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Optimal fares and frequencies for bus services in a small city

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  • Asplund, Disa
  • Pyddoke, Roger

Abstract

This paper evaluates the welfare effects of optimizing bus service fares and frequencies in small cities by modeling street congestion and crowding in public transport vehicles. The model is calibrated to the Swedish city of Uppsala. A simple demand model is used. Sensitivity analyses suggest that this is sufficient for representing important welfare effects. The results indicate that there would be large, robust welfare gains from reducing public transport supply in Uppsala, especially in the outer zone of the city where reductions of supply would be large compared to the current situation. The welfare gains from adjusting fares would be smaller.

Suggested Citation

  • Asplund, Disa & Pyddoke, Roger, 2020. "Optimal fares and frequencies for bus services in a small city," Research in Transportation Economics, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:retrec:v:80:y:2020:i:c:s0739885919303166
    DOI: 10.1016/j.retrec.2019.100796
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    Cited by:

    1. Svanberg , Lisa & Pyddoke, Roger, 2020. "Policies for on-board crowding in public transportation : a literature review," Working Papers 2020:6, Swedish National Road & Transport Research Institute (VTI).
    2. Pyddoke, Roger, 2020. "Analysis of daily variation in bus occupancy rates for city-buses in Uppsala and optimal supply," Working Papers 2020:8, Swedish National Road & Transport Research Institute (VTI).
    3. Noé Villegas Flores & Yelinca Saldeño Madero & Camilo Alberto Torres Parra & Isidoro Fasolino & Hugo Alexander Rondón Quintana, 2021. "Multi-Criteria Approach for Prioritizing and Managing Public Investment in Urban Spaces. A Case Study in the Triple Frontier," Sustainability, MDPI, vol. 13(6), pages 1-24, March.
    4. Pyddoke, Roger, 2023. "Comparison of policies for increasing sustainable transport mode shares in Swedish cities," Working Papers 2023:9, Swedish National Road & Transport Research Institute (VTI).
    5. Asplund, Disa, 2021. "Optimal frequency of public transport in a small city: examination of a simple method," Working Papers 2021:9, Swedish National Road & Transport Research Institute (VTI).
    6. Pyddoke, Roger & Thoresson, Karin, 2023. "Has collaboration contributed to goal achievement in Swedish public transport?," Research in Transportation Economics, Elsevier, vol. 99(C).
    7. Asplund, Disa & Pyddoke, Roger, 2021. "Optimal pricing of car use in a small city: A case study of Uppsala," Transport Policy, Elsevier, vol. 114(C), pages 88-103.
    8. Nerhagen, Lena & Brandt, Daniel & Mortazavi, Reza, 2023. "Use of public transport as a means to reach national climate objectives - On the importance of accounting for spatial differences and costs," Transport Policy, Elsevier, vol. 131(C), pages 56-65.

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    More about this item

    Keywords

    Public transport; Bus; Demand model; Fares; Frequencies; Supply; Optimization; Welfare;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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