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Estonia's capital made mass transit free a decade ago. Transit traffic went up but car traffic increased faster. "Any extra money should be put toward transit service, and not zero fares." https://www.fastcompany.com/90968891/estonias-capital-made-mass-transit-free-a-decade-ago-car-traffic-went-up
in reply to kottke.org

Ah but counterfactuals are super important.
Also important: who is receiving the benefit from improved service vs. reduced/eliminated fares.
There's a whole lot of nuance that has to be included in any conversation about fare-setting for any kind of public service.
in reply to kottke.org

This article could also be summarized as:

“Despite a 50% increase in GDP over the last decade, a culture that values remote habitation and cars as status symbols, and an absence of government taxes on car purchases, free transit increases ridership numbers, and limits decline in percentage use of public transportation to just 1% per year.”

in reply to kottke.org

Excerpt from the article on why: ”The local leaders I met offered several explanations for the underwhelming response to free fares. The first is that Estonia’s growing wealth prompted a surge of car purchases and reduced residents’ desire to ride even free buses and trams. Economists often cite transit as an example of an inferior good: a product that holds less appeal when people become wealthier (as was certainly the case in Estonia during the past decade). Automobiles, on the other hand, are often prized possessions for those whose income has risen. Estonians in 2021 owned 621 cars for every 1,000 people, an increase of 12.5% from 2017 and more than all but four other European Union countries.”

More reasons in the article. Interesting read!

in reply to kottke.org

what did it do for employment of the poorest?

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