The Role of Metro Fares, Income, Metro Quality of Service and Fuel Prices for Sustainable Transportation in Mexico City
mode - subway/metro, operations - performance, operations - reliability, place - north america, policy - fares
fares, income, quality of service, fuel prices
This paper uses time series and panel cointegration techniques to estimate the effect that fares, income, quality of service and fuel prices have on the demand for the Mexico City metro. Fares and fuel prices are not cointegrated with patronage, income or quality of service. We estimate zero own and cross price elasticities of demand suggesting either that fares are too low relative to incomes or that the vast majority of users are metro-dependent. The results also show that income elasticities are negative and close to unity in the long run while service elasticities have a positive but less than proportional effect on demand. This suggests that, in the interest of promoting sustainable mobility, quality of service will need to improve at higher rates than income.
Permission to publish the abstract has been given by Taylor & Francis, copyright remains with them.
Crotte, A., Graham, D.J., & Noland, R.B. (2011). The Role of Metro Fares, Income, Metro Quality of Service and Fuel Prices for Sustainable Transportation in Mexico City. International Journal of Sustainable Transportation Vol. 5, (1), Pp. 1-24.