Regulation of the informal transport sector in Rio de Janeiro,Brazil: welfare impacts and policy analysis

In Brazil, the explosion of informal transport activity during the past decade has had profound effects on formal public transport systems and is a source of great controversy in the urban transportation sector. A variety of policies have been proposed to manage the growth of the sector. This study seeks to understand how proposed policies will impact the users of these systems. A corridor in Rio de Janeiro with substantial informal activity was used as a case study. Measures of welfare changes in a discrete choice framework were used to estimate proposed policies’ impacts on users. Eleven candidate policies were evaluated, ranging from the eradication of the informal modes and investment in formal modes, to the legalization of the informal modes. Benefits were compared with costs and the distribution of benefits across income classes was explored. Net benefits from some policies were found to be substantial. Legalizing the informal sector was found to benefit users slightly but further investments in the sector are probably inefficient. Users benefited most from improvements in formal mass transit modes, at roughly 100–200 dollars per commuter per year. Finally, policies to foster a competitive environment for the delivery of both informal and formal services were shown to benefit users about 100 dollars per commuter per year. Together, the regulation of the informal sector and investments in the formal sector serve to reinforce the movement towards competitive concessions for services and help reduce the impacts of cartelization and costly in-road competition.

Appropriate mass transit for developing cities

This paper is concerned with the majority of developing nations who lack large resources for public sector projects. It questions the basis of much mass transit planning and attempts to put forward a more efficient way of reaching decisions. It calls extensively on experience of Metro Manila, capital of the Philippines, where an innovative system of metropolitan planning and administration is throwing a new light on ‘appropriate’ investment in such developing cities.

Mass transit systems as currently conceived in such developing cities—fully segregated rail‐based systems—are unlikely to be affordable (at least for many years) and in consequence scarce resources should not be devoted to developing and evaluating them. Rather, the principal objective should be to provide low‐cost, affordable mass transit—affordable to governments and to passengers. This almost certainly points to road‐based systems, or predominantly at‐grade light rail transit (LRT) systems, which are usually regarded as ‘obviously unworkable’ in developing city environments.

This judgement is questioned and it is suggested the potential of LRT to provide appropriate low‐cost mass transit is not being realized. An approach to determining its potential applicability is proposed. If feasible it should be evaluated against road‐based systems before decisions to implement new mass transit systems are taken.

While circumstances vary between countries the central message of this paper—that public sector resources have a very high opportunity cost which make all but the lowest‐cost mass transit systems very difficult to justify—will hold in all but the higher‐income developing economies.     

Assessment of an eastern European city's public transport system

The paper examines the present quality of public transport services in Budapest and compares that to the impact of growing car ownership. A review is made of the city's transport plans and future investment proposals and these are assessed in light of public transport's present and likely future competitive position compared to private cars. The paper concludes that much of the proposed investment in a metro system will not maintain public transport's competitive position in the face of rising car ownership and that other measures and investments might be more effective.     

The impact of metro services on housing prices: a case study from Beijing

Assessment of the impact of metro systems on housing prices is important for financing transport infrastructure via value capture. This paper provides evidence for this relationship, focusing particularly on the effects of metro services, and uses the large city of Beijing, China, as a case study. A spatial error model was applied to 2835 samples of online property sales data obtained in January 2016. Three transport service indicators associated with metro transfers and waiting times were explored: (1) metro headway, (2) access to different metro lines and (3) accessibility to employment opportunities. The results show that areas with more employment opportunities via public transit have higher housing prices than other areas. Shorter metro headways are positively related to housing prices near stations. Housing prices for neighborhoods having access to more than one metro line within 800 m-buffer area are higher than those without access to metro lines, controlling for number of accessible jobs within 30 min. This study sheds light on the importance of metro services on housing prices. It has implications for further research and for the planning policies of metro-dependent cities.

     

A volatile relationship: The effect of changing gasoline prices on public support for mass transit

The determinants of public opinion toward public transit is a little-researched topic, though a better understanding of what makes consumers willing to support transit may reveal which attributes of transit consumers value most. One determinant of people’s willingness to support investments in mass transit may be the price of fuel for transit’s principal competition, the private automobile. In this paper, I examine the relationship between the cost of gasoline and stated willingness to invest public money in mass transit improvements. I hypothesize that fuel price volatility—in addition to price itself—is a determinant of support for more mass transit funding, controlling for other factors. As the price of gasoline becomes more uncertain, the public should, all else equal, support investment in mass transportation, a form of transportation that may provide some measure of protection from the price of fuel. Results suggest a strong effect of price volatility on consumers’ willingness to support transit expenditures.     

On the financial viability of mass transit development: the case of Hong Kong

Mass transit projects are often a top contender of many cities to meet their increasing demand for travel. Despite the global trend of privatization, mass transit services, as public goods, remain largely being provided and operated by the public sector. Hong Kong is one of the few exceptions that all mass transit services are commercially operated. Both rail and bus services in Hong Kong are reputable for their quality and profitability, often serving as benchmarks for new projects. In this study, we investigate the factors contributing to this success. In particular, we ascertain the quality of transit service provision by the private sector over the past two decades. Then, we conduct an in-depth analysis of the account books of leading railway and bus operators in Hong Kong so as to shed light on their financial viability. Through this study, we hope to present crucial factors for providing financially viable private transit services.     

Transport in developing and emerging nations

One perspective on the allocation of transport investments by public authorities is offered by the so‐called ‘pork barrel’ model, whereby politicians and political parties allocate public investment spatially in such a way as to gain electoral support from localities so benefited. The paper introduces this model and discusses its attractions and problems in the case of the transport sector. A review of the modest number of published examples of this approach is offered before a detailed case study considers the case of railway investment in Nelson, New Zealand.     

Private tollroads in urban areas

Governments of all persuasions are increasingly seeking the participation of the private sector in the supply of transport facilities and services. Private sector participation in the financing, construction, operation and maintenance of infrastructure is considered a serious option in a number of countries in the search for ways of providing much needed investment which would otherwise be deferred. This paper considers some economic and financial problems in the private sector provision of major road infrastructure within urban areas. The main issues are attaching prices (i.e. tolls) to the provision of the service, the value of government rights which are being given up either permanently or temporarily, and the identification required by the promoters of the cost of capital which is essential information in establishing the risk. Broader environmental and equity issues are not addressed. If the approach to establishing a private presence in a previously public supply context is handled properly from the outset, the benefits can be significant. Contrarily however, the prospects could be quite undesirable if badly managed, despite the presence of an extended public purse.requests for offprints     

The association between transit access and auto ownership: evidence from Guangzhou,China

In many developing countries, massive investment in transit infrastructure is concurrent with the proliferation of automobiles. Planners expect that investment can slow the growth of auto ownership. However, few studies have examined the relationships between transit access and auto ownership in developing countries, whereas research in developed countries offers mixed findings and the outcomes may not be applicable to developing countries. This study employs a random effect ordered probit model on data collected from Guangzhou residents in 2011–2012. We find that transit access is negatively associated with auto ownership, after controlling for demographics and other built environment variables. This result suggests that, although income is the dominant driver for auto ownership in growing developing countries, transit investment is a promising strategy to slow the growth of auto ownership. This study also highlights the importance of addressing spatial dependency in clustered data.     

Nature and/or nurture? Analyzing the determinants of transit ridership across US urbanized areas

Public subsidy of transit services has increased dramatically in recent years, with little effect on overall ridership. Quite obviously, a clear understanding of the factors influencing transit ridership is central to decisions on investments in and the pricing and deployment of transit services. Yet the literature about the causes of transit use is quite spotty; most previous aggregate analyses of transit ridership have examined just one or a few systems, have not included many of the external, control variables thought to influence transit use, and have not addressed the simultaneous relationship between transit service supply and consumption. This study addresses each of these shortcomings by (1) conducting a cross-sectional analysis of transit use in 265 US urbanized areas, (2) testing dozens of variables measuring regional geography, metropolitan economy, population characteristics, auto/highway system characteristics, and transit system characteristics, and (3) constructing two-stage simultaneous equation regression models to account for simultaneity between transit service supply and consumption. We find that most of the variation in transit ridership among urbanized areas – in both absolute and relative terms – can be explained by factors outside of the control of public transit systems: (1) regional geography (specifically, area of urbanization, population, population density, and regional location in the US), (2) metropolitan economy (specifically, personal/household income), (3) population characteristics (specifically, the percent college students, recent immigrants, and Democratic voters in the population), and (4) auto/highway system characteristics (specifically, the percent carless households and non-transit/non-SOV trips, including commuting via carpools, walking, biking, etc.). While these external factors clearly go a long way toward determining the overall level of transit use in an urbanized area, we find that transit policies do make a significant difference. The observed range in both fares and service frequency in our sample could account for at least a doubling (or halving) of transit use in a given urbanized area. Controlling for the fact that public transit use is strongly correlated with urbanized area size, about 26% of the observed variance in per capita transit patronage across US urbanized areas is explained in the models presented here by service frequency and fare levels. The observed influence of these two factors is consistent with both the literature and intuition: frequent service draws passengers, and high fares drive them away.     

The effects of federal transit subsidy policy on investment decisions: The case of San Francisco's Geary Corridor

In the United States, federal funding for public transit often accounts for a large proportion of a local agency's budget, especially for capital investments. For this reason, local governments can be expected to plan a portfolio of projects that maximize federal contributions. This study examines the financial effects of federal transit subsidy policy on local transit investment decisions. Data from a System Planning Study for the Geary Corridor in San Francisco are used as an illustration. It is found that federal transit subsidy policy provides financial incentives for local decision-makers to select capital-intensive investment options that may not be efficient or effective. While federal financial incentives are not the only factor influencing local investment decisions, some reform of the current subsidy policy may be necessary to reduce the incentive for ineffective use of public resources.     

Impacts of rail transit access on land and housing values in China: a quantitative synthesis

ABSTRACT

Rail transit investment has been viewed as a prominent policy instrument for local and regional development. However, little is known about to what extent the theorised changes in land and housing values arising from rail transit access can be substantiated by evidence in a large developing country context. This paper presents a quantitative review of empirical studies that analysed the impacts of rail transit access on land and housing values in China. We review empirical analyses in 67 studies from 1997 to 2018 for which we encode quantitative results along with a range of theoretically combinations of spatially contextual characteristics, data and methodological-design characteristics. The results show that there are significant variations in the size estimates of effects of rail transit access across studies. Such variations are associated with rail project types, data and methodological designs. Our study provides the insights on what has already been known and what needs to be known on evaluating real estate consequences of rail transit improvements in developing countries.     

A test of inter-modal performance measures for transit investment decisions

Choices among alternative transit capital investments are often complex and politically controversial. There is renewed interest in the use of performance indicators to assist in making rational and defensible choices for the investment of public funds. To improve the evaluation of rail and bus performance and provide more useful information for transit investment decision-makers, it is important to use performance indicators that fairly and efficiently compare different transit modes. This paper proposes a set of inter-modal performance indicators in which service input, service output, and service consumption are measured by total cost, revenue capacity miles/hours, and unlinked passenger trips/miles respectively based on economic principles and evaluation objectives. The proposed improvements involve the inclusion of capital as well as operating costs in such comparisons, and the recognition of the widely varying capacities of transit vehicles for seated and standing passengers. Two California cases, the Los Angeles – Long Beach Corridor and the Market/Judah Corridor in San Francisco, are used for testing their usefulness in the evaluation of the efficiency and effectiveness of rail and bus services. The results show substantial differences between performance indicators in current use and those proposed in this study. The enhanced inter-modal performance indicators are more appropriate for comparing the efficiency and effectiveness of different modes or a combination of transit modes at the corridor and system levels where most major investment decisions are made. This revised version was published online in June 2006 with corrections to the Cover Date.     

Bus Rapid Transit System in Istanbul: A Success Story or Flawed Planning Decision?

Abstract

There is a growing tendency in cities around the world to invest in Bus Rapid Transit (BRT) systems in an attempt to improve the capacity and quality of public transport services. The appeal of BRTs is based on their ability to combine the service level of rail transit systems with the flexibility of buses at relatively lower investment costs, and this was the motivation behind the opening of such a system in the Turkish city of Istanbul in 2007. This system has attracted mixed opinions as to its performance, as while passenger ridership figures are extremely high, proving the effectiveness of the system, there is an argument that the corridor should have been developed with rail technology, and that the BRT is failing to meet the demand. The paper presents a comprehensive analysis of this system, assessing its planning and performance through a comparative analysis of a number of BRTs in the world and Istanbul's metro and tram systems. The analysis confirms the success of the system in terms of passenger statistics, but also highlights a number of problems in certain planning decisions that should be addressed, thus taking the discussion beyond a simplified comparison of bus and rail technologies.     

Organization of urban mass transport in developing countries

The supply of mass transport has not kept pace with the demand in cities in developing countries due to rapid urbanization and severe resource constraints. Developing countries would benefit from a study of the experience in developed countries regarding organization of mass transport and may adopt a few of the successful techniques. Examples include: unified transport authority; intermodal transfer facilities; subsidy to public transport; light rail transit; and redevelopment of the area around main rail terminals. Developing countries would be able to implement most of these techniques. The possible contribution of developed countries to developing countries lies mainly in the area of rolling stock and advanced signalling for rail based urban transport and in training highly skilled manpower for operation and management.     

Integrating congestion pricing,transit subsidies and mode choice

We model and analyze optimal (welfare maximizing) prices and design of transport services in a bimodal context. Car congestion and transit design are simultaneously introduced and consumers choose based on the full price they perceive. The optimization variables are the congestion toll, the transit fare (and hence the level of subsidies) and transit frequency. We obtain six main results: (i) the optimal car-transit split is generally different from the total cost minimizing one; (ii) optimal congestion and transit price are interdependent and have an optimal frequency attached; (iii) the optimal money price difference together with the optimal frequency yield the optimal modal split; (iv) if this modal split is used in traditional stand-alone formulations – where each mode is priced independently–resulting congestion tolls and transit subsidies and fares are consistent with the optimal money price difference; (v) self-financing of the transport sector is feasible; and (vi) investment in car infrastructure induces an increase in generalized cost for all public transport users.     

Importance of user perception in evaluating level of service for bus transit for a developing country like India: a review

Assessment of service quality in bus transit planning has received due attention in recent years from the viewpoint of optimal service allocation. The concept of level of service (LOS) has emerged as an effective tool to measure quality of services. Service-quality assessment provides operators with knowledge on users' satisfaction with existing services and their expected LOSs. The importance of user perception towards assessment of LOS has been acknowledged by researchers. While LOS standards for public transportation have been established by the Transportation Research Board in the USA, researchers have questioned the applicability of these standards in the context of different geographic regions. Since the service delivery environment differs between developed and developing nations, the user perception of service quality varies between these economic regions. Substantial research has been carried out in the context of both developed and developing nations, to identify the bus transit service parameters that affect users' perceived service quality; however, little research exists that establishes LOS thresholds for bus transit, based on user perception. This paper reviews the concept of LOS, describes the importance of user perception in assessment of service quality and identifies the need to establish LOS thresholds for bus transit from user perception for developing countries.     

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.     

The transit network design problem with elastic demand and internalisation of external costs: An application to rail frequency optimisation

In this paper we examine the transit network design problem under the assumption of elastic demand, focusing on the problem of designing the frequencies of a regional metro. In this problem, investments in transit services have appreciable effects on modal split. Neglecting demand elasticity can lead to solutions that may not represent the actual objectives of the design. We propose four different objective functions that can be adopted to assume demand as elastic, considering the costs of all transportation systems (car, bus and rail) as well as the external costs, and we define the constraints of the problem. Heuristic and meta-heuristic solution algorithms are also proposed. The models and algorithms are tested on a small network and on a real-scale network.     

Transit subsidies and regulation: Lessons from the Israeli experience

The Israeli transport sector, like those of many other countries is subject to complete government control with regard to fares, entry into the market, terms of operation and subsidies. It is unique, however, in that the fares charged are remarkably low and that the major transit mode, buses, is operated by privately owned companies. This paper explores what makes this low level of fares possible and in doing so examines the principal characteristics of the sector. It shows that this phenomenon cannot be explained by the amount of subsidy given to the operators but must be attributed to other factors, mainly the efficiency in the production of the services which is motivated by the profit maximization objective of the operators. The paper further argues that government policies regarding subsidy and regulation are generally inefficient as they cause misallocation of resources.