ATLANTA TRANSIT PRICING STUDY: MODERATING IMPACT OF FARE INCREASES ON POOR.

Alternative methods for moderating the impact of fare increases on low-income groups in Atlanta are described and evaluated. The study, sponsored by the Transportation Systems Center under the Service and Methods Demonstration Program, considers five alternatives to a flat fare increase: direct user subsidies, quality-based fares, reduced fares on designated routes, peak/off-peak fare differentials, and distance-based fares. We evaluate these fare strategies according to a set of standardized criteria that considers the target efficiency, coverage of the target group, administrative cost, total cost, and degree of relief offered by each option. The study finds that a direct user subsidy provides the highest degree of relief to low-income patrons with the lowest revenue loss. This is because user subsidies are more efficient in reaching the target population and offer a higher level of coverage of the poor than do other alternatives.