The Effect of Fare Changes and Other Price Shocks on Passenger Behavior and Distribution in Urban Transportation Systems: (Case Study, Mashhad Metropolis)

Document Type : Original Research

Author
Payam-e-Noor University
Abstract
Navigating urban environments, regardless of the mode of transport employed, incurs a variety of both tangible and intangible expenditures. Consequently, any fluctuations in these expenditures are promptly reflected in the behavioral patterns of travelers. A particularly salient variable that is readily quantifiable and whose impact is swiftly observable in the responses of commuters is the alteration in fare structures. Typically, when there are modifications in fare rates or fuel costs, residents tend to make decisions that minimize their financial outlay. Should urban planners possess comprehensive insights into the potential decisions made by residents, they are better equipped to implement requisite strategic planning. To this end, the present research was conducted through a descriptive and analytical framework. The objective was to ascertain the extent to which variations in fares and associated costs influence passenger behavior and to evaluate the corresponding responses of the public transportation system to such behaviors. The requisite data was acquired from the Mashhad Municipality Transportation Organization and subsequently subjected to analysis utilizing the comprehensive vector auto regression methodology. The outcomes of the study indicated that the elimination or reduction of fare significantly alters the utilization patterns of public transportation. It is pertinent to note that, amidst these alterations, various modes of transport do not accommodate identical passenger loads. Furthermore, should fare adjustments occur concurrently with external shocks, such as fluctuations in gasoline prices or alterations in parking fees, there will be a marked increase in passenger density within public transportation systems. In this context, each transportation system (e.g., bus, subway, etc.) is likely to garner a distinct proportion of passengers. Consequently, it is imperative that policies are instituted in such a manner that they effectively address the needs of citizens while simultaneously preventing any disruption to the urban transportation infrastructure.

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