Economics

Subways and Road Congestion†

Document Type

Article

Abstract

We study whether subways alleviate road congestion by examining 45 subway line launches in China and by using detailed data on road speed. Our difference in-differences estimation finds that in the first year after a subway line is launched, rush hour speed on nearby roads increases by about 4 percent. The effect is most prominent in initially congested roads and declines over distance to the new subway line. Evidence on road speed is corroborated with substitution patterns among modes of transportation. Using auxiliary data from Beijing, we calculate that the time savings for each automobile or bus commute from faster speed is worth US$0.10.

Publication Title

American Economic Journal: Applied Economics

Publication Date

4-2021

Volume

13

Issue

2

First Page

83

Last Page

115

ISSN

1945-7782

DOI

10.1257/app.20190024

Keywords

subways, China, road congestion, transportation

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