Paratransit services and efficiency: The potential of utilizing idle taxis in a strained welfare market
Year: 2024
Type: article
Abstract: With population aging, demand for paratransit services has increased, leading to higher operating subsidies. This study uses Japan as a case study to examine the substitutive relationship between subsidized noncommercial wheelchair-accessible vehicles (WAVs), primarily owned by elderly care facilities, and taxis, highlighting inefficiencies in the open-entry paratransit market. Using nationwide panel data, we find that a 10% increase in WAVs results in a 1.7% decrease in taxi revenue, reducing taxi drivers' income by approximately 5%. This effect is more pronounced in regions with higher aging rates and welfare spending. We suggest utilizing vacant taxis for paratransit services to enhance market efficiency.
Author: Yuki Hashimoto
Institution: Research Institute of Economy, Trade and Industry
Language: English
Subfield: Transportation
Field: Social Sciences
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $2,360
Awards: The Effects of Employing Non-High-Skilled Foreign Workers on Firms, Industries, and Regions, Research on the new working situation caused by the development of platform business: the impact of rideshare in Japan and the United States, How Have Digital Labor Platforms Transformed the Employment Relationship of Existing Industry ?
OpenAlex ID: W4404522314