The Economics of Urban Light Rail

Most U.S. cities dismantled their streetcar networks in the first half of the previous century, but in the past few decades, some transit agencies have restored them, with help from generous federal grants. Modern light rail systems have appeared in more than a dozen U.S. cities, many of which had little preexisting transit ridership. They run small trains, often in the middle of wide streets along disused rail lines. Proponents of light rail argue that it is cheaper than a full subway line and can carry more riders than buses, as well as attracting new riders by offering a more comfortable ride. One study from 1989, for example, finds that rail systems get 34%–43% better ridership[1] than bus lines with equivalent service. Read Full Article »