A STUDY ON POLICY-BASED DISCOUNTS FOR BUS FARES - EMPIRICAL ANALYSIS OF THE HACHINOHE REGION, AOMORI PREFECTURE -

Abstract

 In Japan, bus fares are basically set based on the general cost system. However, there are some cases of policy-based discounts that are based on the financial burden of local governments, such as measures to lower fares using the negotiated fare system and a bus pass system to reduce the financial burden on the elderly. In this study, the rationality and issues of policy-based discounts for bus fares are presented using two examples in the Hachinohe area of Aomori Prefecture. As a result, the rationality of the policy discount was confirmed, because the elasticity of the demand to the fare is limited to the case where the bus operates more than one round trip per hour. However, even if the financial burden is invested, there are cases where both the local government and the bus operator can benefit from the policy discount. On the other hand, with regard to the bus pass for the elderly, the ratio of the use of the pass is high in the section where the frequency of service is infrequent, indicating that the amount of the contribution to the policy discount is likely to affect the maintenance of service.