Do Economic Incentives Promote Physical Activity? Evidence from the London Congestion Charge

Ryota Nakamura, Andrea Albanese, Emma Coombes, Marc Suhrcke

Research output: Working paper

Abstract

Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract This study investigates the impact of economic incentives on travel-related physical activity, leveraging the London Congestion Charge's disincentivising of sedentary travel modes via increasing the cost of private car use within Central London. The scheme imposes charges on most types of cars entering, exiting and operating within the Central London area, while individuals living inside the charging zone are eligible for a 90% reduction in congestion charges. Geographical location information provides the full-digit postcode data necessary to precisely identify the eligibility for the discount of participants in the London Travel Demand Survey for the period 2005-2011. Using a boundary regression-discontinuity design reveals a statistically significant but small impact on active commuting (i.e. cycling and walking) around the border of the charging zone. The effect is larger for lower-income households and car owners. The findings are robust against multiple specifications and validation tests.
Original languageEnglish
PublisherGlobal Labor Organization (GLO)
Number of pages35
Publication statusPublished - 2021

Publication series

NameGLO Discussion paper
PublisherGlobal Labor Organization (GLO)
No.1006

Keywords

  • London Congestion Charge
  • economic incentive
  • geographical information system
  • health behaviour
  • regression-discontinuity JEL Classification Codes:

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