THE CONFLICT BETWEEN THE SOCIAL MISSION AND THE ECONOMIC EFFICIENCY OF URBAN PUBLIC TRANSPORT

Abstract

The purpose of the article is to examine the conflict between the social mission and economic efficiency of urban public transport, using metro systems as a case study, as they constitute key elements of the transport infrastructure of large cities. It is substantiated that this conflict is institutional in nature and is reproduced through tariff regulation, budgetary constraints, demand characteristics, and the cost structure of metro operations. An analytical framework for assessing the performance of metro systems is proposed, combining financial, socio-economic, and institutional indicators. The study argues that the financial unprofitability of metro systems cannot be regarded as an indicator of their inefficiency, since a significant share of the benefits they generate is socio-economic in nature and is not reflected in the financial results of transport enterprises. The author’s contribution lies in the formalization of this conflict through the adaptation of the cost–benefit analysis approach to the operating conditions of metro systems, as well as in the development of a typology of conflict manifestations between the social function and the requirements of economic sustainability. The scientific novelty of the research consists in the application of integrated indicators of social efficiency (sNPV, sBCR, sIRR) to assess the performance of metro systems and in the proposed approach to the quantitative identification of the tariff funding deficit as an economic outcome of fulfilling the social mission. The practical significance of the obtained results lies in their applicability for local governments and transport enterprises to substantiate the scale of budgetary (external) support, select financing models, and assess the efficiency of investment decisions in the field of urban public transport, particularly metro systems. The main conclusions of the study confirm that under socially oriented tariff policies, metro systems generate a positive aggregate socio-economic effect, which justifies the expediency of municipal support even in the absence of financial self-sufficiency. The study also demonstrates the feasibility of shifting from the dichotomy of «social mission versus efficiency» toward a model of managed balance through the application of entrepreneurial instruments within the public sector.