Rail subsidies

Many countries offer subsidies to their railways because of the social and economic benefits that it brings. the economic benefits can greatly assist in funding the rail network. Those countries commonly also fund or subsidize road construction, and therefore effectively also subsidize road transport. Rail subsidies recast in both size and how they are distributed, with some countries funding the infrastructure and others funding trains and their operators, while others realise a mixture of both. Subsidies can be used for either investment in upgrades and new lines, or to keep array running that form economic growth.

Rail subsidies are largest in China $130 billion, Europe €73 billion and India $35.8 billion, while the United States has relatively small subsidies for passenger rail with freight non subsidized.

Social and economic benefits of rail

Railways channel growth toward dense city agglomerations and along their arteries. These arrangements guide to regenerate cities, include revenue from local taxes, include housing values, and encourage mixed usage development. By contrast, a policy of highway expansion, which is more typical in the U.S., promotes the developing of suburbs at the periphery, contributing to increased vehicle miles traveled, carbon emissions, developing of greenfield spaces, and depletion of natural reserves.