Cost Effective Incentives for Transit


I attended PSU’s transportation seminar a few Fridays ago and heard an interesting student presentation on employer provided incentives for transit use (go to the seminar page to download or stream the presentation).

Some of the information was intuitive, e.g., if you give employees a transit pass, they’ll use transit more often.

The big insight for me was that there are a set of “soft” incentives that have a big impact, up to a 12% increase in use of transit. These include flex-time, compressed work-week schedules, telecommuting, a “guaranteed ride home” for emergencies and access to a company fleet vehicle for business-required trips during the day (which could b a Flexcar).

Most of these have relatively low expense levels (compared to buying transit passes) but have a big effect on the “I need to drive my car because…” factor for employees (e.g., the need to pay a cab for the guaranteed ride home doesn’t happen very often but relieves a worry that might motivate an employee to drive).


13 responses to “Cost Effective Incentives for Transit”

  1. That’s a good point about looking for the thing–perhaps rather minor–that prevents people from using public transit. And finding an organized way to address it; there’s alway more power in groups.

    Perhaps there could be some incentives for carpooling. If I had a regular commute, I certainly would be looking for ways to shave the daily cost down. What has become of carpooling? Is it perceived as too dangerous, or too hard to organize with fairness?

    Incorporating a means for people to do things on the transit vehicle that consume time as part of a daily routine, might alleviate perceived time wastage in using transit. I have heard of express commuter buses with big leather seats and coffee machines. Some metropolitan areas that have greater commuting distances use such vehicles. For example, this might be what it would take to spur Clark Co. interest.

  2. If everyone carpooled when commuting cars would most likely be the cleanest, most reliable, and cost effective means to transport people. Far surpassing light rail, streetcars, busses (especially busses) and other such things. SOVs are the only thing that kill the efficiency of cars & trucks. Interesting that you bring that up as something that should receive an incentive Ron.

    As for all of this, I think it’s pretty ridiculous that besides the Government footing 80% of public transit’s cost, and about 40-50% of road/car transit cost, companies should provide more in addition to that?

    I personally think the solution isn’t to keep subsidizing and feeding more into transportation, but just to allow cost to force people to live closer to where they work. If they had to pay true costs you’d end up with MUCH higher density and a real need for self sustained streetcars, rail, and even jitneys and such. It worked VERY effectively back in the day, not many reasons why it wouldn’t work now (except for the oh so vocal ones worried about the poor).

  3. ” if you give employees a transit pass, they’ll use transit more often.”
    Who is expected to pay for these passes? Is this to be a new benefit?
    Besides this is an ongoing program as I understand.
    Cityhall has the Passport program I have been told
    and a number of companies offer their employees passes, because DEQ requires them to work at reducing the number of trips their employees make.
    Anyone have information on how much money is invested in this effort by government and businesses?
    Thank you,
    Michael Wilson

  4. ” if you give employees a transit pass, they’ll use transit more often.”
    Who is expected to pay for these passes? Is this to be a new benefit?
    Besides this is an ongoing program as I understand.
    Cityhall has the Passport program I have been told
    and a number of companies offer their employees passes, because DEQ requires them to work at reducing the number of trips their employees make.
    Anyone have information on how much money is invested in this effort by government and businesses?
    Thank you,
    Michael Wilson

  5. adron writes: ” It worked VERY effectively back in the day, not many reasons why it wouldn’t work now (except for the oh so vocal ones worried about the poor).”
    Excuse me adron I have been advocating opening the market for years to all kinds of alternatives.
    With an open market the “poor”, if you care to call them that, would be much better in many cases than they are under today’s closed market conditions.
    Michael Wilson

  6. adron writes: ” It worked VERY effectively back in the day, not many reasons why it wouldn’t work now (except for the oh so vocal ones worried about the poor).”
    Excuse me adron I have been advocating opening the market for years to all kinds of alternatives.
    With an open market the “poor”, if you care to call them that, would be much better in many cases than they are under today’s closed market conditions.
    Michael Wilson

  7. Michael, the focus of the research was on employer-provided transit incentives. Under the state’s Employee Commute Option rule, large employers are required to show effort to reduce single-occupancy vehicle commute trips.

    If you’re concerned about mandates on employers for incentives, consider that most employers provide a very expensive incentive for auto use: a parking space. It would be nice if we could level the playing field and get employers to offer as much incentive for transit as they do for driving.

  8. Getting people to carpool would neccessitate that: 1.they are coming from the same neighborhood(s) 2. They are going to the same approximate destination, or somewhere along the route 3. And at the same time 4. and returning at the same time 5. or participating in an additional carpool. Its complicated, but with some organization could work.

    So perhaps an online system for people to find the carpool that would work best for them? Yes indeed it would be a big savings. Most people would want to know they are not riding with some road-rage provocateur, but most business district commuters would probably qualify. I even carpooled a bit working at the Martin Marietta aluminum smelter in Goldendale Wa–much easier than the forty mile round trip drive.

  9. Chris Smith writes: “If you’re concerned about mandates on employers for incentives, consider that most employers provide a very expensive incentive for auto use: a parking space.”

    Chris most cities have zoning codes that require that businesses provide parking. I have not looked at Portland’s codes in some years, but they probably require that parking space be provided by the company.Another government mandate.
    BTW I agree with you 100% on the open meeting.
    Michael Wilson

  10. Chris Smith writes: “If you’re concerned about mandates on employers for incentives, consider that most employers provide a very expensive incentive for auto use: a parking space.”

    Chris most cities have zoning codes that require that businesses provide parking. I have not looked at Portland’s codes in some years, but they probably require that parking space be provided by the company.Another government mandate.
    BTW I agree with you 100% on the open meeting.
    Michael Wilson

  11. This is a comment from a Federal Gov report on transportation and the impact the lack of has on the low income members of our society and while it is not specific to Portland the problem is still part of what is ongoing in this metro area.
    Maybe the idea of incentives is great, but opening the market would be greater.
    In a report prepared by the federal government and published by the National Academy Press as the Transit Cooperative Research Program Report 49, the government’s own researchers in their study noted that
    “The lack of personal mobility has economic, social and human cost, such as higher unemployment, reduced tax revenue, greater welfare and medical cost, and limited social potential”.
    “almost half of those without an automobile are 65 or older and 81% of that group are women“.
    “23% of full-time working mothers and almost 60% of part-time working mothers have non-traditional work hours. This reduces women’s ability to join carpools or find appropriately-scheduled transit options”.
    “Nearly 40% of central city black African-American households were without access to an automobile, compared to fewer that one out of five white central city households“.
    “Almost four in ten of American households do not have public transportation available within two miles“.

    Hope I got all that correct.
    Michael Wilson

  12. This is a comment from a Federal Gov report on transportation and the impact the lack of has on the low income members of our society and while it is not specific to Portland the problem is still part of what is ongoing in this metro area.
    Maybe the idea of incentives is great, but opening the market would be greater.
    In a report prepared by the federal government and published by the National Academy Press as the Transit Cooperative Research Program Report 49, the government’s own researchers in their study noted that
    “The lack of personal mobility has economic, social and human cost, such as higher unemployment, reduced tax revenue, greater welfare and medical cost, and limited social potential”.
    “almost half of those without an automobile are 65 or older and 81% of that group are women“.
    “23% of full-time working mothers and almost 60% of part-time working mothers have non-traditional work hours. This reduces women’s ability to join carpools or find appropriately-scheduled transit options”.
    “Nearly 40% of central city black African-American households were without access to an automobile, compared to fewer that one out of five white central city households“.
    “Almost four in ten of American households do not have public transportation available within two miles“.

    Hope I got all that correct.
    Michael Wilson

Leave a Reply

Your email address will not be published. Required fields are marked *