US cities pay too much for buses

I think this shows one of the downsides of trade barriers very well: You get stuck with undesirable industries (diesel bus manufacturing), binding capital and labor better used elsewhere (and you easily end up with underperforming, overpriced solutions, too).

But I'm curious how much this actually affects transport costs. If such a bus is used 12h/day, then even overpaying 100% for the vehicle should get outscaled by labor + maintenance pretty quickly, long before the vehicle is replaced...

2/3 of public transit budgets in wealthy countries is hiring employees. Vehicle costs are not the headline cost. However this cost does needs to be managed. Transit agencies are running on shoe string budgets.

Until recently the US Federal Government funded capital expenses but never operating expenses. This lead to outcomes such as the feds distributing grant money with the requirement that buses must last at least 12 years and transit agencies refreshing their buses on the 12 year mark. Buying a natural gas bus or battery electric bus lowers OPEX and the increased CAPEX is picked up by the feds.