Regulation Of The Interurban Coach Services In Brazil

The paper starts with the micro-economic characterisation of the activity and the reasons for its economic regulation, focusing on the competitive potential of the services provided. It then discusses the regulatory framework of the activity, based on the current legislation. Thereafter, with the support of studies carried out by the Brazilian Audit Office (TCU), the paper presents the main outcomes of the current regulation of TRIP in Brazil, as regards its economic concentration in the sector. The paper also puts forward the hypothesis that such concentration, which is a result of the current regulatory barriers to the entry of potential competitors in the market, may not be helping to promote economic efficiency and users’ welfare. Thus, principles and guidelines are suggested towards an agenda to update the regulation of the activity, bearing in mind three main objectives, namely those of equity in access, continuity of the services, and reduced fares.