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Experimental evidence on the effects of means-tested public transportation subsidies on travel behavior

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  • Brough, Rebecca
  • Freedman, Matthew
  • Phillips, David C.

Abstract

Means-tested reduced transit fare programs are increasingly prevalent. This paper describes the results of a unique experiment in which a randomly selected group of low-income individuals in King County, Washington received up to six months of free public transportation. We leverage the experiment to explore how public transit's cost affects mobility. Using administrative data tracking transit card taps on King County's fleet of vehicles, we find that free fares sharply increase transit card use. Follow-up surveys corroborate an increase in travel by public transportation, but also indicate that some of the treatment effect on transit card use is driven by payment method substitution. Treatment effects on overall travel by any mode are less clear. Finally, we find little persistent impact of free fares on transit card use after the subsidy ends.

Suggested Citation

  • Brough, Rebecca & Freedman, Matthew & Phillips, David C., 2022. "Experimental evidence on the effects of means-tested public transportation subsidies on travel behavior," Regional Science and Urban Economics, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:regeco:v:96:y:2022:i:c:s0166046222000436
    DOI: 10.1016/j.regsciurbeco.2022.103803
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    Cited by:

    1. Sanguinetti, Angela PhD & Alston-Stepnitz, Eli & Nelson, Leslie & Searl, Emily & DePew, Ashley, 2024. "Evaluating Universal Basic Mobility Pilot Programs in Oakland and Bakersfield, California," Institute of Transportation Studies, Working Paper Series qt6j66v8kc, Institute of Transportation Studies, UC Davis.
    2. Brough, Rebecca & Freedman, Matthew & Ho, Daniel E. & Phillips, David C., 2022. "Can transportation subsidies reduce failures to appear in criminal court? Evidence from a pilot randomized controlled trial," Economics Letters, Elsevier, vol. 216(C).
    3. Stéphanie Truchet-Aznar & Chloé Duvivier & Jacques Veslot, 2024. "Assessing the impact of fare-free public transport on ridership. The case of Clermont Auvergne Metropole [Évaluation de l’impact de la gratuité des transports en commun sur leur fréquentation. Appl," Post-Print hal-04747019, HAL.

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    More about this item

    Keywords

    Public transportation; Transit subsidies; Reduced fares; Habit formation; Randomized controlled trial;
    All these keywords.

    JEL classification:

    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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