Research was conducted to inform transportation professionals worldwide about passenger railroad funding methods being practiced in Japan. The data presented were obtained largely thr? 1: 1gh a literature survey and discussions with transport-related officials in Tokyo. The most common forms of rail transit funding were various types of loans, bonds, subsidies, and beneficiary charges. Other methods included public investments, fare increases, a national railroad improvement fund, and internal cross subsidization. Japan, unlike the United States, does not contribute any portion of its gas tax revenues to transit. As a result, cities in the United States may want to look in! J10re detail at how Japan manages to construct and improve urban rail transit without relying on gas tax revenues. The most complete and up-to-da~ e information on Japan's passenger railroad funding methods available in English is provided.

Before rushing into a detailed presentation about how railroad construction is funded in Japan, it is necessary to give the reader some knowledge about the important historical differences between Japan and the United States in the development of transportation and how these differences have shaped the current. transportation environments in these two countries, particularly in Japan.