General Research
RESEARCH
KOTI - Korea Transport institute
Analysis of Transport Policy Welfare Effects
- Date
December 31 2014
- Page(s)
page(s)
Transport policy can promote social welfare such as safety, convenience and economic benefit for people even if that wasn’t originally calculated. This study attempts to measure annexed effects of transport policies with emphasis on welfare.
In Korea, traditionally transport welfare policies were conceived for the socially disadvantaged, including the disabled or elderly. These kind of policies accompany general improvement of transport service quality but research has yet to be undertaken to evaluate the effect of Korea’s implemented transport welfare policies.
Various transport policies influence social welfare but this study focused on the metro free ride policy for the elderly (aged 65 years and over). The cost was estimated at 267.9 billion KRW in 2012, but including willingness to pay by the elderly, the real cost is around 116.5 billion KRW, less than half. Various benefits of the metro free ride policy exist because the elderly use this mode for economic and leisure purposes.
Therefore, the elderly who ride the metro (live in large cities) are more active than those in rural areas. Their active life has many positive effects on society including reduced rates in suicide, depression, disease, and traffic accidents. Additionally, their economic activities can reduce budgets earmarked for inactive persons. In sum, total benefit of the metro free-ride policy was calculated at 336.1 billion KRW in 2012 with a cost-benefit ratio of 1.84, very high.
Transport is not only necessary for economic development but also for welfare improvement. Therefore, transport projects must be evaluated economically as well as socially. To achieve this, ministries concerned (transport, welfare and finance) have to collaborate and the National Assembly must assist through legislation on transport welfare
In Korea, traditionally transport welfare policies were conceived for the socially disadvantaged, including the disabled or elderly. These kind of policies accompany general improvement of transport service quality but research has yet to be undertaken to evaluate the effect of Korea’s implemented transport welfare policies.
Various transport policies influence social welfare but this study focused on the metro free ride policy for the elderly (aged 65 years and over). The cost was estimated at 267.9 billion KRW in 2012, but including willingness to pay by the elderly, the real cost is around 116.5 billion KRW, less than half. Various benefits of the metro free ride policy exist because the elderly use this mode for economic and leisure purposes.
Therefore, the elderly who ride the metro (live in large cities) are more active than those in rural areas. Their active life has many positive effects on society including reduced rates in suicide, depression, disease, and traffic accidents. Additionally, their economic activities can reduce budgets earmarked for inactive persons. In sum, total benefit of the metro free-ride policy was calculated at 336.1 billion KRW in 2012 with a cost-benefit ratio of 1.84, very high.
Transport is not only necessary for economic development but also for welfare improvement. Therefore, transport projects must be evaluated economically as well as socially. To achieve this, ministries concerned (transport, welfare and finance) have to collaborate and the National Assembly must assist through legislation on transport welfare