The impact of gasoline shortages on public bike-sharing systems

Xabier Barriola

doi:10.1108/arla-01-2021-0017

Abstract

PurposeThis paper aims to analyze the effect of a recent disruption of Mexico's gasoline supply chain on the usage of public bike-sharing systems in Mexico City and Guadalajara.Design/methodology/approachThe authors use a detailed data set to understand the usage patterns of Ecobici and Mibici. The authors assess both systems with a differences-in-differences econometric model using the least popular stations as a control group.FindingsThe authors find that the number of rides increased significantly shortly after the event because less popular stations became more utilized.Social implicationsThe authors show that when the effects of gasoline shortages were noticeable, usage rates increased in Guadalajara and Mexico City, but the rise primarily came from the users selecting more bikes from the less popular stations. Therefore, the authors show that citizens in both cities regarded bike-sharing as an adequate means of transportation, maximizing system usage during a disruptive time. This finding suggests that cities should invest in improving public bike-sharing systems to reduce carbon emissions and increase their population's well-being.Originality/valueThe authors use a publicly available data set to understand how citizens answered to a major disruption. Furthermore, this is one of the first papers that align supply chain risk management with sustainable transportation and analyzes its effects on citizen behavior in a Latin American setting.

Highlights

Numerous countries have suffered the consequences of gasoline shortages throughout history, especially when supply chains have been disrupted due to acts of terror, wars or by erroneous governmental policies
This paper aims to analyze the effect of a recent disruption of Mexico’s gasoline supply chain on the usage of public bike-sharing systems in Mexico City and Guadalajara
Social implications – The authors show that when the effects of gasoline shortages were noticeable, usage rates increased in Guadalajara and Mexico City, but the rise primarily came from the users selecting more bikes from the less popular stations

Summary

Introduction

Numerous countries have suffered the consequences of gasoline shortages throughout history, especially when supply chains have been disrupted due to acts of terror, wars or by erroneous governmental policies. Several economists analyzed the events of the 1973 oil crisis when members of the Organization of Petroleum Exporting Countries decided to proclaim an oil embargo that led to gasoline shortages across the globe. They found that US consumers were willing to pay the additional price set at the gas station to continue to travel as before (Curtin, 1976; Peskin, 1980). Since the early 2000s, bike-sharing systems have been installed worldwide, tackling transportation issues with a sustainable approach These systems have been so successful that they have reached more than 1,000 cities on every continent (Seattle Times, 2016). We have not seen a paper that analyzes the impact of a supply chain disruption on the usage of bike-sharing systems

Objectives

Findings

Conclusion