The Role of Behavioral Economics and Social Nudges in Sustainable Travel Behavior

Abstract Individual and household transportation decisions have traditionally been framed as rational choices based on time and cost. A growing body of work now recognizes that while transportation choices may be tied to these rational factors, they also are shaped by social/cultural norms, previous experiences, habit, and situational dynamics. This chapter explores the literature on travel, behavioral economics, mode substitution behavior and financial versus social “nudges.” It discusses the results from two behavioral experiments that indicate that social norms, attitudes, and perceptions can have significant effects on travel preferences and choices and at least in some cases may be more important than monetary incentives or “hard” data. The findings, while based on stated preferences rather than observed behavior, suggest that program designs could be more effective if they account for attitudes and perceptions of the target populations.