Combining Tradable Credit Schemes with a New Form of Road Pricing: Producing Liveable Cities and Meeting Decarbonisation Goals

Abstract

This paper considers how the implementation of a tradable credit scheme (TCS) may be used to reduce road traffic and to contribute to the formation of liveable cities and global climate change commitments. The concept of applying TCS to individual road transport is familiar to transport researchers as a measure to regulate congestion and reduce transport-related emissions. Yet, it is not a strategy currently being considered by policy makers in the UK, despite the electrification of the road vehicle fleet and the associated loss of tax revenue presenting a rare opportunity to alter the economic instruments, which apply to road traffic. We consider how transport researchers can capitalise on this unique moment in transport history to shape transport policy. Our study uses qualitative methods, including a thematic analysis of semi-structured interviews with transport stakeholders and experts, in addition to a literature review and document analysis. Data analysis is inductive, permitting the formation of new ideas about the potential benefits of TCS and the barriers to the application of TCS to real-world policy. Building upon the results of TCS experiments and the results of our analysis, we propose a novel potential form of TCS combined with road pricing to maintain government revenue, which incentivises road users to decrease road vehicle kilometres travelled and reduce pollution and congestion. The proposal contributes to the discussion on the governance of road transport and taxation.