Fair fares? How flat and variable fares affect transit equity in Los Angeles
Abstract Transit agencies typically structure fares in one of five ways: 1) flat, 2) adjusted by distance traveled, 3) varied by time of day, 4) varied by mode, and/or 5) discounted based on rider characteristics. Despite the fact that each fare structure imposes different cost burdens on low income versus higher income riders, the relative equity of different fare structures has not been systematically evaluated. Using detailed travel diary data from California, this paper investigates how varied transit use by low and higher income transit riders translates into divergent equity outcomes under six evaluated fare structures. Analysis reveals that low income transit riders travel shorter distances, rely disproportionately on local rather than longer distance modes, and make a higher share of transit trips during off peak periods compared to higher income riders. As a result, low income riders pay far higher per mile transit fares compared to more affluent riders in all but two of the tested fare scenarios. While flat fares are the least equitable, varying fares by distance, time of day, mode, or rider does not guarantee fare equity. Judged by riders' ability to pay, the benefits riders receive from a transit trip, and the cost of providing transit service, non capped distance based fares combined with time of day pricing result in the most equitable fare structure. Given robust technology to implement variable fares, transit agencies should reevaluate current fare structures and reform fare policies to ensure that all riders pay their fair share for transit.