Thursday, October 18, 2018

How can it be cheaper not to charge a user fee [fare] for urban buses and trams?

We show in our spreadsheet how reducing the externalities [hidden costs] of cars more than compensates for the lost revenue if fares are removed.

We call this a work-in-progress because there are many externalities we have not listed. Costs of #climate among them.
The first column is the total cost in the category to be examined. For example for a US city of 1M, public healthcare costs are calculated at 7,290,000,000, shown in the second column. Then the 3rd column is an assumption. For example, assume that free transit reduced health costs by 9 tenths of 1 per cent. Actually you may find studies that show that number could be much higher. So we took a low number, and still the savings are significant: 65,610,000, shown in column 4.

So on with the other categories until all the fare revenue lost is recuperated by savings in "car" costs.

Our sources are listed in another page of the spread sheet which can be found here.