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Road Pricing: Travel Behavior and Public Support

Author

Listed:
  • Alice Ciccone
  • Cloé Garnache
  • Gøril Louise Andreassen

Abstract

We conduct a large-scale randomized controlled trial to examine the effects of time- and location-specific, distance-based road pricing on travel behavior and driving externalities. Using financial incentives and a smartphone app that automatically tracks participants' travel behavior across different modes, we find that road pricing reduces driving externalities by 5.3%, implying a price elasticity of -0.07 to -0.15 for the external costs of driving. Our findings suggest that drivers of battery-electric vehicles (BEVs) are much less responsive to road pricing than drivers of non-BEVs. Furthermore, we find that providing information on the expected benefits of road pricing enhances public support for such policies, whereas experience with road pricing has little impact.

Suggested Citation

  • Alice Ciccone & Cloé Garnache & Gøril Louise Andreassen, 2025. "Road Pricing: Travel Behavior and Public Support," CESifo Working Paper Series 11867, CESifo.
  • Handle: RePEc:ces:ceswps:_11867
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    File URL: https://www.ifo.de/DocDL/cesifo1_wp11867.pdf
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    More about this item

    Keywords

    road pricing; public support; electric vehicles; driving externalities; field experiment; information provision.;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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