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.     

Car ownership and access to jobs in Spain

The purpose of this paper is to assess the effect of urban structure on household car ownership in a context of rapid job and population decentralization. We capture the effect of urban structure through a measure of job accessibility to employment by public transport. An ordered probit explaining the number of cars per household is estimated as a function of individual, household and spatial variables. The data used in the analysis come from the Spanish Institute of Statistics’ 2001 Micro-census for the areas of Barcelona and Madrid. The results show that spatial variables play a significant role in explaining the probability of car ownership. We provide the car ownership elasticities with respect the job accessibility measure. Additionally, we carried out simulation exercises in which the expected number of vehicles decreases as accessibility improves.     

Are multi-car households better suited for battery electric vehicles? – Driving patterns and economics in Sweden and Germany

Battery electric vehicles (BEVs) could reduce CO₂ emissions from the transport sector but their limited electric driving range diminishes their utility to users. The effect of the limited driving range can be reduced in multi-car households where users could choose between a BEV and a conventional car for long-distance travel. However, to what extent the driving patterns of different cars in a multi-car household’s suit the characteristics of a BEV needs further analysis. In this paper we analyse the probability of daily driving above a fixed threshold for conventional cars in current Swedish and German car driving data. We find second cars in multi-car households to require less adaptation and to be better suited for BEV adoption compared to first cars in multi-car households as well as to cars in single-car households. Specifically, the share of second cars that could fulfil all their driving is 20 percentage points higher compared to first cars and cars from single-car households. This result is stable against variation of driving range and of the tolerated number of days requiring adaptation. Furthermore, the range needed to cover all driving needs for about 70% of the vehicles is only 220 km for second cars compared to 390 km for the average car. We can further confirm that second cars have higher market viability from a total cost of ownership perspective. Here, the second cars achieve a 10 percentage points higher market share compared to first cars, and to cars in single-car households for Swedish economic conditions, while for Germany the corresponding figure is 2 percentage points. Our results are important for understanding the market viability of current and near-future BEVs.     

Car ownership,travel and land use: a comparison of the US and Great Britain

This paper conducts an international comparative analysis of relationships between car ownership, daily travel and urban form. Using travel diary data for the US and Great Britain, we estimate models of car ownership and daily travel distance. Both a structural model with daily travel conditional upon car ownership and a reduced form model for daily travel, excluding car ownership, are estimated. Model results are similar, and show that differences in travel are explained by (1) differences in demographics between the two countries; (2) lower household income in Great Britain; (3) country specific differences in costs of car ownership and use, transport supply and other factors we have not been able to control. We find that metropolitan size affects travel only in the largest metropolitan areas of the US. Daily travel distance is inversely related to local population density, but the effect is much stronger for the US than Great Britain. We conclude that higher transport costs in Great Britain promote economizing behavior, which in turns leads to more consumption of local goods and services and more use of alternative 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.     

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.     

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.     

Household Mobility Tool Ownership: Modeling Interactions between Cars and Season Tickets

This paper moves beyond traditional models of car ownership in that we propose a framework for modeling household-level decisions to acquire specific types and numbers of mobility tools to fulfill the mobility needs of household members. The framework is applied to a data set collected during the winter and spring of 2000/2001 in the German city Karlsruhe via an interactive web-based stated response survey in which respondents could optimize their household mobility tool sets through on-line feedback concerning the estimated costs of the sets. In our analysis, bivariate ordered probit models are estimated for three combinations of mobility tools: season tickets (i.e., transit passes) and cars, season tickets and small cars and season tickets and large cars. In all instances, strong substitution effects are found – that is, as the number of season tickets increases, the number of cars decreases. This finding underscores the need to move beyond simple models of car ownership to comprehensive models of mobility tool ownership. As demonstrated by our research, failure to do so is likely to lead to biased results.     

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.     

National policy towards cars: Hong Kong

The Hong Kong transport policy objective is simply, mobility. With this the automobile must conform. A confined land area, difficult to develop, has absorbed excessive immigration and must now service a dynamic entrepreneurial economy.

Transport infrastructure based on major planning studies is created through government capital and is backed by careful legislation, effective administration and private sector participation. The problem is that overall expansion is even faster: widespread urban renewal—roads cannot equally expand; enormous New Territories New Towns—people still want to move in and out so the need for more transport accelerates. Over ten million trips daily are made by 5.5 million people. The answers cannot be more and more private cars: it must be promoting the most effective use of major transport investments, where possible off roads, and the mass carriers on roads. The need to curb congestion by containing escalating car numbers (especially as so far only 17% of households have access to an automobile) led in May 1982 to imposition of severe taxes on ownership. The ultimate and equitable objective is to control usage. Road pricing may be the answer.

In Hong Kong the private cars is part only of a complex strategy including metro, rail, bus, minibus, ferry, taxi and tram. The car cannot take precedence.     

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.     

Characterising and predicting car ownership using rough sets

This paper applies the relatively new knowledge discovery technique of Rough set analysis to identify the factors that influence the level of car ownership in a household. The study uses the detailed Great Britain National Travel Survey data set which contains information on both household and individual travel behaviour. The knowledge extraction is done using the theory of Rough sets and is presented in the form of easily understood if-then statements or rules which reveal how each attribute influences car ownership behaviour. These rules can then be used to predict household car ownership from information held about previously unseen households and the classification performance of the rules can be assessed. The performance of this classification task is shown to be on a par with other reported studies in this area.     

The determinants of car ownership in England and Wales from anonymous 2001 census data

Within the transportation research literature, the attempt to understand and predict the level of car ownership is probably one of the most popular areas of study. The primary reason for this is understandable, having access to a vehicle increases an individual’s (or their household’s) travel options, leading to greater mobility. Secondary reasons for this scrutiny include the need to predict future transport investment in road infrastructure and the commercial demand for new vehicles. This paper attempts to predict the level of household car ownership as a function of the characteristics of the household and the individuals that make up the household. The primary data source for this study comes from the 2001 United Kingdom Census and the analysis methods used are from the discipline of data mining. The results of this study are in line with those from previous research but show a potential to predict the higher levels of household car ownership with greater accuracy than other similar studies.     

Patterns of car usage and restraint modelling

Transport demand forecasting procedures have traditionally employed household based modal split models implicitly assuming a selection of mode for each trip based on relative generalised cost. A detailed examination of the trip patterns of a sample of household in West Yorkshire shows that in fact there is little discretionary choice of public transport; public transport trips in car owning households generally being explained in terms of the specific unavailability of the car for such trips. Two versions of a category analysis model for modal split are based on this observation and applied to household data for Glamorgan and Monmouthshire to show that such a procedure is workable and produces results comparing favourably with traditional approaches. The likely implications of three types of restraint policy are examined and it is concluded that the existing interdependence in trip patterns and modal choice within the household is of great significance in determining their effects. In particular it appears that positive attempts to increase vehicle occupancy at the peak are likely to be more favourable to public transport finances than the more negative policies to restrain use of the car for journey to work, or second car ownership.     

Comparison of car ownership models

Car ownership models found in the academic literature (with a focus on the recent literature and on models developed for transport planning) are classified into a number of model types. The different model types are compared on a number of criteria: inclusion of demand and supply side of the car market, level of aggregation, dynamic or static model, long‐ or short‐run forecasts, theoretical background, inclusion of car use, data requirements, treatment of business cars, car‐type segmentation, inclusion of income, of fixed and/or variable car cost, of car quality aspects, of licence holding, of sociodemographic variables and of attitudinal variables, and treatment of scrappage.     

Integrated modeling of car/motorcycle ownership, type and usage for estimating energy consumption and emissions

Devising effective management strategies to relieve dependency on private vehicles, i.e. cars and motorcycles, depends on the ability to accurately and carefully examine the effects of corresponding strategies. Disaggregate choice models regarding the ownership, type and usage of cars and motorcycles are required to achieve this. Consequently, this study proposes integrated car and motorcycle models based on a large-scale questionnaire survey of Taiwanese owners of cars and motorcycles, respectively. Incorporating gas mileage and emission coefficients for different types of cars and motorcycles into the proposed models can enable the estimation and comparison of reductions in energy consumption and emissions under various management strategies. To demonstrate the applicability of the proposed integrated models, scenarios involving 10% and 30% increases in gas prices are analyzed and compared. The results indicate that gas price elasticities of cars and motorcycles are low, ranging from 0.47 to 0.50 for cars and 0.11 for motorcycles. Additionally, a high ratio of discouraged car users shifting to use of motorcycles neutralizes the effects of increased gas price in reducing energy consumption and emissions. Pollution of CO and HC even slightly increased because motorcycles are much more polluting in terms of CO and HC. At last, the reductions of energy consumption and emissions under 10% and 30% increase (or decrease) in other manipulating variables are also estimated and compared. The countermeasures for reducing ownership and usage of cars and motorcycles are then recommended accordingly.     

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.     

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.     

The Contribution of Benefit-in-Kind Taxation Policy in Britain to the ‘Peak Car’ Phenomenon

Car use per person has historically grown year-on-year in Great Britain since the 1950s, with minor exceptions during fuel crises and times of economic recession. The ‘Peak Car’ hypothesis proposes that this historical trend no longer applies. The British National Travel Survey provides evidence of such an aggregate levelling off in car mileage per person since the mid-1990s, but further analysis shows that this is the result of counter trends netting out: in particular, a reduction in per capita male driving mileage being offset by a corresponding increase in female car driving mileage. A major contributory factor to the decline in male car use has been a sharp reduction in average company car mileage per person. This paper investigates this aspect in more detail. Use of company cars fell sharply in Britain from the 1990s up to the 2008 recession. Over the same period, taxation policy towards company cars became more onerous, with increasing levels of taxation on the benefit-in-kind value of the ownership of a company car and on the provision of free fuel for private use. The paper sets out the changes in taxation policy affecting company cars in the UK, and looks at the associated reductions in company car ownership (including free fuel) and patterns of use. It goes on to look in more detail at which groups of the population have kept company cars and in which parts of the country they have been most used, and how these patterns have changed over time. A preliminary investigation is also made of possible substitution effects between company car and personal car driving and between company car use and rail travel. Clearly, the role of the company car is only one of many factors that are contributing to aggregate changes in levels of car use in Great Britain, alongside demographic changes and a wide range of policy initiatives. But, company car use cannot fall below zero, so the effect of declining year-on-year company car mileage suppressing overall car traffic levels cannot continue indefinitely.