Scandinavian Working Papers in Economics

Working papers in Transport Economics,
CTS - Centre for Transport Studies Stockholm (KTH and VTI)

No 2017:10: Cycling tolls and optimal number of bus stops: the importance of congestion and crowding

Maria Börjesson (), Chau Man Fung (), Stef Proost () and Zifei Yan ()
Additional contact information
Maria Börjesson: KTH, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Chau Man Fung: Katholieke Universiteit Leuven, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Stef Proost: Katholieke Universiteit Leuven, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Zifei Yan: KTH, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden

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

JEL-codes: R41; R48

36 pages, August 21, 2017

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CTS2017-10.pdf PDF-file 

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