Paper Number

2473

Paper Type

Complete

Description

The transportation sector generates the largest share of greenhouse gas emissions, which concerns governments and communities worldwide. Electric vehicles (EVs) are believed to be the future. Various incentives have been provided to further broaden their acceptance and accelerate their adoption, including toll-exemption programs for EVs. At the same time, an individual’s driving behaviors are largely shaped by navigation applications that provide real-time traffic conditions. In this paper, we aim to understand how information provision affects the optimal structure of the EV-exempt toll. By analyzing a Bayesian routing game, we illustrate the optimality of a non-monotonic tolling strategy as a function of the EV adoption rate. For policymakers, our finding reveals the importance of understanding how the IT-enabled information provision has altered individual drivers' behavior. In addition, the results uncover the general impact of IT, which expands the action space of individuals and the effective regimes of policies.

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Dec 12th, 12:00 AM

Twisting the Toll: Electric Vehicles and Information Provision

The transportation sector generates the largest share of greenhouse gas emissions, which concerns governments and communities worldwide. Electric vehicles (EVs) are believed to be the future. Various incentives have been provided to further broaden their acceptance and accelerate their adoption, including toll-exemption programs for EVs. At the same time, an individual’s driving behaviors are largely shaped by navigation applications that provide real-time traffic conditions. In this paper, we aim to understand how information provision affects the optimal structure of the EV-exempt toll. By analyzing a Bayesian routing game, we illustrate the optimality of a non-monotonic tolling strategy as a function of the EV adoption rate. For policymakers, our finding reveals the importance of understanding how the IT-enabled information provision has altered individual drivers' behavior. In addition, the results uncover the general impact of IT, which expands the action space of individuals and the effective regimes of policies.

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