Pigovian Transport Pricing in Practice

Beat Hintermann (), Beaumont Schoeman (), Joseph Molloy, Thomas Götschi, Alberto Castro, Christopher Tchervenkov, Uros Tomic and Kay W. Axhausen
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Beat Hintermann: University of Basel
Beaumont Schoeman: University of Basel

Working papers from Faculty of Business and Economics - University of Basel

Abstract: We implement Pigovian transport pricing in a field experiment in urban agglomerations of Switzerland over the course of 8 weeks. The pricing considers external costs from climate damages, health outcomes and congestion and varies across time, space and mode of transport. The treatment reduces the external costs of transport of the treated individuals by 4.5% in the short run. The main underlying mechanism is a shift away from driving towards other modes, such as public transport, walking and cycling. Providing information about external costs alone changes behavior of altruists, but not for the whole sample. We estimate the welfare improvements from such a policy to be around 140 US dollars per person and year, which is twice as large as the effects of a fuel tax that generates the same revenue.

Keywords: Transport pricing; pigovian taxation; mobility; external costs; congestion; tracking. (search for similar items in EconPapers)
JEL-codes: H23 H31 I18 Q52 Q54 R41 R48 (search for similar items in EconPapers)
Date: 2021-09-03
New Economics Papers: this item is included in nep-exp, nep-reg, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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https://edoc.unibas.ch/84658/ original version (application/pdf)
https://edoc.unibas.ch/88604/ revised version (application/pdf)
https://edoc.unibas.ch/96365/ revised version (application/pdf)

Related works:
Working Paper: Pigovian Transport Pricing in Practice (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:bsl:wpaper:2021/11

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