This paper presents the details of public transport priority (PTP) in Beijing, and analyzes it traffic
status after implementation of the strategy. Then, an Elastic Analysis is employed to analyze the elasticity
of UPT price demand. The paper also discusses the cross price elasticity of demand among UPT, car and
bicycles. The results show that:
(1) Through the phased PTP, public transport contribution rate keeps rising, and traffic index drops
gradually. Full-time heavy traffic congestion time significantly shortens, and PTP has achieved obviously
effects. But it’s worth thinking about the fact that the contribution rate of bicycle lowers.
(2) The demand of UPT is elastic to price. But the relationship between UPT and the car is
complementary, and the relationship with the bicycle is substitutability. The amount of UPT’s demand
growth is transferred from the demand of the bicycle. Low-price strategy in Beijing has not achieved the
original purpose of attracting the car travelers.