Research Briefs·Apr 3, 2024

Optimal Urban Transportation Policy: Evidence from Chicago

In Chicago, welfare would be increased by charging almost nothing for public transit, increasing the frequency of trains, and lowering the frequency of buses. Road pricing reduces environmental externalities, but only benefits travelers if the revenues are used for transit subsidies and rebates.
Milena Almagro, Felipe Barbieri, Juan Camilo Castillo, Nathaniel Hickok, and Tobias Salz
Based on BFI Working Paper No. 2024-22, “Optimal Urban Transportation Policy: Evidence from Chicago”

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