The paper analyses the link between human capital and regional economic growth in the European Union, using different indicators. The importance of effective and efficient mobility in large cities is becoming essential for planners and citizens due to its impact in terms of social, economic and geographic development. The aim of this research is to determine factors explaining urban transport systems by estimating aggregate supply and demand equations for 45 large European cities. Supply and Demand equations are separately and jointly determined using OLS and SUR estimation models. On one hand, the findings suggest the importance of economic variables on the supply of public transport. On the other, the authors highlight the role of those factors influencing the generalized cost of transport as main drivers of demand for public transit. Additionally, regional variables are introduced to capture institutional heterogeneity in this service, and the authors find that regional patterns are powerful explanatory determinants of urban transportation systems in Europe. 

With this analysis Albalate and Bel identify the determinants of urban transport systems. They contribute to the existing literature by explaining urban transport systems from both demand and supply sides, and by using a cross-European sample of large cities.

Interesting results arise from our estimations on factors explaining urban transport systems. The supply side of transport system is positively affected by Gross Domestic Product, the number of total vehicles supplied, and being a political capital. On the contrary, a negative effect on supply is exerted by the operational cost of the service.

Regarding demand equations the authors find that coefficients associated with GDP, with the fleet of vehicles provided, being a political capital, and the average time spent in private transport trips, are all positively correlated with passenger-km per capita. On the contrary, the average price of public transport and the number of parking spaces in the central business district have negative effects on public transport demand.

Besides analyzing the main determinants of urban transportation supply and demand, Albalate and Bel identify regional effects having an impact on urban transportation systems. Center- European cities enjoy higher levels of public transport supply and demand. On the contrary, Mediterranean metropolitan areas provide lower levels of public transport supply and demand than the remaining regions as a whole. Eastern cities provide mixed results, since they deliver higher supply than the remaining groups, but the coefficient in the demand equation is not statistically significant. Overall, the authors find an inverted U-shape relationship between urban public transport supply and both geographical longitude and latitude; the highest supply is expected in cities placed in the center of the continent. 

This analysis provides interesting results and new insights that contribute to the current literature on urban transportation. Besides factors explaining supply and demand for transport systems, regional patterns have been found. Indeed, regional regularities appear to emerge and to reflect institutional heterogeneity in Europe.

/05/2009

Daniel Albalate and Germà Bel

research

Urban Policy

Transport and infrastructure