Do small cities need more public transport subsidies than big cities?

Maria Börjesson, Chau Man Fung, Stef Proost and Zifei Yan
Additional contact information
Maria Börjesson: VTI
Chau Man Fung: KU Leuven
Zifei Yan: CTS - Centre for Transport Studies Stockholm (KTH and VTI), Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden

No 2018:5, Working papers in Transport Economics from CTS - Centre for Transport Studies Stockholm (KTH and VTI)

Abstract: This paper compares the optimal public transport subsidies for a representative bus corridor in a small city (Karlstad) and in a big city (Stockholm) in Sweden. In the smaller city, the optimization of the fare is more important for welfare, whereas in the larger city, the frequency is more important. Moreover, the optimal subsidy is higher in small than in large cities because of larger positive externalities of reduced waiting and schedule delay costs, whereas the negative crowding externalities are larger in the large city. The bus subsidy is important for the income distribution in the small city.

Keywords: Cost-Benefit Analysis; Transport plan; Public transport; Subsidies; External costs; Fares; Frequencies; Bus stops; Redistribution (search for similar items in EconPapers)
JEL-codes: R41 R42 R48 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2018-03-23, Revised 2018-12-11
New Economics Papers: this item is included in nep-res, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Do Small Cities Need More Public Transport Subsidies Than Big Cities? (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:ctswps:2018_005

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