The Effect of The "100 Yen Bus" in Japan : An Analysis by a Survey Research of Bus Companies

Abstract

This paper discusses the "100 yen bus" which has been introduced by bus companies since the late 90s. Based on our survey research, lowering bus fares tends to decrease the revenue of bus companies on balance and it does not lead to the revitalization of city centers on holidays. However, the number of elderly passengers and passengers on week days increases in many cases, in particular, in regional hub cities. Under a well planned urban transportation policy including subsidies, the "100 yen bus" or elastic bus fare system has the possibility of activating those cities as well as bus companies.