Policy packages for modal shift and CO₂ reduction in Lille, France

This paper proposes a second-best approach to cutting CO₂ emissions caused by the urban mobility of passengers. We develop policy scenarios that compare the first-best tool of carbon tax, to a combination of second-best tools, not originally aimed at reducing CO₂ (i.e. congestion charging, parking charges, and public transport services). We study their efficiency in attaining a CO₂ target, through a change in the modal split. In our model, modal choices depend on individual characteristics, journey features (including the effects of policy tools), and land use at origin and destination zones. Personal 'CO₂ emissions budgets' resulting from the journeys observed in the metropolitan area of Lille (France) in 2006 are calculated and compared to the situation related to the different policy scenarios. We find that an increase of 50% in parking charges combined with a cordon toll of euros 1.20 and a 10% travel time decrease in public transport services (made after recycling toll-revenues) is the winning scenario. The combined effects of all the policy scenarios are superior to their separate effects. (authors)