Characterisation of fair and sustainable technical fares for public transport in the Guadalajara metropolitan area, Mexico. Case study: Troncal 05. López Mateos

Roberto Ulises Estrada Meza

Transport, Mobility & Society, 2023, vol. 2, 59

Abstract: The study analysed the technical fare of the Integrated Transport Model ‘Mi Transporte’ on Trunk Road 05. López Mateos in the Guadalajara Metropolitan Area (AMG). Using a quantitative and econometric methodology, the cost structure, revenue and demand elasticities of the system were characterised. The analysis revealed that, with a current fare of MXN $9.50, daily revenues of MXN $707,128 were generated, which covered operating costs with a 15% margin for transport operators. However, the economic evaluation showed a negative Net Present Value (NPV) and an Internal Rate of Return (IRR) below the Minimum Acceptable Rate of Return (MARR), so investment in the configurations analysed (diesel or CNG) was not recommended. The research also estimated differentiated social fares based on user income, showing that a large part of the population spends between 13% and 48% of their income on transport, evidencing a disproportionate burden on low-income households. Furthermore, it was concluded that the route-company model, although more efficient than the old ‘man-truck’ scheme, requires subsidies and more equitable fare policies to ensure sustainability and accessibility. Finally, the adoption of progressive fares based on ability to pay was proposed, and the need to continue urban mobility studies to support public policy decisions that improve the quality of life in the AMG was emphasised.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:dbk:transp:v:2:y:2023:i::p:59:id:1056294tms202359

DOI: 10.56294/tms202359

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