Social Tariff Concessions and the Price Elasticity of Demand of Local Public Transport System in a Medium Sized Urban Area

Authors

  • Christoph Vietze Friedrich-Schiller-Universität Jena, Lehrstuhl für Wirtschaftspolitik, Carl-Zeiß-Straße 3, 07743, Jena, Deutschland

DOI:

https://doi.org/10.1007/s13147-011-0116-0

Keywords:

Local public transport, Empirical estimation, Price elasticity of demand, Social tariff concession

Abstract

The aim of the study is to calculate the price elasticity of demand for several local public transport products of a mid-sized German city (Jena) to estimate the potential subsidy requirements of social tariff concessions. The results of the ten year time series AR-model estimation show an elasticity coefficient of − 0.63 for a single ticket which is slightly higher in absolute terms compared with past studies but can be explained with the geographical structure of the examined city. The price elasticity of social concession-tariffs is significantly higher. This means that the income effect will be outweighed by the effect of lower demand of welfare recipients for (relatively inelastic) intra-city commuting.

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Published

2011-10-31

Issue

Vol. 69 No. 5 (2011)

Section

Research Article

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Copyright (c) 2011 RuR Editors

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Articles in Raumforschung und Raumordnung – Spatial Research and Planning are published under a Creative Commons license. From Vol. 79 No. 2 (2021), the license applied is CC BY 4.0. From Vol. 77 No. 1 to Vol. 79 No.1, articles were published under a CC BY-SA license. Earlier volumes have been re-published by oekom 2022 under the Creative Commons Attribution 4.0 International License CC BY 4.0. 

How to Cite

1.
Vietze C. Social Tariff Concessions and the Price Elasticity of Demand of Local Public Transport System in a Medium Sized Urban Area. RuR [Internet]. 2011 Oct. 31 [cited 2024 Apr. 24];69(5):319–331. Available from: https://rur.oekom.de/index.php/rur/article/view/814
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