Road Pricing: Travel Behavior and Public Support

We conduct a large-scale randomized controlled trial to examine the effects of time- and location-specific, distance-based road pricing on travel behavior and driving externalities. Using financial incentives and a smartphone app that automatically tracks participants’ travel behavior across different modes, we find that road pricing reduces driving externalities by 5.3%, implying a price elasticity of -0.07 to -0.15 for the external costs of driving. Our findings suggest that drivers of battery-electric vehicles (BEVs) are much less responsive to road pricing than drivers of non-BEVs. Furthermore, we find that providing information on the expected benefits of road pricing enhances public support for such policies, whereas experience with road pricing has little impact