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.     

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.     

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.     

Do fewer people mean fewer cars? Population decline and car ownership in Germany

Drawing on household data from Germany, this study econometrically analyzes the determinants of automobile ownership, focusing specifically on the extent to which decreases in family size translate into changes in the number of cars at the national level. Beyond modeling several variables over which policy makers have direct leverage, including the proximity of public transit, fuel prices and land use density, the analysis uses the estimated coefficients from a multinomial logit model to simulate car ownership rates under alternative scenarios pertaining to demographic change and other socio-economic variables. Our baseline scenario predicts continued increases in the number of cars despite decreases in population, a trend that is attributed to continued increases in household income.     

The role of individual characteristics in car ownership shortly after relationship dissolution

The dissolution of a relationship is a life event that often coincides with many other changes in life, such as a decline in income level or household size or a change in place of residence. This study aims to provide more insight into the ways in which circumstances shortly following the disruption of a relationship affect travel behaviour. Register data that combines information on the Dutch population, income and vehicle registration are used to understand how personal situations that are closely related to relationship disruption affect car ownership. The study shows that several characteristics of singles and single partners shortly after a breakup negatively affect car ownership. For instance, a relatively low income level, unemployment, living in a city or a residential move all affect car ownership negatively. This study focuses on the role of circumstances shortly after relationship disruption, demonstrating the importance of such an event.     

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.     

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.     

Asymmetry in transport fuel demand: Evidence from household level data

Models for gasoline demand for transportation activities generally assume that demand is perfectly reversible with respect to gasoline price (and income). The small literature which relaxes the reversibility assumption in gasoline demand argues technological fixation leads to this asymmetry and utilizes aggregate time-series model to find evidence in favour of asymmetry. In this research it is suggested that there could also be behavioural factors behind this asymmetric response, possibly due to the loss aversion nature of human beings as described in the prospect theory. For the first time, household level data was used to understand asymmetry in gasoline demand in response to changes in gasoline price and income. There was statistical evidence that gasoline price and income both can induce asymmetric changes in gasoline demand among households. Specifically, elasticity with respect to rising prices and falling income is larger than the elasticity with respect to falling prices and rising income respectively, which is consistent with loss aversion in gasoline purchase behaviour. There was also some evidence of heterogeneity in the asymmetric responses between urban and rural households. The results have implications for transport-related energy tax policies or subsidies, while the method can be applied directly for non-energy goods as well.     

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.     

Variations in household transport expenditure within major Australian cities

A comparative analysis of intra‐urban variations in household transport expenditure in 1966–68 is undertaken for the two largest Australian cities, Sydney and Melbourne, and one of the smaller State capitals, Adelaide. Regional variations in transport expenditure are found to be greater the larger the city; however residents of small cities are more dependent upon the car for their motorised travel. In the larger cities car dependence is most evident among low‐to‐middle income groups at a relatively early stage in the life cycle, located in outer suburban areas. Consequently high levels of expenditure on transport typically coincide with relatively high levels of financial commitments to home purchase and/or operation. This has significant ramifications for the household budget, the most notable being deficit‐funding, and reduced outlays on other expenditure items such as recreation and education. The distribution of company vehicles and allowances is shown to be of relatively greater benefit to higher income groups, although is not confined to them. Although somewhat dated, the findings suggest that the social impacts of rising prices for energy will almost certainly be regressive.

Note: This paper was presented to the 7th PTRC Summer Annual Meeting held at the University of Warwick in July 1979. The authors gratefully acknowledge the contribution of the Australian Road Research Board in the preparation of the paper. Particular appreciation is expressed to Dr. M. R. Wigan, Mr. K. Sharp and Dr. M. G. Lay for their helpful comments.     

Auto travel fuel elasticity in a rapidly developing urban area

This paper presents results of a study conducted to quantify the effect of fuel cost increases on household auto travel in Riyadh, the rapidly developing capital of Saudi Arabia. Responses of a stratified random sample of 1648 individual households provided the data base for the analysis. The auto trip measures of shrinkage ratio, arc and log-arc elasticities were calculated for households categorized by income and family size. The elasticity measures suggested the existence of significant relationship among the factors of fuel cost, the number of daily auto trips, and family size. It was found that as fuel prices increased, the number of daily trips decreased, and that this decrease in daily trips was greater with larger family size. A step-wise multiple regression analysis with three independent variables of car ownership, family size, and daily fuel expenditures was developed. The model was fairly accurate in predicting variations in daily household travel. The regression parameter of the variable fuel cost was also used to derive demand elasticity to fuel expenditures. Elasticity measures ranged between -0.30 and -0.37.     

Volatility of car ownership, commuting mode and time in the UK

This paper has two objectives: to examine the volatility of travel behaviour over time and consider the factors explaining this volatility; and to estimate the factors determining car ownership and commuting by car. The analysis is based on observations of individuals and households over a period of up to 11 years obtained from the British Household Panel Survey (BHPS). Changes in car ownership, commuting mode and commuting time over a period of years for the same individuals/households are examined to determine the extent to which these change from year-to-year. This volatility of individual behaviour is a measure of the ease of change or adaptation. If behaviour changes easily, policy measures are likely to have a stronger and more rapid effect than if there is more resistance to change. The changes are “explained” in terms of factors such as moving house, changing job and employment status. The factors determining car ownership and commuting by car are analysed using a dynamic panel-data models.     

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.     

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.     

The determinants of long distance travel in Great Britain

This study analyses of the determinants of long distance travel in Great Britain using data from the 1995-2006 National Travel Surveys (NTSs). The main objective is to determine the effects of socio-economic, demographic and geographic factors on long distance travel. The estimated models express the distance travelled for long distance journeys as a function of income, gender, age, employment status, household characteristics, area of residence, size of municipality, type of residence and length of time living in the area. A time trend is also included to capture common changes in long distance travel over time not included in the explanatory variables. Separate models are estimated for total travel, travel by each of four modes (car, rail, coach and air), travel by five purposes (business, commuting, leisure, holiday and visiting friends and relatives (VFRs)) and two journey lengths (<150 miles and 150+ miles one way), as well as the 35 mode-purpose-distance combinations.The results show that long distance travel is strongly related to income: air is most income-elastic, followed by rail, car and finally coach. This is the case for most journey purposes and distance bands. Notable is the substantial difference in income elasticities for rail for business/commuting as opposed to holiday/leisure/VFR. In addition, the income elasticity for coach travel is very low, and zero for the majority of purpose-distance bands, suggesting coach travel to be an inferior mode in comparison to car, rail and air. Regarding journey distance, we find that longer distance journeys are more income elastic than shorter journeys.For total long distance travel, the study indicates that women travel less than men, the elderly less than younger people, the employed and students more than others, those in one adult households more than those in larger households and those in households with children less than those without. Long distance travel is also lowest for individuals living in London and greatest for those in the South West, and increases as the size of the municipality declines.     

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.     

A comprehensive analysis of household transportation expenditures relative to other goods and services: an application to United States consumer expenditure data

This paper proposes a multiple discrete continuous nested extreme value (MDCNEV) model to analyze household expenditures for transportation-related items in relation to a host of other consumption categories. The model system presented in this paper is capable of providing a comprehensive assessment of how household consumption patterns (including savings) would be impacted by increases in fuel prices or any other household expense. The MDCNEV model presented in this paper is estimated on disaggregate consumption data from the 2002 Consumer Expenditure Survey data of the United States. Model estimation results show that a host of household and personal socio-economic, demographic, and location variables affect the proportion of monetary resources that households allocate to various consumption categories. Sensitivity analysis conducted using the model demonstrates the applicability of the model for quantifying consumption adjustment patterns in response to rising fuel prices. It is found that households adjust their food consumption, vehicular purchases, and savings rates in the short run. In the long term, adjustments are also made to housing choices (expenses), calling for the need to ensure that fuel price effects are adequately reflected in integrated microsimulation models of land use and travel.     

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.     

Travel blending: an Australian travel awareness initiative

This paper outlines a new approach to reducing car use in order to address environmental concerns. The individual action program, known as Travel Blending®, involves participating households being sent a series of four kits, containing information booklets and travel diaries, over a nine-week period. The travel diaries are analysed and a summary of the household’s travel patterns, and the emissions produced by their vehicles, is sent back in a subsequent kit along with suggestions explaining how they could reduce vehicle use. Households complete another set of travel diaries after four weeks and these are analysed so that a comparative summary can be returned to the household with the final kit. The paper describes results from two Australian studies. The first, a pilot study, involving about 50 individuals, was undertaken in Sydney, Australia. The second study involved about 100 households from Adelaide, Australia. Quantitative results from the Adelaide study indicate about a 10% reduction in car driver kilometres with a slightly higher percentage reductions in car driver trips and total hours spent in the car. These results, while very encouraging, must be interpreted cautiously. Further research will be required to explore the generalisability and magnitude of the effect of the Travel Blending® Program on travel behaviour.     

A nonlinear canonical correlation analysis of weekly trip chaining behaviour

This research concerns the relationships between the patterns of activities pursued in home-based trip chains and the characteristics of the persons making the chains. The data source is a one-week travel diary reported by persons over 11 years of age in the Netherlands in 1984. All home-based trip chains, including both simple two-link chains and more complex ones, were classified on the basis of the sequence of away-from-home activities. Twenty types were distinguished. The presence or absence of these trip-chain types were then explained in terms of the personal and household characteristics of the travellers using nonlinear canonical correlation analysis. This analysis technique can accomodate multiple dependent variables and nominally-scaled (categorical) variables in both the independent and dependent variables sets. Determined are the category scores for each independent variable that are optimal in explaining patterns in the dependent chain-type variables. Also determined are the optimal combinations of the two variable sets. These results capture the relationships between the sequences of activities in trip chains and the variables age, sex, working status, household income, stage in the family life cycle, household car ownership, and residential location. The most effective variable was found to be life cycle, followed by age and income.