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Do Small Cities Need More Public Transport Subsidies Than Big Cities?
VTI, Box 55685, SE-11428 Stockholm, Sweden..ORCID iD: 0000-0001-9235-0232
Katholieke Univ Leuven, Dept Econ, Naamsestr 69, B-3000 Leuven, Belgium..
Katholieke Univ Leuven, Dept Econ, Naamsestr 69, B-3000 Leuven, Belgium..
KTH, School of Architecture and the Built Environment (ABE), Centres, Centre for Transport Studies, CTS.
2019 (English)In: Journal of Transport Economics and Policy, ISSN 0022-5258, E-ISSN 1754-5951, Vol. 53, no 4, p. 275-298Article in journal (Refereed) Published
Abstract [en]

We compare the optimal public transport subsidies for a representative bus corridor in a small city and in a big city in Sweden, derived by assuming optimal pricing, frequency, bus stop spacing, and bus lane policies. The optimal cost-recovery of the buses depends on the relative size of two costs: waiting time and crowding/congestion. In the big city the high crowding cost is dominating, approaching full cost-recovery in the first-best optimum. In the small city the waiting time dominates, implying larger optimal subsidies. The subsidy is also more effective as a redistribution policy in the small city.

Place, publisher, year, edition, pages
University of Bath , 2019. Vol. 53, no 4, p. 275-298
National Category
Transport Systems and Logistics
Identifiers
URN: urn:nbn:se:kth:diva-262961ISI: 000489040900001OAI: oai:DiVA.org:kth-262961DiVA, id: diva2:1366681
Note

QC 20191030

Available from: 2019-10-30 Created: 2019-10-30 Last updated: 2019-10-30Bibliographically approved

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Börjesson, MariaYan, Zifei

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