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Putting our money to good use: Can we attract more passengers without increasing subsidies?

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  • Holmgren, Johan
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    Abstract

    This paper evaluates the policy of Swedish public transport authorities, determining whether the number of trips on local public transport could have been increased without increasing subsidies. Based on annual data from Swedish counties, the evaluation found that between 1986 and 2001 public transport fares exceeded the passenger-maximising fare most of the time in all but two counties, the average deviation being 1-215%. Evaluating the alternative, passenger-maximising policy, including both fare and service changes for 2001, demonstrated that demand for local public transport in Swedish counties could have been increased by 0-178% without increasing subsidies. Aggregated, this represents a 2.3% increase in the number of trips on local public transport in Sweden.

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    Bibliographic Info

    Article provided by Elsevier in its journal Research in Transportation Economics.

    Volume (Year): 29 (2010)
    Issue (Month): 1 ()
    Pages: 256-260

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    Handle: RePEc:eee:retrec:v:29:y:2010:i:1:p:256-260

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    Related research

    Keywords: Public transport Demand Supply Fare Subsidies Maximisation Elasticity;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Hsiao,Cheng, 2003. "Analysis of Panel Data," Cambridge Books, Cambridge University Press, number 9780521522717, April.
    2. Joyce M. Dargay & Mark Hanly, 2002. "The Demand for Local Bus Services in England," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 36(1), pages 73-91, January.
    3. Holmgren, Johan, 2007. "Meta-analysis of public transport demand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(10), pages 1021-1035, December.
    4. Holmgren, Johan & Jansson, Jan Owen & Ljungberg, Anders, 2008. "Public transport in towns - Inevitably on the decline?," Research in Transportation Economics, Elsevier, vol. 23(1), pages 65-74, January.
    5. Hensher, David A., 2008. "Assessing systematic sources of variation in public transport elasticities: Some comparative warnings," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(7), pages 1031-1042, August.
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