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Techniques For Mitigating Urban Sprawl
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Strategy: Pricing Strategies  - Transit
Policy Action: Transit Fare Adjustment
Definition:

Many transit agencies use zone-based fares, peak period fares, bus passes, ride-free zones, and special fares for different user groups. The price elasticity of demand for transit is commonly estimated to be -0.3, meaning that a 50% reduction in transit fares will result in a 15% increase in transit ridership. Improving other factors such as the availability, quality, and/or frequency of transit service effectively complements the strategy of transit fare adjustments. Demonstrations of low or free transit fares in urban areas (Denver, Boston) have estimated area-wide VMT reductions of approximately 2%. The Puget Sound Regional Council estimates the potential vehicle trip reduction for transit service fare changes at 1.8% (PSRC, 1994. pp. 24-32). Case/Example: Denver (CO) and Boston (MA). Source/Reference: WSDOT, 2000, pp. 77-78.


Texas Applications

Houston, Texas

Houston’s METRO plans to make major changes to its fare structure after 12 years. The proposed fare restructuring is designed to serve the purposes of making the fare system fair and keeping fare revenues on track with rising costs. According to the proposed fare restructure, Houston’s METRO, which currently pays 82 percent of the cost for each ride a passenger takes, is planning to pay 81 percent. The 65 ways in which the fare for a peak period trip can be paid currently will all be integrated into one “smart card”. Additionally, some incentive programs are also being considered.


Reports and Studies


Links

http://www.hou-metro.harris.tx.us/ff.asp


Page References


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