Analysis of various underground networks globally shows that quality improvements have higher demand elasticities than lower fares (UITP, 2014b). Introducing this mechanism will be an important asset for authorities to shift from negotiations based on ensuring fixed levels of profits and instead set remunerations based on cost structure. Public transport fare policies need to strike a balance between economic and social sustainability. Service provision should move away from granting generalised subsidies and instead set public transport prices at or near cost-recovery levels, while granting targeted subsidies to certain segments of the population.