2.

Demand and Supply in Transport:

• What factors influence the demand for public transport versus private car usage?

• How do price elasticities of demand differ among various modes of transportation (e.g., air travel,
rail, road)?

1- What factors influence the demand for public transport versus private car usage?

Factors are related to socioeconomic, demographic, and land use aspects:

• Income: As income rises, more people can afford to buy and drive cars, reducing public
transport demand.

• Demographics: Young adults, females, and elders are more likely to use public transport.

• Land Use: Higher land use density, larger settlement size, and greater diversity can increase
public transport journeys and reduce average trip lengths.

2. Factors Influenced by Transport Providers/Government/Regulators

These factors include fares and service levels of the public transport system:

• Fares: Increased fares typically lead to decreased public transport use, while improved
service levels have the opposite effect.

• Service Quality: Car owners are more sensitive to time/quality than cost, and off-peak trips
are more fare-sensitive than commuting trips.

• Other Factors: Security, lighting, ease of boarding, and access/egress times also impact
demand. Therefore, fare levels, timetables, service frequency, crowding, and rolling stock
management are crucial.

3. Attitudes and Perceptions

Social norms and expectations influence public transport demand:

• Perception of Inferiority: Public transport seen as inferior (e.g., car ownership as a success
symbol) reduces its demand.

• Marketing and Information: Shaping a positive image of public transport through effective
marketing can increase its demand.

(Factors Affecting and Ways of Estimating Public Transport Demand | by Alfin Farhan Muhammad |
Medium)
2- How do price elasticities of demand differ among various modes of transportation (e.g., air
travel, rail, road)?

Factors Affecting Price Sensitivity

- Type of Price Change

Different types of charges can affect travel behavior in various ways. Vehicle taxes and fees can
impact the number and types of vehicles purchased. Fuel prices and emission fees affect the
type of vehicle used. Road tolls may shift some trips to other routes and destinations, while
congestion pricing (a time-variable fee, higher during congested periods) may change travel
times, modes, and the total number of trips.

Elasticity by Type of Charge

Vehicle Fees: Affect vehicle ownership and type.

Fuel Prices: Affect vehicle type.

Fixed Tolls: Can change routes and destinations.

Congestion Pricing: Can change travel times, routes, modes, and destinations.

Parking Fees: Can affect vehicle ownership and travel times.

Transit Fares: Affect mode shift and reduce total trips.

Elasticity by Type of Trip and Traveler

Commercial Travel: Less price-sensitive than personal travel.

Commute Trips: Less elastic than shopping or recreational trips.

High-Income Travelers: Less price-sensitive than low-income travelers.

Weekday Trips: Differ in elasticity compared to weekend trips.

Urban Peak-Period Trips: Inelastic due to congestion discouraging lower-value trips.

Quality and Price of Alternatives

Price sensitivity increases with the quality and affordability of alternative routes, modes, and
destinations. For example, highway tolls are more price-sensitive if there are parallel untolled
roads. Driving is less price-sensitive in automobile-dependent areas with poor alternatives.

Scope and Definition of Prices

Narrowly defined transport is more elastic than broadly defined transport because consumers
have more alternatives. Individual price components (fuel, parking, tolls) tend to be less elastic
because they each represent a small portion of total user costs.

Time Period

Transportation elasticities increase over time as consumers have more opportunities to adjust
long-term decisions based on price changes.

Large and Cumulative Price Changes

Care must be taken when calculating the impacts of large price changes or when summing the
effects of multiple changes because each subsequent change impacts a different base. The
reductions in consumption from price changes are multiplicative, not additive.
 Price Structure

Transport prices can be structured in various ways, considering different rates, user categories,
vehicles, travel conditions, time periods, and special discounts or surcharges. Consumers prefer
simple price structures but often respond to special incentives.

Reference: elasticities.pdf (vtpi.org)