RELATIONSHIPS BETWEEN PUBLIC TRANSPORT SUBSIDIES AND FARES, SERVICE, COSTS AND PRODUCTIVITY

This report describes the extension of an analysis of the effects of urban public transport operating subsidies made for the European Conference of Ministers of Transport in 1979. The data base for the analysis has been greatly expanded, and now includes aggregate time-series data from 16 countries over the period 1965 to 1982, and data from public transport operations in 117 individual cities in 11 countries, mainly over the period 1970-82. The study examined the statistical correlations between year-on-year changes in the level of subsidy and changes in many other aggregate indicators of operating performance, including fares, vehicle-kms operated, passengers carried, unit costs per vehicle-km and per passenger, vehicle-kms operated per employee and passengers carried per employee, the number of staff employed and the wages paid. The results were in agreement with those obtained before, that although increases in subsidy were reflected in reduced fares and improved service levels, and therefore higher patronage, as much as one half of the subsidy has been consumed by higher unit costs and relatively lower production per employee. The relationships identified in the study seem to have been stable over time. Time-lagged regression suggested that, in part, the increases in unit cost tended to occur after the increases in subsidy, rather than before. Since additional service seems to be provided at less than average cost, the close connection between subsidy and costs gives some cause for concern that the uses of subsidy are not being controlled as tightly as they might. (Author/TRRL)

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/02665247
• Corporate Authors:

  Transport and Road Research Laboratory (TRRL)

  Wokingham, Berkshire  United Kingdom 
• Authors:
  • Bly, P H
  • Oldfield, R H
• Publication Date: 1985

Media Info

• Features: Figures; References; Tables;
• Pagination: 27 p.
• Serial:
  • TRRL RESEARCH REPORT
  • Issue Number: 24
  • Publisher: Transport and Road Research Laboratory (TRRL)
  • ISSN: 0266-5247

Subject/Index Terms

• TRT Terms: Analysis; Costs; Fares; Level of service; Operating costs; Performance; Productivity; Public transit; Regression analysis; Ridership; Statistics; Subsidies
• Uncontrolled Terms: Cost analysis; Performance indicators
• Geographic Terms: Europe
• ITRD Terms: 6471: Analysis (math); 224: Cost; 9009: Decrease; 285: Demand (econ); 5911: Efficiency; 244: Financing; 9034: International; 698: Journey; 653: Level of service; 744: Public transport; 241: Tariff; 313: Urban area; 9084: Use
• Subject Areas: Administration and Management; Data and Information Technology; Finance; Highways; Planning and Forecasting; Public Transportation;

Filing Info

• Accession Number: 00457305
• Record Type: Publication
• Source Agency: Transport Research Laboratory
• Report/Paper Numbers: NRR 15
• Files: ITRD, TRIS, ATRI
• Created Date: Aug 27 2004 10:01PM