Economic and Equity Evaluation of Delhi Metro

Abstract

This paper examines the economic and equity implications of the introduction of a metro system in Delhi. Generalized cost of each mode is used as an indicator of mobility, where as, accessibility is measured in terms of consumer surplus. A combined mode destination choice model is employed to assess the change in the generalized costs of existing modes after the metro introduction. The accessibility benefits of a metro are estimated using the logsum approach to estimate the consumer surplus of transit riders. The well established quantitative measure of equity, the GINI coefficient, is used to link mobility and accessibility to equity. Results indicate a reduction in the generalized costs of three existing modes, i.e. bus, car and the two wheelers. The magnitude of change is the lowest for bus and the highest for two wheelers. The estimated average change in welfare according the calibrated model is 45.32 Rs/trip (0.923 $US) which equals 90.64 Rs/day (1.85 $US), assuming two work trips per person per day. The results of the equity measure indicate a shift towards the line of perfect equality, concluding that the introduction of metro shows a positive impact on equity (of mobility and accessibility).