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.     

Automobile ownership in Yugoslavia

This paper presents an analysis of automobile ownership in urban households of the six Yugoslav republics and for the years 1973, 1978, and 1983. The analysis is based on a simple dichotomous probit model, the only explanatory variable being household income. The model proved to be adequate in describing the empirical data. In spite of the large socio-economic differences between the Yugoslav republics, our analysis shows that there are certain common tendencies in automobile ownership.     

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.

     

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.     

Spatio-temporal analysis of car distance,greenhouse gases and the effect of built environment: A latent class regression analysis

This work examines the temporal–spatial variations of daily automobile distance traveled and greenhouse gas emissions (GHGs) and their association with built environment attributes and household socio-demographics. A GHGs household inventory is determined using link-level average speeds for a large and representative sample of households in three origin–destination surveys (1998, 2003 and 2008) in Montreal, Canada. For the emission inventories, different sources of data are combined including link-level average speeds in the network, vehicle occupancy levels and fuel consumption characteristics of the vehicle fleet. Urban form indicators over time such as population density, land use mix and transit accessibility are generated for each household in each of the three waves. A latent class (LC) regression modeling framework is then implemented to investigate the association of built environment and socio-demographics with GHGs and automobile distance traveled. Among other results, it is found that population density, transit accessibility and land-use mix have small but statistically significant negative impact on GHGs and car usage. Despite that this is in accordance with past studies, the estimated elasticities are greater than those reported in the literature for North American cities. Moreover, different household subpopulations are identified in which the effect of built environment varies significantly. Also, a reduction of the average GHGs at the household level is observed over time. According to our estimates, households produced 15% and 10% more GHGs in 1998 and 2003 respectively, compared to 2008. This reduction can be associated to the improvement of the fuel economy of vehicle fleet and the decrease of motor-vehicle usage – e.g., a decrease of 4% is observed for fuel efficiency rates and 12% for distance according to the raw average estimates from 1998 with respect to 2008. A strong link is also observed between socio-demographics and the two travel outcomes. While number of workers is positively associated with car distance and GHGs, low and medium income households pollute less than high-income households.     

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.     

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.     

Impacts of improvements in rural roads on household income through the enhancement of market accessibility in rural areas of Cambodia

Rural areas in low-income countries often face severe poverty typically caused by insufficient accessibility to basic facilities. Improvements in rural roads are expected to reduce poverty although the mechanism has not been investigated sufficiently. This study empirically analyzes the impacts of rural road improvements implemented from 2012 to 2014 in Cambodia, highlighting local residents’ accessibility to local markets. This study assumes two causal relationships: rural road improvements have upgraded the accessibility and travel frequency to local markets, and the upgraded accessibility and travel frequency to local markets have led to a growth in local residents’ income. The hypotheses are statistically tested with a dataset developed through a questionnaire survey conducted in three areas in 2016. The dataset contains responses from 400 local residents to questions concerning their social attributes, livelihoods, travel modes, travel frequency, and time/cost of travels to the basic facilities. The quasi-experimental design incorporating a difference-in-differences design and an inverse possibility of treatment weighting approach revealed that the improvements in rural roads did not affect travel time nor travel cost but significantly enhanced travel frequency to local markets, and that an increase in the travel frequency to local markets and travel time savings significantly contributed to the households’ income growth. The results suggest that the improvement of seasonal reliability in accessing local markets through an introduction of all-weather roads could be critical to enhance household income, particularly in areas where agriculture is a leading industry and weather conditions are unstable across seasons.

     

Modelling the relationship between travel behaviours and social disadvantage

The purpose of this paper is to model the travel behaviour of socially disadvantaged population segments in the United Kingdom (UK) using the data from the UK National Travel Survey 2002–2010. This was achieved by introducing additional socioeconomic variables into a standard national-level trip end model (TEM) and using purpose-based analysis of the travel behaviours of certain key socially disadvantaged groups. Specifically the paper aims to explore how far the economic and social disadvantages of these individuals can be used to explain the inequalities in their travel behaviours.The models demonstrated important differences in travel behaviours according to household income, presence of children in the household, possession of a driver’s licence and belonging to a vulnerable population group, such as being disabled, non-white or having single parent household status. In the case of household income, there was a non-linear relationship with trip frequency and a linear one with distance travelled. The recent economic austerity measures that have been introduced in the UK and many other European countries have led to major cutbacks in public subsidies for socially necessary transport services, making results such as these increasingly important for transport policy decision-making. The results indicate that the inclusion of additional socioeconomic variables is useful for identifying significant differences in the trip patterns and distances travelled by low-income.     

Household demand and willingness to pay for clean vehicles

This paper examines the factors and incentives that are most likely to influence households’ choice for cleaner vehicles in the metropolitan area of Hamilton, Canada. Data collection is based on experimental design and stated choice methods through an Internet survey. Choice alternatives included a conventional gasoline, a hybrid and an alternative fuelled vehicle. Each option is described by a varying set of vehicle attributes and economic incentives, customized per respondent. Controlling for individual, household and dwelling-location characteristics, parameters of a nested logit model indicates that reduced monetary costs, purchase tax relieves and low emissions rates would encourage households to adopt a cleaner vehicle. On the other hand, incentives such as free parking and permission to drive on high occupancy vehicle lanes with one person in the car were not significant. Furthermore, limited fuel availability is a concern when households considered the adoption of an alternative fuelled vehicle. Finally, willingness-to-pay extra for a cleaner vehicle is computed based on the estimated parameters.     

Combining web and face-to-face in travel surveys: comparability challenges?

Response rates for household travel surveys are tending to fall, and it seems unlikely that this trend will be reversed in the future. In recent years, travel data collection methods have evolved in order to obtain reliable data that are sufficiently detailed to feed increasingly complex models, and in order to integrate new technologies into survey protocols (Internet, GPS??). Combining different media is an obvious low-cost way of improving data quality as it increases the overall response rate. But the question of the comparability of data over time and between different survey modes remains unresolved. This paper makes a comparative analysis between the travel behaviours of web-based survey respondents and respondents to a face-to-face interview. The data were obtained from the 2006 Lyon conurbation household travel survey. Our analysis shows that the Internet respondents reported fewer trips per day than the face-to-face respondents (3.00 vs. 4.04 daily trips), and that the differences between the two groups varied according to the travel mode and trip purpose. While part of this difference can be explained by socioeconomic disparities (the Internet respondents had a specific profile) we cannot exclude the possibility of under-reporting due to the web medium.     

Analysis of vehicle ownership evolution in Montreal,Canada using pseudo panel analysis

This paper employs a pseudo-panel approach to study vehicle ownership evolution in Montreal region, Canada using cross-sectional origin–destination survey datasets of 1998, 2003 and 2008. Econometric modeling approaches that simultaneously accommodate the influence of observed and unobserved attributes on the vehicle ownership decision framework are implemented. Specifically, we estimate generalized versions of the ordered response model—including the generalized, scaled- and mixed-generalized ordered logit models. Socio-demographic variables that impact household’s decision to own multiple cars include number of full and part-time working adults, license holders, middle aged adults, retirees, male householders, and presence of children. Increased number of bus stops, longer bus and metro lengths within the household residential location buffer area decrease vehicle fleet size of households. The observed results also varied across years as manifested by the significance of the interaction terms of some of the variables with the time elapsed since 1998 variable. Moreover, variation due to unobserved factors are captured for part-time working adults, number of bus stops, and length of metro lines. In terms of the effect of location of households, we found that some neighborhoods exhibited distinct car ownership temporal dynamics over the years.     

Analysis of attrition biases and trip reporting errors for panel data

The objective of the study is to assess the nature and magnitude of reporting errors and attrition biases in the first two waves of a household panel survey data set that consists of weekly trip diaries. This paper investigates the relationship between reporting errors in a first-wave diary and the subsequent decision to participate in a second-wave survey and the relationship between the same first-wave errors and the errors in the second-wave survey for those households which chose to participate. An econometric procedure is developed which accounts for attrition bias and relates reporting errors from the two waves. The model system offers a mechanism by which relationships among mobility, trip reporting errors, and attrition behavior in a panel survey can be statistically evaluated. It consists of three elements: wave-one trip equation, attrition probability model, and wave-two trip equation. The conditional distribution of the error terms of these three components is evaluated assuming chronological dependency among the errors. The result is used to develop a correction term for attrition bias and a term which accounts for the dependency between the wave-one error and wave-two error. Results from empirical application of the model system are reported together with the use of the attrition model to develop an efficient sample weighting factor that fully utilizes the information in the survey results.     

Testing electric vehicle demand in ‘hybrid households’ using a reflexive survey

The debate over electric vehicles (EVs) pivots largely on issues of market demand: will consumers purchase a vehicle that provides substantially less driving range, yet can be refueled at home, than an otherwise comparable gasoline vehicle? Also, what role do other unique attributes of EVs play in the purchase decision? Most previous studies find that limited driving range is a serious market barrier; many of those same studies ignore or under-value other novel attributes. To probe these future consumer decision processes deeply and robustly, we first devised and conducted detailed, interactive and experiment-oriented interviews. Then, incorporating what we learned, we designed an innovative mail survey and administered it to 454 multi-car households in California. The four-stage mail survey included a video of EV use and recharging and other informational material, completion of a 3-day trip diary and map of activity locations, and vehicle choice experiments. In addition to propulsion systems, respondents made choices of body styles, driving ranges, and other features. We formalized and tested what we call the hybrid household hypothesis: households who choose EVs will be purposefully diversifying their vehicle holdings to achieve the unique advantages of different propulsion systems. The hypothesis is supported, given the assumptions in our experimental design. In fact, a significantly larger number of EVs are chosen than the minimum number that would support our hypothesis. We find that purchases of battery-powered EVs by hybrid households would account for between 7 and 18% of annual light duty vehicle sales in California. EVs sold to fleets and other households would be in addition to those identified by this study.     

A utility-theory analysis of automobile speed under uncertainty of enforcement

Highway automobile speed and uncertain enforcement of the speed limit are introduced into a standard household utility model having time and income constraints. Due to uncertainty, expected utility is maximized to obtain the optimal speed (in excess of the speed limit). The optimal amounts of all other commodities and travel are also obtained. The key feature of the model is the risk attitude of the driver and the effect on optimal speed of such attitude. A related feature is the effect of risk attitude on the amount of speed self-insurance. An important finding is that the risk avert (seeking, neutral) driver charges himself an insurance premium that is larger than (smaller than, equal to) what is actuarially sufficient. The relationship between speed, risk attitude, and efficient cost of automobile travel is developed and implications are explored. A parametric analysis is conducted to establish the effect on optimal speed (and other variables) of changes in such policy instruments as the price of gasoline, the probability of being caught exceeding the speed limit, the unit speed fine, and the speed limit. Policy implications of the theoretical results are part of the conclusions.     

Motivating small-displacement car purchasing in China

Due to the rapid development of the automobile industry and the ever-increasing quantities of produced and sold automobiles in China, many problems such as fuel scarcity and air pollution have emerged. To alleviate such problems, one solution is to promote households to purchase small-displacement (engine) cars (SDCs). Based on the theory of planned behavior, we develop a theoretical framework to examine how influencing factors such as environmental attitude, subjective norm, self-image and environmental knowledge motivate SDC purchasing behavior through SDC purchasing intention in China. We further extend the research framework to examine whether the factor of economic incentives moderates the relationships between SDC purchasing intention and behaviors. Using an empirical study with 232 usable questionnaire responses, we observe that SDC purchasing intention partly mediates the relationship between three of four influencing factors (environmental attitude, self-image, environmental knowledge) and SDC purchasing behavior. Statistical results also show that the factor of economic incentives moderates the relationship between SDC purchasing intention and behavior. Our results indicate that three of four influencing factors can yield SDC purchasing behavior, especially when SDC purchasing intention exists. Economic incentives such as financial support from the government could promote SDC purchasing intention to transform into purchasing behavior.     

Do high income households reduce driving more when living near rail transit?

Transportation planning today requires an understanding of how income and near-rail residence jointly influence household travel behavior. This article fills a gap in the literature by showing how vehicle miles traveled (VMT) and transit trips taken (TT) vary with income and rail transit access by neighborhood type. Results indicate that, when comparing households with similar incomes and examining how the “near-rail” versus “far from rail” VMT and TT gap varies by income, the cross-sectional reduction in nominal VMT and the increase in TT on a percentage basis is generally larger for higher-income households (>$50,000), and particularly so in neighborhoods dense with both jobs and population. These findings offer support for the notion that near-transit housing targeting higher-income households can have both sustainability and transit use benefits. We note, though, that equity considerations are a strong reason to include low-income housing near rail transit, and argue that policies focusing overly singly on either low-income or high-income housing near rail transit will not be as impactful as a robust focus on mixed-income housing developments in rail transit-oriented developments (TODs).     

Towards a dynamic discrete-choice model of household automobile fleet size and composition

The emphasis on energy consumption in studies of traveller behaviour has led to increased interest in the development of policy sensitive models of automobile demand. In recognition of the fuller dimensions of automobile demand, a number of studies have considered choice amongst types of automobiles as well as number of automobiles. With rare exception, existing studies have concentrated on either type choice or number choice. In all instances the approach has been static. This paper develops a series of linked discrete-choice models to explain household automobile holdings (type and number) and adjustments in the holdings over time. The empirical study is part of an initial data effort leading up to the development of a full scale longitudinal panel of Sydney households. A model system based on a retrospective panel of 354 households, interviewed in 1980, is reported herein. The model is dynamic in the sense that it allows for prior decisions, brand loyalty and the costs of transacting.     

Does the income elasticity of road traffic depend on the source of income?

An extensive body of literature addresses the income elasticity of road traffic, in which income is typically treated as a homogenous quantity. Here we report evidence of heterogeneity in cross-sectional estimates of the elasticity of vehicle-kilometres of travel (VKT) with respect to income, when household income is disaggregated on the basis of income source.The results are generally intuitive, and show that the cross-sectional income elasticity of road traffic is not homogeneous as is typically specified in transport planning models. We show that in a number of circumstances the cross-sectional elasticity with respect to aggregate household income is of the opposite sign in comparison to more refined estimates of elasticity disaggregated by income source. If further research confirms that the elasticities we report here are causal in nature, neglecting the elemental effects could result in misleading results affecting practical infrastructure-investment and policy decisions, particularly as the mix of income sources shifts (e.g. if, as society ages, pension income increases as a share of all income).These results are of interest to both researchers and forecasters of travel demand, as well as designers of future travel survey instruments; the latter group must decide how to generate data about respondents’ income. Current expert guidance is to collect a single estimate of aggregate income at the household level. Future travel survey design choices will bound the analyses that can be supported by the resulting survey data, and therefore methodological research to re-visit the trade-offs associated with such choices is warranted.