Expanding Traveler Choices through the Use of Incentives: A Compendium of Examples

6. Summary

The incentive studies and programs to influence traveler behavior highlighted in this primer show several effective, emerging practices. Organizations interested in creating an incentive-based program to reduce congestion and better manage demand on the roads and rails can use this primer to access some of the lessons learned and ongoing work in this area. Concepts from behavioral economic theory can inform the development of programs to more effectively modify traveler behavior than standard approaches.

The nonprofit Rocky Mountain Institute issued a 2018 report entitled Mapping Incentives to Change: How Comutifi's Commuter Score Can Influence Sustainable Commuting, which highlights the application of behavioral economic concepts to developing a successful incentive program. (Keeton et al., 2018) The report identified five best practices for using behavioral economics to encourage change:

• Choice Architecture: Use the way in which options are presented to influence choice. Set reference points that serve as goals that participants can use to compare their performance against and work toward. Incentivize both small and large shifts in behavior using a tiered structure of rewards.
• Round Number Clustering: In general, individuals are inclined toward round numbers (e.g., 0s, 5s, 10s, etc.), especially in terms of performance scores or accomplishments. The Rocky Mountain Institute recommends increasing rewards or payouts every 5 or 10 points.
• Time (Temporal) Discounting: One established behavioral theory is that rewards that are given in the future are perceived as being less valuable than those that are received now. To promote participation in the program, give out rewards earlier in the program.
• Social Norms: Peer influence and what is considered appropriate behavior can persuade individuals to make changes or stay in a program. Use this concept to encourage participants to make a public commitment to change and make it possible for them to see how others are doing in comparison to their own performance.
• Status Quo Bias: People generally show a preference towards how things are. They resist changing habits and overvalue what they currently have. To counteract this bias, programs should demonstrate that the alternatives represent a three-fold increase in their current travel choices.

The EMPOWER Project categorized positive incentives in the form of information, rewards, and feedback. Information consists of campaigns and educational information that can influence travelers to shift their travel behavior. (EMPOWER, 2018b) EMPOWER researchers provided some useful tips on how to use information to effect change:

• Campaigns to raise awareness:
  • Are more effective within a neighborhood.
  • Are most successful with newcomers to a city, especially for public transportation.
  • Can best be organized with local stakeholders.
  • Do more than education alone.
  • Are useful for starting behavioral change, but cannot stand alone and should be followed up by other interventions to sustain that change.
• Travel information:
  • Could include apps that provide multi-modal travel information and that may raise awareness of viable alternatives to automobiles that otherwise may not have been considered.
  • For active transport, route planners may show healthy routes for walkers and bikers avoiding locations with high concentrations of harmful particles.
• Informational content:
  • Should stress the benefits of bicycling and walking, not only in global terms such as air cleanliness and climate improvement, but also relative to improving the livability of local neighborhoods and the individual's general health.

In a review of previous studies on the use of positive incentive schemes to shift travelers to other modes, times, or residential locations, the EMPOWER group reviewed 33 studies from 12 countries (Australia, Belgium, Canada, Denmark, Germany, Italy, Japan, New Zealand, Sweden, the Netherlands, UK, and the United States). (Hof et al., 2017) They found that the effects of the incentives were mixed. Studies that reported a significant change in travel behavior were primarily based on self-reporting surveys as opposed to objective measurements. Studies that provided free transportation cards (transit passes, etc.) were more effective in changing behavior. The effectiveness of the incentive appeared to depend on the match between the intervention and the target group.

Based on this information, the reviewers noted that gifts, rewards, points, and discounts can have a strong but short-term effect on travel behavior, but often people tend to return to their old travel habits when the programs are discontinued. They recommended additional research into how these external motivations could change behavior in the long-term.

The review team recommends customizing incentives or the incentive scheme to individual or target group needs and to consider using programs that allow for social comparison and support.

Researchers partnering with EMPOWER shared several points of advice at a 2017 workshop for "Designing Positive Incentives: Practical Insights and Sharing Knowledge with the EMPOWER Project." (Hof et al., 2017)

For travel behavior change programs with rewards, points, or discounts, they recommend:

• Providing a reward each time the desired behavior occurs when the individual is learning the behavior and only part of the time for those who are regularly performing the behavior.
• Offering a "chain of rewards" such that there are immediate rewards as well as delayed ones.
• Trying different reward schedules to find out what works best for the target groups.

When using challenges, goals, and personal commitments to incentivize behavior change, the researchers advised allowing participants create their own goals (instead of using only assigned goals or challenges); include frequency, context, and duration in the goal statement; and allow people the ability to make the goals public.