Gasoline prices in the United States have been extremely volatile in recent years and rose to record high levels during the summer of 2008. According to the U.S. Energy Information Administration, the average U.S.gasoline price for the year 2008 was $3.26 a gallon, which was the second highest yearly average in history when adjusting for inflation. Transportation agencies reported changes in travel behavior as a result of the price spike, with transit systems experiencing record ridership and state transportation departments reporting reductions in traffic volumes. This study examined the impact that changing gasoline prices had on transit ridership in Washington State by measuring the price elasticity of demand of ridership with respect to gasoline price. Ordinary least squares regression was used to model transit ridership for transit agencies in 11 counties in Washington State during the years 2004-2008. The price of gasoline had a statistically significant effect on transit ridership for seven of the systems studied, with elasticities ranging from 0.09 to 0.47. A panel data model was estimated using data from all 11 agencies to measure the overall impact of gasoline prices on transit ridership in the state. The elasticity from the panel data model was 0.17. The results indicate that transit ridership increased as gasoline prices increased during the study period. The findings are consistent with those from previous studies on the topic.
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