1 The Faculty of Engineering and Science (ENG), Aalborg University, VBN2 Department of Civil Engineering, The Faculty of Engineering and Science, Aalborg University, VBN3 Division of Transportation Engineering, The Faculty of Engineering and Science, Aalborg University, VBN4 Trafic Research Group, The Faculty of Engineering and Science, Aalborg University, VBN5 Department of Development and Planning, The Technical Faculty of IT and Design, Aalborg University, VBN6 TØI – Institute of Transport Economics
This paper presents a comparative analysis of the effects of economic policy instruments in promoting environmentally sustainable transport. Promoting environmentally sustainable transport is defined as follows: (1) Reducing the volume of motorised travel; (2) Transferring travel to modes generating less external effects, and (3) Modifying road user behaviour in a way that will reduce external effects of transport. External effects include accidents, congestion, traffic noise and emissions to air. Four economic policy instruments are compared: (1) Prices of motor fuel; (2) Congestion charges; (3) Toll schemes; (4) Reward systems giving incentives to reduce driving or change driver behaviour. The effects of these policy instruments are stated in terms of elasticities. All four economic policy instruments have negative elasticities, which means that they do promote environmentally sustainable transport. Long-term elasticities tend to be larger than short term elasticities. The long-term elasticities of reward systems are unknown. (C) 2014 Elsevier Ltd. All rights reserved.