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Subsidy Programs and Bicycles Advanced Transportation Technologies Clean Transportation Solutions SM Multi-Mobility Forum David Kantor Project Manager CALSTART, Inc. October 8th, 2009

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<ul><li>Can we really buy people out of cars? </li></ul><ul><li>If so, how much does it cost to do so? </li></ul><ul><li>And if possible, which are the best modes to do so? </li></ul>Multi-Mobility Forum: Subsidy Programs and Bicycles

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<ul><li>Different types of charges have different impacts on travel behavior </li></ul><ul><ul><li>Registration fees affect number and types of vehicles purchased </li></ul></ul><ul><ul><li>Fuel prices and emission fees affect type of vehicle used </li></ul></ul><ul><ul><li>Road toll shifts some trips to other routes/destinations </li></ul></ul>Subsidy Programs and Incentives: What do you want to change? Victoria Transport Policy Institute chart from Transportation Elasticities: How Prices and Other Factors Affect Travel Behavior, 26 August 2009 “Different price changes have different impacts on behavior”

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Multi-Mobility Forum: Getting people out of SOVs <ul><li>Want to get people out of their SOVs? Buy them out. </li></ul><ul><ul><li>SOV travel typically declines as economic incentives for other modes increase. </li></ul></ul><ul><ul><li>At $0, SOV travel is approximately 75%. </li></ul></ul><ul><ul><li>At $40/month, it’s approximately 60%. </li></ul></ul><ul><ul><li>At $160/month, it’s approximately 30%. </li></ul></ul>Victoria Transport Policy Institute chart from Transportation Elasticities: How Prices and Other Factors Affect Travel Behavior, 26 August 2009

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Multi-Mobility Forum: Subsidy Programs and Incentives <ul><li>Cash out programs’ impacts on driving alone, car pooling, transit, and bicycling/walking. </li></ul><ul><ul><li>Solo driving declined 17% after parking was cashed out. </li></ul></ul><ul><ul><li>Transferred to car pools mostly </li></ul></ul><ul><li>Travel impacts are affected by magnitude of benefit and quality of travel choices. </li></ul><ul><ul><li>Modal shifts tend to be greatest if current transit use is low. </li></ul></ul>Victoria Transport Policy Institute chart from Transportation Elasticities: How Prices and Other Factors Affect Travel Behavior, 26 August 2009

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Multi-Mobility Forum: That last step <ul><li>However, if you really want to get consumers out of their cars, the trade-off has to be compelling. </li></ul><ul><ul><li>Consumers measure prices with respect to perceived endowment (what they consider to be theirs already.) </li></ul></ul><ul><ul><li>They place greater value on losses than on gains, even when equal. </li></ul></ul><ul><ul><li>Typical motorist responds more than twice as much to a new parking fee than to a parking cash out incentive of equal value. </li></ul></ul>

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Rise in Gas Price Increases Transit Ridership <ul><li>High gas prices in July 2008 move people towards mass transit </li></ul><ul><li>Source: American Transportation Assn Report, June, 2008 </li></ul><ul><li>Biggest gains in light rail (10.3%), commuter rail (5.7%); bus ridership (2.2%). </li></ul><ul><li>Seattle commuter rail systems sees greatest national gain in ridership in first quarter of 2008. </li></ul>

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MyGo-Pasadena: Subsidy Process and Results <ul><li>The program paid people to get out of their car by subsidizing purchase of electric bike or scooter. </li></ul><ul><li>It paid them an additional rebate for a limited time to get them using transit (depending on frequency of usage). </li></ul><ul><li>Cost to Funding Entity for One New Member </li></ul><ul><ul><li>Purchase price rebate: $500 </li></ul></ul><ul><ul><li>Monthly transit ridership reward (max – 4x/week -- $30/month) </li></ul></ul><ul><ul><li>Total: $590. </li></ul></ul><ul><li>Results: </li></ul><ul><ul><li>58% of the MyGo members were new transit users (bought out of their vehicles and onto public transit on a consistent basis). </li></ul></ul><ul><ul><li>21 respondents (88%) used the MyGo vehicle outside of their regular transit commute for local trips. </li></ul></ul>

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Subsidy Program#2: Fold’n’Go Metro <ul><li>LACMTA is implementing a new incentive program to get people out of their car and onto transit using folding bicycles. </li></ul><ul><li>Will start with five transit stations in Los Angeles and then be implemented system-wide. </li></ul><ul><li>Target is to get 1,000 participants over a three year span across the five stations. </li></ul><ul><ul><li>Pasadena will have its own program. </li></ul></ul>

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Need Funding? Picture courtesy of Anna Batchelor <ul><li>How do you pay for an incentive program? </li></ul><ul><li>Transit agencies struggle to meet demand in “business as usual” manner </li></ul><ul><ul><li>$25,000 per parking space </li></ul></ul><ul><ul><li>$42 million total for above-ground structure </li></ul></ul>Instead of paying $42 million for a parking garage, how about reducing the parking pressures by investing $1 million into incentive programs instead?

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Clean Transportation Solutions SM www.calstart.org Advanced Transportation Technologies SM