PUBLIC TRANSPORT PRICING POLICY: EMPIRICAL EVIDENCE OF REGIONAL BUS CARD SYSTEMS IN FINLAND
A research project is concerned with evaluating the effects of new integrated fare and ticket policies on bus use in Finland. The objective of the policy is to reduce energy consumption and the environmental effects of transport by encouraging a modal shift from cars to public transport. The scheme is based on introduction of a monthly regional bus card that offers a substantial discount on normal fares and that is valid from city center to smaller independent communities. The regional bus card is subsidized by local authorities and the state government. Estimates are presented of the fare elasticities of the demand for bus services in two regions in Finland--Oulu and Kuopio--where the regional bus card system has been introduced. The demand for bus cards and for travel with these cards is analyzed. The models used take into account different fare structures as well as the levels of fares, income, car-use costs, and service quality. The estimated elasticities indicate that in the medium-sized Finnish communities analyzed, the demand for both regional bus cards and trips when these cards are used are highly sensitive to price and income. The results are to be used in conjunction with other survey data for a preliminary assessment of the effect of the bus card system on bus patronage and car use.
This paper appears in Transportation Research Record No. 1604, Public Transit 1997: Planning, Management, Marketing, and New Technology.
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Old TRIS Terms:
Economics; Finance; Highways; Policy; Public Transportation; Society
TRIS, TRB, ATRI
Dec 30 1997 12:00AM
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