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Research Project

Return on Investment for Rural Demand-Response Transit in Illinois

A conceptual model of estimation of the value of rural transit services.
Principal Investigator
Sriraj, P.S.
Co-Principal Investigator
Jang, Jin
Start Date
2024-08-05
End Date
2025-07-21
Research Area(s)
Demand Response
Policy Analysis
Transit
Co-Investigators
Sreniawski, Lucas
Funding Source
Illinois Department of Transportation

Abstract

Transit is frequently treated as a financial burden rather than a public investment, where the value is assessed primarily in terms of ridership or farebox recovery. This framing misses a wide range of external benefits, including workforce participation, healthcare access, and local economic activity. Additionally, public discourse and scholarly research around transit are often focused on urban systems, leading to policy and funding that inadequately reflect the needs of rural communities. Despite their importance, rural transit programs face underinvestment and are seldom evaluated in terms of their full economic return. In order to rectify this disparity, this report presents a state-level return-on-investment analysis of rural transit services, focusing on demand response transit systems in Illinois. Through a review of the existing literature, this report creates a conceptual framework for the benefits accrued by rural transit, formulates the conceptual model into an equation, applies the equation in various case studies, and discusses the results of the analysis. Download the complete "Return on Investment for Rural Demand-Response Transit in Illinois" study.