How Micromobility affects Municipal Budgets

Budgetary impacts from micromobility include costs of permits, operating licenses and fines for risky behavior. The rise of shared dockless micromobility led to reactive policy making and regulations that largely constrained operations [1]. The use of such regulation has been motivated by the desire to control the presence of shared micromobility devices in cities, rather than viewing them as a promising line of municipal revenue. In fact, in many cases, municipalities are addressing the need to subsidize riders, especially when it comes to low-income users [2]. A 2024 study by the Transportation Research and Education Center assessed taxes and fees on micromobility, and found that they vary dramatically by city and are typically higher than taxes and fees on ride-hailing and private vehicles [3].

In general, the literature suggests that while micromobility has the potential to enhance quality of life and access to mobility [4], there are also externalities of social harm such as (mis)parking [5]. There is little available research related to how micromobility could influence the tax burden or base of a locality.

References

  1. N. Fearnley, “Micromobility – Regulatory Challenges and Opportunities,” in Shaping Smart Mobility Futures: Governance and Policy Instruments in times of Sustainability Transitions, A. Paulsson and C. H. Sørensen, Eds., Emerald Publishing Limited, 2020, pp. 169–186. doi: 10.1108/978-1-83982-650-420201010.

  2. A. Delbosc and C. Thigpen, “Who uses subsidized micromobility, and why? Understanding low-income riders in three countries,” J. Cycl. Micromobility Res., vol. 2, p. 100016, Dec. 2024, doi: 10.1016/j.jcmr.2024.100016.

  3. J. MacArthur, K. Fang, and C. Thigpen, “Taxing Shared Micromobility: Assessing The Global Landscape Of Fees And Taxes And Their Implications For Cities, Riders, And Operators,” Transportation Research and Education Center, 2024. Accessed: Aug. 09, 2024. [Online]. Available: https://drive.google.com/file/d/1u47hlH5MTW0HYwoOyvB_8MOtvQrHsEcM/view

  4. S. Shaheen and A. Cohen, “Shared micromobility: policy and practices in the United States,” in A Modern Guide to the Urban Sharing Economy, T. Sigler and J. Corcoran, Eds., Edward Elgar Publishing, 2021. doi: 10.4337/9781789909562.00020.

  5. A. Brown, “Micromobility, Macro Goals: Aligning scooter parking policy with broader city objectives,” Transp. Res. Interdiscip. Perspect., vol. 12, p. 100508, Dec. 2021, doi: 10.1016/j.trip.2021.100508.

Related Literature Reviews

See Literature Reviews on Micromobility

See Literature Reviews on Municipal Budgets

Note: Mobility COE research partners conducted this literature review in Spring of 2024 based on research available at the time. Unless otherwise noted, this content has not been updated to reflect newer research.

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