Overview
Car usage leads to greater levels of negative externalities than public transport. Therefore, a transport mode shift towards public transport could help to reduce negative externalities caused by the transport sector. Price reductions to achieve this mode shift have been intensively discussed in recent years. However, estimates of price reductions for public transport usage (in Switzerland) are mainly based on Stated Preference surveys. Analyzing real world cases using econometric methods could give researchers and practitioners important insights for the implementation of future policies. To provide these insights, we estimate the effect of a price reduction in Geneva, caused by an adopted initiative, on public transport demand. For doing so, we use the synthetic control method to estimate the effect's magnitude. In addition, we show how the COVID-19 outbreak influenced the effect.
