Equity in transit fare policy

Abstract

This literature review examines 58 studies on equity in transit fare policy, addressing developments since the last comprehensive review in 1990. It divides the literature into seven categories: (1) fare equity calculation methods; (2) flat versus distance based fares (3) equity impacts of fare changes; (4) differentiated fares; (5) creating equitable fare policy for people with low incomes; (6) fare capping; and (7) free fare public transport. For each category, the review outlines the key findings and suggests areas for future research. Overall, the current literature shows that fare equity outcomes are highly context-dependent and shaped by system design, demographic patterns, and policy implementation. The literature suggests that direct subsidies to low income people result in better equity outcomes than subsidies to groups that collectively have a lower than average income. Additionally, free fare public transport has received considerable attention even as the literature suggests its benefits may be quite limited. In contrast, the limited attention given to fare capping has suggested that it has the potential to significantly improve equity outcomes with limited cost burdens to transit providers. Future research should focus on methods for identifying low-income users, best practices for implementing new payment structures such as fare capping, and different ways of using fares to increase transit accessibility.