From Fare Zones to Fair Zones: The Impact of Differentiated Transit Fares on Metro Vancouver Transit Riders

Transit scholars have long advocated the use of differentiated transit pricing to improve service efficiency and equity among riders. Using Metropolitan Vancouver as a case study, I examine the effects on transit revenues and equity measures of two strategies – distance-based and time-of-day pricing. The analysis uses an established transportation forecasting model, combined with survey data from TransLink and estimates of price elasticity of demand from the literature to predict change in demand due to change in the fare structure. Information from transit agencies in Washington, DC, and Toronto, Ontario provides insights into issues of implementation complexity and public and political acceptance of differentiated fare structures. The analysis reveals an improvement in terms of increase in trips and reduced fares for lower income, captive and transit-dependent riders, and for riders from certain municipalities, with distance-based pricing. With a time-of-day fare structure there is slight improvement for low-income riders, an increase in revenues, and a small shift of trips from peak to off-peak times. The study recommends that the region’s transit agency develop a fare policy with consideration of a differentiated fare structure to improve service efficiency and equity among riders.