Social and Distributional Effects of Public Transport Fares and Subsidy Policies: Case of Madrid

Bueno Cadena, Paola Carolina and Vassallo Magro, José Manuel and Herraiz Tabernero, Israel and Loro Aguayo, Manuel (2016). Social and Distributional Effects of Public Transport Fares and Subsidy Policies: Case of Madrid. "Transportation Research Record: Journal of the Transportation Research Board" (n. 2544); pp. 47-54. ISSN 0361-1981. https://doi.org/10.3141/2544-06.

Description

Title: Social and Distributional Effects of Public Transport Fares and Subsidy Policies: Case of Madrid
Author/s:
  • Bueno Cadena, Paola Carolina
  • Vassallo Magro, José Manuel
  • Herraiz Tabernero, Israel
  • Loro Aguayo, Manuel
Item Type: Article
Título de Revista/Publicación: Transportation Research Record: Journal of the Transportation Research Board
Date: 2016
ISSN: 0361-1981
Subjects:
Faculty: E.T.S.I. Caminos, Canales y Puertos (UPM)
Department: Otro
Creative Commons Licenses: Recognition - No derivative works - Non commercial

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Abstract

Despite the widespread implementation of urban transport subsidies in many cities, there are still only a limited evaluation of the equity of these policies and scarce quantitative assessment of their distributional incidence. This research contributes to filling this gap by developing a practical approach to evaluate the impact of fare subsidization on vertical equity. This paper implements a two-step methodology. First, two main indicators were developed to measure the social impact of the travel pass, a highly subsidized fare, to determine the effectiveness of the policy in reaching lower-income citizens. Second, by using the latest disaggregated data from a transportation survey, in Madrid, Spain, a multiple regression model revealed that travel pass usage (TPU) depended mainly on income level and accessibility to public transport. The results show that the accessibility level has a positive effect on the TPU indicator, whereas income level has a negative influence. Because income level is shown to play the most significant role in influencing public transport use, the subsidy policy associated with the travel pass in the city can be considered progressive, since it effectively targets economically disadvantaged groups. This fact suggests that subsidies for public transport in Madrid tend to favor vertical equity.

More information

Item ID: 46367
DC Identifier: http://oa.upm.es/46367/
OAI Identifier: oai:oa.upm.es:46367
DOI: 10.3141/2544-06
Official URL: http://trrjournalonline.trb.org/doi/abs/10.3141/2544-06
Deposited by: Memoria Investigacion
Deposited on: 07 Jun 2017 07:27
Last Modified: 07 Jun 2017 07:27
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