IDEAS home Printed from https://ideas.repec.org/p/hhs/ctswps/2017_010.html
   My bibliography  Save this paper

Cycling tolls and optimal number of bus stops: the importance of congestion and crowding

Author

Listed:

Abstract

This paper optimises the number of bus stops, and prices for car, bus and cycling in the busiest inner city corridor in Stockholm. We find that the number of bus stops is already close to optimal. Welfare would increase if the peak frequency was increased, the bus fares were differentiated such that short trips paid less than the current rate, and that the toll for longer car trips was increased. The optimal toll for cyclists, and the welfare benefit from it, is small and does not compensate the transaction costs. The distributional effects of bus fare changes and higher car tolls are small because on one hand, high income groups place more value on travel time gains, but on the other hand, low income groups travel less frequently by car. Surprisingly, we find that in the welfare optimum, the bus service generates a surplus due to congestion in the bus lane, crowding in the buses, and extra boarding and alighting time per passenger. The Mohring effect is limited because the demand, and thereby the baseline frequency, is already high.

Suggested Citation

  • Börjesson, Maria & Fung, Chau Man & Proost, Stef & Yan, Zifei, 2017. "Cycling tolls and optimal number of bus stops: the importance of congestion and crowding," Working papers in Transport Economics 2017:10, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
  • Handle: RePEc:hhs:ctswps:2017_010
    as

    Download full text from publisher

    File URL: http://www.transportportal.se/swopec/CTS2017-10.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Kilani, Moez & Proost, Stef & van der Loo, Saskia, 2014. "Road pricing and public transport pricing reform in Paris: Complements or substitutes?," Economics of Transportation, Elsevier, vol. 3(2), pages 175-187.
    2. Mohring, Herbert, 1972. "Optimization and Scale Economies in Urban Bus Transportation," American Economic Review, American Economic Association, vol. 62(4), pages 591-604, September.
    3. Ian W. H. Parry & Kenneth A. Small, 2009. "Should Urban Transit Subsidies Be Reduced?," American Economic Review, American Economic Association, vol. 99(3), pages 700-724, June.
    4. Leonardo J. Basso & Hugo E. Silva, 2014. "Efficiency and Substitutability of Transit Subsidies and Other Urban Transport Policies," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 1-33, November.
    5. Monchambert, Guillaume & de Palma, André, 2014. "Public transport reliability and commuter strategy," Journal of Urban Economics, Elsevier, vol. 81(C), pages 14-29.
    6. Kraus, Marvin, 1991. "Discomfort externalities and marginal cost transit fares," Journal of Urban Economics, Elsevier, vol. 29(2), pages 249-259, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Public transport; Cycling; Bus stops; Congestion; Optimal pricing of urban transport;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:ctswps:2017_010. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CTS). General contact details of provider: http://www.cts.kth.se/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.