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Buses, Houses or Cash?: Socio-Economic, Spatial and Environmental Consequences of Reforming Public Transport Subsidies in Buenos Aires

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dc.contributor.authorMehndiratta, Shomik Raj
dc.contributor.authorViguie, Vincent
dc.contributor.authorHallegatte, Stephane
dc.contributor.authorAvner, Paolo
dc.date.accessioned2017-08-24T21:30:32Z
dc.date.available2017-08-24T21:30:32Z
dc.date.issued2017-08
dc.description.abstractTransit subsidies in the urban area of Buenos Aires are high, amounting to a total of US$5 billion for 2012. They have been challenged on several counts: suspected of driving urban sprawl and associated infrastructure costs, diverting resources from system maintenance, and failing to reach the poor among others. In this context, this paper examines the impacts of cost recovery fares under a range of different policy scenarios that could cushion the impact of fare increases. The alternative scenarios that are scrutinized are the uncompensated removal of the transit subsidy, its replacement by a lump sum transfer, and its replacement by two different construction subsidy schemes. Using a dynamic urban model (NEDUM-2D) calibrated for the urban area of Buenos Aires, all scenarios are assessed along four dimensions: (i) the efficiency/welfare impact on residents, (ii) the impacts on the internal structure of the urban area and sprawl, (iii) the impact on commuting-related carbon dioxide emissions, and (iv) the redistributive impacts, with a focus on the poorest households. A series of results emerge. First, there are consumption-related welfare gains for residents associated with replacing the transit subsidy by a lump sum transfer. Second, there are only moderate reductions in urbanization over time and thus infrastructure costs associated with the subsidy removal. Third, the replacement of the transit subsidy leads to only moderate increases in carbon dioxide emissions despite lower public transport mode shares, because households will chose to settle closer to jobs, thereby reducing commuting distances. Finally, the replacement of the transit subsidy by a lump sum transfer will lead to short-term harsh redistributive impacts for captive transit users in some areas of the urban area. Medium-term adjustments of land and housing prices will partially mitigate the negative impacts of higher transport costs for tenants, but will further hurt homeowners.en
dc.identifierhttp://documents.worldbank.org/curated/en/889761502738189524/Buses-houses-or-cash-socio-economic-spatial-and-environmental-consequences-of-reforming-public-transport-subsidies-in-Buenos-Aires
dc.identifier.doi10.1596/1813-9450-8166
dc.identifier.urihttps://hdl.handle.net/10986/27973
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8166
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectTRANSIT SUBSIDY
dc.subjectCASH TRANSFERS
dc.subjectCONSTRUCTION SUBSIDIES
dc.subjectLAND USE
dc.subjectURBANIZATION
dc.subjectHOUSEHOLD WELFARE
dc.titleBuses, Houses or Cash?en
dc.title.subtitleSocio-Economic, Spatial and Environmental Consequences of Reforming Public Transport Subsidies in Buenos Airesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleBuses, Houses or Cash? Socio-Economic, Spatial and Environmental Consequences of Reforming Public Transport Subsidies in Buenos Aires
okr.date.disclosure2017-08-14
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/889761502738189524/Buses-houses-or-cash-socio-economic-spatial-and-environmental-consequences-of-reforming-public-transport-subsidies-in-Buenos-Aires
okr.guid889761502738189524
okr.identifier.doi10.1596/1813-9450-8166
okr.identifier.externaldocumentum090224b084f6896a_2_0
okr.identifier.internaldocumentum27901136
okr.identifier.reportWPS8166
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/889761502738189524/pdf/WPS8166.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.countryArgentina
okr.statistics.combined4261
okr.statistics.dr889761502738189524
okr.statistics.drstats3766
okr.topicUrban Development::National Urban Development Policies & Strategies
okr.topicUrban Development::Transport in Urban Areas
okr.topicUrban Development::Urban Economic Development
okr.topicUrban Development::Urban Housing
okr.topicUrban Development::Urban Poverty
okr.unitSocial, Urban, Rural and Resilience Global Practice; the Transport and ICT Global Practice Group; and the Global Facility for Disaster Reduction and Recovery
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