REDUCED FARES OR INCREASED FREQUENCY?

The report comments on the argument for using bus service subsidies to increase vehicle mileage and quality of service rather than reduce fares. This course of action, it is argued, will lead to a larger increase in passenger demand than reducing fares. This conclusion is partly based on a simple model of the bus industry which suggests that a subsidy used to reduce fares by 10% will lead to a 3% increase in passenger demand (either number of journeys or passenger km), whereas if it was used to increase vehicle km by 10% it will lead to a 7% increase in passenger demand. This paper casts doubt on the simple model used and the parameter estimates, especially the elasticity of passenger demand to vehicle km. /TRRL/

• Corporate Authors:

  Warwick University

  Urban Transport Research Group
  Coventry,   England 
• Authors:
  • Black, I G
• Publication Date: 1976-10

Language

• English

Media Info

• Features: Figures;
• Pagination: 10 p.

Subject/Index Terms

• TRT Terms: Bus transit; Buses; Demand; Economic factors; Economics; Fares; Financing; Mathematical models; Public transit; Quality control; Subsidies; Tariffs; Transportation; Travel demand; Vehicle miles of travel
• Uncontrolled Terms: Fare reduction; Quality
• Old TRIS Terms: Bus transportation (Intracity)
• ITRD Terms: 285: Demand (econ); 263: Economics of transport; 244: Financing; 6473: Mathematical model; 744: Public transport; 241: Tariff; 292: Vehicle mile
• Subject Areas: Economics; Finance; Planning and Forecasting; Society; Transportation (General); I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 00164289
• Record Type: Publication
• Source Agency: Transport and Road Research Laboratory (TRRL)
• Report/Paper Numbers: Working Paper 35 Monograph
• Files: ITRD, TRIS
• Created Date: Mar 7 1981 12:00AM