Gas Consumption Information: A Substitute for Congestion Pricing?

Omid M. Rouhani

No 207246, 51st Annual Transportation Research Forum, Arlington, Virginia, March 11-13, 2010 from Transportation Research Forum

Abstract: The low price elasticity of gasoline demand has been shown in different studies. People‟s weak perception about how much they spend on fuel is considered as an important reason. The purpose of this study is to show how information about gas consumption may change people‟s behavior. Congestion pricing has been successful in terms of reducing demand and even changing people‟s decisions. People perceive this pricing as out of pocket cost and take that into account while making decisions. A similar procedure can be implemented for fuel costs. On-line information from transportation networks can be used to estimate the gas consumption cost for each route, using on-road banners or GPS devices. The idea is that as a result of becoming informed about their gas consumption increase when entering traffic congestion, people may take an alternative route or decide not to travel at all. Although it is not possible to estimate the exact change in the price elasticity of gas by introducing this method directly, this study tries to estimate the proper gas price and its effects on people‟s route choice behavior and compare gas consumption information to congestion pricing scheme. The results from a small network showed that providing this information can improve people‟s behavior in terms of route choice. Keywords- Congestion pricing, Gasoline consumption, Route change.

Keywords: Production Economics; Productivity Analysis (search for similar items in EconPapers)
Pages: 10
Date: 2010-03
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ndtr10:207246

DOI: 10.22004/ag.econ.207246

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