Do Smart Growth Strategies Have a Role in Curbing Vehicle Miles Traveled? A Further Assessment Using Household Level Survey Data
Abstract
This paper draws on McFadden’s location choice theory and incorporates households’ residential choice decisions as a hierarchical process in a structural travel demand model. The paper argues that such an approach can effectively tackle the problems of self-selection and multicollinearity. Contrary to previous findings, empirical results based on OLS and 3SLS reveal that travel demand is highly elastic to certain smart-growth features, if they are measured at different spatial scales. The results are robust against alternative sequencing of the hierarchical choice process. An analysis of the quantitative impact of a change in the smart-growth and fuel-tax policies reveals significant returns under both policies. Finally, a simulation based on California suggests that smart growth policies substantially reduce household travel demand.Download Info
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Bibliographic Info
Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.
Volume (Year): 12 (2012)
Issue (Month): 1 ()
Pages: 37
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Web page: http://www.degruyter.com
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Web: http://www.degruyter.com/view/j/bejeap
Related research
Keywords: transportation demand; land use policies; self-selection; multicollinearity; hierarchical choice theory; structural equations model; three stage least squares;Find related papers by JEL classification:
- R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Systems
- C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
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