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Pigovian Transport Pricing in Practice

Author

Listed:
  • Hintermann, Beat

    (University of Basel)

  • Schoeman, Beaumont

    (University of Basel)

  • Molloy, Joseph
  • Götschi, Thomas
  • Castro, Alberto
  • Tchervenkov, Christopher
  • Tomic, Uros
  • Axhausen, Kay W.

Abstract

Pigovian transport pricing is implemented in a large-scale field experiment in urban areas of Switzerland. The pricing varies across time, space and mode of transport. One third of the participants is given a financial incentive to reduce their external costs of transport, whereas others are provided information only or served as a control group. The pricing treatment causes a significant reduction in the external costs of transport. This reduction is a consequence of mode substitution and a shift in departure times. The effect of providing information in the absence of pricing is also statistically significant, implying that information and pricing each play an important role in explaining the total effect.

Suggested Citation

  • Hintermann, Beat & Schoeman, Beaumont & Molloy, Joseph & Götschi, Thomas & Castro, Alberto & Tchervenkov, Christopher & Tomic, Uros & Axhausen, Kay W., 2021. "Pigovian Transport Pricing in Practice," Working papers 2021/11, Faculty of Business and Economics - University of Basel.
  • Handle: RePEc:bsl:wpaper:2021/11
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    References listed on IDEAS

    as
    1. Burlig, Fiona & Preonas, Louis & Woerman, Matt, 2020. "Panel data and experimental design," Journal of Development Economics, Elsevier, vol. 144(C).
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    More about this item

    Keywords

    Transport pricing; pigovian taxation; mobility; external costs; congestion; tracking.;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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