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.     

Analyzing car ownership in Quebec City: a comparison of traditional and latent class ordered and unordered models

Private car ownership plays a vital role in the daily travel decisions of individuals and households. The topic is of great interest to policy makers given the growing focus on global climate change, public health, and sustainable development issues. Not surprisingly, it is one of the most researched transportation topics. The extant literature on car ownership models considers the influence of exogenous variables to remain the same across the entire population. However, it is possible that the influence of exogenous variable effects might vary across the population. To accommodate this potential population heterogeneity in the context of car ownership, the current paper proposes the application of latent class versions of ordered (ordered logit) and unordered response (multinomial logit) models. The models are estimated using the data from Quebec City, Canada. The latent class models offer superior data fit compared to their traditional counterparts while clearly highlighting the presence of segmentation in the population. The validation exercise using the model estimation results further illustrates the strength of these models for examining car ownership decisions. Moreover, the latent class unordered response models perform slightly better than the latent class ordered response models for the metropolitan region examined.     

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.     

From e-bike to car: A study on factors influencing motorization of e-bike users across China

Household car ownership has risen dramatically in China over the past decade. At the same time a disruptive transportation technology emerged, the electric bike (e-bike). Most studies investigating motorization in China focus on macro-level economic indicators like GDP, with few focusing on household, city-level, environmental, or geographic indicators, and none in the context of high e-bike ownership. This study examines household vehicle purchase decisions across 59 cities in China with broad geographic, environmental, and socio-economic characteristics. We focus on a subset of households who own e-bikes and rely on a telephone survey from an industry customer database. From these responses, we estimate two three-level hierarchical choice models to assess attributes that contribute to (1) recent car purchases and (2) the intention to buy a car in the near future. The results show that the models are dominated by household characteristics including household income, household size, household vehicle ownership, number of licensed drivers and duration of car ownership. Some geographic, environmental and socio-economic factors have significant influences on car purchase decisions. Only two city-level transportation variable have an effect – higher taxi density and higher bus density reducing car purchase. Cold weather, population density gross domestic product per capita positively influence car purchase, while urbanization rate reduces car purchase. Because of supply heterogeneity in the data set, described by publicly available urban transportation data, this is the first study that can include geographic and urban infrastructure differences that influence purchase choice and suggests potential region-specific policy approaches to managing car purchase may be necessary.     

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 intra-household choices regarding commuting and housing

This paper is an empirical analysis of the relationships between commuting decisions of spouses in dual-income households, where the role of housing and housing tenure is taken into account. The study is based on a large survey of US commuters and actual commuting and housing choices. Household commuting decisions are analyzed together with housing choices using the data from the 2001 American Housing Survey. A sample of dual-career spouses who commute to work by car only is used to explore the inter-relationship between male and female commuting decisions in such households and the effect of housing choices on their commuting. The inter-relationships between spousal commuting decisions are examined separately for the two forms of housing tenure: ownership and renting. In general, men commute further than women and owners commute further than renters.It is shown that for both renters and homeowners, journeys to work by men and women in such dual-earner households appear to be “complements” and not “substitutes”. This means that commute trips are jointly chosen to be longer (or shorter) for both spouses, as part of household selection of preferred housing and neighborhood characteristics. The residuals of equations explaining commute times and commute distances for men are strongly positively correlated with those for women. Many of the explanatory factors affect the men and women in similar ways. In particular, housing value is positively correlated with commute times and distances for both genders. The commute distance for women owners appears more sensitive to housing value than that of men, meaning women adjust their trips to work even more so than men do, as part of obtaining better housing.For both homeowners and renters, longer commute distances were correlated with higher salaries for both spouses. Somewhat surprisingly, it was found that commuting distances for women are similarly or even more sensitive to income increments than are those of men. Household size appears to affect women who own housing in ways opposite from those who rent. Other housing and neighborhood factors also affect the joint commuting decisions of these men and women.     

A study on the determinants of private car ownership in China: Findings from the panel data

This study examines the determinants of private car ownership in China. The target cities are 32 provincial capital cities and the target period is from 2001 to 2011. In order to capture the individual effects (heterogeneity), the fixed and random effect models are adopted and compared, in which 8 explanatory variables are selected to include economic characteristics, urban characteristics, and transportation characteristics. Moreover, double natural logarithm model is employed to measure the elastic relationship between the private car ownership and regressors. The estimated results show that the fixed effect model performs better than pooled regression model and the random effect model. In addition, there are variations of private car ownership among cities and regions. Finally, the influence of factors responsible for these variations is also presented and discussed in this paper.     

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.     

Using structural equations modeling to unravel the influence of land use patterns on travel behavior of workers in Montreal

This paper addresses the relations between travel behavior and land use patterns using a Structural Equations Modeling (SEM) framework. The proposed model structure draws on two earlier models developed for Lisbon and Seattle which show significant effects of land use patterns on travel behavior. The travel behavior variables included here are multifaceted including commuting distance, car ownership, the amount of mobility by mode (car, transit and non-motorized modes), both in terms of total kilometers travelled and number of trips. The model also includes a travel scheduling variable, which is the total time spent between the first and last trips to reflect daily constraints in time allocation and travel.The modeled land use variables measure the levels of urban concentration and density, diversity, both in terms of types of uses and the mix between jobs and inhabitants/residents, the transport supply levels, transit and road infrastructure, and accessibility indicators. The land use patterns are described both at the residence and employment zones of each individual included in the model by using a factor analysis technique as a data reduction and multicollinearity elimination technique. In order to explicitly account for self selection bias the land use variables are explicitly modeled as functions of socioeconomic attributes of individuals and their households.The results obtained show that people with different socioeconomic characteristics tend to work and live in places of substantially different urban environments. But besides these socioeconomic self-selection effects, land use variables significantly affect travel behavior. More precisely the effects of land use are in great part passed thru variables describing long term decisions like commuting distance, and car ownership. These results point to similar conclusions from the models developed for Lisbon and Seattle and thus give weight to the use of land use policies as tools for changing travel behavior.     

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

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

The transaction cost approach to modeling the demand for automobiles

The purchase of an automobile involves significant transaction costs in addition to the purchase price. Therefore, the assumptions implied by static car holding models are invalid. This paper describes a dynamic approach to the modeling of level-of-ownership and auto-type choice, based on a transaction choice model which utilizes information on past car ownership. The cost or disutility of a transaction depends on the attributes of the household and the purchased car, as well as on past car-ownership characteristics. A set of assumptions underlying the incorporation of transaction costs in the model is presented. The paper discusses the econometric implications of omitting the dynamic attributes (i.e., past ownership characteristics). A disaggregate model was estimated, using a choice-based sample consisting of a random sample of households enriched with a sample of households which transacted in the car market during the study period. This sampling method combined with a random choice of a subset of the car alternatives provides for a cost-effective method to estimate a transaction model.     

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.

     

Electrification of the two-car household: PHEV or BEV?

In previous works, we have shown two-car households to be better suited than one-car households for leveraging the potential benefits of the battery electric vehicle (BEV), both when the BEV simply replaces the second car and when it is used optimally in combination with a conventional car to overcome the BEV’s range limitation and increase its utilization. Based on a set of GPS-measured car movement data from 64 two-car households in Sweden, we here assess the potential electric driving of a plug-in hybrid electric vehicle (PHEV) in a two-car household and compare the resulting economic viability and potential fuel substitution to that of a BEV.Using estimates of near-term mass production costs, our results suggest that, for Swedish two-car households, the PHEV in general should have a higher total cost of ownership than the BEV, provided the use of the BEV is optimized. However, the PHEV will increasingly be favored if, for example, drivers cannot or do not want to optimize usage. In addition, the PHEV and the BEV are not perfect substitutes. The PHEV may be favored if drivers require that the vehicle be able to satisfy all driving needs (i.e., if drivers don’t accept the range and charge-time restrictions of the BEV) or if drivers requires an even larger battery in the BEV to counter range anxiety.We find that, given a particular usage strategy, the electric drive fraction (EDF) of the vehicle fleet is less dependent on whether PHEVs or BEVs are used to replace one of the conventional cars in two-car households. Instead, the EDF depends more on the usage strategy, i.e., on whether the PHEV/BEV is used to replace the conventional car with the higher annual mileage (“the first car”), the less used car (“the second car”), or is used flexibly to substitute for either in order to optimize use. For example, from a fuel replacement perspective it is often better to replace the first car with a PHEV than to replace the second with a BEV.     

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.     

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.     

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.     

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.     

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.