Consequences of public ownership and subsidies for mass transit: Evidence from case studies and regression analysis

The trend toward public ownership, public regulation, and public subsidization of the U.S. transit industry has recently come under attack. Many argue that the result has been reduced productivity, increased costs, and very little real benefit. This article examines the impacts of subsidies and public ownership in four large transit systems that cover a range of transit system types and financing arrangements. Evidence from the case studies is compared to the results of both time-series and cross-section regression analysis of operating and financial statistics for large samples of bus systems. Although the case studies and the regressions rely on different datasets and different techniques, they support the same conclusions. Increased subsidies and public ownership have kept down fares and permitted service expansion, but have also encouraged wasteful cost escalation. Thus, transit riders unquestionably have benefited from public takeovers of transit systems and burgeoning subsidies, but not nearly as much as they would have benefited if costs had not skyrocketed at the same time.     

An improved procedure for allocating public transit operating subsidies in Canada

This article addresses the need for an improved methodology for the allocation of public transit operating subsidies (PTOS) by the provinces in Canada, to their respective municipalities. A PTOS allocation procedure which may be adapted by each province to meet its individual objectives is proposed. This allocation procedure consists of a two-part grant, the first is population-based in consideration of attributes of the urban area and the second is performance-based, in consideration of attributes of the transit system itself. Issues of implementation concern primarily extended data collection methods and the need for consistency in the use of transit system performance measures.     

Optimization of grid bus transit systems with elastic demand

Current analytic models for optimizing urban bus transit systems tend to sacrifice geographic realism and detail in order to obtain their solutions. The models presented here shows how an optimization approach can be successful without oversimplifying spatial characteristics and demand patterns of urban areas and how a grid bus transit system in a heterogeneous urban environment with elastic demand is optimized. The demand distribution over the service region is discrete, which can realistically represent geographic variation. Optimal network characteristics (route and station spacings), operating headways and fare are found, which maximize the total operator profit and social welfare. Irregular service regions, many‐to‐many demand patterns, and vehicle capacity constraints are considered in a sequential optimization process. The numerical results show that at the optima the operator profit and social welfare functions are rather flat with respect to route spacing and headway, thus facilitating the tailoring of design variables to the actual street network and particular operating schedule without a substantial decrease in profit. The sensitivities of the design variables to some important exogenous factors are also presented.     

The theory of second best in urban mass transit: Management in the public sector as a proforma exercise

This paper focuses on four issues. The first is the case of one-sided investments in mass transit in metropolitan areas of developing countries. It is pointed out that in many cases in which the conditions for optimum investment policies (Pareto's Optimum) are not maintained, excessive investments on mass transit, including large annual operating subsidies, usually lead to substantial sub-optimizations and waste of scarce financial resources. This problem is then reviewed under the light of the “Theory of Second Best” as articulated for all investment options within Welfare Economic Theory. The second issue examined is the matter of recently discovered important diseconomies of scale of large metro transit systems in developing and developed countries, and the need to retain production of transport services within small-scale production units that are well coordinated and controlled. The third issue discussed is the problem of mismanagement of most public sector transit companies and agencies. The notion that most such systems are simply administered, not managed, is being brought up and the requirements for proper management are amplified. Finally, the case of public vs. private ownership of mass transit is being discussed with a distinction between public policies of providing mass transit services and the actual production process of these services. Provision of services represents a public responsibility that belongs to the public sector. However, production of service is a techno-economic process that requires different talents and circumstances. The paper concludes with a strong suggestion for major reorientation of urban mass transit in the metro areas of developing countries towards more efficiency and higher productivity.     

The net incidence of transit subsidies: a case study

The purpose of this paper is to investigate the net incidence of government subsidies to a transit system (i.e., the net impact of who pays and who benefits from transit subsidies). Rather than considering the U.S. transit subsidy program in the aggregate, the net incidence of subsidies to a particular transit system — Tidewater Regional Transit (TRT) — is analyzed. The paper concludes that the net incidence of the TRT subsidy program is progressive. Furthermore, the paper provides a methodology that can be used for investigating the net incidence of government subsidies to other transit systems.     

Planning hierarchical urban transit systems for reductions in greenhouse gas emissions

Public transit systems with high occupancy can reduce greenhouse gas (GHG) emissions relative to low-occupancy transportation modes, but current transit systems have not been designed to reduce environmental impacts. This motivates the study of the benefits of design and operational approaches for reducing the environmental impacts of transit systems. For example, transit agencies may replace level-of-service (LOS) by vehicle miles traveled (VMT) as a criterion in evaluating design and operational changes. In previous work, we explored the unintended consequences of lowering transit LOS on emissions in a single-technology transit system. Herein, we extend the analysis to account for a more realistic case: a transit system with a hierarchical structure (trunk and feeder lines) providing service to a city where demand is elastic. By considering the interactions between the trunk and the feeder systems, we provide a quantitative basis for designing and operating integrated urban transit systems that can reduce GHG emissions and societal costs. We find that highly elastic transit demand may cancel emission reduction potentials resulting from lowering LOS, due to demand shifts to lower occupancy vehicles. However, for mass transit modes, these potentials are still significant. Transit networks with buses, bus rapid transit or light rail as trunk modes should be designed and operated near the cost-optimal point when the demand is highly elastic, while this is not required for metro. We find that the potential for unintended consequences increases with the size of the city. Our results are robust to uncertainties in the costs and emissions parameters.     

Demi-flexible operating policies to promote the performance of public transit in low-demand areas

The efforts of providing attractive transport service to residents in sparse communities have previously focused on operating flexible transit services. This paper identifies a new category of transit policies, called demi-flexible operating policies, to fill the gap between flexible transit services and conventional fixed-route systems. The passenger cost function is defined as the performance measure of transit systems and the analytic work is performed based on a real-world flag-stop transit service, in which we compare its system performance with another two comparable systems, the fixed-route and flex-route services, at expected and unexpected demand levels in order to be closer to reality. In addition, the dynamic-station policy is introduced to assist the flex-route service to better deal with unexpectedly high demand. Experiments demonstrate the unique advantages of demi-flexible operating policies in providing affordable, efficient, and reliable transport service in low-demand operating environments and this work is helpful to optimize the unifying framework for designing public transit in suburban and rural areas.     

It is time to give the “true PRT” concept a fair test

True Personal Rapid Transit (PRT), in concept and technology, is considerably advanced over PRT as proposed in the 1960s and 1970s. It is one of the few advanced transit concepts—perhaps the only one—that offers a prospect of overcoming the continued serious deficiencies of conventional transit systems. Past criticisms of PRT were often invalid, but even those questions that deserved to be taken seriously then no longer justify a postponement of serious PRT testing. Conventional transit, in spite of over two decades of considerable governmental support, is proving unable to satisfy major transportation needs of American urban areas, which are increasingly dispersed and multi-centered. There is no indication that conventional transit can overcome sufficiently its performance and economic deficiencies. If PRT is not given a chance to be tested, local public officials will continue to be faced with too limited options as between auto-dominated transportation services and high subsidies for inadequate transit solutions.     

Multimodal traveling and its impact on urban transit network design

Multimodal trip making, that is trips using a combination of several modes between origin and destination, is expected to be beneficial to society and might offer advantages to the traveler as well. This article looks at some of the implications of multi‐modality in trip making for the design of urban transit systems since these play an important role in multi‐modal transportation systems. In this respect, the article looks at the strategic design characteristics of urban transit networks, that is line density, stop density and service frequencies for the case of multimodal access to urban transit networks and for hierarchical network structures in urban transit systems. The analyses show that multimodal access does not require alternative network structures. For hierarchical network structures it is concluded that these are primarily determined by the hierarchy in demand densities and thus by hierarchy in urban structures.     

Indirect production function and the output effect of public transit subsidies

This paper uses an indirect production function to decompose the effects of subsidies on output into the lump-sum, cost and inefficiency effects. Using 2006 data for U.S. transit systems it estimates an indirect production function and uses the results to calculate these effects. It finds that the lump-sum effects exceed the other effects and that the average total effect of the subsidies is a 4.72% increase in output. The range of the output change shows that in many transit systems the output increases from the subsidies are quite large. The paper suggests that reductions in allocative inefficiencies from the subsidies would result in very large increases in output.     

Documents

Automated short headway urban transportation systems were viewed in the early Seventies as a possible means of effecting radical change in the type of transit service available in cities. However, interest has declined and government‐sponsored efforts in this area have ceased. The decline in interest was accompanied by much debate among the advocates of the various forms of transit. However, it does not appear to reflect the potential merits and limitations of short headway systems as disclosed by analysis.

This paper provides a basis for comparing short headway systems of citywide scale with conventional transit means.

The limitations inherent in rapid rail installations are reviewed and contrasted with the performance of short headway systems. Illustrative, large‐scale guideway configurations for systems operating in the three‐second headway range are defined and levels of service are deduced using simplified heuristic methods. A basis is provided for specification and analysis of systems conforming to realistic spatial and passenger‐movement constraints.

It is concluded that automated transit systems operating in the three‐second headway range remain viable candidates for large‐scale installations.     

Service-cost tradeoffs for carload freight traffic in the U.S. rail industry

Railroad technology permits a single train to move a large number of individual freight cars. However, cars which are not in dedicated unit train or intermodal service experience considerable delay due to the consolidation and breakup of trains. Rail operations thus involve a tradeoff between the economies of shipment consolidation, and the resulting delays. More direct and/or more frequent train connections will increase costs, but reduce transit times. This article quantifies the cost of providing a range of transit times for general carload traffic for several representative U.S. rail systems. It shows that significant reductions in transit time will require a large increase in the number of train connections and operating cost. Changes in labor contracts to reduce train crew cost will provide some incentive for higher service levels, but reductions in crew cost alone cannot be expected to dramatically improve the performance of the carload segment of the industry.     

Modeling isoexposure to transit users for market potential analysis

Transit operators face a difficult fiscal environment and an imperative to contribute to urban sustainability. Under these circumstances, operators must find innovative ways to make public transportation attractive to broader segments of the public, while simultaneously trying to raise revenue to reduce reliance on public subsidies. Development of commercial partnerships is seen as a promising way to achieve these goals. Previous research has examined the potential of using geodemographics to assist transit agencies in the task of identifying potential partners for developing mutually beneficial commercial agreements. In this paper we describe an approach to model isoexposure to transit users as a tool to assess market potential. The approach is based on the analysis of walking behavior of transit users, and specifically distance walked at the end of their transit trip. Spatial modeling is used to geographically project estimates of walking distance for a desired demographic profile at a specific transit facility. After expanding the estimates using sample weights, overlays of these estimates can be used to generate variations in exposure to transit travelers at different locations in space. The approach is demonstrated using the case of Metro users in Montreal, Canada. The case study demonstrates the use of isoexposure profiles as a novel approach to generate marketing intelligence. This should be of interest to transit agencies and businesses interested in developing partnerships.     

Effects of new bus and rail rapid transit systems – an international review

Cities worldwide are implementing modern transit systems to improve mobility in the increasingly congested metropolitan areas. Despite much research on the effects of such systems, a comparison of effects across transit modes and countries has not been studied comprehensively. This paper fills this gap in the literature by reviewing and comparing the effects obtained by 86 transit systems around the world, including Bus Rapid Transit (BRT), Light Rail Transit (LRT), metro and heavy rail transit systems. The analysis is twofold by analysing (i) the direct operational effects related to travel time, ridership and modal shifts, and (ii) the indirect strategic effects in terms of effects on property values and urban development. The review confirms the existing literature suggesting that BRT can attract many passengers if travel time reductions are significantly high. This leads to attractive areas surrounding the transit line with increasing property values. Such effects are traditionally associated with attractive rail-based public transport systems. However, a statistical comparison of 41 systems did not show significant deviations between effects on property values resulting from BRT, LRT and metro systems, respectively. Hence, this paper indicates that large strategic effects can be obtained by implementing BRT systems at a much lower cost.     

Decision making processes governing federal expenditures within the transportation sector of the United States

The current process for allocating federal funds within the transportation sector of the U. S. is dominated by concerns for territorial equity, administrative feasibility, technical feasibility, and national defense. Economic efficiency as a long range objective is conspicuous by its absence except insofar as it is embodied in the desire to promote the commerce of the nation.Federal allocations for highways, waterways, and maritime subsidies are declining relative to urban public transit, and Coast Guard navigation related expenditures. Environmental considerations and obvious failure in the case of maritime subsidies appear to be the major reasons. Airport and airway allocations will be subject to the same negative forces.The next massive transportation program to appear in the federal budget other than urban public transit is likely to involve the national railway system. The big question here is how the money will be handed out. Economists and planners so far appear to have had little interest or impact in this difficult and crucial area of public decision making.Former Senior Economist, Policy and Plans Development, Office of the Assistant Secretary for Policy and International Affairs, U. S. Department of Transportation. Presently Advisor to the Government of Ethiopia with the Harvard University Development Advisory Service.     

Distribution of the transit tax burden in five U.S. metropolitan areas

As transit subsidies increased twelve-fold in the United States between 1970 and 1980, metropolitan areas responded in very different ways to the challenge of financing burgeoning transit costs. The variety of approaches to transit finance has led to variation in the income-redistributive impacts of taxation. This paper reports on the results of disaggregate analysis of transit tax incidence in Chicago, Portland, northern New Jersey, San Antonio, and Phoenix. In cases where alternative tax shifting assumptions can be made, a range of tax burden distributions is calculated. Causes of the variation in redistributive impact are discussed. The analysis concludes by comparing the regressivity of financing transit through higher fares with the regressivity of taxes needed to support subsidies.     

Subsidy and public transit performance: A factor analytic approach

The need to measure and evaluate transit system performance has led to the development of numerous performance indicators. However, depending upon the indicator, we oftentimes reach different conclusions regarding transit system performance. The research reported in this paper uses factor analytic methods to generate a set of underlying attributes (factors) that capture the performance of public transit systems in Indiana. Similar to what is reported in the literature, this study finds three attributes that best describe transit system performance: efficiency, effectiveness, and overall performance. Based upon systemsÕ factor scores, the study finds that systems scoring highly on one attribute generally perform well on the remaining attributes. Further, there is an inverse relationship between system performance and subsidies, a finding that supports performance based subsidy allocations.     

Transit pricing research

Several decades of research on transit pricing have provided clear insights into how riders respond to price changes in both the transit and automobile sectors. For the most part, riders are insensitive to changes in either fare levels, structures, or forms of payments, though this varies considerably among user groups and operating environments. Since riders are approximately twice as sensitive to changes in travel time as they are to changes in fares, a compelling argument can be made for operating more premium quality transit services at higher prices. Such programs could be supplemented by vouchers and concessionary programs to reduce the burden of higher fares on low-income users. Also, cross-elasticity research suggests that higher automobile prices would have a significantly greater affect on ridership than lower fares. Most research on transit fare structures shows that the common practice of flat fares is highly inequitable, penalizing short-distance and off-peak users. Free fare programs have proven quite costly for each new transit user attracted and have rarely lured motorists to transit. Free fares limited to downtowns have been more successful than systemwide free fare programs. While prepayment schemes have met with success in the U.S. and Europe, honor fares have suffered from excessive revenue losses in at least one case in the U.S. Some of the more noteworthy fare policy successes in North America have been Bridgeport's combined pass-fare program, Allentown's deep discounts, Ottawa's major fare reduction and differentiation, and Columbus's substantial midday discount. As paratransit and other new transit alternatives to conventional bus continue to emerge, new, more differentiated fare practices can be expected in the future.     

上海轨道交通清分系统架构中应用云计算技术的探讨

通过对上海轨道交通清分系统构架的现状分析,明确清分、线路中央计算机、车站计算机等系统之间业务功能的调整方向。根据云计算技术的特点,阐述在城市轨道交通自动售检票系统中如何建立私有云计算系统、不同服务层次服务的对象以及实施的技术路线,并提出城市轨道交通自动售检票系统云计算构架的设想与模型。