2026-06-27T22:49:44Zhttps://docta.ucm.es/rest/oai/requestoai:docta.ucm.es:20.500.14352/189032023-08-26T05:50:09Zcom_20.500.14352_14col_20.500.14352_15
Docta Complutense
author
Burguillo, Mercedes
author
Romero Jordán, Desiderio
author
Sanz Sanz, José Félix
2023-06-17T22:49:48Z
2023-06-17T22:49:48Z
2017
0739-8859
10.1016/j.retrec.2017.02.005
https://hdl.handle.net/20.500.14352/18903
http://dx.doi.org/10.1016/j.retrec.2017.02.005
In a context of economic crisis, the amount of the demand public transport subsidies in Madrid has been reduced to control the level of public deficit. This has implied a worsening of public service quality and an increase of public transport prices. Using the Spanish Household Survey, this paper analyses the impact on welfare generated by the increase of public transport prices in 2008e2012. For this price and income elasticities have been computed using an LA/AIDS model. Price public transport elasticities are low (around 0.1%) and only significant for the years of the highest price increase. Fuel is substitutive for public transport with a cross-price elasticity of 0.25% and the other goods consumption is almost independent of the consumption of public transport with a cross-price elasticity of 0.06%. The results of income elasticies prove that public transport is a normal good. Results show that this new policy has harmed with a similar impact, low and medium income households. Those households have supported an average loss of welfare of 3.66% of their income. The welfare loss supported by the richest households is 1.5% of their income, which represents only a 40% of the average costs supported by the rest of households.
eng
The new public transport pricing in Madrid Metropolitan Area: A welfare analysis
journal article
URL
https://docta.ucm.es/bitstreams/a6585126-cfed-4925-bd14-c34771f548be/download
File
MD5
26d56def4a65234fee7b0836d89f2c15
626383
application/pdf
Burguillo-The new public.pdf