Efficiency and Substitutability of Transit Subsidies and Other Urban Transport Policies
American Economic Journal: Economic Policy
vol. 6,
no. 4, November 2014
(pp. 1-33)
Abstract
This paper analyzes the efficiency of and the substitutability between three urban congestion management policies: transit subsidization, car congestion pricing, and dedicated bus lanes. The model features user heterogeneity, cross-congestion effects between cars and transit, intertemporal and total transport demand elasticities, and is simulated using data for London, UK and Santiago, Chile. We find that the substitutability between policies is large and, in particular, the marginal contribution of increased transit subsidies, as other policies are implemented first, diminishes rapidly. Bus lanes are an attractive way to increase frequencies and decrease fares without injecting public funds.Citation
Basso, Leonardo J., and Hugo E. Silva. 2014. "Efficiency and Substitutability of Transit Subsidies and Other Urban Transport Policies." American Economic Journal: Economic Policy, 6 (4): 1-33. DOI: 10.1257/pol.6.4.1Additional Materials
JEL Classification
- L92 Railroads and Other Surface Transportation
- L98 Industry Studies: Utilities and Transportation: Government Policy
- O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R42 Transportation Economics: Government and Private Investment Analysis; Road Maintenance, Transportation Planning
- R48 Transportation Economics: Government Pricing and Policy
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