UNIVERSITY OF RUSE "ANGEL KANCHEV"
UNION OF SCIENTISTS - RUSE

Proceedings 2025

FRI-20.21-1-SITSTL-02

THE ANALYSIS OF THE STRUCTURE, EFFICIENCY AND CHALLENGES OF COMPENSATION AND SUBSIDIES IN PASSENGER TRANSPORT IN BULGARIA

Language: BGPages: 18–26

Prof. Velizara Pencheva, PhD

Department of Transport University of Ruse

ORCID: 0000-0002-9809-4759

E-mail: vpencheva@uni-ruse.bg

Prof. Asen Asenov, PhD

Department of Transport University of Ruse

ORCID: 0000-0002-9770-0403

E-mail: asasenov@uni-ruse.bg

Eng. Kremena Mineva, PhD

Transport Directorate Municipality of Ruse

E-mail: kavemi@abv.bg

Abstract: This study analyzes subsidies and compensations in urban passenger transport in Bulgaria with a focus on the Municipality of Ruse. Subsidies and compensations ensure financial stability of transport operators, cover losses from unprofitable lines and reduced fares for socially vulnerable groups, while stimulating the accessibility and sustainability of transport. The theoretical approach is based on utility theory and incentive theory, showing how policies influence of the passenger choice and increase the number of trips. The analysis shows that in Ruse more than half of public support is directed towards compensations, while in Plovdiv, Burgas and Varna subsidies have a higher relative share, which highlights different approaches - social focus versus strategic subsidization. The study emphasizes the need for a balance between social support and modernization investments for sustainable development of urban transport.

Keywords: urban passenger transport, subsidies, compensations, social policy, sustainability, Bulgaria, utility theory, incentive theory, transport accessibility, modernization

REFERENCES

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