Population aging, fare concessions on public transport and its effects on transport fares in São Paulo Metropolitan Area

Abstract

In Brazil, students, children under four years of age and people aged 65 and over are entitled to partial or full concessions on urban travel in public transport systems. These discounts are not covered by public funding, but rather via cross-subsidization charged to the other service users who pay the full fare. In this study, the effects of population aging on public transport fares for the next four decades in the metropolitan region of São Paulo (MRSP), the largest metropolitan
area in Brazil, are estimated. The analyses in this paper are based on data from the Pesquisa Origem-Destino (Origin-Destination Survey), carried out in 2007 in the MRSP, and on official population projections developed by IBGE (the Brazilian Institute of Geography and Statistics)
and Fundação Seade (the Seade Foundation) for the years 2020, 2030 and 2050. Considering the different periods of population projection, the technique of direct standardization to simulate expected changes in the composition of public transport trips was utilized, in terms of paying and non-paying passengers. The results indicate that, in the short term (2020), population aging expected to occur in the MRSP should have a modest effect on the total number and age composition of public transport trips in the region. However, if the current cross-subsidization mechanism is maintained, the expected growth in the percentage of non-paying passengers could result in an increase in fares by about 10% and 20% in the medium and long terms.

DOI http://dx.doi.org/10.1590/S0102-30982015000000006