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Mode Choice and the Effects of Rapid Transit Improvements on Private Vehicle Use and Urban Development

Author

Listed:
  • Ryan Greenaway-McGrevy
  • James Allan Jones

Abstract

Why do improvements in public transit sometimes result in an increase in private vehicle use, and sometimes result in a decrease? To better understand the underlying mechanisms, we study the impact of improvements in rapid transit (RT) within a monocentric model of the city that features congestion in commuting modes. Commuters choose between two different modes: public RT or private vehicles. While RT improvements increase city size, population, and aggregate land values, their effect on private vehicle use is ambiguous and depends on the extent of road congestion. Vehicle kilometres travelled (VKT) can increase after an RT improvement when the private road network is sufficiently congested. Policies to reduce road use in congested cities by improving RT should therefore be paired with additional disincentives to the use of private transportation.

Suggested Citation

  • Ryan Greenaway-McGrevy & James Allan Jones, 2022. "Mode Choice and the Effects of Rapid Transit Improvements on Private Vehicle Use and Urban Development," Working Papers 011, University of Auckland, Economic Policy Center (EPC).
    • Handle: RePEc:cyc:wpaper:011
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    Keywords

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    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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