The asymmetric effects of gasoline prices on public transportation use in Taiwan

This study investigates the asymmetric effects of gasoline prices on public transportation use in Taiwan. The empirical results obtained are as follows. First, we verify that gasoline price is an important determinant of transit demand. Gasoline prices have significantly positive effects on bus and mass rapid transit (MRT) use. Second, MRT ridership is more sensitive than bus and railway ridership to gasoline price and income. In the face of oil prices escalation and economic growth, the MRT system should have higher priority in public transportation planning. Third, the effects of gasoline prices on bus and MRT use are asymmetric. Bus and MRT use increases faster when gasoline prices rise than it decreases when gasoline prices fall. The transit agencies should adjust operating strategies faster in the rising of oil prices than in the falling of oil prices. It is important for transit planning to use oil prices as signals and increase the flexibility of operation in dealing with the changes in ridership. Some strategies, such as enhancing the availability of transfer information and updating transit information timely, are helpful to move passengers efficiently.     

Short-term impact analysis of fuel price policy change on travel demand in Malaysian cities

Abstract

Malaysia is one of the few countries in the world that provides a fuel subsidy to consumers. Due to the recent economic crisis, the Malaysian Government decided to revise its fuel subsidization policy from a fixed price subsidy to a floating price subsidy dependent on global oil demand. Recognizing that the change in fuel subsidization policy can have an impact on travel behavior, this article investigates the short-term impact of the policy change on private and public transportation in the Klang Valley region of Malaysia. Spectral analyses are performed to investigate if the policy change has an impact on private vehicle travel demand, measured in terms of road traffic, and short-term travel demand elasticity with respect to fuel price is estimated. To measure the impact on the public transportation system, the demand cross-elasticity values of rail transit and buses are also estimated. It was found that traffic flow reduces with an increase in fuel price, although elasticity and cross-elasticity values obtained are low. The article finds that there is a potential mode shift from private vehicles to rail transit with increasing fuel price. It is demonstrated that reducing fuel price subsidy can be an effective travel demand management strategy to alleviate congestion.     

Consumers’ willingness to pay for alternative fuel vehicles: A comparative discrete choice analysis between the US and Japan

This paper conducts a comparative discrete choice analysis to estimate consumers’ willingness to pay (WTP) for electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) on the basis of the same stated preference survey carried out in the US and Japan in 2012. We also carry out a comparative analysis across four US states. We find that on average US consumers are more sensitive to fuel cost reductions and alternative fuel station availability than are Japanese consumers. With regard to the comparative analysis across the four US states, consumers’ WTP for a fuel cost reduction in California is considerably greater than in the other three states. We use the estimates obtained in the discrete choice analysis to examine the EV/PHEV market shares under several scenarios. In a base case scenario with relatively realistic attribute levels, conventional gasoline vehicles still dominate both in the US and Japan. However, in an innovation scenario with a significant purchase price reduction, we observe a high penetration of alternative fuel vehicles both in the US and Japan. We illustrate the potential use of a discrete choice analysis for forward-looking policy analysis, with the future opportunity to compare its predictions against actual revealed choices. In this case, increased purchase price subsidies are likely to have a significant impact on the market shares of alternative fuel vehicles.     

The endogeneity of OECD gasoline taxes: Evidence from pair-wise,heterogeneous panel long-run causality tests

Despite the current interest in using fuel taxes as an instrument for climate policy, there has been little study of current automotive fuel tax regimes. We expand on two earlier cross-sectional studies on why fuel taxes differ across countries by using OECD panel data and employing heterogeneous panel cointegration and long-run panel Granger-causality techniques. We confirm some of those earlier studies’ conclusions. Further, we find that governments that rely on consumption-based taxes for revenues will have higher gasoline tax rates (than governments that rely on income and wealth/property-based taxes). But more significantly, we determine that higher gasoline demand among consumers “causes” democratic governments to set lower gasoline taxes—a finding with important implications for today’s climate/energy policy debate.     

Forecasting ridership for a metropolitan transit authority

The recent volatility in gasoline prices and the economic downturn have made the management of public transportation systems particularly challenging. Accurate forecasts of ridership are necessary for the planning and operation of transit services. In this paper, monthly ridership of the Metropolitan Tulsa Transit Authority is analyzed to identify the relevant factors that influence transit use. Alternative forecasting models are also developed and evaluated based on these factors—using regression analysis (with autoregressive error correction), neural networks, and ARIMA models—to predict transit ridership. It is found that a simple combination of these forecasting methodologies yields greater forecast accuracy than the individual models separately. Finally, a scenario analysis is conducted to assess the impact of transit policies on long-term ridership.     

The effect of the price of gasoline on the urban economy: From route choice to general equilibrium

RELU-TRAN2, a spatial computable general equilibrium (CGE) model of the Chicago MSA is used to understand how gasoline use, car-VMT, on-the-road fuel intensity, trips and location patterns, housing, labor and product markets respond to a gas price increase. We find a long-run elasticity of gasoline demand (with congestion endogenous) of ?0.081, keeping constant car prices and the TFI (technological fuel intensity) of car types but allowing consumers to choose from car types. 43% of this long run elasticity is from switching to transit; 15% from trip, car-type and location choice; 38% from price, wage and rent equilibration, and 4% from building stock changes. 79% of the long run elasticity is from changes in car-VMT (the extensive margin) and 21% from savings in gasoline per mile (the intensive margin); with 83% of this intensive margin from changes in congestion and 17% from the substitution in favor of lower TFI. An exogenous trend-line improvement of the TFI of the car-types available for choice raises the long-run response to a percent increase in the gas price from ?0.081 to ?0.251. Thus, only 1/3 of the long-run response to the gas price stems from consumer choices and 2/3 from progress in fuel intensity. From 2000 to 2007, real gas prices rose 53.7%, the average car fuel intensity improved 2.7% and car prices fell 20%. The model predicts that from these changes alone, keeping constant population, income, etc. aggregate gasoline use in this period would have fallen by 5.2%.     

It is time to give the “true PRT” concept a fair test

True Personal Rapid Transit (PRT), in concept and technology, is considerably advanced over PRT as proposed in the 1960s and 1970s. It is one of the few advanced transit concepts—perhaps the only one—that offers a prospect of overcoming the continued serious deficiencies of conventional transit systems. Past criticisms of PRT were often invalid, but even those questions that deserved to be taken seriously then no longer justify a postponement of serious PRT testing. Conventional transit, in spite of over two decades of considerable governmental support, is proving unable to satisfy major transportation needs of American urban areas, which are increasingly dispersed and multi-centered. There is no indication that conventional transit can overcome sufficiently its performance and economic deficiencies. If PRT is not given a chance to be tested, local public officials will continue to be faced with too limited options as between auto-dominated transportation services and high subsidies for inadequate transit solutions.     

Intention and willingness to pay for green freight transportation: An empirical examination

The objective of this paper is to explore what motivates consumer intention and willingness to pay for green transportation. The model is based on the theory of planned behavior and explains the relationship between consumer attitude, perceived behavioral control and peer pressure on intention and willingness to pay for a t-shirt that was transported using energy efficient fuel. Data from a survey of U.S. consumers is analyzed. Results suggest consumer attitude and peer pressure are positively associated with intention which is positively associated with willingness to pay. High levels of consumer attitude, perceived behavioral control and intention suggest a positive outlook for organizations investing in green transportation initiatives. Results also suggest a need for organizations and government to market and educate consumers and citizens about the positive implications of green transportation and using energy efficient fuel.     

Can value capture work in a car dependent city? Willingness to pay for transit access in Perth,Western Australia

This paper investigates the impact of transit on urban land markets in the highly car dependent corridors of Perth with a focus on where new fast rail transit services have recently been built. It determines people’s willingness to pay for transit access within different pedestrian catchments for each of the corridors based on hedonic price modelling using land value data on over 460,000 households. The case study uses cross sectional and panel data hedonic price modelling methodology for the calculation of willingness to pay for transit. It finds that land market increases of up to 40% can be achieved, and is particularly relevant to car dependent cities looking to capture the financial and economic value created to build transit extensions or entirely new systems, thus making a strong case for value capture funding of transit projects into car dependent suburbs and the potential for density increases near stations.     

Appropriate mass transit for developing cities

This paper is concerned with the majority of developing nations who lack large resources for public sector projects. It questions the basis of much mass transit planning and attempts to put forward a more efficient way of reaching decisions. It calls extensively on experience of Metro Manila, capital of the Philippines, where an innovative system of metropolitan planning and administration is throwing a new light on ‘appropriate’ investment in such developing cities.

Mass transit systems as currently conceived in such developing cities—fully segregated rail‐based systems—are unlikely to be affordable (at least for many years) and in consequence scarce resources should not be devoted to developing and evaluating them. Rather, the principal objective should be to provide low‐cost, affordable mass transit—affordable to governments and to passengers. This almost certainly points to road‐based systems, or predominantly at‐grade light rail transit (LRT) systems, which are usually regarded as ‘obviously unworkable’ in developing city environments.

This judgement is questioned and it is suggested the potential of LRT to provide appropriate low‐cost mass transit is not being realized. An approach to determining its potential applicability is proposed. If feasible it should be evaluated against road‐based systems before decisions to implement new mass transit systems are taken.

While circumstances vary between countries the central message of this paper—that public sector resources have a very high opportunity cost which make all but the lowest‐cost mass transit systems very difficult to justify—will hold in all but the higher‐income developing economies.     

Vehicle purchasing behaviors comparison in two-stage choice perspective before and after eco-car promotion policy in Japan

This paper compares the vehicle purchasing behaviors in Japan between before and after the eco-car (environmental friendly vehicle) promotion policy implemented. Consumer behaviors are modeled as a two-stage decision process: a consideration set formation stage and a choice-making stage. In the first stage, all available vehicle types are included in the choice set, and consumers are assumed to apply a conjunctive screening rule to construct consideration sets. In the second stage, consumers only evaluate the vehicles in the consideration set and choose the one with maximum utility. The applied Hierarchical Bayes model can avoid the issue of an indifferentiable and irregular likelihood surface caused by thresholds and discontinuities, and the data augmentation and Markov-Chain Monte Carlo estimation methods make it possible to estimate two stages simultaneously using only the information about the consumers’ actual choices. The estimations indicate that the change of consumer behavior during the formation of consideration sets after the policy implemented: more people preferred compact and hybrid vehicles because of their better fuel efficiency and more competitive prices under the tax reduction policy. The results show, however, that most of consumers who purchase hybrid vehicles after the policy implemented are only including hybrid vehicles in their consideration sets, and oil price and vehicle price still play important roles in the choice-making stage for these who consider both gasoline and hybrid vehicles.     

Local public support for an innovative transit system

Little is known about the sources of public support for transit systems even though the perceptions of transit users and potential users have been extensively documented. Research reported here examines dimensions of public support for the first U.S. downtown people mover during three critical phases in the system's life: construction, shakedown, and operations. The method employed was a community sample survey with home interviews. Data analysis showed that the public—who were virtually all nonusers—were largely favorable toward the system during the construction phase. During the shakedown phase, when system reliability was extremely low, many attitudes toward the system became less favorable, especially perceptions of performance and direct community impacts. Later, reliability improved, and attitudes which had become less favorable tended to grow more favorable once again. It is suggested that a system's performance can influence many aspects of public support for a transit system, even among nonusers. This pattern has implications for system planners who must depend on public good will for continuing support of transit systems. In particular, extensive pretesting of new systems should occur before the fare gates are opened to patrons.     

Measuring factors influencing valuation of nonmotorized improvement measures

This paper presents the application of a new methodology for data collection based on multiple survey methods to study how drivers and transit users value nonmotorized improvements. This multi-method survey consisted on a combination of user’s willingness to change, stated tolerance and contingent valuation experiments.Random parameter probit models were used to analyze data on willingness to cycle. Willingness to change to cycling is related to travel purpose, transportation mode, travel time and education level. Policies for promoting the use of bicycles should target these profiles so as to be more effective.Random parameter ordered probit models were used to study how different cycling measures were valued by respondents. The protection and maintenance of cycle lanes are significantly more valued than other improvement measures. The design of future cycling facilities should consider increasing safety and travel time reduction. Senior citizen’s willingness to change to cycling value to a lesser extent cycling improvement measures than people traveling to work or study. Strategies to promote cycling in each case are discussed.     

Within-day recharge of plug-in hybrid electric vehicles: Energy impact of public charging infrastructure

This paper examines the role of public charging infrastructure in increasing the share of driving on electricity that plug-in hybrid electric vehicles might exhibit, thus reducing their gasoline consumption. Vehicle activity data obtained from a global positioning system tracked household travel survey in Austin, Texas, is used to estimate gasoline and electricity consumptions of plug-in hybrid electric vehicles. Drivers’ within-day recharging behavior, constrained by travel activities and public charger availability, is modeled. It is found that public charging offers greater fuel savings for hybrid electric vehicles s equipped with smaller batteries, by encouraging within-day recharge, and providing an extensive public charging service is expected to reduce plug-in hybrid electric vehicles gasoline consumption by more than 30% and energy cost by 10%, compared to the scenario of home charging only.     

Cost-effectiveness of reductions in greenhouse gas emissions from High-Speed Rail and urban transportation projects in California

A rising trend in state and federal transportation finance is to invest capital dollars into projects which reduce greenhouse gas (GHG) emissions. However, a key metric for comparing projects, the cost-effectiveness of GHG emissions reductions, is highly dependent on the cost-benefit methodology employed in the analysis. Our analysis comparing California High-Speed Rail and three urban transportation projects shows how four different accounting framings bring wide variations in cost per metric tonne of GHG emissions reduced. In our analysis, life-cycle GHG emissions are joined with full cost accounting to better understand the benefits of cap-and-trade investments. Considering only public subsidy for capital, none of the projects appear to be a cost-effective means to reduce GHG emissions (i.e., relative to the current price of GHG emissions in California’s cap-and-trade program at $12.21 per tonne). However, after adjusting for the change in private costs users incur when switching from the counterfactual mode (automobile or aircraft) to the mode enabled by the project, all investments appear to reduce GHG emissions at a net savings to the public. Policy and decision-makers who consider only the capital cost of new transportation projects can be expected to incorrectly assess alternatives and indirect benefits (i.e., how travelers adapt to the new mass transit alternative) should be included in decision-making processes.     

Consumer attitudes about electric cars: Pricing analysis and policy implications

As electric vehicles (EVs) become more readily available, sales will depend on consumers’ interest and understanding. A survey of consumer attitudes on electric cars was conducted in Manitoba from late 2011 to early 2012. It utilizes two price assessment methods. The van Westendorp price sensitivity method (PSM) shows the acceptable price range for EVs to be $22,000–27,500. This range closely matches average price range for sales of conventional cars during the same period. The willingness-to-pay method reveals consumers are unwilling to pay large premiums for EVs, even when given information on future fuel savings. A consumer group with experience or exposure to EVs is somewhat different. Nearly 25% of these people are willing to pay a premium of up to $10,000. Different interpretations can be drawn from these responses, calling for further research. An apparent policy opportunity involves consumer education to enhance knowledge and facilitate EV purchase decisions. Survey results also support the hypothesis that EV rollout has focused too much on technology, and not enough on consumers.     

Spatial variations in attitudes toward expanded public transit service

Although recent budgetary considerations by the Federal govenment do not portend well for urban public transit, some transit systems are considering expansion into less densely-settled areas further from the Central Business District. Of some concern to planners has been their belief that suburban and rural dwellers may be much less inclined than urban dwellers to support expansion of transit service. This paper presents an analysis of a random-digit dialing/mail-out, mail-back survey conducted in Washtenaw County, Michigan which was designed specifically to examine differences in attitudes between urban and rural residents. Six mutually-exclusive spatial strata were established based upon population density. This paper tests for expected spatial differences in socioeconomic and demographic variables and then examines spatial variations in attitudes toward public transportation. The major conclusion is that the expected spatial variations in attitudes about transit service provision between the spatial strata do not arise. Most of the significant differences found are with respect to questions which relate to where transit is provided. Residents in rural (urban) areas support more strongly the provision of services to rural (urban) areas. Many residents, however, will support transit service that may not benefit them directly.     

Support for a local transit tax

Survey data from a small, blue collar, midwestern U.S. city are analyzed to identify the factors that influence support for a local tax earmarked for transit. In Council Bluffs, Iowa, a telephone survey was carried out to measure willingness to pay a proposed two mil property tax for transit. Two complementary multivariate techniques, Multiple Classification Analysis and Automatic Interaction Detector, are applied to measure the roles of a series of user and nonuser benefits in support for the tax. The benefits affecting support most strongly proved to be those accruing to nonusers-specificially, the beliefs that transit contributes to cleaner air, stimulates business within the city, and helps the poor to find or keep jobs. The belief that urban government is performing well also strongly affects support. Personal use of transit, use by other members of one's househols, and the view that transit is back-up transportation mode have a very minor effect on support. The conclusion is reached that transit planning should take into consideration social objectives as well as performance measures to ensure continued support.     

Transit user perceptions of driverless buses

This paper reports the results of a stated preference survey of regular transit users’ willingness to ride and concerns about driverless buses in the Philadelphia region. As automated technologies advance, driverless buses may offer significant efficiency, safety, and operational improvements over traditional bus services. However, unfamiliarity with automated vehicle technology may challenge its acceptance among the general public and slow the adoption of new technologies. Using a mixed logit modeling framework, this research examines which types of transit users are most willing to ride in driverless buses and whether having a transit employee on board to monitor the vehicle operations and/or provide customer service matters. Of the 891 surveyed members of University of Pennsylvania’s transit pass benefit program, two-thirds express a willingness to ride in a driverless bus when a transit employee is on board to monitor vehicle operations and provide customer service. By contrast, only 13% would agree to ride a bus without an employee on board. Males and those in younger age groups (18–34) are more willing to ride in driverless buses than females and those in older age groups. Findings suggest that, so long as a transit employee is onboard, many transit passengers will willingly board early generation automated buses. An abrupt shift to buses without employees on board, by contrast, will likely alienate many transit users.