Car fuel-type choice under travel demand management and economic incentives

Future levels of vehicle air pollution in urban areas will depend on the proportion of new car buyers who opt for less polluting vehicles, as these appear on the market. This paper examines the factors likely to influence the demand for lower emission and zero emission vehicles. Using a discrete choice experiment, suburban driver commuters choose between three types of vehicle, one conventional, one fuel-efficient and one electric. Each is characterized by varying vehicle cost and performance measures, range and refueling rates, and commuting costs and times. The latter are manipulated to determine how their use as economic instruments might influence vehicle choice. All cost and time variables are expressed as ratios of the respondent’s current situation. Parameters of a multinomial discrete choice model are used in a choice simulator to estimate the average choice probability of each type of vehicle under different scenarios reflecting possible future relative vehicle prices and performance levels as well as differential commuting costs and times based on policies aimed at encouraging the purchase of cleaner vehicles. The evidence is that the latter economic instruments will have modest effects on vehicle choice. By contrast there would be a large shift of demand to cleaner and zero-emission vehicles provided their cost and performance came within an acceptable range of conventional vehicles.     

I can’t believe your attitude: a joint estimation of best worst attitudes and electric vehicle choice

The number of conventionally fuelled motor vehicles in use is increasing worldwide despite warnings about finite fossil fuel and the detrimental impacts of burning such fuels. While electric vehicles, the subject of much research, generate far less emissions and offer the potential for power from renewable sources, they are yet to significantly penetrate the market. Tangible barriers such as price and vehicle range still exist, but consumer attitudes also drive behaviour. This paper examines attributes in a framework relatively new to transportation and energy policy; best–worst scaling. This method is widely considered an improvement over traditional methods of eliciting attitudes and beliefs, where respondents select attitudes they find best or worst from a set of attitudinal statements. To avoid potential endogeneity bias, we jointly model attitudes and choice for the first time with best–worst data. It is found that energy crisis, air quality and climate change concerns influence behaviour with respect to vehicle range and that travel behaviour change and forms of government incentives are needed influences on behaviour with respect to vehicle emissions. It is argued that correctly modelling attitudes reduces the error term of the vehicle choice model and provides policy makers with an improved lens for assessing behaviour. Additionally, the methods described within can easily be adapted to other policy scenarios.     

Random regret minimization or random utility maximization: an exploratory analysis in the context of automobile fuel choice

Interest in alternative behavioural paradigms to random utility maximization (RUM) has existed ever since the dominance of the RUM formulation. One alternative is known as random regret minimization (RRM), which suggests that when choosing between alternatives, decision makers aim to minimize anticipated regret. Although the idea of regret is not new, its incorporation into the same discrete choice framework of RUM is very recent. This paper is the first to apply the RRM‐model framework to model choice amongst durable goods. Specifically, we estimate and compare the RRM and RUM models in a stated choice context of choosing amongst vehicles fuelled with petrol, diesel and hybrid (associated with specific levels of fuel efficiency and engine capacity). The RRM model is found to achieve a marginally better fit (using a non‐nested test of differences) than its equally parsimonious RUM counterpart. As a second contribution, we derive a formulation for regret‐based elasticities and compare utility‐based and regret‐based elasticities in the context of stated vehicle type choices. We find that in the context of our choice data, mean estimates of elasticities are different for many of the attributes and alternatives. Copyright © 2011 John Wiley & Sons, Ltd.     

Incentivizing alternative fuel vehicles: the influence of transport policies,attitudes and perceptions

This paper aims to evaluate the influence of policies, attitudes and perceptions when incentivizing alternative fuel vehicles. The impact of possible policies such as gasoline taxes increases, purchase price subsidies, tax exemptions, and increases in fuel recharging station availability for alternative fuelled vehicles is evaluated using hybrid choice models. The models also allow assessing the sensitivity of latent variables (i.e., attitudes and perceptions) in the car purchase behaviour. The models are estimated using data from a stated choice survey collected in five Colombian cities. The latent variables are obtained from the rating of statements related to the transport system, environmental concern, vehicle preferences, and technology. The modelling approach includes regression between latent variables. Results show that environmental concern and the support for green transport policies have a positive influence on the intention to purchase alternative fuel vehicles. Meanwhile, people who reveal to be car-dependent prefer to buy standard fuelled vehicles. The analysis among cities shows similar trends in individual behaviour, although there are differences in attribute sensitivities. The policy scenario analysis revealed high sensitivity to capital cost and the need for extensive investments in refuelling stations for alternative fuel vehicles to become attractive. Nevertheless, all policies should not only be directed at infrastructure and vehicles but also be focused on user awareness and acceptance of the alternative fuel vehicles. The analysis suggests that in an environmentally conscious market, people prefer alternative fuels. However, if the transport policies support private transport, the market shares of alternative fuel vehicles will decrease.     

A nested logit model of automobile holdings for one vehicle households

This paper presents a model of automobile choice by single vehicle households. This effort is distinguished from previous disaggregate automobile holdings models primarily by the use of the nested logit model rather than the more restrictive multinomial logit model. We present a 2-step estimation technique that provides consistent and asymptotically efficient parameter estimates, yet is tractable for very large choice sets. Using disaggregate data on 237 one-vehicle households we estimate the unknown parameters on an automobile choice model containing 785 individual makes, models and vintages of passenger vehicles.     

The influences of past and present residential locations on vehicle ownership decisions

This study explores the relationship between historical exposure to the built environment and current vehicle ownership patterns. The influence of past exposure to the built environment on current vehicle ownership decisions may be causal, but there are alternative explanations. Households may primarily select to live in neighborhoods that facilitate their vehicle ownership preferences, or they may retain preferences that they have developed in the past, irrespective of their current situations. This study seeks to control for these alternative explanations by including the built environment attributes of households’ past residences as an influence on vehicle ownership choices. We use a dataset from a credit reporting firm that contains up to nine previous residential ZIP codes for households currently living in the 13-county Atlanta, Georgia, metropolitan area. Results show that past location is significant, but of marginal influence relative to the attributes of the current location. From a practical perspective, our results suggest that models that include current but not past neighborhood attributes (also controlling for standard socioeconomic variables) can forecast vehicle ownership decisions reasonably well. However, models that include both current and past neighborhood attributes can provide a more nuanced understanding of the built environment’s potentially causal influences on vehicle ownership decisions. This better understanding may provide more realistic forecasts of responses to densification or other travel demand management strategies.     

An econometric model of vehicle use in the household sector

Vehicle-use modelling at the household level has taken on new importance with the pressures on governments to encourage more efficient utilisation of increasingly scarce nonreplenishible liquid fuels. The fundamental energy equation recognizes two direct influences on consumption—the fuel efficiency of the vehicle and the amount of use. Until recently, the interrelationship between vehicle choice and vehicle utilisation at the household level was acknowledged but ignored. The availability of reliable vehicle-use data at the household level now enables a more serious effort at amending the imbalance of research effort where the reliance has been predominantly on vehicle choice modelling and gross (exogenous) assumptions on utilisation as a basis for predicting fuel consumption. This paper proposes an econometric method for identifying the influences on household vehicle use. It differs from previous empirical work in that vehicle kilometers, fuel cost per kilometer and vehicle fuel efficiency are endogenous, with utilisation of each vehicle endogeneously dependent on the utilisation of each and every household vehicle. The data are drawn from wave 1 of a four-wave panel of 1436 households in the Sydney metropolitan area. The empirical findings expose a set of influences on use hitherto not considered. The model specification provides an appropriate module for integration with household-based discrete choice models of vehicle choice.     

Consumer preferences for alternative fuel vehicles: A discrete choice analysis

This paper analyzes the potential demand for privately used alternative fuel vehicles using German stated preference discrete choice data. By applying a mixed logit model, we find that the most sensitive group for the adoption of alternative fuel vehicles embraces younger, well-educated, and environmentally aware car buyers, who have the possibility to plug-in their car at home, and undertake numerous urban trips. Moreover, many households are willing to pay considerable amounts for greater fuel economy and emission reduction, improved driving range and charging infrastructure, as well as for enjoying vehicle tax exemptions and free parking or bus lane access. The scenario results suggest that conventional vehicles will maintain their dominance in the market. Finally, an increase in the battery electric vehicles’ range to a level comparable with all other vehicles has the same impact as a multiple measures policy intervention package.     

A behavioral housing search model: Two-stage hazard-based and multinomial logit approach to choice-set formation and location selection

Residential location search has become an important topic to both practitioners and researchers as more detailed and disaggregate land-use and transportation demand models are developed which require information on individual household location decisions. The housing search process starts with an alternative formation and screening stage. At this level households evaluate all potential alternatives based on their lifestyle, preferences, and utilities to form a manageable choice set with a limited number of plausible alternatives. Then the final residential location is selected among these alternatives. This two-stage decision making process can be used for both aggregate zone-level selection as well as searching disaggregate parcel or building-based housing markets for potential dwellings. In this paper a zonal level household housing search model is developed. Initially, a household specific choice set is drawn from the entire possible alternatives in the area based on the average household work distance to each alternative. Following the choice set formation step, a discrete choice model is utilized for modeling the final residential zone selection of the household. A hazard-based model is used for the choice set formation module while the final choice selection is modeled using a multinomial logit formulation with a deterministic sample correction factor. The approach presented in the paper provides a remedy for the large choice set problem typically faced in housing search models.     

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.     

Electric vehicles in multi-vehicle households

The suitability of an electric vehicle of a given range to serve in place of a given conventional vehicle is not limited by the daily travel over distances within that that range, but rather by the occasional inconvenience of finding alternative transport for longer trips. While the frequency of this inconvenience can be computed from usage data, the willingness of individual users to accept that replacement depends on details of available transportation alternatives and their willingness to use them. The latter can be difficult to assess. Fortunately, 65% of US households have access to the most convenient alternative possible: a second car. In this paper we describe an analysis of prospective EV acceptance and travel electrification in two-car households in the Puget Sound region. We find that EVs with 60 miles of useful range could be acceptable (i.e. incur inconvenience no more than three days each year) to nearly 90% of two-car households and electrify nearly 55% of travel in those households (32% of all travel). This compares to 120 miles range required to achieve the same fraction of electrified travel via one-for-one replacement of individual vehicles. Even though only one third of personal vehicles in the US may be replaced in this paradigm, the ‘EV as a second-car’ concept is attractive in that a significant fraction of travel can be electrified by vehicles with modest electric range and virtually no dependence on public charging infrastructure.     

Getting around a license-plate ban: Behavioral responses to Mexico City’s driving restriction

License-plate-based driving restrictions are among the highest profile policies for local governments to address congestion and air pollution. Cities as varied as Sao Paulo, Paris, Tianjin, and New Delhi have enacted temporary or permanent restrictions to improve local air quality. Using household travel survey data and a research design based on the abrupt shift in how the policy applies to 10-year-old vs. 9-year-old vehicles, we evaluate the impact of Hoy No Circula, one of the earliest and most studied driving restrictions, in Mexico City. In line with previous studies, we find that Hoy No Circula has done little to reduce overall vehicle travel, but we reject the prevailing theory that its lack of success is due to perverse incentives for households to buy second cars. Instead, we highlight the range of other, less costly ways that people adjust behavior to avoid the restrictions. Although no single behavior dominates, most households — particularly those that own older, higher-polluting vehicles — do not use their car every weekday regardless of the restriction. As a result, it is relatively easy to shuffle travel from restricted days to unrestricted days and thus avoid the ban. Shuffling travel days is less costly, more immediately available, and far simpler for most households than buying a second car.     

A joint flexible econometric model system of household residential location and vehicle fleet composition/usage choices

Modeling the interaction between the built environment and travel behavior is of much interest to transportation planning professionals due to the desire to curb vehicular travel demand through modifications to built environment attributes. However, such models need to take into account self-selection effects in residential location choice, wherein households choose to reside in neighborhoods and built environments that are conducive to their lifestyle preferences and attitudes. This phenomenon, well-recognized in the literature, calls for the specification and estimation of joint models of multi-dimensional land use and travel choice processes. However, the estimation of such model systems that explicitly account for the presence of unobserved factors that jointly impact multiple choice dimensions is extremely complex and computationally intensive. This paper presents a joint GEV-based logit regression model of residential location choice, vehicle count by type choice, and vehicle usage (vehicle miles of travel) using a copula-based framework that facilitates the estimation of joint equations systems with error dependence structures within a simple and flexible closed-form analytic framework. The model system is estimated on a sample derived from the 2000 San Francisco Bay Area Household Travel Survey. Estimation results show that there is significant dependency among the choice dimensions and that self-selection effects cannot be ignored when modeling land use-travel behavior interactions.     

Exhaust emissions and fuel consumption of a triple-fuel spark-ignition engine powered passenger car

This paper examines the influence of compressed natural gas, liquefied petroleum gas and gasoline fuel on the exhaust emissions and the fuel consumption of a spark-ignition engine powered passenger car. The vehicle was driven according to the urban driving cycle and extra urban driving cycle speed profiles with the warmed-up engine. Cause and effect based analysis reveals potential for using different fuels to reduce vehicle emission and deficiencies associated with particular fuels. The highest tank to wheel efficiency and the lowest CO₂ emission are observed with the natural gas fuelled vehicle, that also featured the highest total hydrocarbon emissions and high NO_x emissions because of fast three way catalytic converter aging due the use of the compressed natural gas. Retrofitted liquefied petroleum gas fuel supply systems feature the greatest air-fuel ratio variations that result in the lowest TtW efficiency and in the highest NO_x emissions of the liquefied gas fuelled vehicle.     

Improving the behavioral realism of global integrated assessment models: An application to consumers’ vehicle choices

A large body of transport sector-focused research recognizes the complexity of human behavior in relation to mobility. Yet, global integrated assessment models (IAMs), which are widely used to evaluate the costs, potentials, and consequences of different greenhouse gas emission trajectories over the medium-to-long term, typically represent behavior and the end use of energy as a simple rational choice between available alternatives, even though abundant empirical evidence shows that real-world decision making is more complex and less routinely rational. This paper demonstrates the value of incorporating certain features of consumer behavior in IAMs, focusing on light-duty vehicle (LDV) purchase decisions. An innovative model formulation is developed to represent heterogeneous consumer groups with varying preferences for vehicle novelty, range, refueling/recharging availability, and variety. The formulation is then implemented in the transport module of MESSAGE-Transport, a global IAM, although it also has the generic flexibility to be applied in energy-economy models with varying set-ups. Comparison of conventional and ‘behaviorally-realistic’ model runs with respect to vehicle purchase decisions shows that consumer preferences may slow down the transition to alternative fuel (low-carbon) vehicles. Consequently, stronger price-based incentives and/or non-price based measures may be needed to transform the global fleet of passenger vehicles, at least in the initial market phases of novel alternatives. Otherwise, the mitigation burden borne by other transport sub-sectors and other energy sectors could be higher than previously estimated. More generally, capturing behavioral features of energy consumers in global IAMs increases their usefulness to policy makers by allowing a more realistic assessment of a more diverse suite of policies.     

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.     

Preferences for alternative fuel vehicles by Dutch local governments

Using a choice model, we estimate the preferences for alternative fuel vehicles by Dutch local governments. The analysis shows that local governments are willing to pay between 25% and 50% extra for an alternative fuel vehicle without a serious loss of utility. Further, local emissions are an important criterion on which to base a decision, especially for municipalities and provinces. We also calculate the utility for a number of prominent alternative fuel vehicles. We find that show that local governments value the battery electric vehicle and biogas internal combustion engine equally. It is important, however, that the time to refuel for electric vehicles is reduced to about 30 min.     

A joint model for vehicle type and fuel type choice: evidence from a cross-nested logit study

In the face of growing concerns about greenhouse gas emissions, there is increasing interest in forecasting the likely demand for alternative fuel vehicles. This paper presents an analysis carried out on stated preference survey data on California consumer responses to a joint vehicle type choice and fuel type choice experiment. Our study recognises the fact that this choice process potentially involves high correlations that an analyst may not be able to adequately represent in the modelled utility components. We further hypothesise that a cross-nested logit structure can capture more of the correlation patterns than the standard nested logit model structure in such a multi-dimensional choice process. Our empirical analysis and a brief forecasting exercise produce evidence to support these assertions. The implications of these findings extend beyond the context of the demand for alternative fuel vehicles to the analysis of multi-dimensional choice processes in general. Finally, an extension verifies that further gains can be made by using mixed GEV structures, allowing for random heterogeneity in addition to the flexible correlation structures.     

Assessing traveler responsiveness to land and location based accessibility and mobility solutions

In this paper, a joint multinomial logit (MNL) model of residential location and vehicle availability choice is formulated and estimated using a sample of households from the San Francisco, CA area Metropolitan Transportation Commission's 1990 household travel survey. Subsequently, models of travel intensity (number of daily household trips and vehicle-miles traveled) are estimated as a function of household characteristics and of attributes derived from the joint residential location and auto availability choice model (number of vehicles, percent land developed). A policy test shows that reducing the cost of locating in the densest areas of the metropolitan area is likely to have only marginal impact on vehicle availability and household trip making.     

Projecting adoption of truck powertrain technologies and CO2 emissions in line-haul networks

In this paper we present a mixed-integer linear program to represent the decision-making process for heterogeneous fleets selecting vehicles and allocating them on freight delivery routes to minimize total cost of ownership. This formulation is implemented to project alternative powertrain technology adoption and utilization trends for a set of line-haul fleets operating on a regional network. Alternative powertrain technologies include compressed (CNG) and liquefied natural gas (LNG) engines, hybrid electric diesel, battery electric (BE), and hydrogen fuel cell (HFC). Future policies, economic factors, and availability of fueling and charging infrastructure are input assumptions to the proposed modeling framework. Powertrain technology adoption, vehicle utilization, and resulting CO₂ emissions predictions for a hypothetical, representative regional highway network are illustrated. A design of experiments (DOE) is used to quantify sensitivity of adoption outcomes to variation in vehicle performance parameters, fuel costs, economic incentives, and fueling and charging infrastructure considerations. Three mixed-adoption scenarios, including BE, HFC, and CNG vehicle market penetration, are identified by the DOE study that demonstrate the potential to reduce cumulative CO₂ emissions by more than 25% throughout the period of study.