Considering Fare-Free Transit in The Context of Research on Transit Service and Pricing: A Research Synthesis

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 equity entials decisions about the similarities and differences in treatment afforded to various constituent groups. It also involves decisions about the extent to which travelers are expected to pay for the costs of serving their travel demand. This is of particular concern with regard to low-income, largely non-White, travelers, who are both disproportionately likely to use transit and to be burdened by the monetary costs of transit use. Given the foregoing, there is rising popular and scholarly interest in making public transit systems “fare-free.” Accordingly, in this research we will carefully review and synthesize the current states of both the practice of and research literature on fare-free transit. We will focus our review on the various dimensions of equity raised by charging for transit fares, and how they have/are likely to play out with conversion to fare-free transit service.