APS
31st APS Annual Convention · 2019
Encouraging People to Drive Less: Experimental Evidence Based on Varying Fixed Costs and Marginal Costs
- 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