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Low Fares and the Urban Transport Problem

Centre for Russian and East European Studies, University of Birmingham

Among suggested remedies for the rush-hour transport problem in large cities, proposals to reduce fares on public transport have received little attention. By surveying car commuters in central London, this study attempts to determine the consequences of adopting low, standard fares. The results suggest that this policy would persuade nearly half of the regular car commuters to transfer to public transport, resulting in a reduction of over one third in the rush-hour private car traffic. Even greater numbers would transfer given improvements in the speed and comfort of public transport. However, despite a small increase in the number of passengers on public transport, this policy would cause substantial losses on public transport operations. The possible savings in congestion, accident and other costs are examined in conjunction with some suggestions on the sources of the necessary subsidies.

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