‘Free’ public transport in the Netherlands Sebastiaan van der Vliet

Contents Introduction Costs Benefits Effects Conclusions Recommendations

There is no such a thing a a free lunch => who pays? Main question: are social benefits of ‘free’ PT larger than the costs? Case studies, based on welfare economic theory

Some observations PT = very safe (56 x safer than car) PT = environmental friendly (3.2) PT = spatial efficient (10) PT = economic efficient (€2.000) PT ≠ door to door PT = hevily subsidised (40% cost recovery) So: more PT and less care use = good for society Is ‘free’ PT a possibility?

2 kinds of FFPT ‘free’ PT for target groups (65+, 12-, commuters, visitors of city centres) ‘free’ PT for all

Costs Direct costs Less / no income out of ticket sales More vehicles and more staff Implementation costs External costs More pollution More accidents More congestion More noise More parking

Benefits Direct benefits Larger consumer surplus Less / no transaction costs More income out of ticket sales More income out of advertising Indirect benefits Image improvement (city, PT company) Safer PT Less loneliness in society

Benefits (2) External benefits Less air pollution Less accidents Less noice Less congestion Less wear and tear of roads More economic activities Long run: larger spatial concentration of cities

Passenger growth

Substitution of bike

Substitution of car

Example Tilburg

Some results StadKostenBatenGemiddeld Saldo Tilburg € 480,000 + PM € 1,301,395+ PM € PM Eindhoven € 448,331 + PM € 873,122 + PM € PM Rotterdam € 2,947,000 + PM € 2,534,961 + PM € PM Delft € 406,075 + PM € 409,550 + PM € PM Dordrecht € 120,000 + PMNon monetisable ? Leiden – Den Haag € 975,379 + PM € 906,300 + PM € PM Hasselt€ PM€ PM € PM

Complete FFPT in Rotterdam Costs: €150 million Benefits: €250 – €337 million Cost benefit paradox: costs for municipality, benefits for society

Conclusions FFPT, more benefits than costs? Always if: Enough capacity (empy chairs) Low implementation costs Target group elderly people scores well FFPT as part of integrated transport policy Hard to forecast effects

Recomendations Implementation in phases Monitoring is important FFPT as part of integrated transport policy Research to long run effects Research to large scale FFPT initiatives

‘Free’ public transport in Eindhoven Renske Nollen

‘Free’ public transport in Eindhoven 2007: Experiment was launched, ‘free’ bus transport for 12- and 65+. End of 2007: Experiment continued and supplemented with 3 lines. 2008: ‘Free’ bus transport integrated in Eindhoven City Pass. Juli 2013: ‘Free’ bus transport abolished for regional City Pass holders. 2014: ‘Free’ bus transport abolished for 12- and 65+, replaced by ‘free’ bus transport for minimum income

Objectives ‘Free’ bus transport for 12- and More people should use bus instead of car 2.Better use of regular public transport facilities 3.Making elderly more mobile 4.Making children more acquainted with the bus and public transport 5.Improving the image of public transportation ‘Free’ bus transport for minimum income 1.Poverty reduction

Eindhoven mobility policy Strategic goals for Sustainable mobility 2.More walking, cycling and public transport 3.Less motorized traffic within the ring road

Aim of my research “To what extent will ‘free’ bus transport in Eindhoven, in the old and new situation, achieve relevant strategic goals for 2040, described in the current mobility policy?”

Results previous studies Evaluation 2008 Passenger increase of 82% in the target group % new travelers 37% make less use of cars in the target group 65+ Evaluation 2011 Passenger increase of 90% in the target group 65+ In 2007, 35% of the elderly never use the bus, in 2011 only 11% 75% make less use of cars in the target group