Competition between Railway and Bus in Low Density Populated Area in Japan

A case study of Bifuka Town, Hokkaido Prefecture

Abstract

In many low density populated areas in Japan, railway and bus are competing despite low demand. While the privatized railway companies maintain a deficit line which used to report a profit under financially self sufficient, the town has subsidized bus and requested the stop of an express bus and the development of highway. This means that local governments will maintain supply as much as possible even after public transportation runs a deficit and act for further convenience. It also suggests that oversupply can be achieved if subsidies and cost sharing are not appropriate.