Impacts of Bus Rapid Transit Introduction on Local Economy in a Developing City: A Case Study in Brasília

Abstract

This study investigated the economic impacts of bus rapid transit (BRT) on local economies in Brasília, Brazil, using a difference-in-differences method by matching 11 BRT stations. The degree of economic activity was represented by the yearly nighttime light (NTL) intensity at a grid-cell scale of 15 arcseconds (approximately 500 m grid cell size) from 2013 to 2019. The results indicated that BRT introduction had a significantly positive impact on NTL intensity around its stations. The robustness of this result was confirmed through parallel trend test, placebo test, and an endogeneity test using the instrumental variable method. Stratified analyses also revealed that the introduction of BRT had a significantly positive impact on local economies, notably in lower-income areas, and areas with a high level of green spaces. Moreover, the economic benefits were greater in areas where both BRT and local bus services operated, compared with areas served only by BRT. This study discusses policy implications for transportation planning, highlighting multimodal service availability in BRT network development.