Willingness to pay and trading behaviour of mobility credits

Abstract

Tradeable Mobility Credits (TMC) are a novel demand management policy. Travel can be priced based on externalities and travellers are allocated TMC, which are consumed when travelling, with the price depending on trip characteristics. Travellers can buy/sell TMC in exchange for money. In this study, we analyse (1) how travel behaviour would be affected by a TMC-scheme, (2) TMC trading behaviour and (3) their interaction. We carry out an online stated preference survey, and apply a latent class choice model (LCCM) to analyse travel behaviour, whereas credit trading is analysed by means of a multiple linear regression. A key finding throughout the research is that TMC tend to be perceived non-linearly, with a logarithmic transformation often outperforming linear specifications. This means each additional credit carries less value. The LCCM reveals three out of four groups (88 % of respondents) consider their current balance when making travel choices. Two groups (∼50 %) are predominantly unimodal, travelling almost exclusively by bicycle or public transport. Others base their decision primarily on travel time and cost. In trading, the exchange rate and balance have a substantial influence, offering evidence for loss aversion. The number of travel instances remaining, and the experience of having performed a trade in the past also affect trading behaviour, whereas socio-demographic characteristics are found to have a limited impact. Our result show a TMC policy can achieve substantial behavioural adaptations, reaching the desired outcomes. The limited awareness of such policies, concerns about equitable TMC allocation and additional hassle associated with trading remain challenges to be addressed.