Public transit is not only a vital network connecting people to jobs, services and one another; it’s also an important climate solution. The world needs to double public transit capacity by 2030 as part of its larger roadmap to slash planet-warming emissions and avert the worst of the climate crisis.
But this rapid growth will be costly, and public transit systems have a funding problem. During COVID-19, ridership plummeted by up to 60% in major cities around the world. This drained the fare revenue that transit agencies often rely on to pay for staff, fuel, maintenance and more…
Not all cities’ transit systems are struggling, though. WRI examined public transit agencies in cities around the world, comparing their funding and revenue sources before and during the pandemic. We found that some agencies maintained or even increased their revenue during this time — despite declines in ridership. While sustained government support played a key role, these agencies also had diverse funding models that proved more resilient to shock.
The full article referenced immediately above links to the follow World Resources Institute study:
This paper discusses how public transportation agencies around the world fund their operational costs. During the COVID-19 pandemic, ridership plummeted, and fare revenues decreased dramatically, leaving agencies struggling to maintain services. We compare transit agencies’ revenue sources before versus during the pandemic, finding that agencies with more diverse funding portfolios proved more resilient to shock…
The study categorizes funding instruments as direct, indirect, or general, offering a “toolbox” of options to enhance financial resilience. Using case studies, we exemplify the need for sustainable, context-specific solutions to diversify revenue sources and ensure transit systems’ resilience in the face of future disruptions.
Link to study: A Fare Look: Funding Urban Public Transport Operations by World Resources Institute