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Improving the Evidence for Setting the Reimbursement Rate for Operators Under the Scotland-wide Older and Disabled Persons Concessionary Bus Scheme

DescriptionThis research derives new, independent estimates for the additional cost and discount elements of the Scottish reimbursement rate for the National Concessionary bus scheme.
Official Print Publication DateApril 2010
Website Publication DateApril 14, 2010


Jeremy Toner, Andrew Koh, Shujie Shen, Richard Batley, John Nellthorp & Ronghui Liu, Institute for Transport Studies, University of Leeds
ISBN 978 0 7559 9284 3 (Web only publication)
This document is also available in pdf format (568k)
This report is accompanied by a Research Findings.


Executive Summary

1 Introduction
1.1 Background
1.2 Objectives
1.3 Organisation of the Report

2 Context

3 Fares, Fare Structures and Ticketing: the role of discounts
3.1 Analytical Framework
3.2 Principles
3.3 Operator data
3.4 The CPT Analysis
3.5 Application of the method and sensitivity testing
3.6 External evidence on trip-making: SHS and NTS

4 Marginal Cost Estimation
4.1 Background
4.2 Methodology
4.3 Sensitivity Tests
4.4 Summary from Operators' evidence
4.5 Recommended adjustments to the Operators' marginal cost figure
4.6 Other evidence on Marginal Costs
4.7 Marginal Cost Components
4.8 Econometric estimation of Marginal Cost
4.9 Conclusions on Marginal Cost

5 Capacity Cost and Operator Responses
5.1 Overview
5.2 Operator data and model
5.3 External evidence on capacity costs
5.4 Commentary
5.5 System Model

6 Econometric modelling
6.1 Data
6.2 Model selection
6.3 Issues Specific to Scotland

7 Making it work for Scotland

Appendix 1: Econometric Cost Model
Appendix 2: Relationship between Patronage and Frequency
Appendix 3: Scottish Household Survey


The views expressed in this report are those of the researcher and
do not necessarily represent those of the Department or Scottish Ministers.

This report is available on the Scottish Government Social Research website only