Erik Verhoef, professor at the department of Spatial Economics at Vrije Universiteit Amsterdam, is an expert in influencing travel behaviour through price incentives. ‘We need to collaborate in both science and practice to distribute and utilize scarce space fairly and effectively.’ It is not an easy task and it requires patience, but it is possible, as recent research in Beijing shows.
Between 2016 and 2020, Erik Verhoef led several Dutch and European research projects on the concept of tradeable permits. The idea behind this is that space – whether it is the highway or on-street parking – could be allocated by allowing users to trade their right to use that space in time slots, for example, via an app. This creates a natural balance between supply and demand for available space.
Verhoef explains: ‘At that time, we first conducted simulated lab experiments, followed by experiments with actual behaviour. Recently, we tested it in China with “real” car commuters around Beijing. The results are promising.’
COVID-19 was a disruptor
In the Netherlands, there has also been significant interest in the concept, though it has not yet been applied anywhere. Verhoef notes, ‘The concept has definitely made it onto the radar of policymakers and administrators, both at the national level and, for example, in the field of municipal parking policy. But then came COVID-19, which was a major disruptor. Now that traffic congestion has returned, I see a growing interest again in tradeable rights as a solution. It remains an interesting policy tool because, in principle, it could work without the need for a financial flow to the government. Classic pricing policies, after all, still lack broad support.’
Spatial impact
Together with a PhD student, Verhoef is currently working on comparing the tradeable rights instrument with mobility pricing. ‘We’re examining the effectiveness of these tools and their effects on the location choices of individuals and companies, as well as the implications for the labour market. Through this, we also contribute to the societal and scientific debate on fairness. One of the questions we are exploring is how the effects of mobility policies translate spatially. The integration of traffic, transport, and space is still the most intriguing aspect for me. It’s crucial when it comes to major transitions. Just think of all the attention given to the 15-minute city.’
Patience and collaboration
Next to being an expert, Verhoef is experienced in being patient. ‘The implementation of both pricing policies and concepts like tradeable rights certainly doesn’t happen overnight. Processes take time, partly because so many different parties are involved. Will we really have a climate-neutral and circular economy by 2050? That would be revolutionary. I started in 1992 as a PhD student. That’s longer ago than the time left until 2050, and not much has changed since then. The main question is how to get everyone on board. A lot will be asked of people. Policies must also be acceptable. For these growing challenges, we need various disciplines, ranging from economics and transport science to mathematics, public administration, and psychology.’
Puzzles
Being a member of the Dutch Council for the Environment and Infrastructure (Raad voor de leefomgeving en infrastructuur), Verhoef is more in touch with the tough realities than ever before. ‘I see all these interesting puzzles that are not easy or quick to solve. But I’m an optimist. I’ll probably witness the introduction of some of the tools I’ve been working on for years before I retire. But that is still a while off. Not before 2033.’
Within the knowledge initiative VerDuS (Verbinden van Duurzame Steden van NWO inclusief Regieorgaan SIA, het Rijk en Platform31) consortia of researchers and practitioners worked together on questions realted to – among other things – the sustainable accessibility of urban regions. U-SMILE (Urban Smart Measures and Incentives for quality of Life Enhancement) was one of the large, long-term projects within this research programme.
This article is a translated re-post of the Dutch journal “Verkeerskunde”, written by Ymkje de Boer.
January 2025