Title

THE EFFECTS OF FEDERAL TRANSIT SUBSIDY POLICY ON INVESTMENT DECISIONS: THE CASE OF SAN FRANCISCO'S GEARY CORRIDOR

Authors

J Li
M Wachs

Document Type

Journal Article

Publication Date

2004

Subject Area

economics - subsidy, mode - mass transit

Keywords

Transit, Subsidies, San Francisco (California), Public transit, Policy analysis, National government, Mass transit, Local transportation, Local transit, Government funding, Financial analysis, Federal government, Economic efficiency, Decision making, Cost effectiveness, Case studies, Capital investments

Abstract

This study examines the financial effects of federal transit subsidy policy on local transit investment decisions, using data from a system planning study for the Geary Corridor in San Francisco. Findings indicate that more capital-intensive investment alternatives tend to generate larger federal government support. This policy provides financial incentives for local decision-makers to select capital-intensive investment options that may not be efficient or effective. Based on the data from this case, some reform of the current subsidy policy may be necessary to reduce the incentive for ineffective use of public resources and limit the federal government's involvement in local investment decisions.