What happens when you make a public good free to use? What benefits does that realize?

Originally shared by Kam-Yung Soh

Radical move. But not exactly no cost to citizens. As explained in the article, “To ride Tallinn’s network of trams, buses and trains for free, you must be registered as a resident, which makes the municipality profit €1,000 from your income tax every year. All you need to do then is getting a €2 green card and carrying your ID on public transport” “Tallinn, known for its digital government and successful tech startups, is often referred to as Europe’s innovation capital. Now celebrating five years of free public transport for all citizens, the government is planning to make Estonia the first free public transport nation. Allan Alaküla, Head of Tallinn European Union Office, shares some valuable insights for other cities.

Five years ago, citizens of Tallinn were asked in a referendum if free public transport should be realized. Why should citizens be involved in such political decisions?

“A decision for a long-term project should not only be taken by the current elected council, but it should be locked politically by asking for support from the public. Although a local referendum is not legally binding, the mandate from the popular vote is stronger than just from the council.”

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Who is profiting the most from free buses, trams and trains in Tallinn?

“A good thing is, of course, that it mostly appeals to people with lower to medium incomes. But free public transport also stimulates the mobility of higher-income groups. They are simply going out more often for entertainment, to restaurants, bars and cinemas. Therefore they consume local goods and services and are likely to spend more money, more often. In the end this makes local businesses thrive. It breathes new life into the city.””