Date: January 31, 2023
Author(s): Hannah King, Brian D. Taylor
Abstract
In this report, we examine both the substantial research literature on transit pricing and use and literature on free- and reduced fare (FAR) programs. In general, we find that FAR programs can take many forms, and the idea of “fare-free” transit is far from a one-size-fits-all proposition. Second, while reducing or eliminating fares does indeed increase ridership, all else equal, transit research has consistently found that riders tend to be more service elastic than fare elastic. In other words, they tend to respond more to service improvements than price reductions, which means that, at the margin, money “spent” on fare-free programs (in the form of foregone revenues) may attract fewer riders than if that money were put toward improving service. And third, the social equity dimensions of fare-free transit are many, ranging from considering the share of fare-free benefits that flow to higher-income riders to the potential racial equity benefits of reduced fare enforcement policing on transit.
About the Project
Growing public interest in fare-free transit demands an assessment of fare-free and/or reduced transit fare programs, particularly how these programs may benefit disadvantaged communities, both urban and rural. Fare policy […]