Changes in level of household car ownership: the role of life events and spatial context

Recent longitudinal studies of household car ownership have examined factors associated with increases and decreases in car ownership level. The contribution of this panel data analysis is to identify the predictors of different types of car ownership level change (zero to one car, one to two cars and vice versa) and demonstrate that these are quite different in nature. The study develops a large scale data set (n = 19,334), drawing on the first two waves (2009–2011) of the UK Household Longitudinal Study (UKHLS). This has enabled the generation of a comprehensive set of life event and spatial context variables. Changes to composition of households (people arriving and leaving) and to driving licence availability are the strongest predictors of car ownership level changes, followed by employment status and income changes. Households were found to be more likely to relinquish cars in association with an income reduction than they were to acquire cars in association with an income gain. This may be attributed to the economic recession of the time. The effect of having children differs according to car ownership state with it increasing the probability of acquiring a car for non-car owners and increasing the probability of relinquishing a car for two car owners. Sensitivity to spatial context is demonstrated by poorer access to public transport predicting higher probability of a non-car owning household acquiring a car and lower probability of a one-car owning household relinquishing a car. While previous panel studies have had to rely on comparatively small samples, the large scale nature of the UKHLS has provided robust and comprehensive evidence of the factors that determine different car ownership level changes.     

The asymmetric income effect on household vehicle ownership in Taiwan: A threshold cointegration approach

This paper uses the asymmetric threshold cointegration test to examine the asymmetric relationship between household income and vehicle ownership in Taiwan, presenting estimated asymmetric error correction models. The empirical data include information on household income, car ownership and motorcycle ownership in different regions from 1974 to 2009. The results show that, first, motorcycle ownership is asymmetrically cointegrated with household income in each region, and car ownership is asymmetrically cointegrated with household income in all regions except Taipei city. Second, both car and motorcycle ownership levels increase faster than they decrease in the asymmetric adjustment of their long-run relationship. Third, sensitivity tests for the period 1987-2009 show that the cointegration relationship of the car ownership equations vanished. Finally, we find evidence on the effects of household income on motorcycle ownership, and the effects of income variables on car and motorcycle ownership are dissimilar. This study exhibits different results across regions. These findings may be related to the development of public transit system in each region.     

A repeated cross-sectional evaluation of car ownership

This paper studies changes in the relationship between household car ownership and income by household type. Ordered response probit models of car ownership are estimated for a sample of households repeatedly at six time points to track the evolution of income elasticities of car ownership over time. Elasticities of car ownership are found to change over time, questioning the existence of a unique equilibrium point between demand and supply that is implicitly assumed in traditional cross-sectional discrete choice car ownership models. Moreover, different household types and households that underwent household type transitions showed differing patterns of change in elasticities. Observed trends in car ownership and income clearly show behavioral asymmetry where the elasticity of procuring an additional car is greater than that of disposing a car. This too shows the inadequacy of traditional cross-sectional models of car ownership which tend to predict symmetry in behavior. The study suggests the importance of incorporating dynamic trends into the forecasting process, which can be accomplished through the use of longitudinal data.     

The effect of income on car ownership: evidence of asymmetry

This paper examines the effect of income on car ownership, and specifically the question of hysteresis or asymmetry. Although there is little doubt that rising income leads to higher car ownership, less is understood about the effect of falling income. Traditional demand modelling is based on the implicit assumption that demand responds symmetrically to rising and falling income. The object of this study is to test this assumption statistically. Using a dynamic econometric model relating household car ownership to income, the number of adults and children in the household, car prices and lagged car ownership, income decomposition techniques are employed to separately estimate elasticities with respect to rising and falling income. The equality of these elasticities – no hysteresis – is tested statistically against the inequality – hysteresis – hypothesis. Various functional specifications are tested in order to assure the robustness of the results to assumptions concerning functional form. The estimation is based on cohort data constructed from 1970 to 1995 UK Family Expenditure Surveys, and a pseudo-panel methodology is employed. The results indicate that car ownership responds more strongly to rising than to falling income – there is a ‘stickiness’ in the downward direction. In addition, there is evidence that the income elasticity is not constant, but instead declines with increasing car ownership.     

Petrol expenditure and redistributive effects of its taxation in Spain

The objective of this paper is to estimate a petrol expenditure function for Spain and to evaluate the redistributive effects of petrol taxation. We use micro data from the Spanish Household Budget Survey of 1990/91 and model petrol expenditure taking into account the effect that income changes may have on car ownership levels, as well as the differences that exist between reported expenditure and real consumption during the week of reference. Our results show the importance that household structure, place of residence and income have on petrol expenditure patterns. We are able to compute income elasticities of petrol expenditure, both conditional and unconditional on the level of car ownership. Non-conditional elasticities, while always very close to unit values, are lower for higher income households and for those living in rural areas or small cities. When car ownership levels are taken as fixed, the conditional elasticity obtained is around one half the value of the non-conditional ones. As regards the redistributive effects of petrol taxation, we observe that for the lowest income deciles the share of petrol expenditure increases with income, and thus the tax can be regarded as progressive. However, after a certain income level the tax proves to be regressive.     

A dynamic analysis of household car ownership

This paper examines the determinants of household car ownership, using Irish longitudinal data for the period 1995–2001. This was a period of rapid economic and social change in Ireland, with the proportion of households with one or more cars growing from 74.6% to 80.8%. Understanding the determinants of household car ownership, a key determinant of household travel behaviour more generally, is particularly important in the context of current policy developments which seek to encourage more sustainable means of travel. In this paper, we use longitudinal data to estimate dynamic models of household car ownership, controlling for unobserved heterogeneity and state dependence. We find income and previous car ownership to be the strongest determinants of differences in household car ownership, with the effect of permanent income having a stronger and more significant effect on the probability of household car ownership than current income. In addition, income elasticities differ by previous car ownership status, with income elasticities higher for those households with no car in the initial period. Other important influences include household composition (in particular, the presence of young children) and lifecycle effects, which create challenges for policymakers in seeking to change travel behaviour.     

Changing household car ownership level and life cycle events: an action in anticipation or an action on occurrence

This paper analyzes households’ decision to change their car ownership level in response to actions/decisions regarding mobility issues and other household events. Following recent literature on the importance of critical events for mobility decisions, it focuses on the relationship between specific events (e.g. childbirth and buying an extra car), rather than trying to explain the status of car ownership from a set of stationary explanatory variables. In particular, it is hypothesized that changes in household car ownership level take place in response to stressors, resulting from changed household needs or aspirations. The study includes a broad range of events. Apart from changes in work status, employer and residential location, it analyzes demographic events such as household formation and childbirth. Also, it scrutinizes the temporal sequence in which chains of related events are most likely to occur. To this end, data from a retrospective survey that records respondents’ car ownership status, as well as residential and household situation over the past 20 years are used. A panel analysis has been carried out to disentangle typical relationships. The results suggest that strong and simultaneous relationships exist between car ownership changes and household formation and dissolution processes. Childbirth and residential relocation invoke car ownership changes. Changes are also made in anticipation of future events such as employer change and childbirth. Childbirth is associated with increasing the number of cars, whereas the effect of employer change goes the opposite way. Job change increases the probability of car ownership change in the following year.     

Understanding adolescents’ intentions to commute by car or bicycle as adults

This study focuses on the intentions of adolescents to commute by car or bicycle as adults. The behavioral model is based on intrapersonal and interpersonal constructs from the theory of planned behavior extended to include constructs from the institutional, community and policy domains. Data from a survey among Danish adolescents is analyzed. It is found that car use intentions are related to positive car passenger experience, general interest in cars, and car ownership norms, and are negatively related to willingness to accept car restrictions and perceived lack of behavioral control. Cycling intentions are related to positive cycling experience, willingness to accept car restrictions, negative attitudes towards cars, and bicycle-oriented future vision, and are negatively related to car ownership norms. Attitudinal constructs are related to individual characteristics, such as gender, residential location, current mode choice to daily activities, and parental travel patterns.     

The systemic,long-run relation among gasoline demand,gasoline price,income, and vehicle ownership in OECD countries: Evidence from panel cointegration and causality modeling

This paper looks at relationships between gasoline consumption per capita, income, gasoline price, and car ownership for a panel of OECD countries. Estimated long-run and short-run income elasticities are smaller than typically found and gasoline consumption is Granger-caused by gasoline price, but not by car ownership or income. Car ownership is Granger-caused by income and at the margin by gasoline consumption, but not by gasoline price.     

Effect of environmental awareness on electric bicycle users’ mode choices

Travellers’ environmental awareness can affect their mode choices. The primary objective of this study is to identify the effect of electric bicycle (e-bike) users’ environmental awareness on their mode choice when the use of e-bikes is prohibited in urban areas in China. The data were collected via a questionnaire survey administered at ten locations in Nanjing, China. Using mixed multinomial logit (MMNL) models, we examined the relationship between the e-bike users’ mode choice and their environmental awareness, combined with socioeconomic and demographic characteristics and trip attributes. The results show that the level of environmental awareness, gender, age, education, income, the ownership of car and conventional bike, and trip distance affect e-bike users’ choices significantly. Those with a high level of environmental awareness are more likely to choose zero-emission transport modes. A stratified analysis reveals that the effect of environmental awareness is associated with their original transport mode choice prior to their use of the e-bike. With a high level of environmental awareness, original car users tend to opt for moderate- or zero-emission modes; original bus and metro users incline to choose a zero-emission mode or their original mode; and few original cyclists and walkers favour moderate- or high-emission modes. The results of the current study provide transport authorities with insights to establish sustainable urban transportation management policies and strategies to increase the share of zero- and low-emission transport modes.     

Car ownership and public transport use: Revisiting the interaction

At the beginning of the 1980s, it seemed that a consensus was emerging among researchers that public transport service levels, fares or quality had a small but possibly important effect on car ownership, and that this should be taken into account for those purposes where car ownership forecasts are used for developing policy on public transport or roads. Somehow, the findings faded away, and had little effect on policy thinking or on analytical techniques. The results of six surveys carried out in South Yorkshire over the period 1972 to 1991, during which there were extreme changes in public transport policy, tend to support a prima facie case for reopening the question. At the household level, car ownership rates are shown to be more volatile than is often assumed, especially in multiple car households. This volatility provides a context within which the quality of public transport provision appears to influence both the level of car ownership and the relationship between changes in the level of car ownership and changes in public transport use.     

Residential relocations and changes in vehicle ownership

While the relationship between automobile ownership and the built environment is well established, less is known about how household relocations—specifically, moves between urban and suburban geographies—affect the likelihood of owning an automobile. Using the Panel Study of Income Dynamics and a refined neighborhood typology, I examine the relationship between inter-geography moves and transitions into and out of carlessness. Results suggest that among low-income households, urban-to-suburban movers have an increased likelihood of becoming car owners; those moving in the “opposite” direction—from suburban to urban neighborhoods—show a high propensity to transition into carlessness. Patterns among higher-income households, while similar, are more pronounced. In particular, higher-income carless households that make urban-to-suburban moves are far more likely to become car owners than their low-income counterparts. This highlights the ease with which higher-income households adjust their car ownership levels to suit their post-move neighborhoods. Higher-income suburban-to-urban movers are also more likely to transition into carlessness than low-income households. Importantly, however, only households at the bottom end of the “higher income” distribution have an increased propensity to become carless; suburban-to-urban movers with more financial resources maintain vehicle ownership rates similar to households that remain in the suburbs.

     

Estimating the long-term effects of different passenger car technologies on energy/fuel consumption and emissions of greenhouse gases in Europe

Abstract

A stated preference (SP) experiment of car ownership was conducted in Mumbai Metropolitan Region (MMR) of Maharashtra in India. A full factorial experiment was designed to considering various attributes such as travel time, travel cost, projected household income, car loan payment and servicing cost. Data on 357 individuals were collected which resulted in 3213 observations for the calibration of the work trip and recreational trip car ownership models. The car ownership alternatives considered 0, 1 and 2 cars. A multinomial logit framework was used to develop the car ownership model taking the household as a decision unit. The specification and results of the SP car ownership model are discussed. The observed and predicted values matched reasonably when the validity of the SP car ownership model was tested against revealed preference (RP) data. The car ownership models developed in this study exhibit a satisfactory goodness of fit. It is concluded that the SP modelling approach can be successfully used for modelling car ownership decisions of households in developing countries.     

A dynamic model system of household car ownership,trip generation,and modal split: model development and simulation experiment

A dynamic model of household car ownership and mode use is developed and applied to demand forecasting. The model system consists of three interrelated components: car ownership, mechanized trip generation, and modal split. The level of household car ownership is represented as a function of household attributes and mobility measures from the preceding observation time point using an ordered-response probit model. The trip generation model predicts the weekly number of trips made by household members using car or public transit, and the modal split model predicts the fraction of trips that are made by public transit. Household car ownership is a major determinant in the latter two model components. A simulation experiment is conducted using sample households from the Dutch National Mobility Panel data set and applying the model system to predict household car ownership and mode use under different scenarios on future household income, employment, and drivers’ license holding. Policy implications of the simulation results are discussed.     

Household-level commuting mode choices,car allocation and car ownership level choices of two-worker households: the case of the city of Toronto

The paper presents a comprehensive investigation on household level commuting mode, car allocation and car ownership level choices of two-worker households in the City of Toronto. A joint econometric model and a household travel survey dataset are used for empirical investigations. Empirical models reveal that significant substitution patterns exist between auto driving and all other mode choices in two-worker households. It is revealed that, female commuters do not prefer auto driving, but in case of a one car (and two commuters with driving licenses) household, a female commuter gets more preference for auto driving option than the male commuter. Reverse commuting (commuting in opposite direction of home to central business district) plays a critical role on household level car allocation choices and in defining the stability of commuting behaviour of two-worker households. Two worker households in higher income zones and with longer commuting distances tend to have higher car ownership levels than others. However, higher transit accessibility to jobs reduces household car ownership levels. The study reveals that both increasing two worker households and reverse commuting would increase dependency on private car for commuting.     

The effect of the oil crisis on the growth in the ownership and use of cars

Since the oil crisis of 1973, a number of studies have been made in various countries of the effects of the rise in petrol prices on the level of traffic flow, but rather fewer have attempted to delineate the complex chain of reactions within the car market set off by this impulse. We attempt to do this, using data from the UK.Since 1966 during the prediction stage of the first London Transportation Study it became obvious that low income and high income households had different rates of growth of car ownership, mainly because low income households bought cheap, old cars which vary in quantity and price differently from expensive, new cars. The Greater London Council therefore sponsored a study of car prices by age and size, starting from 1957 annually, and since the oil crisis, evaluated monthly. This has enabled us to examine the strong change in trend that had occurred, with large cars depreciating 15% per annum more than the smallest. The quantities of cars of each size registered each month are available from national statistics and this enables us to say that the previous 1% per annum increase in car size was arrested, with new cars becoming substantially smaller.A model of the car market has been developed which relates on the one hand the price distribution of cars by age, and on the other hand the price. distribution of the stock of cars owned at each household income level. Via the expenditure on car purchase at each household income level and the distribution of the length of time between purchase and resale of cars, a fully dynamic model has been developed to relate expenditure flow and stock. This enables us to test the effect of different trends on the dynamic equilibrium in the car market.The implications of the two trends noted above on the prediction of future car ownership growth are discussed, with the standstill since the oil crisis attributed to petrol prices via the split in household expenditure between purchase and use.     

A panel data switching regression model of mobility and car ownership

The objective of this paper is to present a panel data model of car ownership and mobility. Unobserved heterogeneity is controlled for by including correlated random effects in the equations describing car ownership and mobility. A mass-points approach is adopted to control for unobserved heterogeneity. The results show that decisions concerning the first car in the household are difficult to affect; a large number of households are inclined to keep one car. Second car ownership may be more sensitive to changes in the observed contributing factors. This suggests that in The Netherlands policies aimed at changing second car ownership will be more successful than those aimed at influencing decisions concerning the first car in households. A major part of the correlation between the unobservables in the car ownership and the mobility equations is attributable to random effects. The time-variant errors of the mobility equations are not significantly correlated to car ownership decisions. This implies that mobility can only be influenced to a small extent by policy makers without measures aimed at reducing (second) car ownership.     

Factors of development of car ownership in Poland

The paper aims (1) to confront the spatial distribution and dynamics of car ownership in Poland with the experiences of the development of private car ownership in other Central and Western European countries; (2) to analyse the phenomenon considered at the regional level, also with respect to its causes and consequences; and (3) to attempt to answer the question whether in the circumstances of the post-socialist countries the development of private car ownership is conditioned by the same factors as those defined in earlier analyses, mainly on the basis of the experiences from developed countries.     

Car availability change in England and Wales 1971–1981

The aggregate dynamics of car ownership have overshadowed the dynamics of car ownership and availability at the personal and household level. These dynamics have only recently been investigated in more depth. This paper contributes to this work by probing a special data source, theLongitudinal Study (LS) produced by the Office of Population Censuses and Surveys, for the changes in household car availability.The paper describes the LS and explains its special format, as a Census-based ~1% sample of the population of England and Wales.The analysis focuses on the car availability dynamics of a number of groups defined by changes in their life cycle position. Special attention is given to those households where the LS member remains a dependent child throughout the study period.The results show that all studied household types increase and decrease their car holdings, but that there are patterns in this process, which vary from group to group. In particular, the size of the previous car fleet has a different influence on the current fleet size from life cycle group to life cycle group.The paper argues in its conclusion to incorporate these differentials into the further work on car ownership and car ownership change.The work reported here was performed, while the author was a staff member of the Centre for Transport Studies, Imperial College, London.