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Motorization in developing countries: Causes, consequences, and effectiveness of policy options

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  • Kutzbach, Mark J.

Abstract

This paper examines the rise in car use and decline in bus use in developing countries using a theoretical, mode choice model and numerical simulations. The empirical literature points to rising per capita income as a primary determinant of rising motor vehicle use, known as motorization. This analysis of commuter car/bus mode choice shows that in addition to rising income, other factors may drive rising car use at the urban level. First, greater income inequality increases car use if car use is still low, and reduces car use if it is already high. Second, traffic congestion hinders buses more than cars, causing positive feedback between car use and travel time that reduces bus use and contributes to its abrupt collapse. Third, policy interventions to reduce congestion in urban areas, such as tolling car use and reserving lanes for buses, increase consumer surplus by maintaining bus service as an alternate travel mode, even as incomes rise. Socially optimal reserved bus lanes may achieve most of the gains from a socially optimal toll on car use.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 65 (2009)
Issue (Month): 2 (March)
Pages: 154-166

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Handle: RePEc:eee:juecon:v:65:y:2009:i:2:p:154-166

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Web page: http://www.elsevier.com/locate/inca/622905

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Keywords: Motorization Mode choice Congestion Urban growth Developing countries;

References

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  1. Baker, Judy & Basu, Rakhi & Cropper, Maureen & Lall, Somik & Takeuchi, Akie, 2005. "Urban poverty and transport : the case of Mumbai," Policy Research Working Paper Series 3693, The World Bank.
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Citations

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Cited by:
  1. Paul J. Burke, 2014. "Green Pricing in the Asia Pacific: An Idea Whose Time Has Come?," CCEP Working Papers 1409, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
  2. Zhou, Jiangping, 2014. "From better understandings to proactive actions: Housing location and commuting mode choices among university students," Transport Policy, Elsevier, vol. 33(C), pages 166-175.
  3. Parry, Ian W.H. & Timilsina, Govinda R., 2010. "How should passenger travel in Mexico City be priced?," Journal of Urban Economics, Elsevier, vol. 68(2), pages 167-182, September.
  4. Hultkrantz, Lars & Nilsson, Jan-Eric & Arvidsson, Sara, 2012. "Voluntary internalization of speeding externalities with vehicle insurance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(6), pages 926-937.

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