A Stated Preference Study to Explore Market-Based Instruments to Reduce Car Usage

Car dependency is becoming an increasingly difficult problem for policymakers to contend with, and requires targeted policy solutions that balance the need for greater urban mobility with reduced congestion. We investigated public preferences for welfare measures designed to encourage car use reduction and promote more sustainable urban environments. Cross-sectional survey data were obtained from n = 773 car owners living in Belfast, United Kingdom. A discrete choice experiment was used to elicit the willingness-to-pay (WTP) for a congestion charge that would finance policies to reduce car usage. A contingent valuation question assessed the willingness-to-accept (WTA) a monetary incentive to reduce car usage. WTP values were computed using a mixed logit model, and an interval data model was used to assess the factors that were correlated with WTA. We also calculated the benefit to the economy of reduced car usage. WTP for different policy measures ranged from £2.12 to £11. The highest WTP value was observed for improvements to public transport frequency, coverage, and connectivity. The median WTA value to reduce car usage by one day per week was £3. As a result of reduced emissions and road casualties, it was estimated that this intervention would generate benefits worth £3.83 m, however this was greatly outweighed by the costs involved.