Affordable Access

The demand for long distance travel in Great Britain: some new evidence

Department of Economics, City University London
Publication Date
  • Hb Economic Theory
  • He Transportation And Communications


Microsoft Word - Rail Demand Paper_Final.doc 1 Department of Economics School of Social Sciences The demand for long distance travel in Great Britain: some new evidence Dimitrios Asteriou1, John Cubbin1, Ian Jones1, Paul Metcalfe2, Daniel Paredes2 and Jan Peter van der Veer2 1. Department of Economics, City University. 2. NERA Economic Consulting, 15 Stratford Place, London, W1C 1BE. Address for correspondence: Ian Jones, Centre for the Study of Regulation and Competition, Department of Economics, City University, Northampton Square, London EC1V 0HB. Department of Economics Discussion Paper Series No. 05/01 2 Introduction This paper presents estimates of the elasticities of demand for longer distance passenger rail travel in Great Britain, and is based on research undertaken for the UK Strategic Rail Authority (SRA). The background to the project is that there is a lack of clarity regarding the timescale over which the current elasticities in the Passenger Demand Forecasting Handbook (PDFH) 1 are intended to apply. For certain uses of the Handbook, such as investment appraisal and long-term planning, it would be desirable to have long-term elasticities. In other contexts, notably short term business and financial planning, rail business managers require advice on the response of demand to price changes in the short run, defined as a period of about a year after the fare change has occurred. The PDFH indicates that the elasticity values it recommends are intended to represent the change in demand that occurs within a year of a change in fares. This definition implies that demand effects occurring in the longer term are not addressed. It also implies that the elasticities do not offer guidance on the short run response of demand within the year. In the present project, we have undertaken extensive econometric analysis on large data sets which has enabled us not only to derive long-

There are no comments yet on this publication. Be the first to share your thoughts.