Exploring the Perennial Struggle for Sustainable Finance of the New York Metropolitan Transit Authority

The New York City transit system is one of the largest in the world. Featuring a 24-hour subway, buses, commuter rail and other modes, New York serves about one-third of the overall share of transit travel in the United States. Yet even for the size and ridership the Metropolitan Transportation Authority has been financially troubled for decades. This case reviews the historical and current ways the system was developed and financed and discusses the implications for sustainable finance. Current and future efforts to secure new funding sources beyond the farebox are also discussed, and there are important lessons to be learned for metropolitan areas in both developed and developing countries about the dynamics of the financial and economic challenges that alternative approaches to sustainable urban transport finance will encounter.