Optimal Bus Transport Financing – A Cost-Benefit Analysis of Zero Fares Policies in Urban Bus Transport

In order to design an optimal fare structure, the time costs for the bus driver and passengers on the bus of collecting fares on buses is important to study. The first objective of this paper is to empirically study how much a zero fares policy in off-peak, and both in peak and off-peak hours would bring down the fares collection costs in the medium sized town of Linkoping. A second objective of the paper is to make a cost-benefit analysis (CBA) of these two zero fare alternatives. A zero off-peak fare is in line with marginal cost pricing and an all day zero fare could be motivated by reduced fare collection costs and reduced negative externalities due to mode change from car to bus in urban areas. The financial consequences will, of course, be calculated as well. The increased deficit could be covered by an earmarked tax on the inhabitants of Linkoping. Their willingness to pay such an earmarked tax, that would make bus travel free of charge, and in addition reduce the travel time by bus thanks to no need for fare collection, is investigated in a pilot Stated Preference (SP) study that will supplement the CBA.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/9780080450957
• Corporate Authors:

  Elsevier

  The Boulevard, Langford Lane
  Kidlington, Oxford  United Kingdom  OX5 1GB
• Authors:
  • Ljungberg, Anders
• Conference:
  • Competition and Ownership in Land Passenger Transport. 9th International Conference (Thredbo 9)
  • Location: Lisbon , Portugal
  • Date: 2005-9-4 to 2005-9-8
• Publication Date: 2007

Language

• English

Media Info

• Media Type: Print
• Edition: First Edition
• Features: Appendices; Figures; References; Tables;
• Pagination: pp 393-419
• Monograph Title: Competition and Ownership in Land Transport Passenger Transport

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Bus transit; Bus transit operations; Bus transportation; Fares; Optimization; Public transit; Stated preferences; Transit operating agencies; Travel time
• Uncontrolled Terms: Fare structure; Off peak fares
• Subject Areas: Finance; Motor Carriers; Public Transportation;

Filing Info

• Accession Number: 01051398
• Record Type: Publication
• ISBN: 9780080450957
• Files: TRIS
• Created Date: Jun 8 2007 1:00PM