• Journal of Korean Society of Transportation
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• v.25 no.6
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• pp.121-128
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• 2007

This paper suggests a way of estimating the value of interclass equity improvement by railway operations. Equity is understood in this paper in the context of a mobility gap between classes. The value of the reduced mobility gap by railway operations is interpreted as an increase of social equity. In particular, the unit value of equity improvement by rail services is quantified based on the amount of fare reduction through public service obligations. The difference in the surplus calculation between elastic and inelastic demands relative to the reduction is also discussed. The result of this study is expected to be helpful of performing more cautious appraisal for rail investment schemes.