Publication Type

Report

Publication Date

2-2005

Abstract

Today, public transport fares are reviewed annually and adjustments, if any, are capped by the “CPI + X” formula, where CPI is the change in the Consumer Price Index over the previous year and X accounts for the net effect of wage changes after deducting productivity gains. For the period from 2001 to 2005, X was determined to be 1.5%. While this mechanism has worked well in keeping public transport fares affordable, the formula lacks transparency and is not easily understood by the general public. Commuters often question the need for the “X” element given that the public transport operators (PTOs) are already compensated for inflation in the formula.

Keywords

Public transport, fare review, transportation costs, Singapore

Discipline

Asian Studies | Public Economics | Transportation

Research Areas

Applied Microeconomics

First Page

1

Last Page

64

Publisher

Land Transport Authority

City or Country

Singapore

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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