A Fare Look: Funding Urban Public Transport Operations

Document Type

Working Paper

Publication Date

2024

Subject Area

economics - fare revenue, economics - operating costs, economics - subsidy, economics - revenue

Keywords

urban public transit, COVID-19, operational costs, fare revenue

Abstract

This paper investigates the financial challenges urban public transit systems faced during the COVID-19 pandemic, focusing on operational funding sources across 12 global cities. We highlight how fare revenues, a primary income source, sharply declined during the pandemic, and compare how transit agencies from various geographies filled the funding gap via government subsidies, taxes, or alternative revenue streams. The study categorizes funding instruments as direct, indirect, or general, offering a "toolbox" of options to enhance financial resilience. Using case studies, we exemplify the need for sustainable, context-specific solutions to diversify revenue sources and ensure transit systems' resilience in the face of future disruptions.

Rights

Copyright remains with World Resources Institute.

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