Abstract
The future of travel will be characterized by changes in weather patterns and changes in transportation technology. How will these forces interact? We explore this question by utilizing a unique randomized experiment with Uber riders in Cairo, Egypt. We consider how very hot days (>35 °C/95 °F) affect transportation choices, how a sizeable price decrease (simulating a future with autonomous vehicles and access to cheaper transportation) changes travel, and how the interaction of these two elements affects choices. We find that while travel will increase significantly in response to the price decrease, extreme weather dampens this effect by 21%. Individuals receiving subsidies also shift away from public transportation modes and towards private transportation modes, except when the public transit option is air-conditioned. These results provide important insights for policymakers when considering optimal travel policy in the face of climate change.
| Original language | English (US) |
|---|---|
| Article number | 102978 |
| Journal | Journal of Environmental Economics and Management |
| Volume | 125 |
| DOIs | |
| State | Published - May 2024 |
Keywords
- Climate change
- Experiment
- Ridehailing
- Transportation
ASJC Scopus subject areas
- Economics and Econometrics
- Management, Monitoring, Policy and Law