Impact of electronic road pricing (ERP) changes on transport modal choice

Agarwal, Sumit and Koo, Kang Mo 2016, Impact of electronic road pricing (ERP) changes on transport modal choice, Regional science and urban economics, vol. 60, pp. 1-11, doi: 10.1016/j.regsciurbeco.2016.05.003.

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Title Impact of electronic road pricing (ERP) changes on transport modal choice
Author(s) Agarwal, Sumit
Koo, Kang MoORCID iD for Koo, Kang Mo
Journal name Regional science and urban economics
Volume number 60
Start page 1
End page 11
Total pages 11
Publisher Elsevier
Place of publication Amsterdam, The Netherlands
Publication date 2016-09
ISSN 0166-0462
Keyword(s) Congestion charge
Traffic management
Electric road pricing (ERP)
Transport modal choice
Summary This paper analyzes the effect of periodical congestion toll rate adjustment on the change of commuters' transport modal choice in Singapore's context. Among several alternatives that commuters can choose when they face increase of congestion tax, this study specifically tests the impact on the modal change to public bus transportation. This study finds that commuters switch to public bus services by 12% to 20% in the morning hours after S$1 increase and by approximately 10% in the evening after toll adjustment of S$0.50 to S$1.00 in the affected gantry area compared to the counterfactual through difference-in-difference method. Also, we find that the increase in bus ridership has long-lived effect at least within two months and commuters from area with lower income level respond more to the toll increase. When we repeat the same test for robustness with arbitrary time slot during which the toll is not levied, we find no significant modal change. Other confounding factors from macro-economic standpoint and service quality cannot explain the results as the modal change occurred in short period within specific area and time. We also find that commuters from low income area respond more to the toll rate adjustment.
Language eng
DOI 10.1016/j.regsciurbeco.2016.05.003
Field of Research 140218 Urban and Regional Economics
140217 Transport Economics
1205 Urban And Regional Planning
1402 Applied Economics
1403 Econometrics
Socio Economic Objective 880108 Road Public Transport
HERDC Research category C1.1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2016, Elsevier
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Document type: Journal Article
Collections: Faculty of Business and Law
Department of Finance
2018 ERA Submission
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