Analyzing the impact of BTS fare adjustments on affordability for low-income commuters in Bangkok

By: Call Number: AIT Thesis no.TE-24-04 Contributor(s): Material type: SeriesSeries: Asian Institute of Technology. Thesis ; no. TE-24-04Publication details: Pathum Thani, Thailand : Asian Institute of Technology, 2025Description: 107 leaves : ill.+ 1 online resourceSubject(s): Online resources: Dissertation note: Thesis (M.Eng.) - Asian Institute of Technology, 2025 Summary: This study investigates the impact of BTS (Bangkok Mass Transit System) fare adjustments on the affordability for low-income commuters in Bangkok, a pressing concern amidst rising transportation costs and widening income inequality. The research evaluates this impact using three core indicators: (1) the Affordability Index, which calculates the proportion of household income spent on BTS fares; (2) Price Elasticity of Demand, which reflects the behavioral response to fare increases; and (3) Willingness to Pay (WTP), assessed through a Contingent Valuation Method (CVM) using a Double-Bounded Dichotomous Choice (DBDC) approach. Survey data were collected from 510 respondents representing diverse income groups and analyzed using binary logistic regression and the DBDC model. The findings reveal that the lowest-income group spends over 15% of their income on BTS fares{u2014}far exceeding the widely accepted 10% affordability threshold. This suggests a disproportionately high burden on low-income commuters. Furthermore, the calculated price elasticity of 0.377 indicates inelastic demand, highlighting that BTS is a necessity for many users. The WTP analysis shows a statistically significant relationship between income and fare acceptance, with higher-income respondents willing to pay nearly twice as much as lower-income ones. This confirms the regressive nature of the flat fare structure and raises concerns about equity in public transport access. The study recommends that the government take greater consideration when adjusting BTS fares, ensuring that such policies are inclusive of all income groups{u2014}particularly low-income populations. Public transport should not merely be an optional mode of travel, but a fundamental service that is accessible to all. The BTS system, therefore, should be designed and priced as an essential utility rather than a premium alternative.
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A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Transportation Engineering

Thesis (M.Eng.) - Asian Institute of Technology, 2025

This study investigates the impact of BTS (Bangkok Mass Transit System) fare adjustments on the affordability for low-income commuters in Bangkok, a pressing concern amidst rising transportation costs and widening income inequality. The research evaluates this impact using three core indicators: (1) the Affordability Index, which calculates the proportion of household income spent on BTS fares; (2) Price Elasticity of Demand, which reflects the behavioral response to fare increases; and (3) Willingness to Pay (WTP), assessed through a Contingent Valuation Method (CVM) using a Double-Bounded Dichotomous Choice (DBDC) approach. Survey data were collected from 510 respondents representing diverse income groups and analyzed using binary logistic regression and the DBDC model. The findings reveal that the lowest-income group spends over 15% of their income on BTS fares{u2014}far exceeding the widely accepted 10% affordability threshold. This suggests a disproportionately high burden on low-income commuters. Furthermore, the calculated price elasticity of 0.377 indicates inelastic demand, highlighting that BTS is a necessity for many users. The WTP analysis shows a statistically significant relationship between income and fare acceptance, with higher-income respondents willing to pay nearly twice as much as lower-income ones. This confirms the regressive nature of the flat fare structure and raises concerns about equity in public transport access. The study recommends that the government take greater consideration when adjusting BTS fares, ensuring that such policies are inclusive of all income groups{u2014}particularly low-income populations. Public transport should not merely be an optional mode of travel, but a fundamental service that is accessible to all. The BTS system, therefore, should be designed and priced as an essential utility rather than a premium alternative.

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