Fare policy analysis for public transport : a discrete-continuous modeling approach using panel data

In many large metropolitan areas, public transport is very heavily used, and ridership is approaching system capacity in the peak periods. This has caused a shift in attention by agency decision-makers to strategies that can more effectively manage the demand for public transport, rather than simply increase overall demand. In other words, a need has arisen to understand not only why people use public transport as opposed to other modes but also how they use public transport, in terms of their ticket, mode, and time-of-day choices. To that end, fares become an increasingly important policy tool that can trigger certain behavioral changes among riders. This thesis develops a methodology to model, at the disaggregate level, the response of public transport users to fare changes. A discrete-continuous framework is proposed in which ticket choice is modeled at the higher (discrete) level and frequencies of public transport use, based on mode and time-of-day, are modeled at the lower (continuous) level. This framework takes advantage of the availability of smartcard data over time, allowing individual-specific behavioral changes with various fare policies to be captured. This methodology is applied to London's public transport system using Oyster smartcard data collected between November 2005 and February 2008. The results indicate a strong inertia effect in terms of ticket choice among public transport users in London. An individual's prior ticket choice is found to be a very important factor in determining their future ticket choice. This is also evident when we simulate the effects of two policy changes on ticket choices. We find that the impact of changing the prices of period tickets may take several months or more to fully materialize. In terms of the frequency of public transport use, the results indicate estimated short and long-run fare elasticities of -0.40 and -0.64, respectively, for travel on the London Underground and equivalent estimates of -0.08 and -0.13 for travel on bus.

Department dc:contributor.department

Massachusetts Institute of Technology. Dept. of Civil and Environmental Engineering.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2008

Author dc:creator

• Zureiqat, Hazem Marwan

Advisor dc:contributor.advisor

• Nigel H.M. Wilson.

• Civil and Environmental Engineering.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/43748

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/43748