APS

31st APS Annual Convention · 2019

Encouraging People to Drive Less: Experimental Evidence Based on Varying Fixed Costs and Marginal Costs

Washington, DC · May 2019

Poster · Social

  • Yan Wang
    Nanyang Business School
  • Krishna Savani
    The Hong Kong Polytechnic University
  • S. Viswanathan
    Nanyang Business School

Abstract

The current research asks whether a revenue-neutral shift in taxes form fixed costs to marginal costs would reduce car usage. Using two incentive compatible commuting simulation experiments, we found that reducing current fixed costs and increasing current variable costs significantly reduced the average number of cars on the road.

Environment

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