Depending most of its energy sources on foreign countries, Korea efforts to reduce energy consumption in
transportation. While studies on the relationship between gas price and transportation demand are many in number,
most previous studies have focused on automobile and Seoul. This study analyzes the impact of gas price on
transit (bus and subway) demand using monthly data and for various metropolitan areas (Seoul, Busan, Daejeon,
Daegu and Gwangju). The research utilizes a time-series model and a multiple regression model, and calculates
modal demand elasticities of gas price. The result shows that elasticities of subway demand with respect to gas
price is higher than those of bus demand. In addition, elasticities of predominantly automobile cities are more
likely to be more sensitive to gas price than those of cities with well-structured transit system.