Equity Impacts of Transit Fare Proposals: A Case Study of AC Transit

Abstract

Faced with budget shortfalls, Oakland’s AC Transit proposed five alternative fare structures combining base fare hikes or reductions, eliminating free transfers, and discontinuing passes. Using onboard survey data, we analyzed impacts of proposals on groups of riders, evaluated equity impacts, and estimated potential fare revenues. Policies that eliminated passes or transfers produced dramatically unequal impacts on lower income riders, youth, and minorities. Flat fares were least equitable even with base fare reductions because less affluent riders made more frequent trips and transfers than the more affluent. The most equitable and profitable proposals adjusted existing fare structures.

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