Can Hong Kong price-manage its public transportation's ridership?

Chi-Keung WOO*, Y. Liu, Kang Hua CAO, J. Zarnikau

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

This paper is motivated by the usefulness of own- and cross-price elasticity estimates in managing Hong Kong's demand for public transportation. It uses a 12-year sample of monthly data from January 2006 to December 2017 to estimate a Generalized Leontief system of six mode-specific passenger volume regressions. Its key findings are: (1) the own-price elasticity estimates are −0.45 for taxi, −0.30 for minibus, −0.24 for bus, −0.23 for ferry, −0.06 for tram, and −0.07 for train (i.e., Mass Transit Railway); (2) the cross-price elasticity estimates are positive and smaller in size than the own-price elasticity estimates; and (3) the aggregate own-price elasticity estimate is −0.048 for the entire public transportation system. These findings of low price responsiveness imply that reducing public transportation fares and raising private transportation's average usage cost will likely have a minimal impact on Hong Kong public transportation's ridership. Hence, mitigating Hong Kong's traffic congestion and vehicular emissions may require such policy measures as restricting private car ownership and improving Hong Kong public transportation's non-fare attributes of accessibility and travel time performance.

Original languageEnglish
Pages (from-to)1191-1200
Number of pages10
JournalCase Studies on Transport Policy
Volume8
Issue number4
DOIs
Publication statusPublished - Dec 2020

Scopus Subject Areas

  • Geography, Planning and Development
  • Transportation
  • Urban Studies

User-Defined Keywords

  • Demand management
  • Hong Kong
  • Passenger volume
  • Price elasticities
  • Public transportation

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