Public transport investments as generators of economic and social activity

Abstract

Background

High-quality public transport systems increase accessibility, which is linked to wider economic and social benefits that improve the health of the populations served. This paper reviews evidence on the existence and magnitude of these wider benefits.

Methods

We searched for academic studies that evaluated the effects of specific public transport investments or disinvestments on levels of economic and social activity.

Results

Public transport improvements increase economic activity, both at an aggregate level (higher gross domestic product) and household level (higher income), although the effect can be geographically imbalanced. Better public transport boosts employment but tends to increase house prices, leading to gentrification, although suitable policies can prevent this effect. Public transport improves social connections, especially for older people in isolated rural areas. In urban areas, it can reduce connections due to barriers to pedestrians. Disinvestment in public transport, such as closure of bus services, has multiple economic and social costs, although the evidence is still scarce.

Conclusions

Public transport has potentially wide but possibly unequal economic and social benefits.