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Benefits of Changes in Urban Public Transport Subsidies in the Major Australian Cities

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  • J. S. DODGSON

Abstract

This paper considers the economic efficiency benefits of urban public transport subsidies and presents estimates of the marginal benefits of fare and service level changes in the main Australian cities. Models to evaluate benefits are outlined, and estimates compared of the benefits to public transport and other road users of fare and service level changes in different cities. A major conclusion is that existing urban public transport subsidies might be more effective from an economic efficiency point of view if frequency levels were reduced and the consequent cost savings used to finance lower levels of fares.

Suggested Citation

  • J. S. Dodgson, 1986. "Benefits of Changes in Urban Public Transport Subsidies in the Major Australian Cities," The Economic Record, The Economic Society of Australia, vol. 62(2), pages 224-235, June.
    • Handle: RePEc:bla:ecorec:v:62:y:1986:i:2:p:224-235
    DOI: 10.1111/j.1475-4932.1986.tb00898.x
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    References listed on IDEAS

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    1. Wildasin, David E, 1984. "On Public Good Provision with Distortionary Taxation," Economic Inquiry, Western Economic Association International, vol. 22(2), pages 227-243, April.
    2. Glaister, Stephen & Lewis, Davis, 1978. "An integrated fares policy for transport in London," Journal of Public Economics, Elsevier, vol. 9(3), pages 341-355, June.
    3. Stuart, Charles E, 1984. "Welfare Costs per Dollar of Additional Tax Revenue in the United States," American Economic Review, American Economic Association, vol. 74(3), pages 352-362, June.
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    Cited by:

    1. Ian W. H. Parry & Kenneth A. Small, 2009. "Should Urban Transit Subsidies Be Reduced?," American Economic Review, American Economic Association, vol. 99(3), pages 700-724, June.
    2. Wardman, Mark & Hatfield, Andrew & Shires, Jeremy & Ishtaiwi, Mahmoud, 2019. "The sensitivity of rail demand to variations in motoring costs: Findings from a comparison of methods," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 181-199.
    3. Toner, Jeremy & Wardman, Mark & Shires, Jeremy & Teklu, Fitsum & Hatfield, Andrew, 2020. "Enhancing rail direct demand models with competition between ticket types using contributions from economic theory and market research," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 127-144.
    4. Peiqiu Guan & Jing Zhang & Vineet M. Payyappalli & Jun Zhuang, 2018. "Modeling and Validating Public–Private Partnerships in Disaster Management," Decision Analysis, INFORMS, vol. 15(2), pages 55-71, June.
    5. Small, Kenneth A, 2004. "6. Road Pricing And Public Transport," Research in Transportation Economics, Elsevier, vol. 9(1), pages 133-158, January.
    6. Peter Tisato, 1997. "User Economies of Scale: Bus Subsidy in Adelaide," The Economic Record, The Economic Society of Australia, vol. 73(223), pages 329-347, December.
    7. Acutt, MZ & Dodgson, JS, 1995. "Cross-elasticities of demand for travel," Transport Policy, Elsevier, vol. 2(4), pages 271-277, October.
    8. Wardman, Mark & Toner, Jeremy & Fearnley, Nils & Flügel, Stefan & Killi, Marit, 2018. "Review and meta-analysis of inter-modal cross-elasticity evidence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 662-681.
    9. Peiqiu Guan & Jun Zhuang, 2015. "Modeling Public–Private Partnerships in Disaster Management via Centralized and Decentralized Models," Decision Analysis, INFORMS, vol. 12(4), pages 173-189, December.
    10. Fearnley, Nils & Currie, Graham & Flügel, Stefan & Gregersen, Fredrik A. & Killi, Marit & Toner, Jeremy & Wardman, Mark, 2018. "Competition and substitution between public transport modes," Research in Transportation Economics, Elsevier, vol. 69(C), pages 51-58.

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