A Ticket to Ride: Does Free Bus Travel Promote Active Ageing? ∗

Abstract

In April 2006, the English government introduced a policy granting free local bus travel to all those over 60. The rationale was that by encouraging bus use, the reform could help to support active lifestyles, tackle social exclusion, and maintain well-being amongst the older population. Measures of this type, which attempt to reduce the costs of old age, are receiving increased attention as populations grow older. This paper considers both the effect of the reform on travel behaviour, and the potential benefits for older people themselves, their families, and the state. Responses are estimated using a difference-in-difference-in-difference approach, exploiting both age and geographic variation in eligibility. Results show an increase in bus use on the intensive and extensive margins of travel, invariant to individual socioeconomic characteristics. Additional journeys represent new trips, with little substitution across modes. Effects upon broader aspects of behaviour are concentrated amongst activities most closely related to bus travel, including walking and perceived access to services. There are no statistically significant effects upon social participation, or short-run measures of health. Taken together, results indicate that responses to the reform are consistent with encouraging “active ageing”, but produced few spillovers upon outcomes not directly linked to transport.

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