................5 1.2: Size of bus operators........................................................................................................................................5 1.3: Bus industry structure 1974 (a) (b).............................................................................................................. 10 1.4: Bus industry performance indicators 1974................................................................................................ 12 1.5: Bus industry structure 1984 (a).................................................................................................................... 19 1.6: Bus industry trends 1974-84 (% changes).................................................................................................. 20 1.7: Bus industry performance indicators 1984................................................................................................. 21 1.8: % Change in performance indicators 1974-84..........................................................................................22 1.9: Structure and scope of the 1985 Transport A ct.........................................................................................23 List of Figures 2.1: Entry and incumbent response for half-headway ru le...........................................................................36 iii A P P E N D IX 1 Legislative and Structural Changes in Local Bus Services 1947-1985 1.1 The Transport Act 1947 A key factor in Labour's sweeping general election victory of 1945 was its commitment to nationalisation (Cole, 1948). The aim of transport nationalisation under the 1947 Transport Act was "to secure the provision of an efficient, adequate, economical and properly integrated system of public inland transport and port facilities." The Act set up the British Transport Commission (BTC) in which ownership of the nationalised transport properties was vested. The operation of
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