Document Type

Honors Project - Open Access

Abstract

What determines the likelihood a resident will take public transit? To understand the relative effects of various determinants of ridership, this study focuses on the effects of gasoline prices, controlling for other determinants such as number of workdays in a given month, traffic, unemployment rate, and service quality. As gasoline prices increase, it becomes more expensive to drive a car. Thus, customers would likely shy away from driving and substitute towards the alternatives; one of which is public transportation. This study aims to find the relationship between gasoline prices and bus ridership at a disaggregated level (route type level) in the Twin Cities using Ordinary Least Squares and Autoregressive Integrated Moving Average estimators. The cross-price elasticities of local and express bus ridership with respect to gasoline prices are 0.139 and 0.220, respectively.

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