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Transportation Seminar Series
Effects of Rising Fuel Prices on Transit Ridership

Sep 22, 2008 (3:00 - 4:00 p.m., IACC 422)

Rising fuel prices have led to significant increases in costs for public transportation agencies in recent years. A possible benefit from higher prices, though, is an increase in ridership as motorists seek options to reduce their fuel consumption. Many transit systems of different types and sizes across the country have experienced increases in ridership in recent years. This presentation analyzes the effects of gas prices on bus ridership by employing a variety of models. Analysis is conducted on ridership for different types of transit systems, with an emphasis on bus ridership for small urban and rural transit systems in the Upper Great Plains. Higher gas prices are found to result in increased ridership, but the increases in fare revenues are not enough to cover the higher fuel expenses for the transit systems. As a result, transit agencies are having difficulties meeting the demands for increased service due to budget pressures caused by rising fuel costs.

Jeremy Mattson, Upper Great Plains Transportation Institute – NDSU

Jeremy Mattson joined the staff of the Small Urban & Rural Transit Center (SURTC) at the Upper Great Plains Transportation Institute in 2007 as an associate research fellow. Since joining SURTC, his research has focused on fuel costs, transit ridership, and the use of alternative fuels. He holds a B.A. degree in business management and economics and a M.S. degree in agricultural economics and is currently pursuing a Ph.D. in Transportation & Logistics at North Dakota State University.

NDSU Dept 2880P.O. Box 6050Fargo, ND 58108-6050
(701)231-7767ndsu.ugpti@ndsu.edu