Net effects of gasoline price changes on transit ridership in U.S. urban areas.
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2014-12-01
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Abstract:Using panel data of transit ridership and gasoline prices for ten selected U.S. urbanized areas over the time period of 2002 to 2011, ; this study analyzes the effect of gasoline prices on ridership of the four main transit modes—bus, light rail, heavy rail, and commuter ; rail—as well as their aggregate ridership. Improving upon past studies on the subject, this study accounts for endogeneity between ; the supply of services and ridership, and controls for a comprehensive list of factors that may potentially influence transit ridership. ; This study also examines short- and long-term effects and non-constant effects at different gasoline prices. ; The analysis found varying effects, depending on transit modes and other conditions. Strong evidence was found for positive ; short-term effects only for bus and the aggregate: a 0.61-0.62 percent ridership increase in response to a 10 percent increase in ; current gasoline prices (elasticity of 0.061 to 0.062). The long-term effects of gasoline prices, on the other hand, was significant ; for all modes and indicated a total ridership increase ranging from 0.84 percent for bus to 1.16 for light rail, with commuter rail, ; heavy rail, and the aggregate transit in response to a 10 percent increase in gasoline prices. The effects at the higher gasoline ; price level of over $3 per gallon were found to be more substantial, with a ridership increase of 1.67 percent for bus, 2.05 percent ; for commuter rail, and 1.80 percent for the aggregate for the same level of gasoline price changes. Light rail shows even a higher ; rate of increase of 9.34 percent for gasoline prices over $4. In addition, a positive threshold boost effect at the $3 mark of gasoline ; prices was found for commuter and heavy rails, resulting in a substantially higher rate of ridership increase. ; The results of this study suggest that transit agencies should prepare for a potential increase in ridership during peak periods that ; can be generated by substantial gasoline price increases over $3 per gallon for bus and commuter rail modes, and over $4 per ; gallon for light rail, in order to accommodate higher transit travel needs of the public through pricing strategies, general financing, ; capacity management, and operations planning of transit services.
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Main Document Checksum:urn:sha256:3e0f5bb028c1178875186a22f313d1645c2317769f3babc25f3495aec4e5baa4