IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v150y2021icp335-348.html
   My bibliography  Save this article

BRT fare elasticities from smartcard data: Spatial and time-of-the-day differences

Author

Listed:
  • Guzman, Luis A.
  • Beltran, Carlos
  • Bonilla, Jorge
  • Gomez Cardona, Santiago

Abstract

The changes in public transport ridership can be quantified as fare elasticities that are useful inputs to inform planning and policymaking, particularly for Bus Rapid Transit (BRT) systems in developing city contexts. This research provides new evidence to the limited literature in the Global South about revealed preferences fare elasticity from disaggregated data and improves our knowledge of BRT passengers’ travel behavior providing insights on the important role of achieving an affordable fare. Using a 9-year smartcard data, we show that in a spatially segregated city, such as Bogotá, the BRT fare has differential effects according to the socio-economic characteristics of its users and the time-of-the-day. To estimate the fare elasticity considering the socio-economic heterogeneity of users, we proposed a clustering algorithm based on the station-demand profiles and an indicative average per capita income associated with the station catchment area. The results show significant statistical differences in elasticities between the three identified clusters. The stations located in the urban periphery, associated with low-income areas, show null or low response to the fare changes, as opposed to the stations located on the east edge of the city (wealthiest zones). These findings show that a flat fare in the BRT system has differential fare effects on users, therefore, considering those differences when designing the fare policy scheme would contribute to starting to close accessibility gaps in the city.

Suggested Citation

  • Guzman, Luis A. & Beltran, Carlos & Bonilla, Jorge & Gomez Cardona, Santiago, 2021. "BRT fare elasticities from smartcard data: Spatial and time-of-the-day differences," Transportation Research Part A: Policy and Practice, Elsevier, vol. 150(C), pages 335-348.
    • Handle: RePEc:eee:transa:v:150:y:2021:i:c:p:335-348
    DOI: 10.1016/j.tra.2021.06.018
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S096585642100166X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2021.06.018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Timothy F. Welch & Alyas Widita, 2019. "Big data in public transportation: a review of sources and methods," Transport Reviews, Taylor & Francis Journals, vol. 39(6), pages 795-818, November.
    2. Luis A. Guzman & Carlos A. Moncada & Santiago Gómez, 2018. "Fare discrimination and daily demand distribution in the BRT system in Bogotá," Public Transport, Springer, vol. 10(2), pages 191-216, August.
    3. Berrebi, Simon J. & Joshi, Sanskruti & Watkins, Kari E., 2021. "On bus ridership and frequency," Transportation Research Part A: Policy and Practice, Elsevier, vol. 148(C), pages 140-154.
    4. Hensher, David A., 2008. "Assessing systematic sources of variation in public transport elasticities: Some comparative warnings," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(7), pages 1031-1042, August.
    5. Bresson, Georges & Dargay, Joyce & Madre, Jean-Loup & Pirotte, Alain, 2003. "The main determinants of the demand for public transport: a comparative analysis of England and France using shrinkage estimators," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(7), pages 605-627, August.
    6. David Hensher & Zheng Li, 2012. "Erratum to: Ridership drivers of bus rapid transit systems," Transportation, Springer, vol. 39(6), pages 1223-1224, November.
    7. Mark Wardman, 2012. "Review and meta-analysis of U.K. time elasticities of travel demand," Transportation, Springer, vol. 39(3), pages 465-490, May.
    8. Luis A. Guzman & Santiago Gomez & Carlos Alberto Moncada, 2020. "Short run fare elasticities for Bogotá’s BRT system: ridership responses to fare increases," Transportation, Springer, vol. 47(5), pages 2581-2599, October.
    9. Guzman, Luis A. & Oviedo, Daniel, 2018. "Accessibility, affordability and equity: Assessing ‘pro-poor’ public transport subsidies in Bogotá," Transport Policy, Elsevier, vol. 68(C), pages 37-51.
    10. Miller, Caroline & Savage, Ian, 2017. "Does the demand response to transit fare increases vary by income?," Transport Policy, Elsevier, vol. 55(C), pages 79-86.
    11. Luis A. Guzman & Daniel Oviedo & Rafael Cardona, 2018. "Accessibility Changes: Analysis of the Integrated Public Transport System of Bogotá," Sustainability, MDPI, vol. 10(11), pages 1-15, October.
    12. Melo, Patricia C. & Sobreira, Nuno & Goulart, Pedro, 2019. "Estimating the long-run metro demand elasticities for Lisbon: A time-varying approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 360-376.
    13. Paulley, Neil & Balcombe, Richard & Mackett, Roger & Titheridge, Helena & Preston, John & Wardman, Mark & Shires, Jeremy & White, Peter, 2006. "The demand for public transport: The effects of fares, quality of service, income and car ownership," Transport Policy, Elsevier, vol. 13(4), pages 295-306, July.
    14. Sergio Jara-Díaz & Antonio Gschwender & Meisy Ortega, 2014. "The impact of a financial constraint on the spatial structure of public transport services," Transportation, Springer, vol. 41(1), pages 21-36, January.
    15. Verbich, David & El-Geneidy, Ahmed, 2017. "Public transit fare structure and social vulnerability in Montreal, Canada," Transportation Research Part A: Policy and Practice, Elsevier, vol. 96(C), pages 43-53.
    16. Graham, Daniel J. & Crotte, Amado & Anderson, Richard J., 2009. "A dynamic panel analysis of urban metro demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(5), pages 787-794, September.
    17. Kenneth Button, 2019. "The value and challenges of using meta-analysis in transportation economics," Transport Reviews, Taylor & Francis Journals, vol. 39(3), pages 293-308, May.
    18. Batarce, Marco & Galilea, Patricia, 2018. "Cost and fare estimation for the bus transit system of Santiago," Transport Policy, Elsevier, vol. 64(C), pages 92-101.
    19. Mark Wardman, 2014. "Price Elasticities of Surface Travel Demand A Meta-analysis of UK Evidence," Journal of Transport Economics and Policy, University of Bath, vol. 48(3), pages 367-384, September.
    20. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    21. David Hensher & Zheng Li, 2012. "Ridership drivers of bus rapid transit systems," Transportation, Springer, vol. 39(6), pages 1209-1221, November.
    22. Kholodov, Yaroslav & Jenelius, Erik & Cats, Oded & van Oort, Niels & Mouter, Niek & Cebecauer, Matej & Vermeulen, Alex, 2021. "Public transport fare elasticities from smartcard data: Evidence from a natural experiment," Transport Policy, Elsevier, vol. 105(C), pages 35-43.
    23. Holmgren, Johan, 2007. "Meta-analysis of public transport demand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(10), pages 1021-1035, December.
    24. Currie, Graham & Wallis, Ian, 2008. "Effective ways to grow urban bus markets – a synthesis of evidence," Journal of Transport Geography, Elsevier, vol. 16(6), pages 419-429.
    25. Combs, Tabitha S. & Rodríguez, Daniel A., 2014. "Joint impacts of Bus Rapid Transit and urban form on vehicle ownership: New evidence from a quasi-longitudinal analysis in Bogotá, Colombia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 272-285.
    26. Joyce M. Dargay & Mark Hanly, 2002. "The Demand for Local Bus Services in England," Journal of Transport Economics and Policy, University of Bath, vol. 36(1), pages 73-91, January.
    27. de Grange, Louis & González, Felipe & Muñoz, Juan Carlos & Troncoso, Rodrigo, 2013. "Aggregate estimation of the price elasticity of demand for public transport in integrated fare systems: The case of Transantiago," Transport Policy, Elsevier, vol. 29(C), pages 178-185.
    28. Crôtte, Amado & Noland, Robert B. & Graham, Daniel J., 2009. "Is the Mexico City metro an inferior good?," Transport Policy, Elsevier, vol. 16(1), pages 40-45, January.
    29. Gwilliam, Ken, 2008. "A review of issues in transit economics," Research in Transportation Economics, Elsevier, vol. 23(1), pages 4-22, January.
    30. David Hensher & Thomas Golob, 2008. "Bus rapid transit systems: a comparative assessment," Transportation, Springer, vol. 35(4), pages 501-518, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Ruoyu & Zhou, Jiangping, 2022. "Fare adjustment’s impacts on travel patterns and farebox revenue: An empirical study based on longitudinal smartcard data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 164(C), pages 111-133.
    2. Gómez Gélvez, Julian & Mojica, Carlos, 2022. "Subsidios al transporte público en América Latina desde una perspectiva de eficiencia: aplicación a Bogotá, Colombia," IDB Publications (Working Papers) 12260, Inter-American Development Bank.
    3. Guzman, Luis A. & Hessel, Philipp, 2022. "The effects of public transport subsidies for lower-income users on public transport use: A quasi-experimental study," Transport Policy, Elsevier, vol. 126(C), pages 215-224.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luis A. Guzman & Santiago Gomez & Carlos Alberto Moncada, 2020. "Short run fare elasticities for Bogotá’s BRT system: ridership responses to fare increases," Transportation, Springer, vol. 47(5), pages 2581-2599, October.
    2. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).
    3. Zi-jia Wang & Feng Chen & Bo Wang & Jian-ling Huang, 2018. "Passengers’ response to transit fare change: an ex post appraisal using smart card data," Transportation, Springer, vol. 45(5), pages 1559-1578, September.
    4. Chen, Ruoyu & Zhou, Jiangping, 2022. "Fare adjustment’s impacts on travel patterns and farebox revenue: An empirical study based on longitudinal smartcard data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 164(C), pages 111-133.
    5. Wardman, Mark, 2022. "Meta-analysis of price elasticities of travel demand in great britain: Update and extension," Transportation Research Part A: Policy and Practice, Elsevier, vol. 158(C), pages 1-18.
    6. Hensher, David A. & Li, Zheng & Mulley, Corinne, 2014. "Drivers of bus rapid transit systems – Influences on patronage and service frequency," Research in Transportation Economics, Elsevier, vol. 48(C), pages 159-165.
    7. Youzhi Zeng & Bin Ran & Ning Zhang & Xiaobao Yang, 2021. "Estimating the Price Elasticity of Train Travel Demand and Its Variation Rules and Application in Energy Used and CO 2 Emissions," Sustainability, MDPI, vol. 13(2), pages 1-19, January.
    8. Rahman, Syed & Balijepalli, Chandra, 2016. "Understanding the determinants of demand for public transport: Evidence from suburban rail operations in five divisions of Indian Railways," Transport Policy, Elsevier, vol. 48(C), pages 13-22.
    9. Wang, Zi-jia & Li, Xiao-hong & Chen, Feng, 2015. "Impact evaluation of a mass transit fare change on demand and revenue utilizing smart card data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 213-224.
    10. Yaman, Firat & Offiaeli, Kingsley, 2022. "Is the price elasticity of demand asymmetric? Evidence from public transport demand," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 318-335.
    11. Thommen, Christoph & Hintermann, Beat, 2023. "Price versus Commitment: Managing the demand for off-peak train tickets in a field experiment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 174(C).
    12. Souche, Stéphanie, 2010. "Measuring the structural determinants of urban travel demand," Transport Policy, Elsevier, vol. 17(3), pages 127-134, May.
    13. Wardman, Mark & Toner, Jeremy & Fearnley, Nils & Flügel, Stefan & Killi, Marit, 2018. "Review and meta-analysis of inter-modal cross-elasticity evidence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 662-681.
    14. Miller, Caroline & Savage, Ian, 2017. "Does the demand response to transit fare increases vary by income?," Transport Policy, Elsevier, vol. 55(C), pages 79-86.
    15. Binsuwadan, Jawaher & Wardman, Mark & de Jong, Gerard & Batley, Richard & Wheat, Phill, 2023. "The income elasticity of the value of travel time savings: A meta-analysis," Transport Policy, Elsevier, vol. 136(C), pages 126-136.
    16. Anupriya, & Graham, Daniel J. & Hörcher, Daniel & Anderson, Richard J. & Bansal, Prateek, 2020. "Quantifying the ex-post causal impact of differential pricing on commuter trip scheduling in Hong Kong," Transportation Research Part A: Policy and Practice, Elsevier, vol. 141(C), pages 16-34.
    17. Wardman, Mark, 2022. "Meta-analysis of British time-related demand elasticity evidence: An update," Transportation Research Part A: Policy and Practice, Elsevier, vol. 157(C), pages 198-214.
    18. Miriam Rocha & Cristina Albuquerque Moreira Silva & Reinaldo Germano Santos Junior & Michel Anzanello & Gabrielli Harumi Yamashita & Luis Antonio Lindau, 2020. "Selecting the most relevant variables towards clustering bus priority corridors," Public Transport, Springer, vol. 12(3), pages 587-609, October.
    19. Gkritza, Konstantina & Karlaftis, Matthew G. & Mannering, Fred L., 2011. "Estimating multimodal transit ridership with a varying fare structure," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(2), pages 148-160, February.
    20. Wang, Jiangbo & Yamamoto, Toshiyuki & Liu, Kai, 2021. "Spatial dependence and spillover effects in customized bus demand: Empirical evidence using spatial dynamic panel models," Transport Policy, Elsevier, vol. 105(C), pages 166-180.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:150:y:2021:i:c:p:335-348. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.