105-688: The Luas is a tram system in Dublin, Ireland. LUAS may also refer to: Luas [REDACTED] Luas ( pronounced / ˈ l uː ə s / [ˈl̪ˠuəsˠ] ; Irish for "speed") is a tram system in Dublin , Ireland . There are two main lines: the Green Line , which began operating on 30 June 2004, and the Red Line which opened on 26 September 2004. Since then, the red line has been extended and split into different branches further out of
210-511: A 750 V DC overhead power supply. The international standard track gauge of 1,435 mm ( 4 ft 8 + 1 ⁄ 2 in ) is used, rather than the Irish 1,600 mm ( 5 ft 3 in ). The silver Alstom Citadis trams, manufactured in La Rochelle , France, reach a top speed of 70 km/h (43 mph) on off-street sections, but travel at
315-607: A magnetic stripe on the back although this is not used on Luas. Uniquely among Dublin's public transport, tickets are not checked upon boarding trams; instead, a proof-of-payment system is used. Ticket machines operate at every Luas stop and these are the only source of single-journey and return tickets. They also sell 1-day, 7-day and 30-day tickets, valid in either some or all the fare zones, for adults, children and students. Combi tickets valid on Dublin Bus and Luas are no longer on general sale, but can be purchased as commuter tickets via
420-580: A recession or in response to unforeseen shocks, such as the COVID-19 pandemic . Subsidies take various forms— such as direct government expenditures, tax incentives , soft loans , price support , and government provision of goods and services. For instance, the government may distribute direct payment subsidies to individuals and households during an economic downturn in order to help its citizens pay their bills and to stimulate economic activity. Here, subsidies act as an effective financial aid issued when
525-465: A 24-hour basis. The NTA responded by saying that a significant extension of the tram system was "not something that should be progressed at this point" noting that essential maintenance on the tram system - such as on its overhead cable systems, overhead line equipment and rail works - can only be carried out when all trams are out of service. The Authority pointed to its increased night bus services which have been coming online in recent years arguing that
630-483: A Student Leap card, issued upon verification of student status. No other form of student identification is accepted on Luas. Tickets cannot be purchased on board the trams. Passengers encountered by a ticket inspector and not in possession of a valid ticket or validated Leap card are issued a fine (referred to as a standard fare) of €100, reduced to €45 for prompt payment. Non-payment within 28 days may result in prosecution. The lines are divided into 10 zones, five for
735-405: A circuitous route and changing the product description so as to obscure their origin. Thus the trader benefits from the export subsidy without creating real trade value to the economy. Export subsidy as such can become a self-defeating and disruptive policy. Adam Smith observed that special government subsidies enabled exporters to sell abroad at substantial ongoing losses. He did not regard that as
840-496: A comparative advantage. The market distortion, and reduction in social welfare, is the logic behind the World Bank policy for the removal of subsidies in developing countries. Subsidies create spillover effects in other economic sectors and industries. A subsidized product sold in the world market lowers the price of the good in other countries. Since subsidies result in lower revenues for producers of foreign countries, they are
945-443: A domestic and international level. On a domestic level, subsidies affect the allocation decision of domestic resources, income distribution , and expenditure productivity. On an international level, subsidies may increase or decrease international interaction and integration through trade. For this reason, having a thorough subsidy policy is essential as its inadequacy can potentially lead to financial hardship and problems for not only
1050-470: A glut of renewable energy projects and an oversupply of energy in the market. This, in turn, can lead to lower prices for energy and financial losses for investors. In addition, tax subsidies can be difficult to monitor and enforce, which can lead to abuse and fraud. Companies may claim tax breaks for activities that do not qualify, or may use complex legal structures to shift profits to lower tax jurisdictions. This can result in lost revenue for governments and
1155-424: A good or service may lead to an increase in revenue for producers earned from the heightened demand by consumers. The use of indirect subsidies such as price controls is widespread among developing economies and emerging markets as a necessary tool for social policy. It has proven to be effective in many cases but price controls have a potential to dampen investment activity and growth, cause heavy fiscal burdens for
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#17328007296511260-471: A lack of fairness in the tax system. Despite these concerns, tax subsidies remain a popular tool for governments to promote various policy objectives, such as economic growth, job creation, and environmental sustainability . The use of tax subsidies is often debated in political circles, with some arguing that they are necessary to support certain industries or to incentivize certain behaviors, while others argue that they create inefficiencies and distortions in
1365-453: A lower sales tax on natural gas for residential heating ; or subsidies on production , such as tax breaks on exploration for oil . Or they may be free or cheap negative externalities ; such as air pollution or climate change due to burning gasoline , diesel and jet fuel . Some fossil fuel subsidies are via electricity generation , such as subsidies for coal-fired power stations . Eliminating fossil fuel subsidies would reduce
1470-501: A period of testing and driver training began. 30 June 2004 was decided on as the official launch date of the Green Line. The first tram went into service for the general public at 3 p.m. Several days of free travel and a family fun weekend took place to launch the system. The Red Line opened on 26 September 2004, with six days of free travel for the general public. By November 2006, over 50 million journeys had been made on
1575-492: A reduction in the market price of goods and services. They are commonly used by governments of many developing countries in an attempt to secure the most basic needs for its population. These various subsidies can be divided into broad and narrow. Narrow subsidies are those monetary transfers that are easily identifiable and have a clear intent. They are commonly characterised by a monetary transfer between governments and institutions or businesses and individuals. A classic example
1680-400: A scale implies substantial opportunity costs . There are at least three compelling reasons for studying government subsidy behavior. First, subsidies are a major instrument of government expenditure policy. Second, on a domestic level, subsidies affect domestic resource allocation decisions, income distribution, and expenditure productivity. A consumer subsidy is a shift in demand as the subsidy
1785-555: A sense of historical right to them. Perverse subsidies are not tackled as robustly as they should be. Principally, this is because they become "locked" into society, causing bureaucratic roadblocks and institutional inertia. When cuts are suggested many argue (most fervently by those "entitled", special interest groups and political lobbyists ) that it will disrupt and harm the lives of people who receive them, distort domestic competitiveness curbing trade opportunities, and increase unemployment. Individual governments recognise this as
1890-413: A slower speed on-street where conflicts with other vehicles and pedestrians can occur. The 26 initial Red Line '3000' Class trams were 30-metre (98 ft 5 in) long Citadis 301 configurations with a capacity of 256. The 14 initial Green Line '4000 Class' trams, each 40-metre (131 ft 3 in) long Citadis 401 configurations, have a capacity of 358 including two wheelchairs. Starting in 2007, all
1995-532: A sound and sustainable policy. That was because "… under normal industrial-commercial conditions their own interests soon oblige loss-making businesses to deploy their capital in other ways – or to move into markets where the sales prices do cover the supply costs and yield ordinary profits. Like other mercantilist schemes and devices, export bounties are a means of trying to force business capital into channels it would not naturally enter. The schemes are invariably costly and damaging in various ways." An import subsidy
2100-635: A source of tension between the United States, Europe and poorer developing countries. While subsidies may provide immediate benefits to an industry, in the long-run they may prove to have unethical, negative effects. Subsidies are intended to support public interest, however, they can violate ethical or legal principles if they lead to higher consumer prices or discriminate against some producers to benefit others. For example, domestic subsidies granted by individual US states may be unconstitutional if they discriminate against out-of-state producers, violating
2205-408: A specified individual or household. Popular examples includes cash grants and interest-free loans. Subsidies can also be classified as indirect when they do not involve actual payments. An example would be an increase in disposable income arising from a decrease in price of an essential good or service that the government has enforced in a form of monetary support. In contrast, a decrease in the price of
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#17328007296512310-567: A spokesperson for Transdev revealed that the company had looked at extending the Christmastime 'Night Luas' to operate every weekend of the year, but that "realistically, the demand for services is just not there [and that] the service just wouldn’t be financially viable." In June 2022, Transport Minister Eamon Ryan asked the National Transport Authority to again re-examine the prospect of running Luas services on
2415-432: A subsidy increases the supply of the good beyond the equilibrium competitive quantity. The imbalance creates deadweight loss. Deadweight loss from a subsidy is the amount by which the cost of the subsidy exceeds the gains of the subsidy. The magnitude of the deadweight loss is dependent on the size of the subsidy. This is considered a market failure , or inefficiency. Subsidies targeted at goods in one country, by lowering
2520-477: A substantial part of the wages for retaining their employees or to create new jobs during severe recessions such as the 2008 GFC (Global Financial Crisis), there were minor impacts on employment during the first year. However, the subsidy began to yield positive effects on employment, particularly a decrease in the unemployment rate, in the second year as employers began to properly utilise the subsidy. Tax subsidies, also known as tax breaks or tax expenditures , are
2625-507: A temporary suspension following a crisis. Workers are prevented from losing their jobs and other associated employment benefits such as annual leave entitlements and retirement pensions. Employment subsidies allow individual beneficiaries a minimum standard of living at the very least. However, less than half of active jobseekers in around 50% of OECD countries receive unemployment support. The effect of employment subsidies may not be evident immediately. When employers received grants to subside
2730-443: A way for governments to achieve certain outcomes without directly providing cash payments. By offering tax breaks, the government can incentivize behavior that is beneficial to the economy or society as a whole. However, tax subsidies can also have negative consequences. One type of tax subsidy is a health tax deduction, which allows individuals or businesses to deduct their health expenses from their taxable income. This can be seen as
2835-581: A way to incentivize people to prioritize their health and well-being. However, it can also create distortions in the economy by encouraging people to spend more on health care than they otherwise would. Another type of tax subsidy is related to Intellectual Property . Base Erosion and Profit Shifting (BEPS) is a particular form of tax subsidy that involves companies shifting their profits to low-tax jurisdictions in order to reduce their overall tax burden. The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting
2940-705: A wire-free zone. Luas Cross City is an extension of the Green Line which links with the Red Line, and continues northwards to Broombridge railway station in North Dublin (interchange with Iarnród Éireann station). The extension began at the existing St Stephen's Green Green Line stop. Construction started in June 2013, with services beginning in December 2017. On 10 November 2011, the government announced in its 2012–16 Infrastructure and Capital Investment plan that
3045-401: Is a government payment to a farmer. Conversely broad subsidies include both monetary and non-monetary subsidies and is often difficult to identify. A broad subsidy is less attributable and less transparent. Environmental externalities are the most common type of broad subsidy. Competitive equilibrium is a state of balance between buyers and suppliers, in which the quantity demanded of a good
3150-414: Is a treaty signed by half the nations of the world aimed at preventing this type of tax avoidance. While tax subsidies can be effective in achieving certain outcomes, they are also less transparent than direct cash payments and can be difficult to undo. Additionally, some argue that tax breaks disproportionately benefit the wealthy and large corporations, further exacerbating income inequality. Therefore, it
3255-429: Is a type of government expenditure for individuals and households, as well as businesses with the aim of stabilizing the economy. It ensures that individuals and households are viable by having access to essential goods and services while giving businesses the opportunity to stay afloat and/or competitive. Subsidies not only promote long term economic stability but also help governments to respond to economic shocks during
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3360-477: Is further detailed below. The final day of Luas Smartcard operations was on 30 September 2014. The Luas smartcard allowed travellers to pay for travel on the Luas network. Credit was pre-loaded onto the smartcard at ticket machines by cash, debit card or credit card, with a minimum top-up of €5 and a maximum credit on the card of €100, and the customer had to validate the card using readers on the platform before boarding
3465-472: Is given directly to consumers. An export subsidy is a support from the government for products that are exported, as a means of assisting the country's balance of payments. Usha Haley and George Haley identified the subsidies to manufacturing industry provided by the Chinese government and how they have altered trade patterns. Traditionally, economists have argued that subsidies benefit consumers but hurt
3570-445: Is important for governments to carefully consider the potential consequences of offering tax subsidies and ensure that they are targeted towards achieving the greatest public good. Furthermore, tax subsidies can have unintended consequences, such as creating market distortions that favor certain industries or companies over others. For example, if a government offers tax breaks to incentivize investment in renewable energy, it may lead to
3675-521: Is not operating and taxis are hard to come by," he added. The low floors and wide spaces of the Citadis trams mean that wheelchair users can easily board. All stops have also been designed with ramps, to allow easy access. Several have lifts, such as Kilmacud and Dundrum on the Green Line, while Connolly Station has escalators that connect the Luas stop to the main station building. The website for Luas also has an accessibility newsletter. Before Luas
3780-585: Is now ", the OECD suggests that countries make better use of environmental taxation, phase out agricultural subsidies and environmentally harmful tax breaks. In the Netherlands, audits are performed to verify whether the funds that have been received has indeed been spent legally (and all requirements of the subsidy provider have been attained), for the purpose intended. It hence prevents fraud . Although subsidies can be important, many are " perverse ", in
3885-402: Is predominantly found in developed markets. Other examples of production subsidies include the assistance in the creation of a new firm ( Enterprise Investment Scheme ), industry ( industrial policy ) and even the development of certain areas ( regional policy ). Production subsidies are critically discussed in the literature as they can cause many problems including the additional cost of storing
3990-406: Is support from the government for products that are imported. Rarer than an export subsidy, an import subsidy further reduces the price to consumers for imported goods. Import subsidies have various effects depending on the subject. For example, consumers in the importing country are better off and experience an increase in consumer welfare due to the decrease in price of the imported goods, as well as
4095-583: Is the extension route previously known officially as BXD. The idea for a new tram or light rail system for the city of Dublin was first suggested in 1981, by a Dublin Transportation Initiative (DTI) report, which referenced the original Dublin tramways , once running over 60 kilometres (37 mi) and reaching most parts of the city. Following this report Córas Iompair Éireann (CIÉ), the state-owned public transport operator in Ireland,
4200-402: Is the quantity supplied at a specified price. When the price falls the quantity demand exceeds the equilibrium quantity, conversely, a reduction in the supply of a good beyond equilibrium quantity implies an increase in the price. The effect of a subsidy is to shift the supply or demand curve to the right (i.e. increases the supply or demand) by the amount of the subsidy. If a consumer is receiving
4305-408: Is why the Chinese government heavily subsidizes its fishermen, who sail the world in search of new grounds. Export subsidy is known for being abused. For example, some exporters substantially over declare the value of their goods so as to benefit more from the export subsidy. Another method is to export a batch of goods to a foreign country but the same goods will be re-imported by the same trader via
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4410-554: The Oireachtas as with many such schemes) by then Minister for Health, Charles J Haughey in the late 1960s and is considered a ' third rail ' politically. Trams operate from 05:30 to 00:30 Monday to Friday. On Saturday services run from 06:30 to 00:30, while on Sundays it is only from 07:00 to 23:30. Public holidays are the same as Sundays, except trams run until 00:30. Services run at regular intervals, from every 4–5 minutes during peak times to every 15 minutes late at night. During
4515-407: The health risks of air pollution , and would greatly reduce global carbon emissions thus helping to limit climate change . As of 2021 , policy researchers estimate that substantially more money is spent on fossil fuel subsidies than on environmentally harmful agricultural subsidies or environmentally harmful water subsidies . The International Energy Agency says: "High fossil fuel prices hit
4620-436: The "Taxsaver" scheme, as can various other combinations of bus, Luas, and Iarnród Éireann commuter train service. Certain ticket combinations are not possible (for example a one-day student ticket), and tickets can only be valid from the stop at which they are purchased and must commence their validity within 90 minutes, valid until a specific time shown on the card. Certain tickets require the user to hold an ID card and write
4725-494: The BX Line under Transport 21: this was opened to passengers on 9 December 2017. There are 32 stops on the Red Line and 35 (plus two extra unopened stops surrounding Carrickmines) on the Green Line. A third line to Lucan (Line F) was planned. It was planned to start in the city centre and travel north west to Lucan. However, as of April 2024, no information is available on any plans to progress this line. The system operates on
4830-459: The Christmas season (from early December to the last weekend before Christmas), a night service runs on Luas during Friday and Saturday nights (as well as on New Year's Eve), with the last trams departing the city centre at 03:30. However, fares are priced at a premium of €5 single (€4 on Leap Cards). In 2016 while Dublin Bus was considering plans for the rolling out of its 24-hour bus service ,
4935-462: The Citadis 402 standard have been lengthened to match the Citadis 502 standard with minor differences. 8 further new 502 units were ordered for delivery during 2020, with the first of those entering service in July 2020. In other aspects, the two lines are identical except that the inter-axis width between the tracks on the Green Line is slightly wider than on the Red Line. The construction planning for
5040-556: The Dublin Circuit Criminal Court. Security on Luas trams, platforms and facilities is provided directly by Transdev. Luas Security Officers patrol the system to counter anti-social or other incidents, and intervene in incidents prior to the arrival of the Gardaí . Luas Security Officers wear tactical uniforms and stab-resistant body vests. Subsidy A subsidy , subvention or government incentive
5145-1922: The EU, rail subsidies are around €73 billion, and Chinese subsidies reach $ 130 billion. Publicly owned airports can be an indirect subsidy if they lose money. The European Union, for instance, criticizes Germany for its high number of money-losing airports that are used primarily by low cost carriers , characterizing the arrangement as an illegal subsidy. In many countries, roads and highways are paid for through general revenue, rather than tolls or other dedicated sources that are paid only by road users, creating an indirect subsidy for road transportation. The fact that long-distance buses in Germany do not pay tolls has been called an indirect subsidy by critics, who point to track access charges for railways. Energy subsidies are measures that keep prices for customers below market levels, or for suppliers above market levels, or reduce costs for customers and suppliers. Energy subsidies may be direct cash transfers to suppliers, customers, or related bodies, as well as indirect support mechanisms, such as tax exemptions and rebates , price controls , trade restrictions , and limits on market access . During FY 2016–22, most US federal subsidies were for renewable energy producers (primarily biofuels, wind, and solar), low-income households, and energy-efficiency improvements. During FY 2016–22, nearly half (46%) of federal energy subsidies were associated with renewable energy, and 35% were associated with energy end uses. Federal support for renewable energy of all types more than doubled, from $ 7.4 billion in FY 2016 to $ 15.6 billion in FY 2022. Fossil fuel subsidies are energy subsidies on fossil fuels , and in 2023 totalled over 1 trillion dollars. They may be tax breaks on consumption , such as
5250-418: The Green Line ensures a distance of track centres at 3,400 millimetres (11 ft 1 + 7 ⁄ 8 in) including a 400 millimetres ( 15 + 3 ⁄ 4 in) extra for the kinematic envelope of metro trains. This does not relate to the track gauge of 1,435 mm ( 4 ft 8 + 1 ⁄ 2 in ), which is identical on both lines. This will allow wider metro trains be run on
5355-461: The Green Line, with the 4000 Class trams cascaded to the Red Line after the entire 5000 Class had been introduced. 7, 55-metre (180 ft 5 in) Citadis 502 variants were procured for use on the St. Stephen's Green – Broombridge line. They were brought into service between January and June 2018. These are numbered as members of the 5000 Class. Between 2019 and 2021, all existing 5000 Class units of
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#17328007296515460-406: The National Transport Authority reported the number of Leap Card users was 2.5 million. All persons in Ireland are entitled to be issued with a Public Services Card for accessing key public services and for identity purposes. Persons on the following Social Welfare payments are provided with a Public Services Card with yellow "FT" in the top right-hand corner, which functions as a smart card in
5565-551: The Northern and Southern hemispheres; lower global market prices; and undermine investment decisions reducing the pressure on businesses to become more efficient. Over time the latter effect means support becomes enshrined in human behaviour and business decisions to the point where people become reliant on, even addicted to, subsidies, "locking" them into society. Consumer attitudes do not change and become out-of-date, off-target and inefficient; furthermore, over time people feel
5670-800: The Privileges and Immunities Clause or the Dormant Commerce Clause of the United States Constitution. Depending on their nature, subsidies are discouraged by international trade agreements such as the World Trade Organization (WTO). This trend, however, may change in the future, as needs of sustainable development and environmental protection could suggest different interpretations regarding energy and renewable energy subsidies . In its July 2019 report, " Going for Growth 2019: The time for reform
5775-470: The Red Cow Depot. Before Luas was launched, it was feared that the tram system would lead to a high number of fatal accidents. As of 2022, however, there have been approximately 10 fatalities. There have been many occurrences of cars striking trams, mainly caused by motorists breaking red lights. On 16 September 2009, a Luas collided with a Dublin Bus at the O'Connell Street-Abbey Street Junction. In
5880-538: The Red Line C1 Connolly to Docklands extension opened. There are four stops: George's Dock, Mayor Square- NCI , Spencer Dock (serving the new Docklands railway station , approximately 350 metres (1,148 ft 4 in) away) and terminating in Point Village , opposite the 3Arena , this extension however bypasses Connolly. Construction started at the beginning of June 2007. Test runs began on
5985-526: The Red line trams were upgraded to 40 metres (131 ft 3 in) by inserting two more articulated sections, with the last one converted by June 2008. Both configurations of tramcars are fully compatible with both the Red and the Green Lines. 26 new 43-metre Citadis 402 trams, numbered as the '5000 Class', were ordered for delivery in early 2009. These are 100% low-floor configuration and solely operate on
6090-423: The basis that no matter how impoverished, all should be allowed those most basic requirements. For example, some governments offer "lifeline" rates for electricity, that is, the first increment of electricity each month is subsidized. Evidence from recent studies suggests that government expenditures on subsidies remain high in many countries, often amounting to several percentage points of GDP. Subsidization on such
6195-455: The city and the green line has been extended north and south as a single line. Since the northern extension of the green line in 2017, the two lines intersect in the city centre. The system now has 67 stops and 42.5 kilometres (26.4 mi) of revenue track, which in 2023 carried 48.2 million passengers, an increase of 24% compared to 2022. Luas is operated by Transdev , under tender from Transport Infrastructure Ireland (TII). (Prior to
6300-402: The collision, 22 people were injured, three of them seriously, including the tram driver. Early investigations suggested that the bus had the green light to move, and that the Luas must have had technical problems. The Luas driver was later charged with dangerous driving, causing harm and operating a tram in a manner which posed risk to others. He was subsequently acquitted of dangerous conduct by
6405-564: The contract to build the system. The St. Stephen's Green to Dublin Airport section was dropped before construction began, as it was decided to serve the area by a metro instead. The contract to maintain and operate the system was awarded to Connex . The development of Luas Red Line was facilitated by European Union funding of €82.5 million under the European Regional Development Fund , and part of
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#17328007296516510-495: The cost of some line extensions (e.g. over 50% of Line B1 to Cherrywood) was raised though levies on development in areas close to the projected route. The original launch date for Luas was to be 2003, but delays in construction saw this date pushed back by a year. An advertising campaign took place to inform the public of the development of the system, while construction was taking place. Construction finished in February 2004 and
6615-452: The decrease in price of the domestic substitute goods. Conversely, the consumers in the exporting country experience a decrease in consumer welfare due to an increase in the price of their domestic goods. Furthermore, producers of the importing country experience a loss of welfare due to a decrease in the price for the goods in their market, while on the other side, the exporters of the producing country experience an increase in well-being due to
6720-424: The delivery of 24-hour services across the bus network "is more feasible". Fine Gael TD Neale Richmond pointed out that as well as more 24-hour Dublin Bus services , late-night Luas services are "badly needed [..] given the persisting issues with access to taxis in Dublin city centre". "This is becoming a public safety issue with many people being forced to walk home, often alone, late at night as public transport
6825-568: The economic cost to society of their CO 2 emissions was greater than their after‐tax profit, with the single exception of ExxonMobil in 2008." Pure coal companies fare even worse: "the economic cost to society exceeds total revenue (employment, taxes, supply purchases, and indirect employment) in all years, with this cost varying between nearly $ 2 and nearly $ 9 per $ 1 of revenue." The first important classification of subsidies are direct and indirect subsidies. Subsidies are categorised as direct when it involves actual cash outlays targeted towards
6930-495: The economy experiences economic hardship. They can also be a good policy tool to revise market imperfections when rational and competitive firms fail to produce an optimal market outcome. For example, in an imperfect market condition, governments can inject subsidies to encourage firms to invest in R&;D (research and development). This will not only benefit the firms but also produce some positive externalities such that it benefits
7035-661: The economy. In conclusion, tax subsidies are a powerful tool for governments to achieve policy goals, but they come with their own set of challenges and limitations. It is important for policymakers to carefully consider the potential unintended consequences of tax subsidies and to design them in a way that maximizes their benefits while minimizing their costs. Additionally, strong monitoring and enforcement mechanisms are needed to ensure that tax subsidies are used appropriately and do not result in abuse or fraud. Some governments subsidise transport, especially rail and bus transport, which decrease congestion and pollution compared to cars. In
7140-411: The extra produced products, depressing world market prices, and incentivizing producers to over-produce , for example, a farmer overproducing in terms of his land's carrying capacity . A consumption subsidy is one that subsidizes the behavior of consumers. This type of subsidies are most common in developing countries where governments subsidise such things as food, water, electricity and education on
7245-535: The federal income tax accounts for the largest interest rate subsidy. Additionally, the federal government will help low-income families with the down payment, coming to $ 10.9 million in 2008. As a housing policy tool, housing subsidies also help low income individuals gain and maintain liveable residency by easing the cost burdens of housing for low income individuals and households. However, some policy makers and experts believe they are costly to implement and may even reduce incentives for beneficiaries to participate in
7350-407: The fiscal health of the government. Indirectly, they cause environmental degradation ( exploitation of resources , pollution, loss of landscape, misuse and overuse of supplies) which, as well as its fundamental damage, acts as a further brake on economies; tend to benefit the few at the expense of the many, and the rich at the expense of the poor; lead to further polarization of development between
7455-464: The form of untaxed environmental externalities . These externalities include things such as pollution from vehicle emissions, pesticides , or other sources. A 2015 report studied the implicit subsidies accruing to 20 fossil fuel companies. It estimated that the societal costs from downstream emissions and pollution attributable to these companies were substantial. The report spans the period 2008–2012 and notes that: "for all companies and all years,
7560-639: The government, and may even complicate the optimal performance of monetary policy. To prevent the undesirable negative effects, price control regimes may be replaced by creating social safety nets and proposing sound reforms to encourage competition and growth. Another important classification of subsidies are producer/production subsidies and consumer/consumption subsidies. Production subsidies are designed to ensure producers are advantaged by creating fluid market activity through other market control mechanisms or by providing cash payments for factors of production. Consumption subsidies benefit consumers typically through
7665-404: The green line and four for the red, plus a shared central zone. Most passengers use a Leap card, for which travel within a single zone is charged as a "short journey", with any longer trips charged at a flat fare for 90-minutes travel, including transfers onto bus and train services in the Dublin zone. Paper single and return tickets charge varying fares depending on the number of zones crossed. When
7770-442: The increase in demand. Ultimately, the import subsidy is rarely used due to an overall loss of welfare for the country due to a decrease in domestic production and a reduction in production throughout the world. However, that can result in a redistribution of income. Employment or wage subsidies keep the employment relationship ongoing even during financial crisis. It is particularly beneficial for enterprises to recover quickly after
7875-546: The industry in which the firms belong, and most importantly, the society at large. Although commonly extended from the government, the term subsidy can relate to any type of support – for example from NGOs or as implicit. Subsidies come in various forms including: direct (cash grants, interest-free loans) and indirect ( tax breaks , insurance, low-interest loans, accelerated depreciation , rent rebates). Furthermore, they can be broad or narrow, legal or illegal, ethical or unethical. The most common forms of subsidies are those to
7980-587: The journey. The card had to be topped up before another journey could be taken. Smartcard fares were slightly cheaper than standard single and return fares from ticket machines. For example, a journey within a single zone cost €1.25 with the card, compared to €1.50 (€1.60 during peak time) single with a paper ticket, or €2.80 return. Daily, 7-day and 30-day tickets generally worked out cheaper, unless used only rarely. Luas smartcards were unable to store multiple-journey tickets and these tickets were issued on paper only until May 2014, since all tickets have been loaded onto
8085-415: The labour market. In the contrary, certain literatures have found that subsidy cuts do not encourage employment or participation among beneficiaries. For example, research by Daniel Borbely found that reducing housing subsidies did not increase employment and labour force participation. Though, he also added that claimants relocated to other areas of the rental market to maintain their benefits. Nonetheless,
8190-743: The later RPA merger with the National Roads Authority to form TII, the tender was originally under the defunct Railway Procurement Agency jurisdiction). The Luas was a major part of the National Transport Authority 's strategy (2000–2016). Four extensions to the initial Luas lines have been completed. Construction of a 6 kilometres (3.7 mi) extension of the Green line through the north city centre to Broombridge , which linked both Green and Red lines, began in June 2013 and opened to passengers in December 2017. This
8295-670: The line in September 2009 before the opening. On 16 October 2010, the B1 extension from Sandyford to Cherrywood opened. In June 2010, plans to join the two Luas tracks were finalised. On 20 May 2011 Dublin City Council made submissions to An Bord Pleanála 's Oral Hearing into Line BXD stating that the Planning Authority had a serious area of concern with the overhead conductor system in the historical city centre asking for
8400-707: The mid-1990s, journey time from Tallaght to the city centre was predicted to take 30 minutes. The responsibility for developing Luas was transferred from CIÉ to the Railway Procurement Agency (RPA), a separate government agency created in December 2001. Construction work began in March 2001 on the Tallaght to Connolly line, as well as the Sandyford to St. Stephen's Green section of the second line, with Ansaldo of Italy and MVM of Australia getting
8505-505: The most common method for providing housing subsidies is via direct payments to renters by covering a part of their rent on the private rent market. This method of direct transfer of housing subsidies is often referred to as "housing vouchers". In the United States, the so-called Section 8 is a direct payment program subsidising the largest amount of money to renters for rental assistance. While conventional subsidies require financial support, many economists have described implicit subsidies in
8610-410: The network opened, it was necessary to walk some distance or take another form of transport to connect between the two lines, but nowadays there is a short walking connection between O'Connell - GPO or Marlborough Street on the green line and Abbey Street on the red line. In March 2005, a smartcard for Luas was launched. The smartcard was phased out following launch of the integrated Leap Card which
8715-770: The new Leap Cards. Until January 2012 there were three different smart-card systems in Dublin: the Luas smart-card, the Dublin Bus prepaid Smartcard system for day-cards or longer and the smart-card for commuter trains and the DART which is -as the Luas card- a per journey tag on/off card but not compatible with Luas cards. The "Leap Card" smartcard has functionality that it caps the daily and weekly spend to ensure Leap Card holders do not pay more than they would have had they bought day, weekly, or monthly tickets. This functionality had been enabled on Luas and DART services. As of 2017,
8820-536: The number on the ticket, to prevent the ticket from being transferred to another person. Ticket machines accept card payments (by American Express , MasterCard , or Visa and have a weekly limit of €150 (upper limit changed from €50 per transaction to €150 per week in January 2012 after upgrading all POS terminals to have a PIN keypad). Formerly €5 was the minimum amount which could be paid via card, but this limit has since been removed. Student tickets can be loaded to
8925-591: The original 40-metre (131 ft 3 in) platforms lengthened to 55 metres (180 ft 5 in) on the Green Line The main engineering structures on the Green Line at present are Milltown Viaduct, also known as The Nine Arches, a large stone viaduct dating from 1854, and the William Dargan Bridge , a large cable-stayed bridge at Taney Cross, near Dundrum town centre. Luas tickets are purple in colour and credit card sized. They bear
9030-443: The poor hardest, but subsidies are rarely well-targeted to protect vulnerable groups and tend to benefit better-off segments of the population." Housing subsidies are designed to promote the construction industry and homeownership. As of 2018, U.S housing subsidies total around $ 15 billion per year. Housing subsidies can come in two types; assistance with down payment and interest rate subsidies. The deduction of mortgage interest from
9135-418: The poor or low income individuals but the aggregate economy as a whole. At large, subsidies take up a substantial portion of the government and economy. Amongst OECD countries in 2020, the median of subsidies and other transfers such as social benefits and non-repayable transfers to private and public enterprises was 56.3 percent of total government expenses which was 34.9 percent (weighted average) of GDP in
9240-402: The possibility of underground sections in the city centre. In May 1998 the government decided to build two lines, amending the plans. The first was to run from Tallaght to Connolly Station, while the second would run from Sandyford Industrial Estate to Dublin Airport, through the city centre and Ballymun. Part of the second was to be underground through the city centre. In promotional content from
9345-505: The price of those goods, make them more competitive against foreign goods, thereby reducing foreign competition. As a result, many developing countries cannot engage in foreign trade, and receive lower prices for their products in the global market. This is considered protectionism: a government policy to erect trade barriers in order to protect domestic industries. The problem with protectionism arises when industries are selected for nationalistic reasons (infant-industry), rather than to gain
9450-612: The producer or the consumer. Producer/production subsidies ensure producers are better off by either supplying market price support , direct support, or payments to factors of production . Consumer/consumption subsidies commonly reduce the price of goods and services to the consumer. For example, in the US at one time it was cheaper to buy gasoline than bottled water. All countries use subsidies via national and sub-national entities through different forms such as tax incentives and direct grants. Likewise, subsidies have an economic influence on both
9555-529: The project to link the Red and Green lines, known as BXD , was to proceed. No other new lines or extensions were being funded. Construction work for the new Rosie Hackett bridge across the River Liffey (connecting Marlborough St and Hawkins St) began in April 2012, on which the southbound Luas BXD track was laid. A Railway Order was granted by An Bord Pleanála for Luas BXD line on 3 August 2012. The project
9660-418: The same tracks if a proposed upgrade to full metro service is implemented. This is possible because the route uses an old railway line and as such has few interactions with vehicular or pedestrian traffic. The Railway Procurement Agency has stated (November 2006) that "We still envisage conversion of almost all Luas lines to light metro standard in the long-term.". Platform length also varies between lines, with
9765-403: The same way as a Leap Card, but allows free travel: Visitors from non-European countries to Ireland must pay full adult fare on buses, trams and trains regardless of their age or disability, and would thus be better off financially with a Leap Visitor Card set with the appropriate period pre-loaded (24 hours, 3 days, 7 days). The free travel system was created by Ministerial Order (not an Act of
9870-445: The same year. Yet, the number of subsidy measures in force have been rapidly increasing since 2008. A production subsidy encourages suppliers to increase the output of a particular product by partially offsetting the production costs or losses. The objective of production subsidies is to expand production of a particular product more so that the market would promote but without raising the final price to consumers. This type of subsidy
9975-487: The sense of having adverse unintended consequences . To be "perverse", subsidies must exert effects that are demonstrably and significantly adverse both economically and environmentally. A subsidy rarely, if ever, starts perverse, but over time a legitimate efficacious subsidy can become perverse or illegitimate if it is not withdrawn after meeting its goal or as political goals change. Perverse subsidies are now so widespread that as of 2007 they amounted $ 2 trillion per year in
10080-506: The six most subsidised sectors alone (agriculture, fossil fuels, road transportation, water, fisheries and forestry). The detrimental effects of perverse subsidies are diverse in nature and reach. Case-studies from differing sectors are highlighted below but can be summarised as follows. Directly, they are expensive to governments by directing resources away from other legitimate should priorities (such as environmental conservation, education, health, or infrastructure), ultimately reducing
10185-489: The subsidizing countries. Haley and Haley provided data to show that over the decade after China joined the World Trade Organization industrial subsidies have helped give China an advantage in industries in which they previously enjoyed no comparative advantage such as the steel, glass, paper, auto parts, and solar industries. China's shores have also collapsed from overfishing and industrialization, which
10290-401: The subsidy, a lower price of a good resulting from the marginal subsidy on consumption increases demand, shifting the demand curve to the right. If a supplier is receiving the subsidy, an increase in the price (revenue) resulting from the marginal subsidy on production results increases supply, shifting the supply curve to the right. Assuming the market is in a perfectly competitive equilibrium,
10395-512: The system. Around 90,000 Luas trips are made each day. In 2007, 28.4 million journeys were made; there were 27.4 million journeys in 2008 and 25.4 million journeys in 2009. To date, the busiest day on Luas was Friday, 21 December 2007 when 145,000 passenger journeys were recorded. Luas operates without a state subsidy . The service recorded a surplus of €985,000 (€680,000 in 2004) – an achievement well ahead of an anticipated deficit of €2.5 million. On Tuesday, 8 December 2009
10500-408: The tram and then again after exiting the tram. This is still referred to as 'tag-on' and 'tag-off' on the current Leap Card system. A smartcard could be purchased at a Luas ticket agent or online. The card cost €10, which included a €3 non-refundable charge for the card, €3 of credit and €4 for a fully refundable 'reserve fund' which allowed travel even if there was insufficient credit on the card for
10605-530: Was asked to study the different options. They recommended two phases for the construction of a tram system: The Transport Act, 1996 created a legal framework for CIÉ to build a tram system and in May 1997 the company applied for a Light Railway Order to construct the first phase, as well as the Dundrum/Balally to Sandyford part of phase 2. An inquiry started in July 1997, but was put on hold to investigate
10710-420: Was followed by two extensions: On the south side of Dublin city, the Green Line mostly follows the route of the old Harcourt Street railway line , which was reserved for possible reuse when it closed in 1958 , although some diversions have been made. It was known internally as Line B during planning and construction, and has also had several extensions: The cost of building the original Red and Green Lines
10815-426: Was launched, a Safety Awareness Day was held in Dublin city centre. Thousands of reflective armbands were distributed to pedestrians and cyclists, in order to ensure their visibility for tram drivers. This policy seems to have worked as Luas has been described as being "one of the safest transport systems in the world". Both trams and stops are monitored using CCTV 24 hours a day from the central control room, located in
10920-500: Was subsequently branded as Luas Cross City . Cross City opened to passengers on 9 December 2017. The network currently comprises two lines: The Red Line runs east–west through Dublin's Northside , then crosses the River Liffey and travels southwest to the heavily populated suburb of Tallaght, and then on through the Citywest campus to terminate at Saggart. It was planned, designed and constructed in two separate stages: This
11025-407: Was €728m. It was envisaged in the original plans that the Green Line would meet the Red Line at O'Connell Street. However, two separate unconnected lines were built, leaving a 1.1 km (0.68 mi) (10–15 minute walk) – through O'Connell Street , Westmoreland Street , College Green and Grafton Street – between the two lines. Plans to link the lines were announced with the proposed building of
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