Structural equation modeling for national travel demand: an examination of the relationships between communication modes

This paper examines the relationships among different transportation modes, and between transportation and telecommunications, by applying the structural equation modeling (SEM) technique. For this purpose, we collected and compiled time series data on national travel demand, and socioeconomic and telecommunications conditions in Taiwan, and built national travel demand models using SEM. The estimation results show that the relationship between telecommunications and transportation demand (either car ownership or public transportation) is more complementary than substitutional. Moreover, car ownership is a type of inelastic necessity good, and its relationship with public transportation is more substitutional than complementary. Finally, among the three public transportation modes – rail, bus and domestic air – it is found that air is weakest in terms of competitive power. From the viewpoint of long-term forecasting trends, the bus holds its competitive power in comparison with other public transportation modes and would not be replaced in the future.