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How do subways affect urban passenger transport modes?—Evidence from China

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  • Liu, Changqing
  • Li, Lei

Abstract

This paper examines how the opening of a subway affects urban passenger transport modes. The DID method is applied to a dataset of 43 Chinese cities where subway development plans were approved between 1994 and 2015. This paper finds strong evidence that subways affect people's choice of travel modes. Specifically, every new subway line put into operation annually diverts about 4.1 percent of bus passengers, which is equivalent to saving at least 10 bus lines. Furthermore, subways supplement the existing bus systems, but do not have a crowding-out effect on the number of buses or the length of bus lines. The opening of subways reduces the number of taxis and cars on the road.

Suggested Citation

  • Liu, Changqing & Li, Lei, 2020. "How do subways affect urban passenger transport modes?—Evidence from China," Economics of Transportation, Elsevier, vol. 23(C).
    • Handle: RePEc:eee:ecotra:v:23:y:2020:i:c:s2212012220301179
    DOI: 10.1016/j.ecotra.2020.100181
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    Cited by:

    1. Shihe Fu & V. Brian Viard, 2022. "A mayors perspective on tackling air pollution," Chapters, in: Charles K.Y. Leung (ed.), Handbook of Real Estate and Macroeconomics, chapter 16, pages 413-437, Edward Elgar Publishing.
    2. Chengcheng Wu & Dawei Chen & Ye Chen, 2020. "Bicycle-Vehicle Conflict Risk Based on Cyclist Perceptions: Misestimations of Various Risk Factors," Sustainability, MDPI, vol. 12(23), pages 1-12, November.
    3. Wang, Kunlun & Zheng, Leven J. & Zhang, Justin Zuopeng & Yao, Hongjiang, 2022. "The impact of promoting new energy vehicles on carbon intensity: Causal evidence from China," Energy Economics, Elsevier, vol. 114(C).
    4. Bu, Chujie & Cui, Xueqin & Li, Ruiyao & Li, Jin & Zhang, Yaxin & Wang, Can & Cai, Wenjia, 2021. "Achieving net-zero emissions in China’s passenger transport sector through regionally tailored mitigation strategies," Applied Energy, Elsevier, vol. 284(C).

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    More about this item

    Keywords

    Subway; Difference-in-Differences; Travel modes; Diversion effect; Crowding-out effect;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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