Local public transport on the basis of social economic criteria

Abstract

Applying the welfare economic approach it is demonstrated what the effects of certain supply changes in the local public transport will be and the potential of innovative demand management measures are examined. Straighter bus routes would reduce the average travel time from door to door. The travel time on the buses decreases and the frequency increases, which reduces waiting times at bus stops. Using smaller buses and more of them would also increase the net benefit, but increase the need for subsidisation. The peak within the peak in the morning is hard to handle by price policy alone. Introducing a small variation of the start of the school-day for high-school pupils would make investment- and operation cost savings possible, and the inconvenience costs for the pupils could be limited. It is only during peak hours in the main direction of peak travel and in the critical section of the line that optimal price becomes high relative to the present level. Zero fares in off-peak will be social profitable, but an increase in subsidy is needed. An introduction of these policy changes would give rise to a net social benefit of 30 million SEK per year in Linköping.