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Transport Pricing to Promote E-biking and Reduce Externalities: Insights from a GPS-Tracked Experiment

Author

Listed:
  • Roth, Jakob
  • Schwab, Laura
  • Hintermann, Beat
  • Götschi, Thomas
  • Meister, Adrian
  • Meyer de Freitas, Lucas
  • Axhausen, Kay W.

Abstract

This study presents results from a randomized controlled trial involving 1,085 participants in Switzerland that have access to an E-bike, a car, and public transport. The participants’ transport choices are monitored by means of a GPS-based tracking app. The treatment consists in a monetary incentive that approximates the main external costs and benefits associated with transport in the spirit of a Pigovian tax. This tax reduces transport-related external costs by 6.9 %, which corresponds to 78 Swiss francs per person and year (currently equivalent to 94 US dollars). The main underlying mechanism is a mode shift away from driving towards E-biking, public transport and walking. The results are primarily driven by individuals who own an S-pedelec with support up to 45 km/h, rather than users of the more common E-bikes that provide support up to 25 km/h. The pricing also induces a travel shift towards less congested time windows

Suggested Citation

  • Roth, Jakob & Schwab, Laura & Hintermann, Beat & Götschi, Thomas & Meister, Adrian & Meyer de Freitas, Lucas & Axhausen, Kay W., 2025. "Transport Pricing to Promote E-biking and Reduce Externalities: Insights from a GPS-Tracked Experiment," Working papers 2025/05, Faculty of Business and Economics - University of Basel.
    • Handle: RePEc:bsl:wpaper:2025/05
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    References listed on IDEAS

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    Keywords

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    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
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • 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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