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In response to the increased cost of living, in particular energy/fuel costs, following the Russian invasion of Ukraine, the German government passed several measures in the first half of 2022 to alleviate the pressure on households. One such measure was the temporary introduction of a cheap, country-wide public transport ticket. In June, July, and August, one could take almost every train, bus, or tram throughout Germany for as little as 9 Euros a month. This paper first established that the decrease in public transport fares indeed led to higher public transit ridership, and lower car traffic. It then proceeds to estimate whether the short-term price shock has had knock-on effects. In other words, did some motorists get a taste for using public transport when it was cheap, and decide to continue using it even when fares returned to their regular levels? To achieve this, I collect air pollution levels, peak-hour traffic times, and public transit ridership for over 30 German cities.
