Moving with the Times: Financial Incentives for Sustainable Travel

This report explores policy ideas to change the cost of transport and encourage more Londoners to walk, cycle, use public transport or use shared modes of transport.

Part 1 looks at current financial incentives and how they could be altered to promote sustainable travel:

Part 2 models the impact of 12 possible policies on 9 different typical London households:

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The report explains the importance of:

  • ‘policy packages’ to maximise impact – combining and aligning measures is the most effective way to change behaviour. Particularly when using a mix of positive and negative incentives.
  • communicating costs clearly so it’s easy for people to compare costs and make informed choices, including raising awareness of the ‘hidden costs’ of owning private vehicles.

Recommendations include:

  • National government, TfL and local authorities should communicate about any new financial incentives or disincentives in advance of their introduction to allow people time to adapt their travel behaviours
  • Local authorities should use their parking strategy to encourage modal shifts.
  • National government should seek to align their existing policies that impact the cost of travelling, such as fuel duty or annual rail fare increases, to work towards the same objectives.
  • TfL should offer a scrappage scheme to Londoners on low incomes or disability benefits to dispose of their cars (irrespective of the car emissions) in exchange for ‘mobility credits’ that can be used to pay for public transport and a range of shared mobility providers.
  • TfL, national railways and local authorities should deliver high quality, free and safe bike storage at every train and tube station.

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