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Pigovian Transport Pricing in Practice

Author

Listed:
  • Hintermann, Beat
  • Schoeman, Beaumont
  • Götschi, Thomas
  • Axhausen, Kay
  • Molloy, Joseph
  • Tchervenkov, Christopher

Abstract

We implement Pigovian transport pricing in a field experiment in urban agglomerations of Switzerland over the course of 8 weeks. Our pricing considers the external costs from climate damages, health outcomes from pollution, accidents and physical activity, and congestion. It varies across time, space and mode of transport and is deducted from a budget provided to GPS-tracked participants. The treatment reduces the external costs of transport by 4.6% during the course of the experiment. The main underlying mechanism is a shift away from driving towards other modes, such as public transport, walking and cycling. Providing information about the external costs of transport alone is insufficient to change the transport behavior for the sample majority. We compute the welfare improvement due to mode shift to be 77 Swiss francs (or US dollars) per person and year, and that a fuel tax would achieve 70% of this gain.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Hintermann, Beat & Schoeman, Beaumont & Götschi, Thomas & Axhausen, Kay & Molloy, Joseph & Tchervenkov, Christopher, 2022. "Pigovian Transport Pricing in Practice," VfS Annual Conference 2022 (Basel): Big Data in Economics 264014, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc22:264014
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    File URL: https://www.econstor.eu/bitstream/10419/264014/1/vfs-2022-pid-69346.pdf
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    Other versions of this item:

    • Hintermann, Beat & Schoeman, Beaumont & Molloy, Joseph & Götschi, Thomas & Castro, Alberto & Tchervenkov, Christopher & Tomic, Uros & Axhausen, Kay W., 2025. "Pigovian Transport Pricing in Practice," Working papers 2021/11, Faculty of Business and Economics - University of Basel.

    Citations

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    Cited by:

    1. Gessner, Johannes & Habla, Wolfgang & Wagner, Ulrich J., 2023. "Can social comparisons and moral appeals increase public transport ridership and decrease car use?," ZEW Discussion Papers 23-003, ZEW - Leibniz Centre for European Economic Research.
    2. Minnich, Aljoscha, 2023. "Gamification in the transport sector: Quasi-experimental evidence from a bicycle navigation app," Transportation Research Part A: Policy and Practice, Elsevier, vol. 167(C).
    3. Thommen, Christoph & Hintermann, Beat, 2023. "Price versus Commitment: Managing the demand for off-peak train tickets in a field experiment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 174(C).
    4. Hintermann, Beat & Schoeman, Beaumont & Molloy, Joseph & Schatzmann, Thomas & Tchervenkov, Christopher & Axhausen, Kay W., 2023. "The impact of COVID-19 on mobility choices in Switzerland," Transportation Research Part A: Policy and Practice, Elsevier, vol. 169(C).
    5. Tobias Eibinger & Hans Manner & Karl Steininger, 2024. "Shifting Gears? The Impact of Austria's Transport Policy Mix on CO2 Emissions from Passenger Cars," Graz Economics Papers 2024-10, University of Graz, Department of Economics.
    6. Lassi Ahlvik & Anna Sahari, 2023. "Promoting active transport through health information: evidence from a randomized controlled trial," Working Papers 16, Finnish Centre of Excellence in Tax Systems Research.
    7. Durrmeyer, Isis & Martinez, Nicolas, 2022. "The Welfare Consequences of Urban Traffic Regulations," TSE Working Papers 22-1378, Toulouse School of Economics (TSE), revised Dec 2024.

    More about this item

    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
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • 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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