back casting and eco no metrics

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Backcasting and econometrics for sustainable planning Information technology and individual preferences of travel Markus Robe  ` rt Depart ment of Infrastr ucture, Royal Institut e of Technolo gy, Stockholm, Sweden Received 24 March 2003; accepted 12 December 2003 Abstract This paper develo ps a frame work, building on backc asting from sustainable outcomes, or more sustainab le outco mes, in combination with econometric modelling to arrive at the outcomes. To reach long-term successful objectives by introducing new transport alternatives or services, econometric modelling is suggested as a suitable tool for investigating the presumptive behaviour of key-players. In the need for deriving individual preferences, behavioural modelling can be applied as an essential ‘‘pathnder’’ in the backcasting framework. The framework is discussed in relation to an oce district outside Stockholm, where IT-companies provide ecient transport alternatives for their employees. The long-term vision among the leaders of the companies is to achieve an improved environmental prole, in parallel with reduced travel costs and improved working conditions for the employees, by oerin g alternatives to privat e car, taxi and long-dist ance travel. Ó 2004 Elsevier Ltd. All rights reserved. Keywords: Backcasti ng; Forecasti ng; Econome trics; Behaviou ral modelli ng; IT; Sustaina bility; Transportatio n 1. Introd uction This pape r presents a framework appl icable for ach iev ing pre det ermine d lon g-term goals in comple x systems, where uncertainties of future individual behav- iour play a central role. Backcasting and econometrics are synthesized in order to analyse the conditions for ind ivi dual behaviour consis ten t wi th the vis ion of a lon g-t erm sustainable goa l. The term ‘‘backcas tin g’’ refers to a planning approach that departs from a vision of future success, foll owed by ‘‘ looking back’’ and seeking strategies to get there. The author uses a backcasting framework where be- havioural (econometric) modelling works as an instru- ment for deriving individual preferences and attitudes essential to the long-term sustainability goal. The frame- work is applied on an oce district outside Stockholm, where IT-companie s have set a long -term goal of reach- ing emission reductions and monetary savings from more ec ient per sona l travel . The behavi our al mod ell ing provi des infor matio n of ways to reach environ mental and economic goals without deteriorating the employees’ worki ng condi tions . Impro ved worki ng condi tions could , for instance, involve increased exibility, cheaper means of communication and less tiresome travel to work. In relation to this project, backcasting as a method- ology for strategic planning is discussed. It relates to a conscious envisioning of desirable outcomes followed by a study of conditions and paths to reach such out- comes. Historical data and information are then utilized as providers of information on aspects that are impor- tant for bac kcasti ng. The bac kca stin g met hodolo gy compl emen ts the foreca sting approach, i.e. projecting histori cal dat a and inf ormation and tre nds int o the future. A motivation for using behavioural modelling as a comple men t in the bac kcasti ng framework is pre - sented, together with conceptual denitions. In brief, the author seeks to capture such measures that can break old habits and induce substitutions of private commuting with telecommunications and more resource-ecient transport modes. An extension of this analysis is to study the substitution eects as a function E-mail address: [email protected]. Journal of Cleaner Production 13 (2005) 841 e851 www.elsevier.com/locate/jclepro 0959-6526/$ - see front matter Ó 2004 Elsevier Ltd. All rights reserved. doi:10.1016/j.jclepro.2003.12.028

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Backcasting and econometrics for sustainable planningInformation technology and individual

preferences of travel

Markus Robe rtDepartment of Infrastructure, Royal Institute of Technology, Stockholm, Sweden

Received 24 March 2003; accepted 12 December 2003

Abstract

This paper develops a framework, building on backcasting from sustainable outcomes, or more sustainable outcomes, incombination with econometric modelling to arrive at the outcomes. To reach long-term successful objectives by introducing newtransport alternatives or services, econometric modelling is suggested as a suitable tool for investigating the presumptive behaviourof key-players. In the need for deriving individual preferences, behavioural modelling can be applied as an essential ‘‘pathnder’’ inthe backcasting framework. The framework is discussed in relation to an office district outside Stockholm, where IT-companiesprovide efficient transport alternatives for their employees. The long-term vision among the leaders of the companies is to achieve animproved environmental prole, in parallel with reduced travel costs and improved working conditions for the employees, byoffering alternatives to private car, taxi and long-distance travel.Ó 2004 Elsevier Ltd. All rights reserved.

Keywords: Backcasting; Forecasting; Econometrics; Behavioural modelling; IT; Sustainability; Transportation

1. Introduction

This paper presents a framework applicable forachieving predetermined long-term goals in complexsystems, where uncertainties of future individual behav-iour play a central role. Backcasting and econometricsare synthesized in order to analyse the conditions forindividual behaviour consistent with the vision of along-term sustainable goal. The term ‘‘backcasting’’refers to a planning approach that departs from a visionof future success, followed by ‘‘looking back’’ andseeking strategies to get there.

The author uses a backcasting framework where be-havioural (econometric) modelling works as an instru-ment for deriving individual preferences and attitudesessential to the long-term sustainability goal. The frame-work is applied on an office district outside Stockholm,where IT-companies have set a long-term goal of reach-ing emission reductions and monetary savings from moreefficient personal travel. The behavioural modelling

provides information of ways to reach environmentaland economic goals without deteriorating the employees’working conditions. Improved working conditionscould,for instance, involve increased exibility, cheaper meansof communication and less tiresome travel to work.

In relation to this project, backcasting as a method-ology for strategic planning is discussed. It relates toa conscious envisioning of desirable outcomes followedby a study of conditions and paths to reach such out-comes. Historical data and information are then utilizedas providers of information on aspects that are impor-tant for backcasting. The backcasting methodologycomplements the forecasting approach, i.e. projectinghistorical data and information and trends into thefuture. A motivation for using behavioural modelling asa complement in the backcasting framework is pre-sented, together with conceptual denitions.

In brief, the author seeks to capture such measuresthat can break old habits and induce substitutions of private commuting with telecommunications and moreresource-efficient transport modes. An extension of thisanalysis is to study the substitution effects as a functionE-mail address: [email protected] .

Journal of Cleaner Production 13 (2005) 841 e 851www.elsevier.com/locate/jclepro

0959-6526/$ - see front matter Ó 2004 Elsevier Ltd. All rights reserved.doi:10.1016/j.jclepro.2003.12.028

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of e.g. transportation taxes and subsidies. What isachievable with and without such external means? Theoutcome may be relevant suggestions for companypolicy measures that would encourage a sustainableuse of IT. The relevance of modelling individual prefer-ences and behaviour in a backcasting perspective for

political decisions is also briey discussed.Some side effects of our current traffic systems, liketraffic congestion, pollution, greenhouse emissions, acci-dents and costs related to such side effects pose verydemanding challenges to society. Many believe that tele-communications will provide the solution of savingnatural as well as monetary resources. There are twofundamentally different research questions linked to thisissue:

1. Can IT serve as a resource saving utility for futuretravel?

2. Will IT serve as a resource saving utility for future

travel?The rst question is easy to answer: IT (e.g. tele-

working and videoconferencing) has the potential of saving large amounts of resources by exchanging certaintransports and improving the logistics of others (e.g.carpooling and ride-matching). Furthermore, it is, ingeneral, a less expensive and faster way to communicate.Empirical results [1,2] show the immense potential of lowering the environmental impact and saving money byefficient use of IT. For example, calculations show thatvideoconferencing at the telecommunication companyEricsson can save 3 million SEK per individual unit of

equipment and per year [1]. Teleworking is therefore,also appealing to planners and politicians since it has thecapacity to reduce commuting travel at no cost in termsof infrastructure [3,4].

The second question is more complex. Much of theearly forecasts (starting in the 1950s [5]) are beingcriticized for deterministically drawing too optimisticconclusions [6]. The effects from implementation of ITin the society were described as if there were a direct linkbetween the potential on the one hand and the actualoutcome on the other. However, forecasting behaviouralchanges related to an increased use of IT is a difficultmatter that incorporates a complex mixture of economic,sociological and technological aspects [7].

In fact, few of the forecasted positive effects have beenempirically veried. For instance, studies made on videoand teleconferencing suggest very modest trip reductions,or no impact at all on total traveldistances [3,8e 10]. Simi-lar results have been documented for teleworking [11,12].

Other studies reveal a set of results indicating thatIT d with its capacity to extend contact networks d willserve as yet another boost to the ever increasing trans-portation demand and might therefore, increase exploi-tation of natural resources [13e 15]. Forecasts based ontrends and time-series observations are used to estimate

future aspects and characteristics affecting the choice totelework [16] and to predict emissions related toteleworking and use of information technology [17]. Incontrast to early forecasts of the interrelationshipbetween IT and travel, later forecasts indicate how thetechnology may work as a complement to extend

contact networks further.Toffler and Gru bler [18,19] point at similarities in thehistorical expansion of other communication technolo-gies, e.g. railways, roads and airways, which all led to anincreased communication and travel demand. From thishistorical perspective, IT is believed to be likely tofollow the same pattern d extending travel demand fur-ther. In turn, these forecasts of IT and travel interactionhave been criticized as too negatively deterministic Ho jerand Mattsson [20]. They term this approach as ‘‘anapocalyptic way of writing history’’ and that this‘‘represents simplistic analyses which glance aheadwithout paying attention to the nuances’’. Accordingto Ho jer and Mattsson [20], forecasts relying toostrongly on such historical parallels risk missingopportunities for changing present trends.

Apparently, question number 2 above has no straightanswer. Probably something like: ‘‘it depends . ’’ or‘‘yes, under certain conditions . ’’ would work as thebeginning of a possible answer. The uncertainty of forecasts is related to the complexity of the social systemwe are studying. We see developments of new technol-ogies as well as new cultural trends all the time. Thisimplies dynamic changes in the conditions d IT isintegrated in a complex web of human inventions,

decisions and priorities. Rebound effects d feedbackloops in the economy d may overcompensate the initialresource savings from the application of IT and makethe nal environmental resource use larger than before.In short, through a variety of complex interactions,telecommunications may induce more travelling moreoften than it works as a substitute for physical travelling.

Regardless of the accuracy of forecasts based on cur-rent trends, such studies are helpful to collect informationabout certain relevant drivers of societal development. Inall attempts to plan ahead for a successful societal trans-ition to sustainability, the results of such studies shouldbetaken seriously. There is now a need for studies of a moreproblem-solving character. The questions presentedabove, can and will IT serve as a resource saving utilityfor future travel, seem to lead us to the conclusion that itdepends on many aspects. Another, perhaps, morepertinent question to ask at this point would be:

3. How can IT serve as a resource saving utility forfuture travel?

First, different categories of travel-related IT-servicesshould be considered. Golob [3] declares seven types of IT applications that are related to travel: (1) onlineshopping, (2) other online services, e.g. telemedicine,

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(3) exible working arrangements, e.g. teleworking, (4)self-employment, (5) contingent and part-time workingarrangements, (6) mobile working, and (7) education.To date, little systematic research has been conducted onthe areas above or how these possibilities could be usedin conscious ways to solve societal problems, see [3].

In this paper one additional type of application issuggested to Golob’s list: IT as a tool to consciouslyimprove the logistics as well as attractiveness of moreefficient transport alternatives. The impact of such IT-related efficiencies could be tested in the econometricframework discussed later in this paper. Examples of such inventions could be, e.g. web applications forcar- or taxi-sharing to reduce underutilized vehicletransport. Another example could be a booking andpayment system for carpooling, thereby, improving theattractiveness of substitutes to private car ownership orusage.

The empirical data in the research were collectedfrom Nacka Strand, which is an office district outsidethe city of Stockholm where such inventions are imple-mented. Information on individual preferences, focusingon the valuation of the specic IT-services is providedfrom a survey distributed to the employees. The behav-ioural econometric models are based on these data.

In Section 2 the backcasting framework, its impor-tance and relevance are described. In Section 3econometric forecasting, including behavioural model-ling aspects, are explained. In Section 4 the integrationof econometrics, including behavioural modelling, with-in the backcasting framework is elaborated. In Section 5

the design of the Nacka Strand study is discussed,followed by three practical examples as a furtherfoundation for Sections 2e 4. In Section 6, the resultsare discussed and conclusions are presented.

2. Backcasting

A backcasting approach means to use futureobjectives d independent of current constraints anddifficulties d as the perspective of planning in which thefollowing questions are posed: ‘‘What shall we do todayto get there, and what measures may lead into blindalleys and should be avoided?’’ [21]. In Section 5.2 thebackcasting approach is demonstrated in three practicalexamples from this particular case study.

Backcasting is applicable in planning when the desired future is far away from matching forecasts of an expected future. Particularly when dealing with environmentalproblems the challenge is to nd ways to break presenttrends and to test the feasibility of new paths along whichsustainable development could take place [21].

Dreborg [22] pinpoints ve situations where back-casting is particularly useful:

when the problem is complex, affecting many sectorsand levels of the society;when there is a need for major change, i.e. whenmarginal changes within the prevailing order will notbe sufficient;when dominant trends are part of the problem as

these trends are often the cornerstones of forecasts;when the problem, to a great extent, is a matter of externalities, which the market cannot treat satis-factorily;when the time horizon is long enough to allowconsiderable scope for deliberate choice.

Ho jer and Mattsson [20] describe a practical examplewhere a backcasting approach would help clarify theconditions whereupon teleworking would have a miti-gating impact on current traffic volumes. They providea hypothetical case where empirical studies on tele-working show little impact on travel reduction (actual

examples of such studies were presented in Section 1).The problem formulation is described as: ‘‘With a back-casting perspective, the task would then be to nd whatchanges in the design of teleworking, or other changes incurrent conditions, could make teleworking relatedoptions, more relevant?’’

This example shows the idea of how a backcastingapproach may free the analysis from the restrictions of current trends and instead lead to a study on how variouspolicy aspects can be changed to promote pursuance of paths to comply with sustainability objectives.

Other alternatives than direct IT-substitutes, such asteleworking, are relevant to analyse from a backcastingperspective. Services like e-commerce, videoconferenc-ing, and access to new, clean intercity vehicles and carswithout ownership (e.g. carpools supported by IT) areall examples of potential trend-breakers [23].

From a backcasting point of view, all such ingre-dients can help mitigate the present dependency onprivate cars and are potential cornerstones in a futuresustainable transportation system. Even though some of the new services might increase travel demand in theshort run (because of increased attractiveness of theservices), they may be meaningful to stimulate decreasesin private auto usage, in the long run. This is, in

particular, if policies are developed that can utilize theresource saving potential of the new technologies. Twocomplementary steps can be identied from A ˚kermanet al. [23]:

1. Stimulate more resource-efficient transport alterna-tives; in order to increase the utility of othertransport means than car, ‘‘carrots are better thansticks’’.

2. When the new alternatives have been introduced,deal with later issues, e.g. try to avoid reboundeffects and develop new services further in line withthe objectives of the backcasting framework.

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These two elements are incorporated into the back-casting framework, where behavioural modelling servesas a tool to nd behavioural trend-breakers (Section 4).To develop this idea, rst the backcasting framework ispresented.

The backcasting framework is pictured below

(Fig. 1 ). First the situation of today is analysed (e.g. aspecic level of company emissions of greenhousegases). Then the long-term desired goal of the future issketched (e.g. an emission reduction target set for aspecic date in the future). To reach the long-term goalfrom the present situation, there are several feasiblepaths (a, b and c in Fig. 1 ). These paths consist of e.g.policies and concrete measures bridging the gap betweenthe future target achievement and the situation of today.The dashed line in Fig. 1 represents the threshold levelfor target achievement. Below this level the long-termgoal is not fullled.

In this study, the long-term goal consists of twodimensions: (a) the individuals’ perceived benetthroughout the transition period and (b) reducing thecompanies’ travel-related emissions within or below thecompany’s previous travel expenses.

2.1. Emission targets in consistencywith individual preferences

Scenarios based on physical resource calculationsshow that a reduction to 0.2 ton CO 2 emissions/capitafrom today’s 2 ton/capita would imply an acceptable

risk-level in the context of Sweden’s contribution to thegreenhouse effect [25]. A less radical emission targetwould be to reach the European Union’s reduction goalof 8%. This is not a sufficient emission level from a long-term sustainability point of view. However, over shortertime frames such less drastic goals might serve asfeasible rst steps.

How can information of acceptable greenhouse-risks,and societal objectives of this kind, be translated to acompany level? Azar and Rodhe [25] suggest that re-lative reduction targets on the same levels as for societyat large may at least serve as a rst approximation for

the individual actor. Thus relative emission targets insociety can be used as benchmarks also for smallersubsystems. In the office district of Nacka Strand, theEuropean Union’s goal of 8% is perhaps realistic withinthe time frame of this study.

One way to reach a radical emission target would

be to enforce drastic travel restrictions as companypolicies irrespective of the employees’ attitudes. Theother extreme would be to focus on how an improvedwork-atmosphere could be obtained, regardless of anyobjectives for CO 2 reductions. Still another extremewould be to launch very attractive objectives for CO 2

emissions as well as labour utility and disregard thecosts. Essential in this research however, is to nd solu-tions that reach the environmental goals in consistencywith maintained or improved working conditions for theemployees within given economic constraints for theemployer even during the transition period.

2.2. Aspects inuencing individual behaviour

Waldo [26], in her study on big city commuting,concludes that the most important measure to changeindividual travel habits is to increase the individual’saccessibility to new, feasible, alternatives preferably incombination with incentives and information in order tostimulate the shift to their usage. In our backcastingframework, two questions were asked: (a) What aspectscan be promoted from the company level in order tomake the employees choose more efficient alternatives?(b) What is attainable if not only the company createsincentives and policies but also the society at large, e.g.by introducing green taxes, and policies to furtherstimulate companies to promote such initiatives?

Examples of aspects affecting employees’ choices andtravel behaviour can be grouped into the following threesubcategories, where certain individual choices (i.e. thelowest level) may be dependent on higher hierarchies(i.e. the upper two levels), see Fig. 2 .

2.3. Liberating the analysis from uncertainexternal factors

Radical long-term backcasting goals are probably notrealistic to reach through changed attributes that arisesolely within the company and individual domains.External factors such as green taxes or subsidies tosustainable initiatives might be needed to reach thetarget. The external factors, in the upper sub-categorypresented in Fig. 2 imply the most uncertain ingredients.They require decisions on the societal level that canoccur only over relatively long periods. However, itmight be relevant to separately analyse what is attain-able without consideration of the future development of these uncertain external aspects, since what can be

Fig. 1. The backcasting framework. The gure is adapted from Steenand A ˚kerman [24].

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achieved on the private domains can serve as rolemodels for policy making on all levels of society.

So, from a backcasting perspective, short-term goalsthat are reached by role models in the private sectorcan be feasible cornerstones to societal long-term goals.To what extent is it possible to substitute vehiclemiles in private cars and taxis solely from, e.g. modestprice changes, new technological conveniences orother company-incentives? Inversely, what behaviouralchanges among employees might trigger new policymeasures within companies, or what impacts can beachieved through new laws and political decisions in thesociety, supporting more sustainable travel alternatives?

The objective in this research is to study possibilitiesto reduce emissions from work-related travel, while atthe same time maintaining or increasing the utility andsense of satisfaction of new technologies and life styles.To that end, it seems important to be as open as possibleto all kinds of solutions and visions that may complywith this principle outcome.

3. Econometric forecasting

One example of a scientic framework that can beapplied to model peoples’ decisions in concrete choicesituations is called econometrics . It is dened as ‘‘theapplication of mathematical statistics to economic datato lend empirical support to the models constructed bymathematical economics and to obtain numerical esti-mates’’ [27]. It is sometimes argued that econometricshas the limitation of only regarding money as a signif-icant value. However, econometric modelling can beused to study many kinds of incentives for humanbehaviour, but the methodology does so by putting theincentives in relation to monetary terms. There are otherweaknesses with this methodology, as in most method-

ologies aimed at the monitoring of human behaviour.Examples of mechanisms that may distort estimatedbehaviour from the real case are, for instance, over-estimating the importance of certain aspects, inuenceof group dynamics and group pressure that turn out tobe more important in reality than what the individual

would expect etc. Taking such uncertainties into account,and not over-interpreting data, econometric modellingoffers a valuable method for ranking the importance of various aspects affecting human behaviour.

In order to estimate the probability for choosingbetween various alternatives one can assume that eachindividual strives for maximizing his/her utility , U , thatcan include all kinds of aspects that may inuence theattractiveness of various alternatives and that are conse-quently studied in relation to each other. This is acommon approach in econometrics when, for example,analysing people’s preferences between different travelmodes (see Refs. [28e 30]).

The purpose of using econometric modelling in thisstudy was to identify the conditions that would causeemployees to change travel behaviour and to increasethe use of transport modes that are more efficient withregard to money and natural resources. Let us assume asituation where company leaders wish to promote abiogas-driven carpool instead of taxi, for local businesstrips in order to reduce costs and emissions. In Fig. 3below, the attributes a , affect the willingness to switchtowards a more efficient travel alternative (e.g. thecarpool alternative) d the direction of the shaded arrows.Examples of such attributes inuencing the choice are

e.g. cost, travel time and convenience attributes such asefficient booking/payment systems, etc.

Changes of attributes affecting the utility and theemissions of the services might, in some cases, be de-pendent on external nancing and support from theemployer. Taking those institutional levels into accountimplies uncertainties. Examples of such aspects wouldbe changes in company policies over long time frames,tax-reforms in favour of renewable fuel technologies,and policies and political reforms to create infra-structures for more convenient teleworking arrange-ments. However, also decisions on these levels should be

Fig. 2. Hierarchical sub-grouping of examples of aspects affecting theemployees’ choices and travel behaviour.

Fig. 3. Certain attributes ( a1e a i ) can lead to improvements both to theindividual, the company and the society at large (increased utility,reduced trip-related emissions and reduced costs).

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informed by knowledge on individual behaviour re-garding the specic attributes.

In the example where the company leadership wantsto investigate the willingness for their employees tochoose carpool instead of the taxi for local businesstrips, we formulate the problem where the consumer (the

employees) chooses between travel mode carpool andtravel mode taxi . The aim from the modeller’s perspec-tive is now to derive the probability for choosing thecarpool, where each of the two alternatives could beconnected to some specic attributes. Each of the differ-ent attributes is tested as regards to the factors needed toinuence behaviour (e.g. the carpool user could becompensated with X monetary units to increase theprobability of choosing that alternative).

Furthermore, we could assume that these attributescorrespond to a certain attractiveness or pleasure of using the two alternative services. In econometricmodelling this is expressed as the individual’s perceivedutility. In this example we have the utilities U carpool andU taxi . The probability for choosing carpool instead of taxi could then be expressed as the probability thatU carpool is greater than U taxi :

P ðcarpool Þ ¼P ðU carpool > U taxi Þ ð1Þ

These utilities can be described as an additive linearfunction of the amount of different attributes x i (e.g.cost) and the preference (or weight) parameters b i :

U ¼ b 1x1C b 2x2C / C b kxk ð2Þ

Or in vector form: U ¼ b ÁX , where b is the preferenceparameter-vector and X the attribute-vector, containingquantities of attributes such as the ones in Table 1 thataffect the choice between the alternatives.

At the core of discrete choice analyses are variouskinds of estimations of these preference parameters. Theimportance of each attribute in the individual’s choicedecision is revealed from the signicance and the magni-tude of the b -parameters corresponding to the specicattributes.

The b -parameters are indicators on what peoplefavour most in the choice between alternatives (large

positive values of b , e.g. comfort and monetary savings),

what is of minor importance ( b close to zero) and whatis regarded as a disutility (negative values of b , e.g. costs,time loss, inconveniencies). By explicitly analysing themagnitudes of the b -parameters it is possible to trace themost decisive aspects in the choice between alternatives.

The econometric forecasting procedure can be

divided into two steps:1. Calibrate the b -parameters in the model. To do this

one can use a revealed preference or a stated prefer-ence survey from the population in focus. In ourcase of Nacka Strand, the models are calibrated bya stated preference survey [28]. This gives empiricaldata over the willingness to pay for a service orcommodity that is not necessarily available on themarket yet, and which the individual does notnecessarily has an experience with at the time of theinvestigation.

2. Forecast population market shares. Once the values

of the b -parameters are estimated over the popula-tion, large-scale forecasts can be carried out,predicting potential use rates and market shares of the services. If, for instance, the cost of carpooling isdecreased while holding the cost for taxi useconstant, the corresponding utility for carpoolingwill increase. This will result in a predicted increaseof the probability for choosing carpooling instead of taxi, which could be converted into a potential shiftin market shares between taxi and carpooling.

4. Behavioural modelling as a tool in thebackcasting framework

Forecasting and backcasting are different approachesin the context of analysing complex systems. Forecaston the one hand means to make statements regardingthe future, based on explicit or implicit assumptionsfrom the present situation and observed trends. Back-casting on the other hand is a strategic problem-solvingframework, searching the answer of how to reach speci-ed outcomes in the future.

So far we have discussed the backcasting frameworkand the motives for using it in strategic planning toreach a long-term goal (Section 2). In that context theimportance of classifying attributes having an impact onthe individual’s choice between alternatives, has alsobeen discussed (Section 3).

This section describes the opportunities and limita-tions of using behavioural modelling from a companyperspective. The objective is to use econometric model-ling in order to assess how people behave in differentsituations. This information can serve as a pathnder inthe backcasting framework to reach long-term goals.

Let us assume a company leadership having a long-term image of the future, where the emission levels are

Table 1Examples of attributes affecting the choice between the twoalternatives, carpool and taxi

Alternatives Carpool Taxi

Attributes Travel time Travel timeTravel cost Travel costGPS(yes/no)

Number of fellow-passengers

Car type(electric/fuel)

Booking/paymentsystem

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reduced to a certain acceptable level. As a central in-gredient in this scenario, we assume that more efficientpersonal communication routines are essential. To fullthis, the long-term development is dependent onnumerous external factors that are not directly manage-able solely within the company context (e.g. the political

climate, the technological evolution and public opinions,see Fig. 2 ). However, regardless of the outcome of thesefactors there might be reason for not being passive andwait for changed external conditions. On the contrary,proactive company leaders may use backcasting to:

Discover such measures that may optimise theprobability for target fullment independently of future external factors (e.g. identify feasible meas-ures for optimizing use rates of company-nancedtravel alternatives according to present conditions).Identify such measures that are most exible withregard to future external factors.

Identify such measures that may positively supportother factors in the system, which may be utilized asfuture stepping-stones.

The potential users of the new alternative travel alter-natives are key-players with regard to all three aspects.High use rates of the services favour the chances of reaching the objectives. In addition, the use rates of theservices are a central part of the economical sensibility.Results from behavioural modelling facilitate the selec-tion of those services in the scenario that are likely topromote progress towards the objectives.

To put this reasoning into the backcasting context,

sketched in Fig. 1 in Section 2, the feasibility of each of the three backcasting paths (a, b and c) is highlydependent on the employees’ behaviour and willingnessto change their work-related travel.

To that end, we introduce an intermediate goal, thebehavioural sub-goal. This sub-goal may be a necessary

platform, needed to be able to launch subsequentchanges (see Fig. 4 ).

In Fig. 4 , this sub-goal is integrated into thebackcasting framework. The paths leading from todayto the behavioural sub-goal would consist of alternativeways to acceptable use rates of the services. Econometric

modelling serves as a tool to nd the most feasible pathto the behavioural sub-goal, in consistency with in-dividual utility. An example of a path would be theimplementation of the most effective IT-attributes orother incentives, leading to a sufficiently high use rate of,e.g. carpooling and ride-matching. Another path wouldrepresent encouraging company policies and incentivesleading to a more substantial adoption of videoconfer-encing and teleworking as substitutes for physical travel.The next step, when a sufficiently high use rate isachieved, is to nd feasible paths between the behav-ioural goal and the long-term goal. Without sufficientuse rates of the more efficient alternatives, further invest-ments and long-term strategies are less likely to berealized, e.g. renewable fuels for vehicles, and politicaldecisions to support implementation and maintenanceof new services.

To use econometric modelling to identify and beginto evaluate some feasible paths in the backcasting frame-work is a deliberate way to analyse where money shouldbe spent in development of the services. From theeconometric modelling we may obtain some insight intogetting an idea of which services and which attributespeople favour. Also, we get the employees’ willingness topay for each of the services. The essence of the reasoning

is that: sub-optimisation in planning can be avoided . Theattractiveness of hypothetical investments can be testedtheoretically before implementation. Investigating thewillingness to pay among the users, as well as hypothet-ical use rates of the services, are useful guidelines for thecompanies sponsoring the efficient alternatives.

Fig. 4. To reach the long-term goal of reduced emissions and reduced costs, a behavioural sub-goal is implemented. The sub-goal can be reached bystimulating the use of new alternatives.

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More effective political measures canbe found. To reachsustainable long-term goals will need vigorous effortsfrom all three levels in Fig. 2 . The econometric frame-work is of relevance when estimating various aspectsthat affect individual choices. With knowledge of thesecriteria more efficient economical frameworks in society

to support sustainable development can be designed.

5. The IT-related services in the caseof Nacka Strand

This section presents the office district in NackaStrand, in which the empirical research takes place. Theoffice area in Nacka Strand consists of 230,000 m 2,containing approximately 150 companies with 7000employees [31]. The largest companies are the telecom-munication companies Ericsson and Telia, having to-

gether approximately 2500 employees. There are 225dwellings with 700 tenants. Alternative transport modesto the area are car, taxi, bus, bicycle and boat. Thenumber of vehicles passing in and out of Nacka Strandis approximately 8000/week [32] (bicycles excluded) andthe boat carries about 150 passengers per day onaverage [33]. As an alternative to private car and taxi,the office district also offers membership in a carpool,which consisted of 43 members in 2003 [34].

Ericsson and Telia, together with the landlord (APfastigheter) have started a commuting project, in thecurrent office district outside Stockholm, applying IT-technology as a logistic lubricant in order to stimulatethe use of more resource-efficient transport alternatives.The motives are to improve the environmental prole,setting good examples of how IT is used efficiently inpractice, to save money and time and to improve theworking conditions for the employees.

Examples of IT-attributes that are implemented orplanned for the services are efficient travel, booking andpayment systems, traffic information in vehicles andinformation about scheduling and delays. The compa-nies’ long-term goal is to make the services more eco-efficient by switching to renewable fuels to improve theenvironmental conditions in the area. To make this re-

alistic, the use rates of the services must rise drasticallyfrom the level of today. A challenge is therefore, to ndthe employees’ criteria for considering these alternativesas substitutes for e.g. private car, taxi and aviation.

The concept relies on two fundamental ideas:

Communication does not necessarily have to imply physical travel. In some situations (e.g. internalmeetings, follow up meetings, etc.) the company andthe employee may save money, time and resources byusing telecommunications instead of physical travel.Communication facilities do not have to be owned by the private user. By ensuring that alternative

communication services in the office district areavailable to all companies in the area, the companiesshare the expenses and of course the benetstogether. In this way even the smaller companiescan afford modern videoconference equipment andsimilar tools. The more companies joining the

concept, the cheaper the services become on a peruser basis.

5.1. Attributes tested in the stated preference survey

The employees’ preferences for the different alter-natives were tested in a stated preference survey. Theaim of the survey was to determine the employee’sperceived utility as dependent upon the attributes of theservices. The specic attributes, assumed to have animpact on the attractiveness of the alternatives, werechosen after carrying out a focus group interview and

a pilot study in the population.One important aspect was to provide the employeeswith feedback information about the aggregate statisticresults from the survey. This might give insight into thehypothetical effects from a macroscopic level (the wholecompany or the business district at large), stimulatingmore sustainable travel behaviour even on the individuallevel.Thefollowingvepointswere covered in the survey:

1. Ride-matching system accessible on the web. This isa hypothetical scenario, where we test for thewillingness to pick up colleagues on local businesstrips and on commuting trips. The idea is that

employees in Nacka Strand have access to a map onthe web, where they ll in their route to work. Acomputerized matching system helps people havingsimilar routes come in contact to share a car towork. We tested the monetary compensation neces-sary to make drivers willing to pick up passengerson commuting trips and local business trips. Thesystem could consist of:

A ride-matching system accessible on the web, andA mechanism for car drivers to pick up colleaguesas passengers on work-related car trips.A compensation system to make it worthwhile forthe drivers to do so.

2. Using a carpool instead of a taxi for local businesstrips. There are a few dominating business districtsin the Stockholm region, to which local businesstrips from Nacka Strand frequently occur. As ameasure to decrease the cost and pollution fromsingle passenger taxi trips, a carpool facility isaccessible in the area. Here we tested the willingnessto choose carpool instead of taxi for these trips, if the user gets a share of the company’s monetarysaving. We also tested the following attributes thatmight affect the choice:

GPS-navigation system in the carpool; and

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the interest for an electric vehicle or a moreexclusive type of car, instead of the presentordinary car; anda compensation system to make it worthwhile forchoosing carpool.

3. Testing the commuting boat with and without IT-

services. This stated preference survey allowed us toanalyse the impact from specic IT-services andother improvements, having the potential to in-crease the attractiveness of new travel alternatives:

Messages via SMS-service to the mobile tele-phone, in case of divergence from timetable; andGPS-positioning services accessible on the web sothat the passengers can minimize outdoor waitingtimes and get information on possible delays.

4. Teleworking, including office space reductions. Byorganizing the staff into part-time teleworkingarrangements, the company has the opportunity toreduce office space needs and consequently to reducerental costs. Have such reductions been doneanywhere and if so have the cost benets beenascertained? The idea is to let several employees usethe same office space, but on different days. Ascompensation, the employee gets a part of thecompany’smonetary saving. Thisarrangementmightinclude some inconveniences in thedaily work. In thisstated preference survey we tested for the leastmonetary compensation necessary to make employ-ees accept:

Open-plan office instead of stationary office room.Foldawaydesktops instead of stationarydesktops.

Monetary compensation for accepting exibleoffice.

5. Other information collected in the survey. In additionto the stated preference surveys we also includebackground questions in the survey. This includesquestions focusing on:

Potential substitution rates of long-distancebusiness travel for IT-facilities such as video-and teleconferencing.General attitudes towards IT as a substitute forphysical travel.Background information about the family andhome work situation.Daily work-commute patterns.Local business trip patterns.Attitudes towards teleworking.Socio-economic variables.

5.2. Three practical backcasting examples

One can think of several examples where integratingeconometric modelling as a complement in a backcastingframework is relevant. This section presents three con-crete examples in Nacka Strand.

5.2.1. Carpool and ferryLong-term backcasting goal: to turn the carpool or

the boat into sustainable transport alternatives forwork-related travel by investing in renewable fuel tech-nology. In order to make the investment economicallydefensible the use rate of the services must increase

drastically from the level of today.Behavioural analysis: is there a potential for both thecarpool and the boat to reach the long-term goal, orshould either of the two be prioritised? The forecastingtask is to predict the conditions that make it possible toincrease the probability for use of the two services, i.e.what attributes would make the services more attractiveto the employees? For example, what would the corre-sponding market share for carpool instead of taxi be if the employees obtained part of the companies’ savingsfrom travel expenses? Accordingly, would an investmenton a real-time positioning system on the boat increasethe reliability of the boat and increase the willingness topay for the service? Of course one outcome might bethat none of the attributes tested might increase the userate to a sufficient level to nance renewable fuel tech-nology. In that case other services or attributes might bemore relevant to consider.

Company’s backcasting path: with insight into whatthe employees favour the most in the choice of boat andcarpool, it is possible to optimise the use of either of thetwo services. Depending on the ndings over whichattributes are important, the most appropriate invest-ments can be made and sub-optimisations avoided. Ahigh use rate is of crucial importance if considering

introduction of renewable fuel systems. It implies botha larger environmental impact as well as a more econom-ically defensible investment.

5.2.2. Ride-matchingLong-term backcasting goal: thenumberof drive-alone

trips at work-commute and local business trips is reducedto a certain extent as a result of a successful launch of a ride-matching system between the companies in NackaStrand. Expenses as well as emissions are reduced fromthe employees’ work-commute and companies saveexpenses from reduced travel subsidies, number of parking lots and improved public relations (PR).

Behavioural analysis: the rst step is to predict theconditions that inuence car drivers’ willingness to pickup passengers in their cars. An example is to nd themonetary incentive necessary to make drivers willing toaccept the inconvenience. Other attributes that are possi-ble to test are, e.g., the possibility of driving in bus-lanes,time spent in the car, the number of passengers and typeof passengers (e.g. does it matter if the passenger isa colleague from the same company as the driver or not).If the least necessary compensation is unreasonably high,the feasibility of the long-term goal can be questioned d

at least on the premise of voluntary car drivers.

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Company’s backcasting path: with knowledge of thedrivers’ criteria for driving colleagues in their cars, thecompanies can focus on how to arrange the system towork in practice. A web-based ride-matching systemmight facilitate the coordination between drivers andpassengers. In the end, perhaps more far-reaching invest-

ments might be thinkable, such as company-nancedride-matching cars.

5.2.3. Flexible working placesLong-term backcasting goal: company expenses to the

landlord have reduced drastically from a new exibleworkplace arrangement. Instead of xed, private officerooms, the employees share the same office space but atdifferent occasions. Instead of ordinary desktops withstationary computers and drawers, the employees usefoldaway desktops and laptops. Some criteria fullledare e.g. that employees are willing to adopt this newwork form and that the level of teleworking has in-creased substantially. As a secondary result, environ-mental improvements are seen from less use of heatingand electricity in office buildings and from employees’reduced work-commute.

Behavioural analysis: how much do the employeesvalue their office rooms? An example is to identifypractical inconveniences related to the new work form. Ameasure of the inconvenience of the changed workplaceis to study the minimum monetary compensation thatwould compensate the employees in order to make themwilling to give up their office rooms. A rationale for thiswould be that part of the company’s reduced expenses

went to the employees. Of course one outcome would bethat the employees’ least necessary monetary compen-sation is too large to make the whole idea protable.

Company’s backcasting path: with information on theemployees’ least necessary compensation to give up theiroffice rooms, the company can strategically plan forother criteria essential to make the long-term goalachievable. For instance introduce incentives and poli-cies stimulating teleworking and extend the concept toinclude even other office facilities outside Nacka Strandso that long-distance commuters living closer to NackaStrand can use the exible work facilities as well.

6. Conclusions

IT has a great potential to save resources, and hastherefore a place in the discussion about sustainabledevelopment. Experience from the early days of ITshows that there is no evident correlation between the useof IT and a lower demand of natural resources. Thepotential of saving resources must be separated fromthe actual result. This makes it interesting to study theconditions for a deliberate use of IT to lower the envir-onmental pressure. The philosophy is to create win e win

situations, where the individual, the organization, thesociety at large, and the environment all become winners.This makes behavioural modelling and econometricsautomatically to a eld of great potential in the searchfor tools and strategies, since it describes the individual’sincentives in the choice of feasible alternatives.

To that end, this study has elaborated a framework forplanning, built on backcasting from combined objectivesof emission targets, monetary savings and individualutility. In this context, the motive for integrating theeconometric toolkit to model behaviour is presented. Thelatter is applied to study and foresee individual behav-iour, so that conditions that can promote the reaching of overall objectives from an individual point of view can bedetected and sub-optimised measures and blind alleys of planning can be avoided.

The framework will be applied in a eld-study d TheNacka Strandproject. This study has thepotential to test:

The applicability of the suggested framework forstudying and modelling resource saving behaviouron the individual level.How a relatively large diversity of new and lessresource consuming transport services work assubstitutes in practice.The role of companies and the potential to utilizeactive policy making to create win e win solutionsfrom the objectives in the framework.

One aspect that may also be interesting to study goesbeyond rational decision-making and relate to the well-known dilemma ‘‘old habits die hard’’. The power of

habit may positively favour old and well-tried alter-natives on behalf of new ones. One can think of situations where a comparison between the attribute-lists of two alternatives would give rational argumentsto substitute the old alternative for the new untriedone d and still the old one may remain. In that situationthe role of information and promotion lls a certainmeaning in order to break the barrier of the rstattempt. IT may for instance increase the applicabilityof information and IT can improve the quality of information by making it closer to the new reality, forinstance through videos on web sites and other virtualmeans. A great effort must be put on integrating theservices in the company structures for informationincluding advertisement, newsletters, and promotionthrough diverse incentives.

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