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Incentives for modal shift towards sustainable mobility solutions: A review

Author

Listed:
  • Fawaz Salihou
  • Rémy Le Boennec
  • Julie Bulteau
  • Pascal Da Costa

Abstract

Despite its advantages, road transport generates negative externalities. To reduce them, the use of single-occupant vehicles (SOVs) must be limited to promote other transport modes (active modes, public transport and shared mobility). This paper aims to examine the economic and non-economic incentives (as persuasive technologies and psychological factors) for a modal shift to sustainable mobility solutions. The independent application of these two types of measures has revealed effectiveness but also limitations. Economic incentives pose a problem of social acceptability for economic agents and limit the freedom to drive. The boomerang effect and ineffectiveness in specific cultural and economic contexts are the main limitations of non-economic incentives. To maximize effectiveness in terms of modal shift towards sustainable mobility solutions, economic and non-economic incentives need to be combined. JEL classification: R41, R48, H23, H39.

Suggested Citation

  • Fawaz Salihou & Rémy Le Boennec & Julie Bulteau & Pascal Da Costa, 2022. "Incentives for modal shift towards sustainable mobility solutions: A review," Revue d'économie industrielle, De Boeck Université, vol. 0(2), pages 199-246.
    • Handle: RePEc:cai:reidbu:rei_178_0199
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    Keywords

    externalities; economic incentives; non-economic incentives; persuasive technologies; psychological factors; modal shift; transport mode; single-occupancy vehicle; sustainable mobility; review;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H39 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Other

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