The disutility of driving below the speed limit on highways

Filipi Nikol (), Karlínová Bára () and Krčál Ondřej ()
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Filipi Nikol: Department of Economics, Masaryk University, Lipová 41a, 602 00 Brno, Czech Republic
Karlínová Bára: Kiwi.com, Lazaretní 925/9, 615 00 Brno - Židenice, Czech Republic
Krčál Ondřej: Department of Economics, Masaryk University, Lipová 41a, 602 00 Brno, Czech Republic

Review of Economic Perspectives, 2022, vol. 22, issue 4, 267-277

Abstract: Reducing travel speed below the highway speed limit leads to savings in fuel consumption and CO2 emissions. However, car drivers may be reluctant to drive more slowly either because they do not want to lose time or for other reasons we refer to as ‘the disutility of driving at lower speeds’. In this paper, we use a survey experiment to isolate the disutility of driving at lower speeds by comparing drivers’ willingness to accept compensation for a fixed increase in travel time caused either by taking a longer route or by travelling at below-limit speeds. We show that Czech drivers require higher compensation for travelling at lower speeds than they require for the same travel time increment caused by a longer distance. This result represents the first piece of evidence showing that the disutility of driving at below-limit speeds on a highway is substantial and economically relevant.

Keywords: CO2 emissions; highway speed; voluntary climate action; survey experiment (search for similar items in EconPapers)
JEL-codes: C90 Q54 R41 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:reoecp:v:22:y:2022:i:4:p:267-277:n:5

DOI: 10.2478/revecp-2022-0012

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