Critical review
How rural is too rural for transit? Optimal transit subsidies and supply in rural areas

https://doi.org/10.1016/j.jtrangeo.2020.102859Get rights and content
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Highlights

  • The optimal supply of rail and bus in low density corridor.

  • For rail, the optimization of frequency is the prime source of welfare gains.

  • The rail service is welfare improving as long as there is no major repair is needed.

  • When population decreases in the towns it is efficient to close the existing rail.

  • But a bus service remains beneficial for at least part of the network.

Abstract

The optimal supply of rail and bus in low density areas is studied by calibrating a demand and supply model with three modes (car, bus and rail) to an existing low density corridor. Varying the length of the network, the frequencies and the size of the populations, allows to study the trade-off between the consumer surplus losses of the public transport users and the transit operation and maintenance costs savings. We find that for an existing rail network, the optimization of frequency is the prime source of welfare gains. The rail network is marginally beneficial in the sense that keeping the network is welfare improving as long as there is no major repair or replacement investment needed. When population in the smaller towns decreases strongly, it becomes welfare improving to close the existing rail network but a bus service remains beneficial for at least part of the network.

Keywords

Rail supply
Bus supply
Rural areas
Optimal subsidies
Optimal frequency

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