The relationship between financial incentives provided by employers and commuters' decision to use transit: Results from the Atlanta Regional Household Travel Survey

Abstract

Local employers can play an important role in the transportation or travel demand management (TDM) effort by influencing commuters' mode choice through financial incentives. Using the 2011 Atlanta Regional Household Travel Survey data, this paper analyzes the relationship between free or subsidized transit pass or parking provided by employers and commuters' decision to use transit in metro Atlanta. We find that employees who were provided free or subsidized transit pass had 156% higher odds to commute on transit, but employees who were provided free or subsidized parking had 71% lower odds to commute on transit, all else equal, compared to their counterparts. Hence, encouraging local employers to offer free or subsidized transit pass instead of free or subsidized parking to their employees would be an effective strategy to manage transportation or travel demand in metro Atlanta.