Equity Impacts of Transit Fare Proposals: A Case Study of AC Transit
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Faced with budget shortfalls, Oakland’s AC Transit proposed five alternative fare structures
combining base fare hikes or reductions, eliminating free transfers, and discontinuing passes.
Using onboard survey data, we analyzed impacts of proposals on groups of riders, evaluated equity
impacts, and estimated potential fare revenues. Policies that eliminated passes or transfers produced
dramatically unequal impacts on lower income riders, youth, and minorities. Flat fares were least
equitable even with base fare reductions because less affluent riders made more frequent trips and
transfers than the more affluent. The most equitable and profitable proposals adjusted existing fare
structures.