The Welfare Effects of the Free Subway Fare Scheme for Seniors: A Discrete Choice Approach with the Case of Seoul

This study investigates the effects of a free subway scheme for the elderly on mode shift and consumer surplus for the Seoul metropolitan area, using discrete choice models. The analysis results can be summarized as follows. First, a comparative analysis of temporal and spatial subway trip distributions between the elderly and the general public shows that the majority of elderly subway trips were made during off-peak periods on a weekday, avoiding peak periods and busy stations. Second, the free subway scheme has contributed to shifting elderly modes from automobile, bus, and walk to subway, attracting about 54-58 thousand seniors’ trips per day to subway. Third, the scheme has generated about $60-74 million per year in net social welfare after accounting for the financial cost of the scheme, concluding that the scheme enhances seniors’ mobility and social welfare without putting a substantial burden on the existing subway system.


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  • Accession Number: 01679959
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 31 2018 1:45PM