IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v91y2020icp48-58.html
   My bibliography  Save this article

Is flat fare fair? Equity impact of fare scheme change

Author

Listed:
  • Rubensson, Isak
  • Susilo, Yusak
  • Cats, Oded

Abstract

When Public Transport Administrations propose changes in fare schemes or increased fares, they are often met with concerns regarding the proposed fare schemes fairness. Implicit in these concerns is an understanding of relations governing land use and public transport, impacting equity. In this paper, we use socio-economic statistics of census areas in conjunction with public transport travel data from a transport forecast model to assess the geographical and distributional fairness of alternative fare schemes: flat, zone-based and distance-based. We discuss our result in relation to both the scientific literature and the known “truths” in the public debate. The method is applied to the Case study of Stockholm public transport. We find that high-income travelers benefit from all three fare schemes considered but, in contrast to much of the literature, least by flat fares. A strong distance-dependent fare could be horizontally equitable but has poor vertical equity.

Suggested Citation

  • Rubensson, Isak & Susilo, Yusak & Cats, Oded, 2020. "Is flat fare fair? Equity impact of fare scheme change," Transport Policy, Elsevier, vol. 91(C), pages 48-58.
    • Handle: RePEc:eee:trapol:v:91:y:2020:i:c:p:48-58
    DOI: 10.1016/j.tranpol.2020.03.013
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X19306808
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2020.03.013?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Farber, Steven & Bartholomew, Keith & Li, Xiao & Páez, Antonio & Nurul Habib, Khandker M., 2014. "Assessing social equity in distance based transit fares using a model of travel behavior," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 291-303.
    2. Brueckner, Jan K. & Thisse, Jacques-Francois & Zenou, Yves, 1999. "Why is central Paris rich and downtown Detroit poor?: An amenity-based theory," European Economic Review, Elsevier, vol. 43(1), pages 91-107, January.
    3. Bureau, Benjamin & Glachant, Matthieu, 2011. "Distributional effects of public transport policies in the Paris Region," Transport Policy, Elsevier, vol. 18(5), pages 745-754, September.
    4. Suits, Daniel B, 1977. "Measurement of Tax Progressivity," American Economic Review, American Economic Association, vol. 67(4), pages 747-752, September.
    5. Cats, Oded & Wang, Qian & Zhao, Yu, 2015. "Identification and classification of public transport activity centres in Stockholm using passenger flows data," Journal of Transport Geography, Elsevier, vol. 48(C), pages 10-22.
    6. Nuworsoo, Cornelius & Golub, Aaron & Deakin, Elizabeth, 2009. "Analyzing equity impacts of transit fare changes: Case study of Alameda-Contra Costa Transit, California," Evaluation and Program Planning, Elsevier, vol. 32(4), pages 360-368, November.
    7. Glaeser, Edward L. & Kahn, Matthew E. & Rappaport, Jordan, 2008. "Why do the poor live in cities The role of public transportation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 1-24, January.
    8. Giuliano, Genevieve & Dargay, Joyce, 2006. "Car ownership, travel and land use: a comparison of the US and Great Britain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(2), pages 106-124, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simic, Vladimir & Gokasar, Ilgin & Deveci, Muhammet & Karakurt, Ahmet, 2022. "An integrated CRITIC and MABAC based type-2 neutrosophic model for public transportation pricing system selection," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).
    2. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).
    3. Dixit, Malvika & Chowdhury, Subeh & Cats, Oded & Brands, Ties & van Oort, Niels & Hoogendoorn, Serge, 2021. "Examining circuity of urban transit networks from an equity perspective," Journal of Transport Geography, Elsevier, vol. 91(C).
    4. Ryan, Jean & Pereira, Rafael H.M. & Andersson, Magnus, 2023. "Accessibility and space-time differences in when and how different groups (choose to) travel," Journal of Transport Geography, Elsevier, vol. 111(C).
    5. Lin, Joanne Yuh-Jye & Jenelius, Erik & Cebecauer, Matej & Rubensson, Isak & Chen, Cynthia, 2023. "The equity of public transport crowding exposure," Journal of Transport Geography, Elsevier, vol. 110(C).
    6. Guo, Shuocheng & Kontou, Eleftheria, 2021. "Disparities and equity issues in electric vehicles rebate allocation," Energy Policy, Elsevier, vol. 154(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Groote, Jesper De & Ommeren, Jos Van & Koster, Hans R.A., 2016. "Car ownership and residential parking subsidies: Evidence from Amsterdam," Economics of Transportation, Elsevier, vol. 6(C), pages 25-37.
    2. Verbich, David & El-Geneidy, Ahmed, 2017. "Public transit fare structure and social vulnerability in Montreal, Canada," Transportation Research Part A: Policy and Practice, Elsevier, vol. 96(C), pages 43-53.
    3. Hans R. A. Koster & Jos N. van Ommeren & Piet Rietveld, 2016. "Historic amenities, income and sorting of households," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 203-236.
    4. Mariya Letdin & Hyoung S. Shim, 2019. "Location choice, life cycle and amenities," Journal of Regional Science, Wiley Blackwell, vol. 59(3), pages 567-585, June.
    5. Mangum, Kyle & Molloy, Raven, 2021. "Migration and Housing special issue: Introduction from Editors Kyle Mangum and Raven Molloy," Journal of Housing Economics, Elsevier, vol. 53(C).
    6. Lin, Joanne Yuh-Jye & Jenelius, Erik & Cebecauer, Matej & Rubensson, Isak & Chen, Cynthia, 2023. "The equity of public transport crowding exposure," Journal of Transport Geography, Elsevier, vol. 110(C).
    7. Rémi Louf & Marc Barthelemy, 2016. "Patterns of Residential Segregation," PLOS ONE, Public Library of Science, vol. 11(6), pages 1-20, June.
    8. JunJie Wu, 2010. "Economic Fundamentals And Urban–Suburban Disparities," Journal of Regional Science, Wiley Blackwell, vol. 50(2), pages 570-591, May.
    9. Mulalic, Ismir & Rouwendal, Jan, 2020. "Does improving public transport decrease car ownership? Evidence from a residential sorting model for the Copenhagen metropolitan area," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    10. Mercedes Delgado & Kimberly Zeuli, 2016. "Clusters and Regional Performance," Economic Development Quarterly, , vol. 30(2), pages 117-136, May.
    11. Jiechao Zhang & Xuedong Yan & Meiwu An & Li Sun, 2017. "The Impact of Beijing Subway’s New Fare Policy on Riders’ Attitude, Travel Pattern and Demand," Sustainability, MDPI, vol. 9(5), pages 1-21, April.
    12. Mayer, Thierry & Trevien, Corentin, 2017. "The impact of urban public transportation evidence from the Paris region," Journal of Urban Economics, Elsevier, vol. 102(C), pages 1-21.
    13. Rubensson, Isak & Susilo, Yusak & Cats, Oded, 2020. "Fair accessibility – Operationalizing the distributional effects of policy interventions," Journal of Transport Geography, Elsevier, vol. 89(C).
    14. Song, Yena & Kim, Hyun & Lee, Keumsook & Ahn, Kwangwon, 2018. "Subway network expansion and transit equity: A case study of Gwangju metropolitan area, South Korea," Transport Policy, Elsevier, vol. 72(C), pages 148-158.
    15. Dong, Hongwei, 2017. "Rail-transit-induced gentrification and the affordability paradox of TOD," Journal of Transport Geography, Elsevier, vol. 63(C), pages 1-10.
    16. Börjesson, Maria & Eliasson, Jonas & Rubensson, Isak, 2020. "Distributional effects of public transport subsidies," Journal of Transport Geography, Elsevier, vol. 84(C).
    17. Anupam Nanda & Jia-Huey Yeh, 2016. "Reflected Glory Versus Repulsive Envy: How Do the Smiths Feel About the House of the Joneses?," Asian Economic Journal, East Asian Economic Association, vol. 30(3), pages 317-341, September.
    18. Rafa Madariaga & Joan Carles Martori & Ramon Oller, 2011. "Income, distance and spatial effects in the Monocentric model. The Barcelona Metropolitan Area case," ERSA conference papers ersa11p511, European Regional Science Association.
    19. Tscharaktschiew, Stefan & Hirte, Georg, 2010. "How does the household structure shape the urban economy?," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 498-516, November.
    20. Brown, Anne, 2022. "Not all fees are created equal: Equity implications of ride-hail fee structures and revenues," Transport Policy, Elsevier, vol. 125(C), pages 1-10.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:trapol:v:91:y:2020:i:c:p:48-58. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.