Fare subsidy scheme to strengthen the operation in Colombia’s public transportation strategic systems

Abstract

This article proposes different actions to improve the future operation of the Strategic Public Transportation Systems (SETP) implemented in eight Colombian cities as part of the goals proposed in the National Urban Transportation Policy. More than ten years have passed since was formalized this implementation; however, SETP has not entered into operation yet. In contrast, there has been greater use of motorcycles and technological platforms that favored and made more efficient informal transport to detriment the road safety and air quality. In this research, using surveys of declared preferences established the perception of the SETP user's loyalty to informal transport. The situations analyzed consisted of answering which mode of transportation the participant would use under travel time, waiting time, and cost of the mode. In each case, several scenarios were presented that correlate the fare cost, the duration of the journey, and the waiting period. In addition, using the theory of random utility, it is possible to modify the increasing trend of informal transport if the quality of the public transport service is improved and a subsidy is established to the fare for a specific group of users. A binary model was estimated that included the choice between using informal transport and the subsidized SETP. Also, sociodemographic variables such as age and stratum were included, which allowed us to better explain the behavior of individuals, and it was possible to define the interval of the possible subsidy to reduce the fare. The results showed that subsidies are positively related to the increase in public transport users, but not so much as an improvement in travel times and the degree of coverage. This result shows that an adequate fare scheme policy is not only based on a reduction in the fare but must also include the improvement of the service provision.