Farebox recovery ratio


Farebox recovery ratio

The farebox recovery ratio of a passenger transportation system is the proportion of the amount of revenue generated through fares by its paying customers as a fraction of the cost of its total operating expenses. Most systems aren't self-supporting, so advertising revenue and government subsidies are usually required to cover costs. The Hong Kong MTR Corporation is one of the few self-supporting transit systems in the world.

Need for government subsidy

There are several practical reasons for government subsidies of public transit. By subsidizing mass transit, it encourages ridership and subsequently lowers traffic congestion. Another benefit is lowering pollution from single occupant vehicles that are no longer on the roads. The third benefit is reducing infrastructure costs needed to build and maintain more street, highway, and freeway lanes associated with increased traffic congestion. These factors considered together also contribute to a better quality of life as defined by global quality of living measurements. [http://www.mercerhr.com/summary.jhtml?idContent=1173370>Mercer Human Resources Consulting QOL Reports c2005]

However, some argue that there would be no need to subsidize mass transit if gasoline (petroleum) were not also subsidized. In 1965, the landmark "Urban Transportation Problem" by John Meyers argued that the urban transportation problem was actually a pricing problem. Consumers do not pay the actual cost for congestion and the government subsidizes all modes. This creates a modal imbalance between all modes but particularly between subsidized urban highways and transit. A study by the International Center for Technology Assessment found that after accounting for government subsidies, pollution cleanup and other costs, the real price of gasoline is estimated to be somewhere between USD|5.60 and USD|15.37 per gallon. [http://www.icta.org/doc/Real%20Price%20of%20Gasoline.pdf] Were gasoline sold within this range of prices, people might voluntarily drive less, choose more fuel-efficient vehicles, and use mass transit.

Farebox ratios around the world

The following table lists farebox ratios for some public transportation systems around the world.

Notes


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Rapid transit — This article is about grade separated rail transport. For other uses, see Rapid transit (disambiguation) …   Wikipedia

  • Fare — A fare is the fee paid by a traveler allowing him or her to make use of a public transport system: rail, bus, taxi, etc. In the case of air transport, the term airfare is often used.UsesThe fare paid is a contribution to the operational costs of… …   Wikipedia

  • Public transport — This article is about passenger transportation systems. For mathematics, see transportation theory. For other uses, see Mass transit (disambiguation). Public infrastructure Assets and facilities …   Wikipedia

  • Bay Area Rapid Transit — Infobox Public transit name = Bay Area Rapid Transit imagesize = 100px locale = San Francisco Bay Area transit type = Rapid transit began operation = September 11, 1972 system length = convert|104|mi|km|abbr=on lines = 5 stations = 43 (1 under… …   Wikipedia

  • Vehicle tracking system — A vehicle tracking system combines the installation of an electronic device in a vehicle, or fleet of vehicles, with purpose designed computer software at least at one operational base to enable the owner or a third party to track the vehicle s… …   Wikipedia

  • Maglev — JR Maglev at Yamanashi, Japan test track in November 2005 …   Wikipedia

  • Bus — This article is about Road vehicles designed to carry passengers. For longer distance passenger vehicles, see Coach (vehicle). For other uses, see Bus (disambiguation). An Arriva double decker bus, running route 102 on the London Buses network …   Wikipedia

  • Bus stop — For other uses, see Bus stop (disambiguation). Bus shelter for the RIT system in Curitiba, Brasil A bus stop is a designated place where buses stop for passengers to board or leave a bus. These are normally positioned on the highway and are… …   Wikipedia

  • Staten Island Railway — Infobox rail line name = Staten Island Railway logo width = 225px image width = 300px caption = An SIR rush hour local train discharges passengers at the Great Kills SIR station, its final stop. type = Rapid transit system = status = Operational… …   Wikipedia

  • Bus bunching — Two buses on the same route in the same location In public transport bus bunching, clumping, or platooning refers to a group of two or more transit vehicles along the same route, such as buses or trains, which are scheduled to be evenly spaced,… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.