IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v74y2019icp84-92.html
   My bibliography  Save this article

Subsidisation of public transport fares for the young: An impact evaluation analysis for the Madrid Metropolitan Area

Author

Listed:
  • Arranz, José M.
  • Burguillo, Mercedes
  • Rubio, Jennifer

Abstract

This paper analyses the distributive and individual welfare implications on households of an urban demand transport policy with a high subsidisation of Public Transport (PT) fares for young users. This measure came into force in October 2015 in the Madrid Metropolitan Area. The fares of the travel-pass for young users were reduced by 56.8% on average, reaching up to 79.8% in the more distant peripheral areas. Moreover, the age of the beneficiaries was enlarged from 23 to 26 years old, for these few new beneficiaries the price was on average be reduced by 72.8%. Using data from the Spanish Households Budget Survey (HBS) for 2014 and 2016, we use impact evaluation techniques to measure the distributive effect of this transport policy. Results show first that households of medium and high-medium income levels are the main beneficiaries of this measure, which has increased their individual welfare because their PT expenditure has decreased by 42% and 49% respectively. Second, PT has become more accessible to the poorest households. Finally, there is no effect on the richest households and on the low-medium income level ones.

Suggested Citation

  • Arranz, José M. & Burguillo, Mercedes & Rubio, Jennifer, 2019. "Subsidisation of public transport fares for the young: An impact evaluation analysis for the Madrid Metropolitan Area," Transport Policy, Elsevier, vol. 74(C), pages 84-92.
    • Handle: RePEc:eee:trapol:v:74:y:2019:i:c:p:84-92
    DOI: 10.1016/j.tranpol.2018.11.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X18301240
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2018.11.008?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. Li, Tiebei & Dodson, Jago & Sipe, Neil, 2015. "Differentiating metropolitan transport disadvantage by mode: Household expenditure on private vehicle fuel and public transport fares in Brisbane, Australia," Journal of Transport Geography, Elsevier, vol. 49(C), pages 16-25.
    2. Juan Pedro Muñoz Miguel & Clara Simón de Blas & Iciar Carmen Jiménez Barandalla, 2014. "Estudio empírico sobre la utilización del transporte público en la Comunidad de Madrid como factor clave de movilidad sostenible," Cuadernos de Economía - Spanish Journal of Economics and Finance, Asociación Cuadernos de Economía, vol. 37(104), pages 112-124, Agosto.
    3. Bureau, Benjamin & Glachant, Matthieu, 2011. "Distributional effects of public transport policies in the Paris Region," Transport Policy, Elsevier, vol. 18(5), pages 745-754, September.
    4. Alberto Abadie, 2005. "Semiparametric Difference-in-Differences Estimators," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 1-19.
    5. Giovanni Cerulli, 2022. "Econometric Evaluation of Socio-Economic Programs," Advanced Studies in Theoretical and Applied Econometrics, Springer, edition 2, number 978-3-662-65945-8, July-Dece.
    6. Harry J. Holzer & John M. Quigley & Steven Raphael, 2003. "Public transit and the spatial distribution of minority employment: Evidence from a natural experiment," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(3), pages 415-441.
    7. Susan Athey & Guido W. Imbens, 2006. "Identification and Inference in Nonlinear Difference-in-Differences Models," Econometrica, Econometric Society, vol. 74(2), pages 431-497, March.
    8. Tomás Serebrisky & Andrés Gómez‐Lobo & Nicolás Estupiñán & Ramón Muñoz‐Raskin, 2009. "Affordability and Subsidies in Public Urban Transport: What Do We Mean, What Can Be Done?," Transport Reviews, Taylor & Francis Journals, vol. 29(6), pages 715-739, January.
    9. Burguillo, Mercedes & Romero-Jordán, Desiderio & Sanz-Sanz, José Félix, 2017. "The new public transport pricing in Madrid Metropolitan Area: A welfare analysis," Research in Transportation Economics, Elsevier, vol. 62(C), pages 25-36.
    10. Javier Asensio & Anna Matas & José-Luis Raymond, 2003. "Redistributive effects of subsidies to urban public transport in Spain," Transport Reviews, Taylor & Francis Journals, vol. 23(4), pages 433-452, July.
    11. Nuworsoo, Cornelius & Golub, Aaron & Deakin, Elizabeth, 2009. "Analyzing equity impacts of transit fare changes: Case study of Alameda-Contra Costa Transit, California," Evaluation and Program Planning, Elsevier, vol. 32(4), pages 360-368, November.
    12. Delbosc, Alexa & Currie, Graham, 2011. "Using Lorenz curves to assess public transport equity," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1252-1259.
    13. Shahidur R. Khandker & Gayatri B. Koolwal & Hussain A. Samad, . "Handbook on Impact Evaluation : Quantitative Methods and Practices," World Bank Publications, The World Bank, number 2693, September.
    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. Arranz, José M. & Burguillo, Mercedes & Rubio, Jeniffer, 2022. "Are public transport policies influencing the transport behaviour of older people and economic equity? A case study of the Madrid Region," Research in Transportation Economics, Elsevier, vol. 95(C).

    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. Arranz, José M. & Burguillo, Mercedes & Rubio, Jeniffer, 2022. "Are public transport policies influencing the transport behaviour of older people and economic equity? A case study of the Madrid Region," Research in Transportation Economics, Elsevier, vol. 95(C).
    2. Burguillo, Mercedes & Romero-Jordán, Desiderio & Sanz-Sanz, José Félix, 2017. "The new public transport pricing in Madrid Metropolitan Area: A welfare analysis," Research in Transportation Economics, Elsevier, vol. 62(C), pages 25-36.
    3. Andrea Pronti & Julio Berbel, 2020. "Analysis of the impact of a volumetric tariff for irrigation in Northern Italy through the “Inverse DiD†approach," SEEDS Working Papers 1320, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jul 2020.
    4. Picarelli, Nathalie, 2016. "Who really benefits from export processing zones? Evidence from Nicaraguan municipalities," Labour Economics, Elsevier, vol. 41(C), pages 318-332.
    5. Mateos de Cabo, Ruth & Terjesen, Siri & Escot, Lorenzo & Gimeno, Ricardo, 2019. "Do ‘soft law’ board gender quotas work? Evidence from a natural experiment," European Management Journal, Elsevier, vol. 37(5), pages 611-624.
    6. Torsten Persson & Guido Tabellini, 2007. "The growth effect of democracy: Is it heterogenous and how can it be estimated?," Working Papers 322, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    7. Fresenbet Zeleke & Girma T. Kassie & Jema Haji & Belaineh Legesse, 2021. "Would Market Sheds Improve Market Participation and Earnings of Small Ruminant Keepers? Evidence from Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 470-485, June.
    8. Drevs, Florian & Tscheulin, Dieter K. & Lindenmeier, Jörg & Renner, Simone, 2014. "Crowding-in or crowding out: An empirical analysis on the effect of subsidies on individual willingness-to-pay for public transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 250-261.
    9. Chen, Jiafeng & Glaeser, Edward & Wessel, David, 2023. "JUE Insight: The (non-)effect of opportunity zones on housing prices," Journal of Urban Economics, Elsevier, vol. 133(C).
    10. Aibo Gong, 2021. "Bounds for Treatment Effects in the Presence of Anticipatory Behavior," Papers 2111.06573, arXiv.org, revised Dec 2022.
    11. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Beyond the average effects: The distributional impacts of export promotion programs in developing countries," Journal of Development Economics, Elsevier, vol. 92(2), pages 201-214, July.
    12. Gabriella Vitorino Guimarães & Tálita Floriano Santos & Vicente Aprigliano Fernandes & Jorge Eliécer Córdoba Maquilón & Marcelino Aurélio Vieira da Silva, 2020. "Assessment for the Social Sustainability and Equity under the Perspective of Accessibility to Jobs," Sustainability, MDPI, vol. 12(23), pages 1-23, December.
    13. Guoying Deng & Manuel A. Hernandez & Shu Xu, 2020. "When Power Plants Leave Town: Environmental Quality and the Housing Market in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(4), pages 751-780, December.
    14. Mark Kattenberg & Bas Scheer & Jurre Thiel, 2023. "Causal forests with fixed effects for treatment effect heterogeneity in difference-in-differences," CPB Discussion Paper 452, CPB Netherlands Bureau for Economic Policy Analysis.
    15. Song, Yena & Kim, Hyun & Lee, Keumsook & Ahn, Kwangwon, 2018. "Subway network expansion and transit equity: A case study of Gwangju metropolitan area, South Korea," Transport Policy, Elsevier, vol. 72(C), pages 148-158.
    16. Chad D. Meyerhoefer & Muzhe Yang, 2011. "The Relationship between Food Assistance and Health: A Review of the Literature and Empirical Strategies for Identifying Program Effects," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(3), pages 304-344.
    17. Picarelli, Nathalie, 2016. "Who really benefits from export processing zones? Evidence from Nicaraguan municipalities," LSE Research Online Documents on Economics 66652, London School of Economics and Political Science, LSE Library.
    18. Ciani Emanuele & Fisher Paul, 2019. "Dif-in-Dif Estimators of Multiplicative Treatment Effects," Journal of Econometric Methods, De Gruyter, vol. 8(1), pages 1-10, January.
    19. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    20. Oscar Díaz Olariaga & Carlos Alonso‐Malaver, 2022. "Impact of airport policies on regional development. Evidence from the Colombian case," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(6), pages 185-210, December.

    More about this item

    Keywords

    Transport policy; Impact evaluation; Fare transport subsidies; Distributive effects; Households;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

    Statistics

    Access and download statistics

    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:trapol:v:74:y:2019:i:c:p:84-92. 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/wps/find/journaldescription.cws_home/30473/description#description .

    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.