Do Economic Incentives Promote Physical Activity? Evidence from the London Congestion Charge

Ryota Nakamura (), Andrea Albanese, Emma Coombes () and Marc Suhrcke
Additional contact information
Ryota Nakamura: Hitotsubashi University
Emma Coombes: University of East Anglia

No 14957, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This study investigates the impact of economic incentives on travel-related physical activity, leveraging the London Congestion Charge's disincentivising of sedentary travel modes via increasing the cost of private car use within Central London. The scheme imposes charges on most types of cars entering, exiting and operating within the Central London area, while individuals living inside the charging zone are eligible for a 90% reduction in congestion charges. Geographical location information provides the full-digit postcode data necessary to precisely identify the eligibility for the discount of participants in the London Travel Demand Survey for the period 2005–2011. Using a boundary regression-discontinuity design reveals a statistically significant but small impact on active commuting (i.e. cycling and walking) around the border of the charging zone. The effect is larger for lower-income households and car owners. The findings are robust against multiple specifications and validation tests.

Keywords: geographical information system; London Congestion Charge; health behaviour; economic incentive; regression-discontinuity (search for similar items in EconPapers)
JEL-codes: D04 I12 R48 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2021-12
New Economics Papers: this item is included in nep-ene, nep-tre and nep-ure
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Published - published in: Journal of the Royal Statistical Society Series A: Statistics in Society, 2024, 187 (2), 305–320

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Related works:
Working Paper: Do Economic Incentives Promote Physical Activity? Evidence from the London Congestion Charge (2021)
Working Paper: Do Economic Incentives Promote Physical Activity? Evidence from the London Congestion Charge (2021)
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