Who Gets What? A user perspective on initial credit allocation in Tradable Mobility Credit Schemes

Abstract

In Tradable Credit Schemes (TCS), policymakers might align the total quantity of credits in the system with specific climate, air pollution, or traffic reduction goals. To achieve these objectives, the total credits issued are typically set below actual travel demand, thereby encouraging a mode shift from private cars to more sustainable alternatives, as well as promoting trip avoidance or postponement. A central aspect of TCS is, therefore, determining how credits are allocated to individuals—and, specifically, whether all users should receive the same credit budget. However, the literature offers limited research on the strategies, central elements, and user preferences related to the initial credit allocation. In this paper, we review the building blocks of the initial credit allocation in Tradable Mobility Credit Schemes, namely: (a) the eligible receivers, (b) the credit measurement unit, (c) the validity period and transferability of credits, and (d) the allocation method itself. Additionally, we present empirical findings on public support for non-uniform credit allocation strategies and preferences regarding credit compensation for various individual attributes. Our survey results show that approximately 70% of respondents endorse the non-uniform allocation of credits. Support was particularly high among individuals with limited public transport accessibility, lower incomes, and women. Besides, respondents identified mobility impairment, care work responsibilities, and poor public transport accessibility as the most critical factors that should influence the credit budget an individual receives. This paper provides policymakers with an overview of initial credit allocation strategies and practical insights to enhance public acceptance of TCS designs.