If the future of transportation is a vast interconnected network, then regulation serves as its backbone. For nearly a century, however, this framework has been narrowly focused on a single dimension: price. In the United States, government oversight of railroads, highways, and aviation has predominantly centered on ensuring reasonable fares, aiming to guarantee nationwide service coverage and equitable pricing. While this price-centric regulatory model played a critical role in its time, its limitations have become increasingly apparent.
The "Regulation 1.0" era cast governments as price police, tasked primarily with monitoring markets and preventing monopolistic or unfair pricing practices. Yet as technology advanced and market dynamics evolved, this approach has struggled to address emerging challenges. An exclusive focus on pricing often overlooks essential factors such as service quality, safety standards, and environmental sustainability. Moreover, excessive price controls can stifle innovation and hinder market efficiency.
This growing disconnect underscores the urgent need for transportation regulation to evolve into its next phase—"Regulation 2.0." The new paradigm must shift from singular price management to a multidimensional value framework. Governments should prioritize long-term market sustainability, foster technological advancement, elevate service standards, ensure operational safety, and proactively address global issues like climate change.
Regulation 2.0 moves beyond restrictive "control" toward strategic "guidance" and "empowerment." By establishing comprehensive regulatory ecosystems, policymakers can stimulate market vitality while ensuring the transportation sector's balanced development. This transition represents not merely an update, but a fundamental reimagining of governance for the modern era.