Incentives for modal shift towards sustainable mobility solutions: A review

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.