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Does Public Transit reduce Car Travel Externalities?

Author

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  • Martin W. Adler

    (VU University Amsterdam, the Netherlands)

  • Jos N. van Ommeren

    (VU University Amsterdam, the Netherlands)

Abstract

One of the main unanswered questions in the field of urban economics is to which extent subsidies to public transit are justified. We examine one of the main benefits of public transit, a reduction in car congestion externalities, the so-called congestion relief benefit, using quasi-natural experimental data on citywide public transit strikes for Rotterdam. On weekdays, a strike induces car speed to decrease only marginally on the highway ring road (by 3 percent) but substantially on inner city roads (by 10 percent). During rush hour, the strike effect is much more pronounced. The congestion relief benefit is substantial, equivalent to about half of the public transit subsidy. We demonstrate that during weekends, car speed does not change noticeable due to strikes. Further, we show that public transit strikes induce similar increases in number of cyclists as number of car travelers suggesting that bicycling-promoting policies to reduce car congestion externalities might be attractive.

Suggested Citation

  • Martin W. Adler & Jos N. van Ommeren, 2015. "Does Public Transit reduce Car Travel Externalities?," Tinbergen Institute Discussion Papers 15-011/VIII, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20150011
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    Cited by:

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    3. Jussila Hammes , Johanna & Pyddoke , Roger & Swärdh, Jan-Erik, 2016. "The influence of public transport supply on private car use in 17 mid-sized Swedish cities from 1997 to 2011," Working papers in Transport Economics 2016:25, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    4. Stefan Bauernschuster & Timo Hener & Helmut Rainer, 2017. "When Labor Disputes Bring Cities to a Standstill: The Impact of Public Transit Strikes on Traffic, Accidents, Air Pollution, and Health," American Economic Journal: Economic Policy, American Economic Association, vol. 9(1), pages 1-37, February.
    5. Marie Briguglio & Glenn Formosa, 2023. "Sharing Is Caring: An Economic Analysis of Consumer Engagement in an Electric Vehicle Sharing Service," Sustainability, MDPI, vol. 15(6), pages 1-15, March.
    6. Duy Q. Nguyen-Phuoc & William Young & Graham Currie & Chris Gruyter, 2020. "Traffic congestion relief associated with public transport: state-of-the-art," Public Transport, Springer, vol. 12(2), pages 455-481, June.

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    More about this item

    Keywords

    transit subsidies; public transit; traffic congestion; congestion relief benefit; strike;
    All these keywords.

    JEL classification:

    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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