*Faculty of Economics, University of Tehran, Tehran, Iran
**MSc, Economics, University of Tehran
JEL Classification: L91, O18, F41
This paper examines road trip demand (passenger public fleet) in Iran using quarterly time series data during the period 2006–2010. We apply SUR model relating per trip in every mode of road transport to fare, income, service level, fare of other transport modes and population. The results indicate that developed public transportation network is the most important factor for public transport demand in passenger public transport fleet and also railways isn't a suitable substitute for road transport due to undeveloped railroad network, although it is complement for some routes due to chained trips. Low fare elasticity indicates lack of serious substitute for road trip. These results suggest a wider array of factors needs to be considered in policy.
Public transport, Transport demand, Gravity model, Fares, Quality of service, Income