Seyed Mohammad Safavian - MSc. Andishkar Engineering Consultants. Tehran, Iran.
Saman Mashagh Zadeh Fard - MSc. Andishkar Engineering Consultants. Tehran, Iran.
Sohrab Niazi - MSc. Andishkar Engineering Consultants. Tehran, Iran.

One of the biggest economic plans in Iran was targeted subsidy plan also known as the subsidy reform plan. Fuel cost increase is part of this plan. In this study the effects of thisplan on mode choice and possible shift from passenger cars to public transportation modes was examined in cities of Rasht and Kermanshah. Data from Comprehensive Transportation and Traffic Study of these cities before and after the fuel cost increase is used in this study. Using these data four different modes of transportation was examined. These modes are: 1.Passenger Cars, 2.Taxis, 3.Buses and 4.Other Modes. Then graphs are illustrated based onproportional share of each mode. The result of the first graph accounts for a few factors.These factors are rate of car ownership, access to different transportation modes, fleet of public transportation, population of cities and number of trips occurred within a city. In thenext step, the constructed graphs are adjusted to account for fuel cost increase solely. Finally the results are analyzed based on other information from cities of Rasht and Kermanshah.

Mode Choice, Fuel Cost, Passenger Cars, Public Transportation, Transportation Demand Management