Economic assessment of fare revenue of brazilian metro-rail companies

Abstract

Metro-rail transport is fundamental for urban mobility, and there is a recognition of the need for a subsidy so it can operate efficiently from a social point of view. Thus, this research aims to analyze, through cost functions, the economic viability of fare revenue of metro-rail transport companies. Methodologically, eight companies representing 90% of the passengers transported in the Brazilian metro-rail system were used as references for the capture of costs per passenger and estimation of the mean cost functions per Ordinary Least Squares. The results indicate the possibility of gains with better occupation of the scale and level of efficiency. However, these do not enable operations with the fares practiced by public companies. These results shed light on the management of public fare policies, justifying this research.