On Optimal Fares For Public Transport
|Presenting Author:||Ian W H Parry (Resources for the Future)|
|Coauthor 1:||Kenneth A Small|
Estimates of optimal transport subsidies in the economics literature cover almost the entire range from zero to 100 percent of operating costs. Typically each author covers one or two cities and includes some but not all of the following key factors: congestion externalities, other externalities from motor vehicles, scale economies due to the effect of service frequency on waiting time, revenue constraints, intermodal substitutability, and preexisting fuel taxes. Some results are from elaborate computational models whose inner workings are not transparent. This paper presents a single analytical model including nearly all the above factors. We derive an analytical formula for optimal subsidies and compute them using carefully researched parameters intended to represent four widely varying cities: London, Brussels, Los Angeles, and Washington. The results are used to compare current and optimal transit subsidies, to explore variation across regions, and to reconcile insofar as possible the previous disparate findings.
|Link to paper:||Not available|
|Session / Day / Time||16A / Thursday / 2:15 - 4:15 pm|
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