Policy instruments for increasing demand for public transport in india

Efficient public transport is important for meeting mobility needs in a rapidly growing economy in India. A higher share of public transport would also reduce emissions and energy demand. Hence, it is important to identify policy variables that could significantly influence public transport demand. This influence can be characterized using the demand elasticity. This research has estimated static and dynamic log linear demand functions for public transport using a panel of Indian cities over 1990- 2011. Transit fare is significant and inelastic with respect to transit demand. Service quality, approximated by the density of the coverage of the transport service, is the most important policy variable that affects demand, and can be a key lever for increasing the share of public transport, eve more so than bus fares. Finally, social and demographic variables highlight the complex nature of public bus transit demand in India.