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

Dodgson, J S

doi:10.1111/j.1475-4932.1986.tb00898.x

Cited by 26 publications

(19 citation statements)

References 4 publications

(4 reference statements)

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“…Our results are broadly consistent with studies of Chicago and several Austr which find that although service levels are sometimes inefficiently high, fare subsidies could generally be increased with positive effects on welfare (Savage and Schupp 1997;Dodgson 1986). Indeed, for Chicago in 1994, the estimated ratio of net benefit to additional subsidy expended -similar though not identical to our MW/M -ranges from 1.2 to 1.8 across modes and time periods (Savage and Schupp 1997, Table 6), considerably higher than our estimates of MW/M for other cities.…”

Section: Mbsupporting

confidence: 81%

Should Urban Transit Subsidies Be Reduced?

2007

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JEL Codes: R48, H21.Key words: transit subsidies; scale economies; traffic congestion; welfare effectsWe are grateful to Richard Arnott, Bruno De Borger, Stef Proost, Ian Savage, George Tolley, Kurt Van Dender, Clifford Winston, two referees, and numerous seminar participants for helpful comments and suggestions. We also thank Chun Kon Kim, Elliot Klein, and Helen Wei for research assistance. Kenneth Small thanks the University of California Energy Institute for financial support. All responsibility for accuracy of the paper lies with the authors. Should Urban Transit Subsidies Be Reduced? AbstractThis paper derives empirically tractable formulas for the welfare effects of fare adjustments in passenger peak and off-peak rail and bus transit, and for optimal pricing of those services. The formulas account for congestion, pollution, and accident externalities, scale economies, and agency adjustment of transit service offerings. We apply them using parameter values for Washington (D.C.), Los Angeles, and London. The results support the efficiency of the large current fare subsidies; even starting with fares at 50 percent of operating costs, incremental fare reductions are welfare improving in almost all cases. These findings are robust to alternative assumptions and parameters.

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Section: Mbsupporting

confidence: 81%

Should Urban Transit Subsidies Be Reduced?

2007

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“…Studies of Chicago (Savage 1997) and some Australian cities (Dodgson 1986) support the case for lower fares. Winston and Shirley (1998) find low optimal subsidies, and, for the Washington rail system, Winston and Maheshri (2007) calculate a net welfare loss of USD 195 million per year.…”

Section: Summary and Discussionmentioning

confidence: 99%

Local Transportation Policy and the Environment

Schmutzler

2011

Environ Resource Econ

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The paper introduces a simple framework for analyzing the environmental effects of local transportation policies, and it reviews some evidence. In several cases, subsidies for local public transportion have led to substantial reductions in road transportation and have thereby reduced externalities. Some but not all estimates suggest positive overall welfare effects of such policies. In the rare cases where road pricing has been applied, it has helped to reduce automobile transportation, and it has led to environmental improvements.The experience with specific driving restrictions like "days without cars" and "low emission zones" has been mixed. Local transportation policy can have a useful role to play as a complement to national policy instruments, but neither efficiency nor effectiveness can be taken for granted.

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“…In the South-East cor-gested here for frequency and fares with those ridor, optimizing F requires it to be increased suggested by Dodgson (1985Dodgson ( , 1986). In the South-East cor-gested here for frequency and fares with those ridor, optimizing F requires it to be increased suggested by Dodgson (1985Dodgson ( , 1986).…”

Section: Opcurrentmentioning

confidence: 91%

User Economies of Scale: Bus Subsidy in Adelaide*

Tisato

1997

Economic Record

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This paper considers the User Economies of Scale public transport subsidy argument. using buses in Adelaide as a case study. The paper: operates at a corridor level: models user choice between random and planned hehaviour using a logit model; uses a peak load model; models existing social justice policy; considers the effect of distortionary public finance; and considers the impact of introducingcompetitive tendering in senice delivery. It concludes that current subsidies are significantly higher than can he justified on user economies of scale grounds, and optimal subsidy results are significantly affected by distortionary public finance. ECONOMIC RECORD DEC

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

Cited by 26 publications

References 4 publications

Should Urban Transit Subsidies Be Reduced?

Should Urban Transit Subsidies Be Reduced?

Local Transportation Policy and the Environment

User Economies of Scale: Bus Subsidy in Adelaide*

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