Volume : V, Issue : III, March - 2016

Elasticity analysis of Effect of Economic Parameters on Travel demand in Delhi, India

Prof P K Sarkar, Amit Kumar Jain

Abstract :

 The demand for travel arises due to differential placement of sources of supply and demand. The travel demand is considered to be derived demand as demand as users of transport are very often consuming the service not because they benefit from consumption directly (except in cases such as pleasure cruises), but because they wish to partake in other consumption elsewhere. Travel demand in a city refers to the number of passenger trips and the length of the trips. The travel demand is measured in terms of passenger km i.e summation of all distance (in Kms) travelled in each trip. The travel demand in a city depends on variety of demographic, geographic and economic factors such as population, level of urbanisation, growth pattern of city (vertical or sprawl), employment rate, income and distribution thereof, rate of inflation, GDP, land use pattern, lifestyle, age, road/rail network, availability of transport options, parking policies and so on. The travel demand is sensitive to all these factors to different degrees. The sensitivity of demand with respect to any factor is measured in terms of elasticity of demand. The elasticity of demand with respect to any factor is defined as % change in the demand as a result of 1% change in the factor concerned. The Pricing impacts are commonly measured using elasticities, the percentage change in consumption (in this case, in travel activity) that results from each 1% change in price, In this paper the some of the important economic parameters like per capita income, GDP of the city and rate of employment have been considered for determination of elasticity with respect to these parameters for Delhi, the capital city of India. The study has found that the travel demand is directly related to per capita income in the city. A rising income spurs the growth of travel demand in the city. The elasticity of travel demand w.r.t income is positive in nature. The similar trends have been observed w.r.t GDP of the city and the rate of employment as to some extent these factors are interlinked. The study would help in understanding the trend of travel demand over the time with increase in economic activities in the city. The study can be further extended to develop a multi variable model to estimate future travel demand in an economically viant city

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Prof P K Sarkar, Amit Kumar Jain Elasticity analysis of Effect of Economic Parameters on Travel demand in Delhi, India International Journal of Scientific Research, Vol : 5, Issue : 3 March 2016

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