• Title/Summary/Keyword: user cross subsidies

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Equity implications of Subway use in Seoul, Korea (서울시 지하철 이용에 따른 형평성 분석)

  • Noh, Shi Hak
    • Journal of the Korean Geographical Society
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    • v.30 no.4
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    • pp.352-363
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    • 1995
  • This study explores horizontal equity problems in the Seoul Subway System by using costs per passenger kilometer as a comparison index. In general, subway users in the central area, except Line 1, are subsidizing users in fringe areas. Spatial differentiation of user cross subsidies in the area is due mainly to interactions between factors such as vehicle kilometers traveled, number of passengers, and length of segments. In order to decrease levels of user cross subsidies among the users and so relieve honzontal equity problems associated with subway use, it is necessary to develop a user fare system in which portions of marginal costs of subway use can be distributed properly among users. However, two-stage fare structure of the subway system in the study area is based only on trip distance, and so marginal costs associated with subway use are not properly reflected in user fees. Therefore, horizontal equity of the system in the study area is affected because of inappropriate user fees.

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