Season Tickets and the Demand for Public Transport
AbstractIn view of the rising external costs of private road transport, inducing motorists to shift to transport modes that generate fewer negative externalities is a major policy goal in many cities. This paper argues that if season tickets for public transport are cheap and attractive enough so that most car owners buy them, then holders face zero marginal pecuniary costs of use and a significant modal switch is plausible, provided that service frequency, speed and other quality attributes are adequate. Using a simple model, we show that this two part tariff or public transport club can generate welfare gains in the form of reduced car use as well as higher revenue. The model is tested with 25 years of data from four Swiss cities. Results from seemingly unrelated regression estimation indicate large season ticket effects on the demand for public transport.
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Bibliographic InfoPaper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 9802.
Date of creation: Oct 1998
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Public transport demand; Season tickets;
Other versions of this item:
- FitzRoy, Felix & Smith, Ian, 1999. "Season Tickets and the Demand for Public Transport," Kyklos, Wiley Blackwell, vol. 52(2), pages 219-38.
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
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- FitzRoy, Felix & Smith, Ian, 1998. "Public transport demand in Freiburg: why did patronage double in a decade?," Transport Policy, Elsevier, vol. 5(3), pages 163-173, June.
- Gkritza, Konstantina & Karlaftis, Matthew G. & Mannering, Fred L., 2011. "Estimating multimodal transit ridership with a varying fare structure," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(2), pages 148-160, February.
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- Redman, Lauren & Friman, Margareta & Gärling, Tommy & Hartig, Terry, 2013. "Quality attributes of public transport that attract car users: A research review," Transport Policy, Elsevier, vol. 25(C), pages 119-127.
- 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.
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