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Is flat fare fair? Equity impact of fare scheme change

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  • Rubensson, Isak
  • Susilo, Yusak
  • Cats, Oded

Abstract

When Public Transport Administrations propose changes in fare schemes or increased fares, they are often met with concerns regarding the proposed fare schemes fairness. Implicit in these concerns is an understanding of relations governing land use and public transport, impacting equity. In this paper, we use socio-economic statistics of census areas in conjunction with public transport travel data from a transport forecast model to assess the geographical and distributional fairness of alternative fare schemes: flat, zone-based and distance-based. We discuss our result in relation to both the scientific literature and the known “truths” in the public debate. The method is applied to the Case study of Stockholm public transport. We find that high-income travelers benefit from all three fare schemes considered but, in contrast to much of the literature, least by flat fares. A strong distance-dependent fare could be horizontally equitable but has poor vertical equity.

Suggested Citation

  • Rubensson, Isak & Susilo, Yusak & Cats, Oded, 2020. "Is flat fare fair? Equity impact of fare scheme change," Transport Policy, Elsevier, vol. 91(C), pages 48-58.
    • Handle: RePEc:eee:trapol:v:91:y:2020:i:c:p:48-58
    DOI: 10.1016/j.tranpol.2020.03.013
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    References listed on IDEAS

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    1. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).
    2. Dixit, Malvika & Chowdhury, Subeh & Cats, Oded & Brands, Ties & van Oort, Niels & Hoogendoorn, Serge, 2021. "Examining circuity of urban transit networks from an equity perspective," Journal of Transport Geography, Elsevier, vol. 91(C).
    3. Ryan, Jean & Pereira, Rafael H.M. & Andersson, Magnus, 2023. "Accessibility and space-time differences in when and how different groups (choose to) travel," Journal of Transport Geography, Elsevier, vol. 111(C).
    4. Lin, Joanne Yuh-Jye & Jenelius, Erik & Cebecauer, Matej & Rubensson, Isak & Chen, Cynthia, 2023. "The equity of public transport crowding exposure," Journal of Transport Geography, Elsevier, vol. 110(C).
    5. Guo, Shuocheng & Kontou, Eleftheria, 2021. "Disparities and equity issues in electric vehicles rebate allocation," Energy Policy, Elsevier, vol. 154(C).
    6. Simic, Vladimir & Gokasar, Ilgin & Deveci, Muhammet & Karakurt, Ahmet, 2022. "An integrated CRITIC and MABAC based type-2 neutrosophic model for public transportation pricing system selection," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).

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