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Demand and revenue implications of an integrated public transport policy. The case of

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  • Anna Matas

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    (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

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    Abstract

    One of the most popular options for promoting public transport use is the provision of an integrated and high quality public transport system. This was the strategy adopted by the regional government in Madrid in 1986 and since then public transport patronage has increased by more than 50%. This paper has two objectives. The first is to identify the factors underlying the significant increase in the demand for public transport in Madrid. To do this we estimate an aggregate demand function for bus and underground trips, which allows us to obtain the demand elasticities with respect to the main attributes of public transport services and also to calculate the long-term impact of changes in those explanatory variables on patronage. The second objective is to evaluate the impact on revenue derived from the introduction of the travel card scheme, and to discuss the consequences on revenue of changes in the relative fare levels of different types of ticket without substantially affecting patronage. This latter issue is addressed by estimating a matrix of own and cross-price elasticities for different ticket types.

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    File URL: http://www.ecap.uab.es/RePEc/doc/wpdea0304.pdf
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    Bibliographic Info

    Paper provided by Department of Applied Economics at Universitat Autonoma of Barcelona in its series Working Papers with number wpdea0304.

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    Length: 31 pages
    Date of creation: Mar 2003
    Date of revision:
    Handle: RePEc:uab:wprdea:wpdea0304

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    1. Antonio García-Ferrer & Marcos Bujosa & Aránzazu de Juan & Pilar Poncela, 2006. "Demand Forecast and Elasticities Estimation of Public Transport," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 40(1), pages 45-67, January.
    2. FitzRoy, Felix & Smith, Ian, 1999. "Season Tickets and the Demand for Public Transport," Kyklos, Wiley Blackwell, vol. 52(2), pages 219-38.
    3. 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.
    4. 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.
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    Cited by:
    1. David Levinson & Andrew Odlyzko, 2007. "Too Expensive to Meter: The influence of transaction costs in transportation and communication," Working Papers 200802, University of Minnesota: Nexus Research Group, revised Feb 2007.

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