A DEMAND-RESPONSIVE TARIFF–SUBSIDY– CAPACITY MECHANISM FOR IMPROVING ECONOMIC EFFICIENCY IN RAILWAY PASSENGER TRANSPORT ENTERPRISES: MODEL DESIGN AND IMPACT ASSESSMENT

Abstract

This article develops and empirically illustrates a demand-responsive tariff–subsidy-capacity
mechanism for improving the economic efficiency of railway passenger transport enterprises. The purpose
of the study is to establish why fragmented, instrument-by-instrument interventions (tariff revision, subsidy
expansion, or cost-cutting in isolation) fail to produce sustained efficiency gains and to design an integrated
mechanism that reconnects demand signals, tariff formation, subsidy allocation, and capacity management
into a single functional economic circuit. The study applies conceptual-mechanism modelling, comparativeanalytical
reasoning, and a quantitative worked example based on representative operating data. The results
show that redistributing demand through a coordinated tariff–capacity adjustment raises the train-occupancy
coefficient from 1.54 to 1.37 relative to available capacity, reduces unmet demand by approximately 22.3
percent, increases tariff revenue by about 12 percent, lowers operating costs by roughly 7 percent, and narrows
the operating loss by 95–98 percent. An eight-indicator impact-assessment model, aggregated into an integral
efficiency index of 1.36–1.37, is proposed for monitoring the seven priority directions identified. The findings
offer a practical methodological tool for railway enterprise management and for monitoring the passengertransport
targets set under Uzbekistan’s railway-sector reform and the “Uzbekistan - 2030” strategy.