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Transit in Washington, D.C.: Current Benefits and Optimal Level of Provision

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Author Info
Nelson, Peter () (Resources for the Future)
Bagliano, Andrew
Harrington, Winston () (Resources for the Future)
Safirova, Elena () (Resources for the Future)
Lipman, Abram

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Abstract

The discrepancy between transit’s large share of local transportation resources and its generally low share of local trips has raised questions about the use of scarce transportation funds for this purpose. We use a regional transport model consistent with utility theory and calibrated for the Washington, D.C., metropolitan area to estimate the travel benefits of the local transit system to transit users and the congestion-reduction benefits to motorists. We find that (i) rail transit generates congestion-reduction benefits that exceed rail subsidies; (ii) the combined benefits of rail and bus transit easily exceed local transit subsidies generally; (iii) the lowest-income group receives a disproportionately low share of the transit benefits, both in absolute terms and as a share of total income; and (iv) for practical purposes, the scale of the current transit system is about optimal.

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Paper provided by Resources For the Future in its series Discussion Papers with number dp-06-21.

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Date of creation: 10 Apr 2006
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Handle: RePEc:rff:dpaper:dp-06-21

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Related research
Keywords: transit; transit subsidies; external transit benefits;

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Find related papers by JEL classification:
R40 - Urban, Rural, and Regional Economics - - Transportation Systems - - - General
R41 - Urban, Rural, and Regional Economics - - Transportation Systems - - - Transportation: Demand, Supply, and Congestion

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Baum-Snow, Nathaniel & Kahn, Matthew E., 2000. "The effects of new public projects to expand urban rail transit," Journal of Public Economics, Elsevier, vol. 77(2), pages 241-263, August. [Downloadable!] (restricted)
  2. Lam, William H. K. & Cheung, Chung-Yu & Lam, C. F., 1999. "A study of crowding effects at the Hong Kong light rail transit stations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(5), pages 401-415, June. [Downloadable!] (restricted)
  3. Parry, Ian & Harrington, Winston & Nelson, Per-Kristian & Safirova, Elena & Mason, Dave & Gillingham, Kenneth, 2003. "Welfare and Distributional Effects of Road Pricing Schemes for Metropolitan Washington, DC," Discussion Papers dp-03-57, Resources For the Future. [Downloadable!]
    Other versions:
  4. Mohring, Herbert, 1972. "Optimization and Scale Economies in Urban Bus Transportation," American Economic Review, American Economic Association, vol. 62(4), pages 591-604, September. [Downloadable!] (restricted)
  5. Ian W. H. Parry & Kenneth A. Small, 2005. "Does Britain or the United States Have the Right Gasoline Tax?," American Economic Review, American Economic Association, vol. 95(4), pages 1276-1289, September. [Downloadable!]
    Other versions:
  6. De Borger, Bruno & Wouters, Sandra, 1998. "Transport externalities and optimal pricing and supply decisions in urban transportation: a simulation analysis for Belgium," Regional Science and Urban Economics, Elsevier, vol. 28(2), pages 163-197, March. [Downloadable!] (restricted)
  7. Bento, Antonio M. & Cropper, Maureen L. & Mobarak, Ahmed Mushfiq & Vinha, Katja, 2003. "The impact of urban spatial structure on travel demand in the United States," Policy Research Working Paper Series 3007, The World Bank. [Downloadable!]
  8. Kain, John F. & Liu, Zvi, 1999. "Secrets of success: assessing the large increases in transit ridership achieved by Houston and San Diego transit providers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(7-8), pages 601-624. [Downloadable!] (restricted)
  9. Kurt Van Dender & Stef Proost, 2001. "Optimal urban transport pricing with congestion and economies of density," Energy, Transport and Environment Working Papers Series ete0119, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment. [Downloadable!]
  10. Harry Holzer & John Quigley & Steve Raphael, 2001. "Public transit and spatial distribution of minority employment: evidence from a natural experiment," Proceedings, Federal Reserve Bank of Chicago, issue Apr. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Parry, Ian W.H. & Small, Kenneth, 2007. "Should Urban Transit Subsidies Be Reduced?," Discussion Papers dp-07-38, Resources For the Future. [Downloadable!]
    Other versions:
  2. Ted Balaker and Cecilia Joung Kim, 2006. "Do Economists Reach a Conclusion On Rail Transit?," Econ Journal Watch, Atlas Economic Research Foundation, vol. 3(3), pages 551-602, September. [Downloadable!]
  3. Safirova, Elena A. & Houde, Sébastien & Harrington, Winston, 2007. "Spatial Development and Energy Consumption," Discussion Papers dp-07-51, Resources For the Future. [Downloadable!]
  4. Safirova, Elena A. & Houde, Sébastien & Lipman, D. Abram & Harrington, Winston & Bagliano, Andrew D., 2006. "Congestion Pricing: Long-Term Economic and Land-Use Effects," Discussion Papers dp-06-37, Resources For the Future. [Downloadable!]
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