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Redistributive effects of subsidies to urban public transport in Spain

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  • Javier Asensio
  • Anna Matas
  • José-Luis Raymond

Abstract

This paper analyses the redistributive effects generated by the subsidization of urban public transport services. We estimate a two-stage model that takes into account both car ownership decisions and expenditure in urban public transport. In this way, we are able to measure the long run effects of income changes. Under the assumption that the user is the final beneficiary of the subsidies, and computing the share of the fare that is subsidized, we measure the progressiveness of the subsidies for different income groups and city sizes. Urban public transport subsidies are shown to be progressive. In larger urban areas this effect is considerably more important than in small ones.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:transr:v:23:y:2003:i:4:p:433-452
    DOI: 10.1080/01441647.2002.10823176
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    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).
    2. Gerlinde Verbist & Michael Föster & Vaalavou, M., 2013. "GINI DP 74: The Impact of Publicly Provided Services on the Distribution of Resources: Review of New Results and Methods," GINI Discussion Papers 74, AIAS, Amsterdam Institute for Advanced Labour Studies.
    3. Miloš POLIAK & Štefánia SEMANOVÁ & Michaela MRNÍKOVÁ & Lenka KOMAČKOVÁ & Patrícia ŠIMURKOVÁ & Adela POLIAKOVÁ & Salvador HERNANDES, 2017. "Financing Public Transport Services From Public Funds," Transport Problems, Silesian University of Technology, Faculty of Transport, vol. 12(4), pages 61-72, December.
    4. 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.
    5. Sabreena Anowar & Naveen Eluru & Luis F. Miranda-Moreno, 2018. "How household transportation expenditures have evolved in Canada: a long term perspective," Transportation, Springer, vol. 45(5), pages 1297-1317, September.
    6. 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.
    7. 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.
    8. 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.
    9. Anna Matas, 2003. "Demand and revenue implications of an integrated public transport policy. The case of," Working Papers wpdea0304, Department of Applied Economics at Universitat Autonoma of Barcelona.
    10. Abrate, Graziano & Piacenza, Massimiliano & Vannoni, Davide, 2009. "The impact of Integrated Tariff Systems on public transport demand: Evidence from Italy," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 120-127, March.
    11. Basnak, Paul & Giesen, Ricardo, 2023. "Assessing free-fare public transport in Chilean cities through optimization models," Research in Transportation Economics, Elsevier, vol. 98(C).
    12. Desiderio Romero-Jordán & José Félix Sanz & Mercedes Burguillo, 2014. "Is it environmentally desirable to encourage public transport through taxes? Evidence for Spanish households," Cogent Economics & Finance, Taylor & Francis Journals, vol. 2(1), pages 1-9, December.
    13. Nazari Adli, Saeid & Donovan, Stuart, 2018. "Right to the city: Applying justice tests to public transport investments," Transport Policy, Elsevier, vol. 66(C), pages 56-65.
    14. Daniel Štraub, 2020. "The Effects of Fare-Free Public Transport: A Lesson from Frýdek-Místek (Czechia)," Sustainability, MDPI, vol. 12(21), pages 1-15, November.
    15. Julián Costas-Fernández & Simón Lodato, 2022. "Inequality, poverty and the composition of redistribution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 59(4), pages 925-967, November.

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