Is fare-free public transport effective in improving air quality? Evidence from Fuzhou, China

Document Type

Journal Article

Publication Date

2025

Subject Area

place - asia, place - urban, mode - subway/metro, policy - fares, policy - sustainable, planning - environmental impact

Keywords

Fare-free public transport, Free public transportation, Air quality, Air pollution, Sustainable transportation, Fuzhou

Abstract

Fare-free public transport (FFPT) programs are gaining increasing popularity worldwide as a policy tool to mitigate the negative externalities associated with automobile usage. However, evidence regarding their effectiveness in reducing air pollution, a major automobile externality, remains limited. In this study, we empirically examine the effect of FFPT programs on air quality in Fuzhou, a provincial capital city in China, based on a quasi-experimental design. Using difference-in-differences models, we find that Fuzhou’s FFPT program reduces fine particulate (PM2.5) concentrations by 0.332 µg/m3 (2.1 %) in the short run. Furthermore, the program leads to an increase of 129,486 rides (49.8%) in daily subway ridership. Back-of-the-envelope calculations indicate that the health benefits brought by the FFPT program through air quality improvements, including reduced mortality and healthcare expenditures, amount to about 3.09 billion Chinese yuan (or 478.92 million US dollars) annually, which is six times the loss of fare revenue. These findings highlight the potential of fare-free public transport as a sustainable urban transport policy in urban China and contribute to a better understanding of its cost-effectiveness.

Rights

Permission to publish the abstract has been given by Elsevier, copyright remains with them.

Comments

Transportation Research Part E Home Page:

http://www.sciencedirect.com/science/journal/13665545

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