Subways and Road Congestion

  title={Subways and Road Congestion},
  author={Yizhen Gu and Chang Jiang and Junfu Zhang and Ben Zou},
  journal={American Economic Journal: Applied Economics},
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… 
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