Working papers in Transport Economics
Cycling tolls and optimal number of bus stops: the importance of congestion and crowding
(), Chau Man Fung
(), Stef Proost
() and Zifei Yan
Abstract: This paper optimises the number of bus stops, and prices
for car, bus and cycling in the busiest inner city corridor in Stockholm.
We find that the number of bus stops is already close to optimal. Welfare
would increase if the peak frequency was increased, the bus fares were
differentiated such that short trips paid less than the current rate, and
that the toll for longer car trips was increased. The optimal toll for
cyclists, and the welfare benefit from it, is small and does not compensate
the transaction costs. The distributional effects of bus fare changes and
higher car tolls are small because on one hand, high income groups place
more value on travel time gains, but on the other hand, low income groups
travel less frequently by car. Surprisingly, we find that in the welfare
optimum, the bus service generates a surplus due to congestion in the bus
lane, crowding in the buses, and extra boarding and alighting time per
passenger. The Mohring effect is limited because the demand, and thereby
the baseline frequency, is already high.
Keywords: Public transport; Cycling; Bus stops; Congestion; Optimal pricing of urban transport; (follow links to similar papers)
JEL-Codes: R41; R48; (follow links to similar papers)
36 pages, August 21, 2017
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