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Who should pay? Public acceptance of different means for funding transport infrastructure

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Abstract

This paper examines acceptance of different ways to fund transport infrastructure. Our methodological approach, stemming from social psychology (attitudes), is based on latent variables. We differentiate between three types of explanatory variables: socioeconomic, (material) self-interest, and personal values. This approach has previously been used to study acceptance of congestion charges, but not (to our knowledge) acceptance of funding alternatives. We conclude that the funding alternatives that are less economically efficient (more deadweight loss per revenue) are unfortunately often the most attractive according to the public. User charges on new infrastructure are popular but might lead to sub-optimal use (since it leads to under usage of the new infrastructure). If charges are also applied to parallel infrastructure, the problem with suppressed demand is reduced, but so is acceptance. VAT (low deadweight loss) is unpopular, whereas income tax (higher deadweight loss) is more accepted. Therefore, politicians will need to handle tradeoffs between acceptance and efficiency. Possible solutions might be found in acceptance theory or by bundling measures. We also find that both context-specific self-interest and broader personal values explain individuals’ preferences towards different funding forms. In many cases the two types of independent variables are highly correlated since variables indicating self-interest against a specific funding form contribute to the formation of general personal values, too. Our results seem to indicate, however, that the explanatory power of more general personal values is larger than that of context-specific self-interest.

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Notes

  1. CINT is one of the world’s leading marketplaces for reaching insights into consumer preferences. The CINT panels follow the ESOMAR rules for panel management. The CINT panels have half a million registered participants all over Sweden.

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Acknowledgements

This research was funded by the Swedish Transport Administration. Submitting a paper on this subject was a pledge made in our research application. Björn Hasselgren from the Swedish Transport Administration has given valued feedback during our work. However, we (the authors) are solely responsible for the content in this paper.

Funding

Funding was provided by Trafikverket (Grant No. 2015/36884).

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MA has led the project. LJ has done most of the econometrics. KB-F has been responsible for the method. KB has been responsible for data collection. All authors have, to different extent, contributed to the writing of first manuscript as well as later revisions.

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Correspondence to Matts Andersson.

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Andersson, M., Jonsson, L., Brundell-Freij, K. et al. Who should pay? Public acceptance of different means for funding transport infrastructure. Transportation 50, 1425–1448 (2023). https://doi.org/10.1007/s11116-022-10282-z

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