Efficiency and Substitutability of Transit Subsidies and Other Urban Transport Policies

Leonardo J. Basso and Hugo E. Silva

American Economic Journal: Economic Policy, 2014, vol. 6, issue 4, 1-33

Abstract: This paper analyzes the efficiency of and the substitutability between three urban congestion management policies: transit subsidization, car congestion pricing, and dedicated bus lanes. The model features user heterogeneity, cross-congestion effects between cars and transit, intertemporal and total transport demand elasticities, and is simulated using data for London, UK and Santiago, Chile. We find that the substitutability between policies is large and, in particular, the marginal contribution of increased transit subsidies, as other policies are implemented first, diminishes rapidly. Bus lanes are an attractive way to increase frequencies and decrease fares without injecting public funds.

JEL-codes: L92 L98 O18 R42 R48 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/pol.6.4.1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (95)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/pol.6.4.1 (application/pdf)
http://www.aeaweb.org/aej/pol/data/0604/2011-0252_data.zip (application/zip)
http://www.aeaweb.org/aej/pol/app/0604/2011-0252_app.pdf (application/pdf)
http://www.aeaweb.org/aej/pol/ds/0604/2011-0252_ds.zip (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aejpol:v:6:y:2014:i:4:p:1-33

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Journal: Economic Policy is currently edited by Matthew Shapiro

More articles in American Economic Journal: Economic Policy from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().