The tax treatment of commuting expenses and job-related mobility: insights from a randomized survey experiment

verfasst von

Eike Alexander Baumgart, Kay Blaufus, Frank Hechtner

Abstract

Amid global climate change concerns, policymakers worldwide are increasingly scrutinizing environmentally harmful regulations. This study examines the tax deductibility of job-related commuting costs, which has faced criticism for promoting longer commutes and greater congestion. Through a controlled, randomized survey experiment, we confirm that the tax deductibility of commuting costs increases subjects’ stated willingness to accept longer commutes, albeit with minimal economic impact. Increasing the deduction rate by €0.10 per km leads to an average acceptance of 327-meter-longer (0.2 mile) commutes. In contrast, we do not find subjects to be attentive to changes in the size of the tax deduction when such changes are presented as tax-deductible expenses rather than as direct cash effects. However, abolishing tax deductibility significantly reduces stated commuting distances by approximately 1.82 km (1.13 miles). These findings highlight people’s responsiveness to the mere presence of the commuter tax break, while being less sensitive to its specific size. Policymakers should consider these findings when evaluating the effectiveness of such tax deductions in mitigating climate change or their economic efficiency effects.

Organisationseinheit(en)

Institut für Betriebswirtschaftliche Steuerlehre

Externe Organisation(en)

Friedrich-Alexander-Universität Erlangen-Nürnberg (FAU Erlangen-Nürnberg)

Typ

Artikel

Journal

European Journal of Law and Economics

Band

60

Seiten

33–53

Anzahl der Seiten

21

ISSN

0929-1261

Publikationsdatum

08.2025

Publikationsstatus

Veröffentlicht

Peer-reviewed

Ja

ASJC Scopus Sachgebiete

Betriebswirtschaft und Internationales Management, Volkswirtschaftslehre und Ökonometrie, Recht

Ziele für nachhaltige Entwicklung

SDG 13 – Klimaschutzmaßnahmen

Elektronische Version(en)

https://doi.org/10.1007/s10657-025-09850-2 (Zugang: Offen)