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Impact of electronic road pricing (ERP) changes on transport modal choice

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  • Agarwal, Sumit
  • Koo, Kang Mo

Abstract

This paper analyzes the effect of periodical congestion toll rate adjustment on the change of commuters' transport modal choice in Singapore's context. Among several alternatives that commuters can choose when they face increase of congestion tax, this study specifically tests the impact on the modal change to public bus transportation. This study finds that commuters switch to public bus services by 12% to 20% in the morning hours after S$1 increase and by approximately 10% in the evening after toll adjustment of S$0.50 to S$1.00 in the affected gantry area compared to the counterfactual through difference-in-difference method. Also, we find that the increase in bus ridership has long-lived effect at least within two months and commuters from area with lower income level respond more to the toll increase. When we repeat the same test for robustness with arbitrary time slot during which the toll is not levied, we find no significant modal change. Other confounding factors from macro-economic standpoint and service quality cannot explain the results as the modal change occurred in short period within specific area and time. We also find that commuters from low income area respond more to the toll rate adjustment.

Suggested Citation

  • Agarwal, Sumit & Koo, Kang Mo, 2016. "Impact of electronic road pricing (ERP) changes on transport modal choice," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 1-11.
    • Handle: RePEc:eee:regeco:v:60:y:2016:i:c:p:1-11
    DOI: 10.1016/j.regsciurbeco.2016.05.003
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    Cited by:

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    2. Masrono Yugihartiman & B. Budiono & Maman Setiawan & Achmad Kemal Hidayat, 2023. "Estimating Travel Choice Probability of Link-Based Congestion Charging Scheme for Car Commuter Trips in Jakarta," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    3. Lichtin, Florian & Smith, E. Keith & Axhausen, Kay W. & Bernauer, Thomas, 2024. "How to design publicly acceptable road pricing? Experimental insights from Switzerland," Ecological Economics, Elsevier, vol. 218(C).
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    5. Song, Siqi & Diao, Mi & Feng, Chen-Chieh, 2021. "Effects of pricing and infrastructure on car ownership: A pseudo-panel-based dynamic model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 115-126.
    6. Liu Pai & Tomonobu Senjyu, 2022. "A Yearly Based Multiobjective Park-and-Ride Control Approach Simulation Using Photovoltaic and Battery Energy Storage Systems: Fuxin, China Case Study," Sustainability, MDPI, vol. 14(14), pages 1-19, July.
    7. Joseph Molloy & Alberto Castro & Thomas Götschi & Beaumont Schoeman & Christopher Tchervenkov & Uros Tomic & Beat Hintermann & Kay W. Axhausen, 2023. "The MOBIS dataset: a large GPS dataset of mobility behaviour in Switzerland," Transportation, Springer, vol. 50(5), pages 1983-2007, October.
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    More about this item

    Keywords

    Congestion charge; Traffic management; Electric road pricing (ERP); Transport modal choice;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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