PRICE ELASTICITY OF COMMUTER MODE CHOICE: EFFECT OF A 20 PER CENT RAIL FARE REDUCTION

In May 1976, the N.S.W. Government announced that fares would be reduced on metropolitan rail services under its control by an average of 20%. A sample of Sydney commuters was interviewed approximately one month after the new fare structure had been introduced. These interviews were used as a basis for directly estimating the effects. The short run direct and cross-(perceived) price elasticities of commuter mode choice with respect to reduction in train fares for localities where train is an available mode are of the order of -.52 and 0.14 respectively, but the longer term elasticities may be expected to be higher. It seems that on the basis of a thorough empirical analysis that there is relatively low substitution between train and non-train usage in large cities with respect to policies related to fare charges. Cost is not a dominant variable. A more effective way to attract commuters back to rail is to make the car less attractive while at the same time improving the level of service of the rail system.

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  • Corporate Authors:

    Macquarie University, Australia

    School of Economic and Financial Studies, Balaclava Road
    North Ryde, New South Wales,   Australia 
  • Authors:
    • Hensher, D A
    • BULLOCK, R G
  • Publication Date: 1977-10

Media Info

  • Features: References; Tables;
  • Pagination: 29 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00182846
  • Record Type: Publication
  • Source Agency: Transport and Road Research Laboratory (TRRL)
  • ISBN: 085837 269 X
  • Report/Paper Numbers: Research Pap No. 149Monograph
  • Files: ITRD, TRIS, ATRI
  • Created Date: Oct 31 1978 12:00AM