Eco Passes: An Evaluation of Employer-Based Transit Programs

Transit agencies have found a new way to increase ridership: offer Eco Pass programs that cater to specific user groups. In these programs, a transit agency sells to groups the right for all of their members to ride public transit without paying a fare. Because all members of the group can ride free, they ride public transit more often. These Eco Pass programs have been developed for universities, workplaces, and the home. Previous research has examined university programs, and has shown that they increase transit ridership, reduce vehicle travel, and reduce parking demand. The largest potential Eco Pass market is for workplace transit programs, but there have been few studies of these programs. This research examines the cost-effectiveness of workplace transit-pass programs. It explains how the programs work, examines the programs’ effects on employee transit ridership and parking demand, calculates the programs’ cost-effectiveness, and recommends that cities should reduce the parking requirements at sites that provide Eco Pass programs. A study of Eco Passes in the Silicon Valley found that an employer who spends $1 a year to provide Eco Passes for employees can save between $46 and $1,938 on the capital cost of providing the parking spaces required for commuters. In-lieu Eco Passes appear to be an excellent investment.