LONG-TERM EFFECTS OF PUBLIC TRANSPORT SUBSIDY

The objective of this study was to demonstrate that: a) the assumption that the effects of subsidy upon public transport use occur very swiftly was incorrect, and therefore that if static methods were used to calculate the elasticities, inaccurate results would be produced; b) a clearer picture of these effects could be obtained by considering the dynamic process by which demand could be influenced by subsidy level. The main source of evidence for this was provided by the experience of South Yorkshire county council from 1975 to 1985, where a policy that produced both a reduction in fares and an increase in level of service also produced a 7% increase in bus use. Studies on the effects of this policy were carried out to investigate the changes observed during this period in the ages of bus users, the interaction between car ownership and bus use, and the implication of these findings for elasticities. It was found that changes in travel demand were underestimated if only the first year after subsidy was considered. With a period of 5-10 years, the elasticities were likely to be twice as great as those commonly used.

• Corporate Authors:

  University of Oxford

  Transport Studies Unit, 11 Bevington Road
  Oxford,   United Kingdom  OX2 6NB
• Authors:
  • Goodwin, P B
• Publication Date: 1987

Language

• English

Media Info

• Pagination: 6 p.
• Serial:
  • TSU
  • Issue Number: 404
  • Publisher: University of Oxford

Subject/Index Terms

• TRT Terms: Age; Buses; Demand; Elasticity (Mechanics); Financing; Forecasting; Level of service; Motor vehicles; Ownership; Public transit; Tariffs; Vehicle occupants
• Uncontrolled Terms: Decreases; Increase; Use
• Geographic Terms: United Kingdom
• ITRD Terms: 1757: Age; 1272: Bus; 9009: Decrease; 285: Demand (econ); 5912: Elasticity; 244: Financing; 132: Forecast; 9032: Increase; 653: Level of service; 744: Public transport; 241: Tariff; 8119: United Kingdom; 9084: Use; 1715: Vehicle occupant; 315: Vehicle ownership
• Subject Areas: Finance; Passenger Transportation; Public Transportation; Safety and Human Factors; Society; Vehicles and Equipment;

Filing Info

• Accession Number: 00481549
• Record Type: Publication
• Source Agency: Transport and Road Research Laboratory (TRRL)
• Files: ITRD, TRIS
• Created Date: Apr 30 1989 12:00AM