IDEAS home Printed from https://ideas.repec.org/a/eee/soceps/v64y2018icp38-55.html
   My bibliography  Save this article

Improving equity of urban transit systems with the adoption of origin-destination based taxi fares

Author

Listed:
  • Gallo, Mariano

Abstract

In this paper an original approach for setting taxi fares is proposed. The approach is based on origin-destination fares and aims to increase the equity of transportation supply in an urban area: routes in certain urban areas can be very well served while others may be served poorly or not at all. Yet most citizens contribute indirectly to transit systems that are often subsidized to a considerable extent by public money. The proposed method seeks to balance this asymmetry, reducing taxi fares on origin-destination pairs that are poorly served by other transportation modes. An optimisation problem based on this principle is formulated and solved. The proposed approach is tested on a small test network and on a real-scale network. Numerical results show that the approach is applicable and useful to enhance equity in transit services.

Suggested Citation

  • Gallo, Mariano, 2018. "Improving equity of urban transit systems with the adoption of origin-destination based taxi fares," Socio-Economic Planning Sciences, Elsevier, vol. 64(C), pages 38-55.
    • Handle: RePEc:eee:soceps:v:64:y:2018:i:c:p:38-55
    DOI: 10.1016/j.seps.2017.12.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0038012117301246
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.seps.2017.12.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nikolaos Thomopoulos & Susan Grant-Muller, 2013. "Incorporating equity as part of the wider impacts in transport infrastructure assessment: an application of the SUMINI approach," Transportation, Springer, vol. 40(2), pages 315-345, February.
    2. Kim, Young-Joo & Hwang, Hark, 2008. "Incremental discount policy for taxi fare with price-sensitive demand," International Journal of Production Economics, Elsevier, vol. 112(2), pages 895-902, April.
    3. John R. Schroeter, 1983. "A Model of Taxi Service under Fare Structure and Fleet Size Regulation," Bell Journal of Economics, The RAND Corporation, vol. 14(1), pages 81-96, Spring.
    4. Thomopoulos, N. & Grant-Muller, S. & Tight, M.R., 2009. "Incorporating equity considerations in transport infrastructure evaluation: Current practice and a proposed methodology," Evaluation and Program Planning, Elsevier, vol. 32(4), pages 351-359, November.
    5. M Truelove, 1993. "Measurement of Spatial Equity," Environment and Planning C, , vol. 11(1), pages 19-34, March.
    6. R. Camporeale & L. Caggiani & A. Fonzone & M. Ottomanelli, 2017. "Quantifying the impacts of horizontal and vertical equity in transit route planning," Transportation Planning and Technology, Taylor & Francis Journals, vol. 40(1), pages 28-44, January.
    7. Ennio Cascetta, 2009. "Transportation Systems Analysis," Springer Optimization and Its Applications, Springer, number 978-0-387-75857-2, September.
    8. Welch, Timothy F. & Mishra, Sabyasachee, 2013. "A measure of equity for public transit connectivity," Journal of Transport Geography, Elsevier, vol. 33(C), pages 29-41.
    9. Thomopoulos, Nikolaos & Grant-Muller, Susan, 2013. "Incorporating equity as part of the wider impacts in transport infrastructure assessment: an application of the SUMINI approach," LSE Research Online Documents on Economics 60073, London School of Economics and Political Science, LSE Library.
    10. Maniquet, Francois & Sprumont, Yves, 2005. "Welfare egalitarianism in non-rival environments," Journal of Economic Theory, Elsevier, vol. 120(2), pages 155-174, February.
    11. Shirmohammadli, Abdolmatin & Louen, Conny & Vallée, Dirk, 2016. "Exploring mobility equity in a society undergoing changes in travel behavior: A case study of Aachen, Germany," Transport Policy, Elsevier, vol. 46(C), pages 32-39.
    12. Kaplan, Sigal & Popoks, Dmitrijs & Prato, Carlo Giacomo & Ceder, Avishai (Avi), 2014. "Using connectivity for measuring equity in transit provision," Journal of Transport Geography, Elsevier, vol. 37(C), pages 82-92.
    13. Cairns, Robert D. & Liston-Heyes, Catherine, 1996. "Competition and regulation in the taxi industry," Journal of Public Economics, Elsevier, vol. 59(1), pages 1-15, January.
    14. Yang, Hai & Ye, Min & Tang, Wilson H. & Wong, S.C., 2005. "Regulating taxi services in the presence of congestion externality," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(1), pages 17-40, January.
    15. Karel Martens, 2011. "Substance precedes methodology: on cost–benefit analysis and equity," Transportation, Springer, vol. 38(6), pages 959-974, November.
    16. Caggiani, Leonardo & Camporeale, Rosalia & Ottomanelli, Michele, 2017. "Facing equity in transportation Network Design Problem: A flexible constraints based model," Transport Policy, Elsevier, vol. 55(C), pages 9-17.
    17. Alan T. Murray & Rex Davis, 2001. "Equity in Regional Service Provision," Journal of Regional Science, Wiley Blackwell, vol. 41(4), pages 557-600, November.
    18. Bloom, Gerald, 2001. "Equity in health in unequal societies: meeting health needs in contexts of social change," Health Policy, Elsevier, vol. 57(3), pages 205-224, September.
    19. Delbosc, Alexa & Currie, Graham, 2011. "Using Lorenz curves to assess public transport equity," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1252-1259.
    20. Karen Lucas & Bert Wee & Kees Maat, 2016. "A method to evaluate equitable accessibility: combining ethical theories and accessibility-based approaches," Transportation, Springer, vol. 43(3), pages 473-490, May.
    21. Ahmed, Qureshi Intikhab & Lu, Huapu & Ye, Shi, 2008. "Urban transportation and equity: A case study of Beijing and Karachi," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(1), pages 125-139, January.
    22. Jones, Peter & Lucas, Karen, 2012. "The social consequences of transport decision-making: clarifying concepts, synthesising knowledge and assessing implications," Journal of Transport Geography, Elsevier, vol. 21(C), pages 4-16.
    23. Lucas, Karen, 2012. "Transport and social exclusion: Where are we now?," Transport Policy, Elsevier, vol. 20(C), pages 105-113.
    24. Yang, Hai & Fung, C.S. & Wong, K.I. & Wong, S.C., 2010. "Nonlinear pricing of taxi services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(5), pages 337-348, June.
    25. Beesley, Michael E & Glaister, Stephen G, 1983. "Information for Regulating: The Case of Taxis," Economic Journal, Royal Economic Society, vol. 93(371), pages 594-615, September.
    26. Bruce Schaller, 1999. "Elasticities for taxicab fares and service availability," Transportation, Springer, vol. 26(3), pages 283-297, August.
    27. Welch, Timothy F., 2013. "Equity in transport: The distribution of transit access and connectivity among affordable housing units," Transport Policy, Elsevier, vol. 30(C), pages 283-293.
    28. Arnott, Richard, 1996. "Taxi Travel Should Be Subsidized," Journal of Urban Economics, Elsevier, vol. 40(3), pages 316-333, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhan, Shuguang & Wong, S.C. & Lo, S.M., 2020. "Social equity-based timetabling and ticket pricing for high-speed railways," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 165-186.
    2. Luca D’Acierno & Marilisa Botte, 2020. "Optimising Frequency-Based Railway Services with a Limited Fleet Endowment: An Energy-Efficient Perspective," Energies, MDPI, vol. 13(10), pages 1-26, May.
    3. Armando Cartenì & Luca D’Acierno & Mariano Gallo, 2020. "A Rational Decision-Making Process with Public Engagement for Designing Public Transport Services: A Real Case Application in Italy," Sustainability, MDPI, vol. 12(16), pages 1-26, August.
    4. Chiquetto, Júlio B. & Leichsenring, Alexandre R. & Ribeiro, Flávia N.D. & Ribeiro, Wagner C., 2022. "Work, housing, and urban mobility in the megacity of São Paulo, Brazil," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    5. Mariano Gallo & Mario Marinelli, 2020. "Sustainable Mobility: A Review of Possible Actions and Policies," Sustainability, MDPI, vol. 12(18), pages 1-39, September.
    6. Suprava Chakraborty & Nallapaneni Manoj Kumar & Arunkumar Jayakumar & Santanu Kumar Dash & Devaraj Elangovan, 2021. "Selected Aspects of Sustainable Mobility Reveals Implementable Approaches and Conceivable Actions," Sustainability, MDPI, vol. 13(22), pages 1-31, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Armando Cartenì & Luca D’Acierno & Mariano Gallo, 2020. "A Rational Decision-Making Process with Public Engagement for Designing Public Transport Services: A Real Case Application in Italy," Sustainability, MDPI, vol. 12(16), pages 1-26, August.
    2. Ben-Elia, Eran & Benenson, Itzhak, 2019. "A spatially-explicit method for analyzing the equity of transit commuters' accessibility," Transportation Research Part A: Policy and Practice, Elsevier, vol. 120(C), pages 31-42.
    3. Xia, Jianhong(Cecilia) & Nesbitt, Joshua & Daley, Rebekah & Najnin, Arfanara & Litman, Todd & Tiwari, Surya Prasad, 2016. "A multi-dimensional view of transport-related social exclusion: A comparative study of Greater Perth and Sydney," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 205-221.
    4. Kaplan, Sigal & Popoks, Dmitrijs & Prato, Carlo Giacomo & Ceder, Avishai (Avi), 2014. "Using connectivity for measuring equity in transit provision," Journal of Transport Geography, Elsevier, vol. 37(C), pages 82-92.
    5. Mariano Gallo & Mario Marinelli, 2020. "Sustainable Mobility: A Review of Possible Actions and Policies," Sustainability, MDPI, vol. 12(18), pages 1-39, September.
    6. Yang, Hai & Yang, Teng, 2011. "Equilibrium properties of taxi markets with search frictions," Transportation Research Part B: Methodological, Elsevier, vol. 45(4), pages 696-713, May.
    7. Cascetta, Ennio & Cartenì, Armando & Henke, Ilaria & Pagliara, Francesca, 2020. "Economic growth, transport accessibility and regional equity impacts of high-speed railways in Italy: ten years ex post evaluation and future perspectives," Transportation Research Part A: Policy and Practice, Elsevier, vol. 139(C), pages 412-428.
    8. Sharma, Ishant & Mishra, Sabyasachee & Golias, Mihalis M. & Welch, Timothy F. & Cherry, Christopher R., 2020. "Equity of transit connectivity in Tennessee cities," Journal of Transport Geography, Elsevier, vol. 86(C).
    9. Karen Lucas & Bert Wee & Kees Maat, 2016. "A method to evaluate equitable accessibility: combining ethical theories and accessibility-based approaches," Transportation, Springer, vol. 43(3), pages 473-490, May.
    10. Li, Baicheng & Szeto, W.Y., 2019. "Taxi service area design: Formulation and analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 308-333.
    11. Suprava Chakraborty & Nallapaneni Manoj Kumar & Arunkumar Jayakumar & Santanu Kumar Dash & Devaraj Elangovan, 2021. "Selected Aspects of Sustainable Mobility Reveals Implementable Approaches and Conceivable Actions," Sustainability, MDPI, vol. 13(22), pages 1-31, November.
    12. Wong, K.I. & Wong, S.C. & Yang, Hai & Wu, J.H., 2008. "Modeling urban taxi services with multiple user classes and vehicle modes," Transportation Research Part B: Methodological, Elsevier, vol. 42(10), pages 985-1007, December.
    13. Long, Jiancheng & Szeto, W.Y. & Du, Jie & Wong, R.C.P., 2017. "A dynamic taxi traffic assignment model: A two-level continuum transportation system approach," Transportation Research Part B: Methodological, Elsevier, vol. 100(C), pages 222-254.
    14. Li, Baicheng & Szeto, W.Y., 2021. "Modeling and analyzing a taxi market with a monopsony taxi owner and multiple rentee-drivers," Transportation Research Part B: Methodological, Elsevier, vol. 143(C), pages 1-22.
    15. Linovski, Orly & Baker, Dwayne Marshall & Manaugh, Kevin, 2018. "Equity in practice? Evaluations of equity in planning for bus rapid transit," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 75-87.
    16. Yang, Hai & Leung, Cowina W.Y. & Wong, S.C. & Bell, Michael G.H., 2010. "Equilibria of bilateral taxi-customer searching and meeting on networks," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 1067-1083, September.
    17. Zhang, Kenan & Nie, Yu (Marco), 2021. "To pool or not to pool: Equilibrium, pricing and regulation," Transportation Research Part B: Methodological, Elsevier, vol. 151(C), pages 59-90.
    18. Sharma, Gajanand & Patil, Gopal R., 2021. "Public transit accessibility approach to understand the equity for public healthcare services: A case study of Greater Mumbai," Journal of Transport Geography, Elsevier, vol. 94(C).
    19. Pyrialakou, V. Dimitra & Gkritza, Konstantina & Fricker, Jon D., 2016. "Accessibility, mobility, and realized travel behavior: Assessing transport disadvantage from a policy perspective," Journal of Transport Geography, Elsevier, vol. 51(C), pages 252-269.
    20. Welch, Timothy F. & Mishra, Sabyasachee, 2013. "A measure of equity for public transit connectivity," Journal of Transport Geography, Elsevier, vol. 33(C), pages 29-41.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceps:v:64:y:2018:i:c:p:38-55. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/seps .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.