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.
Basso, Leonardo J., and Hugo E. Silva.
"Efficiency and Substitutability of Transit Subsidies and Other Urban Transport Policies."
American Economic Journal: Economic Policy,
Railroads and Other Surface Transportation
Industry Studies: Utilities and Transportation: Government Policy
Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
Transportation Economics: Government and Private Investment Analysis; Road Maintenance, Transportation Planning
Transportation Economics: Government Pricing and Policy