By Stuart Cole

ISBN-10: 0749439645

ISBN-13: 9780749439644

ISBN-10: 0749446064

ISBN-13: 9780749446062

ISBN-10: 1423728785

ISBN-13: 9781423728788

ISBN-10: 1598758381

ISBN-13: 9781598758382

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Extra resources for Applied Transport Economics: Policy, Management & Decision Making

Example text

65 Source: Goodwin (1992) Rail elasticity studies are more commonly carried out for Inter City services rather than urban operations where as suggested in the Serpell Report and as indicated by London Transport underground price elasticities are relatively low (see also SNCB, 1997). 5) for fares increases of 10 per cent. 4, which public sector companies had used during the 1970s. 0) changes (Preston, 1998). A fares reduction of 50 per cent led to a ridership increase of 275 per cent even after fares were subsequently raised to 66 per cent of the original level.

Rail passenger demand, for example, will be influenced by: 36 Elasticity of Demand fares in relation to other prices; fares in relation to other operators’ fares and to car running costs; consumers’ income; unemployment level; car ownership level; reliability and service level; the image of intercity rail travel and the individual train operator Demand is the amount of a service or product bought by a consumer. Only effective demand is of interest to the economist; that is demand which can be put into effect because the consumer is able to pay.

Cross price elasticity may also be seen where the relative prices of two modes change. If rail prices increased significantly and perceived car costs remained the same, there might also be a transfer of passengers. An extensive compilation and assessment of elasticity studies in Europe in 1992 (Goodwin, 1992) reviewed 50 demand elasticities studies from 1980–1990 for car and bus travel. 41 but indicated a wide variation between the short-term and long-term impacts. 65 Source: Goodwin (1992) Rail elasticity studies are more commonly carried out for Inter City services rather than urban operations where as suggested in the Serpell Report and as indicated by London Transport underground price elasticities are relatively low (see also SNCB, 1997).

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Applied Transport Economics: Policy, Management & Decision Making by Stuart Cole


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