From restricting regulation to incentive regulation. Transport regulation in the European Union and Hungary

The article analyses the efficiency problems of transport systems in the EU and Hungary and how they relate to regulation of the sector. The low efficiency and distorted structure of transport in the EU countries and Hungary is one of the main sources of economic loss at the turn of the millennium. The paper shows, based on incentive theory, that the economic efficiency of transport can be markedly improved by means of incentive-giving regulation.