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Table 3 Annual welfare consequences for the involved groups
From: Welfare consequences of request stops at transport services with low demand
Welfare component | Description | Value (€) | Calculations |
|---|---|---|---|
WAC | Welfare increase for the travellers between A and C | 8400 | Existing trips: [(0.25 ∙ 8) ∙ (1 − 0.6) ∙ 10,000] = 8,000 New trips: [(0.25 ∙ 8) ∙ (1 − 0.6) ∙ (11,000 − 10,000] ∙ ½ = 400 Sum: 8,400 |
WB | Welfare changes for the residents at place B | -3000 | Based on a ‘willingness to pay survey’. |
WS | Increased profit for the service operator | 47,250 | Reduced revenues to/from B: [15 · (1,000 − 950)] = − 750 Increased revenues A–C: [20 · (11,000 − 10,000)] = 20,000 Reduced operating costs: [(1 − 0.6) · 700 · 200] = 56,000 Reduced grants: (56,000 · 0, 5) = − 28,000 Sum: 47,250 |
WTA | Welfare effect of reduced payments of grants | 5600 | Contract formulation and γ = 0.20: (56,000 ∙ 0.5 ∙ 0.20) = 5,600 |
W | Sum of welfare consequences | 58,250 | Sum of welfare consequences for all groups. |