Subsidized Transit: A German Experiment
Implemented in the summer of 2022, the German 9 Euro Ticket program offered a monthly rate of 9 Euro for regional and local transit. For June, July, and August this rate was set in an attempt to relieve the financial strain on passengers caused by the high rate of inflation. To help the regional states make up for the lost revenue, the federal government provided each of the 16 states with 2.5 billion Euro. However, they faced criticism for not taking into account what the increased demand would mean for capacity, staffing, and upkeep. Indeed, ridership was up–data indicates that 15% of those who used the 9 Euro Ticket would not have done so without the reduced price. In a transit system already widely known to run off-schedule, in many cases riders experienced overpacked trains between popular destination cities. With the increased use of public transit, there were some environmental impacts. 10% of the approximately 1 billion monthly journeys taken using the 9-euro ticket replaced the use of a car, preventing around 1.8 million tons of CO2 from going into the atmosphere. Furthermore, one study looked at the relationship between the program and air pollution and found a 6–7% decrease in the air pollution index, and was able to establish a causal relationship. The researchers out of the University of Potsdam also found that these air pollution reductions were largest during the week, which has major implications on the emissions of commuters, as well as in urban centers. As the authors claim there may be benefits to this program for the climate, the Association of German Transporters (VDV) which encompasses many transit authorities and companies advocated for a national ÖPNV-Klimaticket at a monthly rate of 69 Euro. The development of a program to replace the 9 Euro Ticket has required much debate between the state and federal governments, but ultimately they have produced the Deutschlandticket, which will cost riders less than a typical commuter spends per month at 49 Euro, with the 3 billion Euro cost split evenly at the national and state level. Along coalition lines, the traffic light coalition voted in favor of the ticket in the Bundestag, with the AfD and CDU/CSU voting against, and the Left abstained. The opposition points to the high cost of the program, and claims that since the cost will be borne by taxpayers, that improving transit infrastructure will be impossible. Overall, there are concerns about the long term viability of the program and integrity of the rail system in particular as it ages. The European Commission has yet to deliver the final approval, but it is the hope of proponents that a subsidized ticket will help with not just the fuel shortage given the war in Ukraine, but also make travel more equitable for people of all incomes. There is much optimism about this program helping Germany achieve its climate goals, and if they can prove its efficacy, it may cause spillover into other countries, as Austria’s KlimaTicket has seemingly influenced Germany. For this reason, I believe that the Deutschland ticket is a good decision, with the acknowledgment that it can always be improved upon with time.
