Demand for public transportation and the design os optimal public policies

Abstract

Transport and mobility are key factors of quality of life in cities all around the world. In order to choose an optimal transportation system, it is vital to understand well how commuters respond to different designs of the public infrastructure. In this chapter, we attempt to address that question by reviewing the relevant empirical literature in transportation economics. Our focus is to discuss research that models and estimates demand for the use of public transportation. With that in mind, we first detail the typical approach and specifications used. Then we summarize the main results found in that literature. Finally, we discuss our findings in the context of the future of the sector, taking into account the new challenges, innovations and emerging business models.