Association for Public Policy Analysis & Management

Due to creative destruction, new transportation advancements have emerged and increased the presence of rideshare technologies like Uber and Lyft. These innovations are replacing the need for taxis and rental vehicles and as industry demands change, cities can use this as an opportunity to create new environmental policies to curb pollution. More specifically, local governments can mitigate the growing threat driving poses to the environment through emission standards for rideshare vehicles. By outlining fuel efficiency requirements for ridesharing in high-traffic areas, such as airports and tourist destinations, these standards will decrease the short-run supply of rideshare availability and increase the long-run demand for fuel-efficient vehicles. This paper further explores the existing data surrounding the impact of rideshare technology on the global economy and environment, explains the effect such innovation has on current transportation trends, and offers analysis on the projected environmental and economic impact of rideshare regulation in high-traffic areas.