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A discrete-continuous model of households' vehicle choice and usage, with an application to the effects of residential density

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  • Fang, Hao Audrey
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    Abstract

    This paper develops a new method to solve multivariate discrete-continuous problems and applies the model to measure the influence of residential density on households' vehicle fuel efficiency and usage choices. Traditional discrete-continuous modelling of vehicle holding choice and vehicle usage becomes unwieldy with large numbers of vehicles and vehicle categories. I propose a more flexible method of modelling vehicle holdings in terms of number of vehicles in each category, using a Bayesian multivariate ordinal response system. I also combine the multivariate ordered equations with Tobit equations to jointly estimate vehicle type/usage demand in a reduced form, offering a simpler alternative to the traditional discrete/continuous analysis. Using the 2001 National Household Travel Survey data, I find that increasing residential density reduces households' truck holdings and utilization in a statistically significant but economically insignificant way. The results are broadly consistent with those from a model derived from random utility maximization. The method developed above can be applied to other discrete-continuous problems.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

    Volume (Year): 42 (2008)
    Issue (Month): 9 (November)
    Pages: 736-758

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    Handle: RePEc:eee:transb:v:42:y:2008:i:9:p:736-758

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    References

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    1. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, October.
    2. Bhat, Chandra R. & Sen, Sudeshna, 2006. "Household vehicle type holdings and usage: an application of the multiple discrete-continuous extreme value (MDCEV) model," Transportation Research Part B: Methodological, Elsevier, vol. 40(1), pages 35-53, January.
    3. Bhat, Chandra R., 2008. "The multiple discrete-continuous extreme value (MDCEV) model: Role of utility function parameters, identification considerations, and model extensions," Transportation Research Part B: Methodological, Elsevier, vol. 42(3), pages 274-303, March.
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    7. Bento, Antonio M. & Cropper, Maureen L. & Mobarak, Ahmed Mushfiq & Vinha, Katja, 2003. "The impact of urban spatial structure on travel demand in the United States," Policy Research Working Paper Series 3007, The World Bank.
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    13. Bhat, Chandra R., 2005. "A multiple discrete-continuous extreme value model: formulation and application to discretionary time-use decisions," Transportation Research Part B: Methodological, Elsevier, vol. 39(8), pages 679-707, September.
    14. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
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    Citations

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    Cited by:
    1. Brownstone, David & Golob, Thomas F., 2009. "The impact of residential density on vehicle usage and energy consumption," Journal of Urban Economics, Elsevier, vol. 65(1), pages 91-98, January.
    2. Lee, Sungwon & Lee, Bumsoo, 2014. "The influence of urban form on GHG emissions in the U.S. household sector," Energy Policy, Elsevier, vol. 68(C), pages 534-549.
    3. Mandell, Svante, 2008. "Policies towards a more efficient car fleet," Working Papers 2008:12, Swedish National Road & Transport Research Institute (VTI).
    4. Ipek Sener & Chandra Bhat, 2012. "Modeling the spatial and temporal dimensions of recreational activity participation with a focus on physical activities," Transportation, Springer, vol. 39(3), pages 627-656, May.
    5. Pinjari, Abdul Rawoof & Bhat, Chandra, 2010. "A multiple discrete-continuous nested extreme value (MDCNEV) model: Formulation and application to non-worker activity time-use and timing behavior on weekdays," Transportation Research Part B: Methodological, Elsevier, vol. 44(4), pages 562-583, May.
    6. Rentziou, Aikaterini & Gkritza, Konstantina & Souleyrette, Reginald R., 2012. "VMT, energy consumption, and GHG emissions forecasting for passenger transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 487-500.
    7. Musti, Sashank & Kockelman, Kara M., 2011. "Evolution of the household vehicle fleet: Anticipating fleet composition, PHEV adoption and GHG emissions in Austin, Texas," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(8), pages 707-720, October.
    8. Kim, Jinwon, 2012. "Endogenous vehicle-type choices in a monocentric city," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 749-760.
    9. Baltas, George & Saridakis, Charalampos, 2013. "An empirical investigation of the impact of behavioural and psychographic consumer characteristics on car preferences: An integrated model of car type choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 54(C), pages 92-110.

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