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December 15, 2009:
Annual Report

Car Clubs / Car Sharing Research Project
Car Share and Car Clubs: Potential Impacts (Final Report)

5. Potential Policy Interventions

This section of the report presents a number of potential policy interventions drawn up in the light of our findings from the literature review and interviews and from our analysis of cost structures and of key influences on the operating environment. The section is divided into two subsections dealing with the promotion of car clubs and car sharing respectively.

5.1 To Encourage Car Clubs

5.1.1 Direct financial support or other assistance for one or more car clubs
The main idea here is to create 'flagship' clubs whose success could then be used in future publicity for the concept. However it might also create an opportunity to learn from the experience gained.

A particularly important question is whether the support should be directed towards an existing scheme or a new one. New schemes may be seen as more in need of financial support than established ones because of the cash-flow problems they are bound to experience during the initial stages. The contrary view is that, among new start-ups, there are bound to be a significant proportion of schemes which are simply not viable in the longer term and that it is wiser to support schemes that have managed to survive the traumas of an unassisted birth. It would generally be accepted that additional support for an existing club which can demonstrate a need for such support and can indicate how it would benefit from such support would be less risky than equivalent support for an entirely new club.

It is at this point perhaps worth sounding a warning note about providing temporary subsidies. There is always the risk that the existence of the subsidy will result in the adoption of equipment, procedures and pricing structures which would not be viable once the subsidy is withdrawn. Also, the attention of the scheme organisers may become diverted from the task of running the scheme and towards winning a subsidy. This problem may be particularly relevant in respect of new schemes where there is obviously a risk that attention becomes focussed on designing a scheme which will attract a subsidy rather than on one which will be sustainable in the longer term.

If it is nevertheless decided to pursue the option of providing financial support for one or more car clubs, the next question to be addressed is how to select the club(s). One approach would be to decide on the type(s) of scheme to be supported and then seek candidate(s) which most nearly meet that description. Our preferred variant on this approach would be to decide on the criteria to be met, announce these to existing and potential operators and invite requests for support. Applicants would be required to indicate the level of support they require and the objectives they would expect to meet if it were provided. They would also be asked to provide a business plan indicating their prospects for continued financial viability beyond the period for which support is requested.

In allocating the funds it would be important to take advice from organisations who are knowledgeable in the field and to avoid spreading support too thinly. This latter point is particularly important if the intention is to create flagship schemes.

In selecting clubs to be supported it is important to be clear about the relative importance of different objectives of the exercise. For example:

5.1.2 Sponsorship of third parties to provide assistance, advice and services for existing or nascent car clubs
Sponsorship of third parties to provide professional advice/assistance and specialist services/products might overcome some of the problems associated with direct financial support for scheme organisers but might tend to stifle innovation. It is suggested by some that it would risk creating an orthodoxy in an area where, the greatest successes have been associated with individual commitment and enthusiasm of the kind that is more likely to come from individual scheme organisers. Nevertheless, it is clear that would-be organisers of car clubs would benefit from wider availability of advice and assistance during the crucial period of setting up a new club and that clubs can benefit from easy access to products services and advice. It is also clear that such advice should be of the highest standard.

If support is to be provided via third parties, the question becomes how to target their contribution. One option would be to consult widely and then specify the products, services or assistance required and put the tasks out to tender. Another would be to hold a competition between potential providers, inviting them to come forward with their own proposals for the provision of products, services, advice and assistance. The competitors would be required to demonstrate that they had a good track record, were properly equipped and that their proposal would yield real benefits. They might also be asked to indicate the criteria against which they would want their contribution to be judged.

The following list indicates the kind of initiatives which might be put out to tender or which might come forward as suggestions if a competition were to be held.

5.1.3 Increased Publicity for the concept of car clubs
It is clear that most members of the public are not aware what a car club is or how it might benefit them. This lack of understanding is a serious problem for people seeking to establish a new club or expand an existing one.

Initial publicity should stress the benefits that car clubs can bring to members. The concept of car clubs as part of a multi-modal lifestyle - using public transport, taxis, cars, bicycles or car club cars as appropriate, would be emphasised. The environmental benefits should be mentioned but, given the lack of evidence of the success of efforts to change behaviour by appeals to people's consciences, should not be the main theme. Indeed, it has been suggested that it would be wise to disassociate car clubs from their current 'green' image.

Initial publicity could include use of TV documentaries drawing on the success of existing schemes in Europe (and in the UK when convincing evidence becomes available), press briefings and 'placement' of the concept into TV/radio soaps. The initial publicity should be aimed at consciousness-raising. Later phases should put more emphasis on explaining how to go about joining/forming a car club and should include contact details for those wishing to pursue the idea. Once a scheme has been established in a particular community, the nature and purpose of the publicity would change, with emphasis being placed on what is available locally. The preferred media would also change to the local press, posters and leaflets. One other way to advertise a local club is to ensure that the parking station and fleet of vehicles are very visible (although this may raise security issues and may not suit all clientele).

One issue to consider in designing the publicity is whether it should be general or whether it should be designed to appeal to particular target groups. Advertising professionals would advise the latter approach but this raises the question of who the target population might be. Once a scheme is established the answer may be self evident but prior to that it will be necessary to consider the trade-off, highlighted in section 3.4, between targeting the communities most likely to respond and those most whose participation would bring greatest benefits. In which context we note that, since the tangible benefits of car clubs are greatest for those who do not currently own a car, publicity is likely to be most successful among non car owners and that this could adversely affect mode split.

5.1.4 Encourage greater involvement by the private sector in the organisation of car clubs
The involvement of more car suppliers, software suppliers, consultancies, service providers and hire-car companies in servicing the car club sector could be encouraged in various ways. For example:

Extra competition should result in efficiency gains but is not without risk. Award of a contract to a newcomer who did not have real knowledge of the issues, or was not fully committed to the success of the exercise could result in problems. More generally, if the market failed to expand, some of the existing operators who have built up an expertise in the area might find their margins so squeezed that it becomes impossible for them to continue serving the sector - the net effect could be the opposite of that intended! This point is further addressed in section 5.1.8.

5.1.5 Working with local authorities to bring about initiatives to favour car clubs
As has recently been demonstrated in Bristol, close working between car club promoters and local authorities can be very effective. Local authorities can help to broker support from local organisations - particularly public transport operators and taxi companies. They may be able, through their own funding sources or those provided by external bodies such as the European Community and various Challenge Funds, to provide resources to support local car clubs. They have the power to influence key aspects of the environment in which car clubs operate - residential densities and parking provision. They may be prepared to use their powers to influence property developers to include provision for car clubs in new developments. They may be able to offer prime locations as parking stations, to offer preferential access to general parking facilities or to adopt a favourable interpretation of the exemptions to workplace parking levy charges.

The list could be extended but the point is already made, local authorities can do a great deal to assist car clubs. But will they choose to do so? Two policy interventions suggest themselves; the first is to investigate and document the range of assistance that a local authority might provide, exploring the powers and tools already at their disposal and identifying any that might usefully be added. The second is to work with one or more local authorities to develop a model strategy to promote car clubs.

5.1.6 Working with other agencies to promote the development of car clubs
Examples might include:

5.1.7 Designation of car clubs as a form of public transport
Thus making them eligible for tax advantages such as partial rebate of fuel duty and exemption from VAT on charges to customers. Designation might also open doors to sources of subsidy and make car clubs more obvious recipients of support from Challenge funds.

Such designation would, however, be controversial. There are those who regard the taxation advantages enjoyed by conventional public transport as too precious to share with other modes. They would see any extension of such privileges to car clubs as anathema. On the other hand, a dramatic measure such as this might have a great effect on the perception of car clubs by local authorities. They might come to see car clubs as a legitimate form of public transport and more readily consider them as candidates for support and encouragement.

5.1.8 Development of analytic capability to assess the likely impact of measures to promote car clubs
It is clear that in the success, or otherwise, of car clubs is largely determined by 'soft' factors which are not easily quantified. The importance of the enthusiasm, skill and commitment of the local organiser is a particularly obvious example of this. It is therefore very difficult to predict how successful a particular scheme will be - although, with the accumulation of experience, organisations and individuals working in the field claim that they are better placed to make such predictions than they were even a few years ago.

Experience is useful but is not yet widespread within the consultancy community. There may therefore be a role for a toolkit which could be used by others to explore the potential impacts and the receptiveness of the target population. Particular examples might include:

Expertise in the planning and operation of car clubs is invaluable but is currently limited to a relatively small number of individuals. If there is to be an increase in activity in this area, it will be important to nurture and disseminate this expertise. One idea, mentioned in section 5.1.2, is to provide advice openly via the Web, another would be to sponsor the development of tools as described above. One should, however, consider whether the wider availability of second-hand expertise would actually enhance standards in the industry or whether it might undermine the viability of existing practitioners.

5.2 To Encourage Car Sharing

5.2.1 Increased general assistance for the organisers of car sharing schemes
The general aim would be to encourage the spread of good practice. Assistance is, of course, already available to organisers of car sharing schemes courtesy of specialist consultants and under initiatives such as Travel Plans. We are led to believe, however, that there is potential to increase the amount and range of assistance provided. There may be a role for government in promoting the use of relevant products and services. This might be achieved in various ways. For example through:

Further investigation is required before it is possible to begin to specify what improvements might be appropriate.

The products and services mentioned in this section might help to increase the membership of organised car sharing schemes but would have no effect on ad hoc car sharing between friends and relatives and could not easily be targeted on particular types of scheme (see below).

5.2.2 Provision of financial support and other assistance to selected car sharing schemes
In addition to the general assistance to scheme organisers mentioned above there may be a case for more targeted assistance to selected schemes. This approach might promote the establishment of schemes to meet needs that would not otherwise be met and/or might help to build up 'flagship' demonstration schemes. The issues mentioned in section 5.1.1 in respect of the choice between new and existing car clubs, and the potentially distorting influence of financial subsidy, apply also to car sharing schemes. But, given the lower set-up costs involved, may be less important for car sharing schemes than for car clubs.

The assistance might be targeted via a 'top-down' rational assessment of need and potential or via the promotion of individual initiative via a competition whereby would-be organisers are invited to indicate the assistance they require and how, if they receive it, they would meet designated objectives. The objectives could be set so as to encourage schemes which produced the best results in terms of the environment, traffic, accessibility and social inclusion.

Examples of proposals which might be favourably received could include:

A competition approach would encourage the involvement of the private sector (eg consultancies, software suppliers and service providers) in the organisation of car sharing schemes. It might also attract and encourage employers to set up schemes among their own employees - although experience suggests that provision of a subsidy may attract some organisations who are not fully committed to the concept - and that, without full commitment, failure is inevitable.

5.2.3 Publicity to promote car sharing and/or car sharing schemes
Most people have experienced ad hoc car sharing or lift-giving but may be unfamiliar with the concept of organised car sharing schemes. A publicity campaign which simply urged people to share cars or which sought to suggest that there were unexpected benefits from so doing is unlikely to be very effective except during fuel shortages.

It might, however, be useful to use targeted publicity to familiarise potential scheme organisers or sponsors with the concept of organised car sharing schemes and to emphasise the benefits of establishing such a scheme. Employers might thus be targeted with leaflets outlining benefits such as the reduced need for employee parking spaces, access to a wider workforce, enhanced corporate identity and improved employee welfare. This does, of course, already happen as part of Green Travel Initiatives but there may be a case for widening its scope.

Further investigation is required before specifying what improvements might be appropriate.

5.2.4 Working with local and national highway authorities to introduce initiatives which would specifically favour car sharing
Examples might include:

Experience suggests that such measures can be a very effective means of increasing car occupancies. It is clear that, in so doing, they reduce car traffic, but it is likely that, other things being equal, they will abstract some patronage from public transport. If the introduction of such initiatives could be negotiated and carefully monitored, the results could prove very attractive to highway authorities seeking to make better use of their network and/or meet traffic reduction targets.

The measures would encourage car sharing irrespective of whether the sharers are friends, colleagues or relatives or whether they belong to an organised scheme. It is therefore difficult to target the social impact except by choosing locations or links which are used by the groups one wishes to target. For example, if one wished to maximise the reduction in car use, one might target links currently used by people with high car ownership.

It must be recognised that the introduction of HOV lanes is not generally popular with motorists - although there are indications that the protests die away if the scheme can be designed to provide obvious benefits. The problems of enforcement can not be ignored but, again, the evidence is that they are not insurmountable.

5.2.5 Working with other agencies to develop initiatives which would encourage car sharing
A number of examples of this are already in place but some additional effort might be worthwhile. Examples include:

5.2.6 Development of analytic capability to assess the likely impact of measures to promote car sharing
As with car clubs, the success of organised car sharing schemes is largely determined by factors which are not easily quantified and it is therefore difficult to predict how successful a particular scheme will be. Car sharing is not a new concept and, as one might expect, considerable effort has already been devoted to the development of tools with which to explore the potential impacts of car sharing in a given area. It is generally agreed, however, that the existing tools are far from adequate. It is suggested that it would be useful to develop three new tools:

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