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The effect of prices and income on car travel in the UK

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  • Dargay, Joyce
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    Abstract

    The objective of this paper is to analyse the factors determining household car travel, and specifically the effects of household income and the prices of cars and motor fuels, and to explore the intertemporal pattern of adjustment. The question of asymmetry in the response to rising and falling income is also addressed. Such asymmetry may be caused by habit or resistance to change or the tendency to acquire habits to consume more easily than to abandon them. The impact of prices, the speed of adjustment and the resistance to change will be important in determining the possibility of influencing travel behaviour and specifically car use. The study utilises repeated cross-section data from the annual UK Family Expenditure Surveys and employs a pseudo-panel methodology. The results are compared with those for car ownership estimated on the basis of similar models.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part A: Policy and Practice.

    Volume (Year): 41 (2007)
    Issue (Month): 10 (December)
    Pages: 949-960

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    Handle: RePEc:eee:transa:v:41:y:2007:i:10:p:949-960

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    1. MacKinnon, James G. & White, Halbert & Davidson, Russell, 1983. "Tests for model specification in the presence of alternative hypotheses : Some further results," Journal of Econometrics, Elsevier, vol. 21(1), pages 53-70, January.
    2. Dargay, Joyce M., 2002. "Determinants of car ownership in rural and urban areas: a pseudo-panel analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(5), pages 351-366, September.
    3. Dargay, Joyce M, 2001. "The effect of income on car ownership: evidence of asymmetry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(9), pages 807-821, November.
    4. Nijman, T.E. & Verbeek, M.J.C.M., 1992. "Can cohort data be treated as genuine panal data?," Open Access publications from Tilburg University urn:nbn:nl:ui:12-153281, Tilburg University.
    5. Dargay, Joyce & Gately, Dermot, 1997. "The demand for transportation fuels: Imperfect price-reversibility?," Transportation Research Part B: Methodological, Elsevier, vol. 31(1), pages 71-82, February.
    6. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
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    Cited by:
    1. Djemai, Elodie & Arestoff, Florence, 2013. "Women's empowerment across the life cycle and generations: Evidence from Sub-Saharan Africa," Economics Papers from University Paris Dauphine 123456789/12351, Paris Dauphine University.
    2. Koksal, Aycan & Wohlgenant, Michael, 2013. "Interdependence of Tobacco and Alcohol Consumption: A Natural Experiment Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150459, Agricultural and Applied Economics Association.
    3. Yang, Dujuan & Timmermans, Harry, 2013. "Analysis of influence of fuel price on individual activity-travel time expenditure," Transport Policy, Elsevier, vol. 30(C), pages 40-55.
    4. Nolan, Anne, 2010. "A dynamic analysis of household car ownership," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(6), pages 446-455, July.
    5. Michael Grimsrud & Ahmed El-Geneidy, 2014. "Transit to eternal youth: lifecycle and generational trends in Greater Montreal public transport mode share," Transportation, Springer, vol. 41(1), pages 1-19, January.
    6. Yu, Biying & Zhang, Junyi & Fujiwara, Akimasa, 2013. "Evaluating the direct and indirect rebound effects in household energy consumption behavior: A case study of Beijing," Energy Policy, Elsevier, vol. 57(C), pages 441-453.
    7. Koksal, Aycan & Wohlgenant, Michael, 2013. "Pseudo Panel Data Estimation Technique and Rational Addiction Model: An Analysis of Tobacco, Alcohol and Coffee Demands," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150457, Agricultural and Applied Economics Association.
    8. De Witte, Astrid & Macharis, Cathy & Mairesse, Olivier, 2008. "How persuasive is 'free' public transport?: A survey among commuters in the Brussels Capital Region," Transport Policy, Elsevier, vol. 15(4), pages 216-224, July.
    9. Su, Qing, 2011. "Induced motor vehicle travel from improved fuel efficiency and road expansion," Energy Policy, Elsevier, vol. 39(11), pages 7257-7264.
    10. Warunsiri, Sasiwimon & McNown, Robert, 2010. "The Returns to Education in Thailand: A Pseudo-Panel Approach," World Development, Elsevier, vol. 38(11), pages 1616-1625, November.
    11. Copenhagen Economics, 2010. "Company Car Taxation," Taxation Papers 22, Directorate General Taxation and Customs Union, European Commission.
    12. De Witte, Astrid & Hollevoet, Joachim & Dobruszkes, Frédéric & Hubert, Michel & Macharis, Cathy, 2013. "Linking modal choice to motility: A comprehensive review," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 329-341.
    13. Weis, Claude & Axhausen, Kay W., 2009. "Induced travel demand: Evidence from a pseudo panel data based structural equations model," Research in Transportation Economics, Elsevier, vol. 25(1), pages 8-18.
    14. Hymel, Kent M. & Small, Kenneth A. & Dender, Kurt Van, 2010. "Induced demand and rebound effects in road transport," Transportation Research Part B: Methodological, Elsevier, vol. 44(10), pages 1220-1241, December.
    15. Wang, H. & Zhou, P. & Zhou, D.Q., 2012. "An empirical study of direct rebound effect for passenger transport in urban China," Energy Economics, Elsevier, vol. 34(2), pages 452-460.
    16. Roxana Gutiérrez-Romero, 2012. "Determinants of Spanish Firms' Life Cycle and Job Creation: A Pseudo-Panel Approach," Working Papers wpdea1209, Department of Applied Economics at Universitat Autonoma of Barcelona.

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