Fare Increases, Ridership, and Economic Development
The New England Chronicle, A Publication of the New England Section of the Institute of Transportation Engineers
May 2013
The current crisis in transit system funding is causing great concern in the transit industry. Dwindling federal and state funding is causing transit properties to raise revenues within their current system. Fare increases are one of the few areas transit properties can make unilateral changes. However, fare increases are not the panacea. Fare increases can cause ridership to decrease. If ridership decreases, then the deflection of riders will show up elsewhere in the transportation system, likely in a single occupant vehicle (SOV). An increase in SOV traffic in an urban area can, in turn, increase congestion, reduce productivity, and strangle existing economies, not to mention cause any number of environmental problems for society.