Free Public Transit: World recession driving oil price war

Sunday, October 19, 2014

World recession driving oil price war

As Oil Prices Plummet, Saudi Arabia Faces a Test of Strategy - NYTimes.com: "Others say the kingdom is facing lower prices no matter what it does because it cannot control the causes of the price dive, which include the drilling frenzy in North America and falling demand in Europe, Japan and much of the developing world. So it makes sense for the Saudis to defend their share of the global market, oil experts say."

Free is Cheaper

How is free transit cheaper? Don't you have to make up for lost fare revenue? The answer is that your city will save so much money in other areas, and quality of life will improve so much that you will get back much more than the lost fares. Some examples are listed below. If you want to see specific numbers, see our spreadsheet here.

Increased return on investment. Public transit involves large fixed costs. When fares are gone, there are more riders per vehicle, getting more value from the investment.
Reduced parking costs. With free transit, fewer people will park downtown. City parking authorities can cost $180 million a year, paid by fines, which are just a tax on customers and delivery services.

Reduced traffic congestion. Studies have shown that the time lost in traffic costs urban economies hundreds of millions of dollars.
Less money exported for gasoline. A medium sized city can export 1 million dollars a day in gasoline money for cars. Free buses will reduce this considerably.
Better quality of life, priceless. In Hasselt, Belgium, when fares were removed, people in hospital started receiving more visitors.