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Economic and Environmental Effects of Public Transport Subsidy Policies: a Spatial CGE Model of Beijing

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  • Ping Xu
  • Weiyu Wang
  • Chunxia Wei

Abstract

Public transport plays an important role in the environment. This study established a Spatial Computable General Equilibrium (SCGE) model to examine the economic and environmental effects of public transport subsidy policies. The model includes firms, consumers, and traffic modules in one framework. Statistical data from Beijing were used in calibration to obtain benchmark equilibrium. Based on the equilibrium, simulations compared citywide social welfare, jobs-housing spatial population distribution, and environmental outputs under four subsidy policies: fare subsidy, cash grants, road expansion, and public transport speedup. Based on the results regarding the effects of public transport policies, conclusions can be drawn about which policies will have greater overall social influence and should therefore be used.

Suggested Citation

  • Ping Xu & Weiyu Wang & Chunxia Wei, 2018. "Economic and Environmental Effects of Public Transport Subsidy Policies: a Spatial CGE Model of Beijing," Mathematical Problems in Engineering, Hindawi, vol. 2018, pages 1-12, June.
    • Handle: RePEc:hin:jnlmpe:3843281
    DOI: 10.1155/2018/3843281
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    Cited by:

    1. Sarthak Sahu & Saket Shanker & Aditya Kamat & Akhilesh Barve, 2023. "India’s public transportation system: the repercussions of COVID-19," Public Transport, Springer, vol. 15(2), pages 435-478, June.
    2. Proque, Andressa Lemes & Betarelli Junior, Admir Antonio & Perobelli, Fernando Salgueiro, 2022. "Fuel tax, cross subsidy and transport: Assessing the effects on income and consumption distribution in Brazil," Research in Transportation Economics, Elsevier, vol. 95(C).

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