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Do Small Cities Need More Public Transport Subsidies Than Big Cities?
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.ORCID iD: 0000-0001-9235-0232
KU Leuven.
KU Leuven.
Royal Institute of Technology.
2019 (English)In: Journal of Transport Economics and Policy, ISSN 0022-5258, E-ISSN 1754-5951, Vol. 53, 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
Avon: UNIV BATH , 2019. Vol. 53, p. 275-298
National Category
Transport Systems and Logistics
Identifiers
URN: urn:nbn:se:vti:diva-14268ISI: 000489040900001OAI: oai:DiVA.org:vti-14268DiVA, id: diva2:1385447
Available from: 2020-01-14 Created: 2020-01-14 Last updated: 2020-01-16Bibliographically approved

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Börjesson, Maria

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