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Estimating Rebound Effects in Personal Automotive Transport: Gas Price and the Presence of Hybrids

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  • Carlena Cochi Ficano
  • Patrick Thompson

Abstract

Energy conservation gains within the personal vehicle fleet are undermined if drivers respond to declining transportation prices by increasing the quantity of transportation demanded, a phenomenon referred to as “rebound.†In this analysis, we estimate transportation rebound in the U.S. using 2009 vehicle level data from the National Household Travel Survey (NHTS). Results from OLS and IV models indicate that a one percent reduction in driving cost associates with between a 0.56 and a 0.78 percent increase in vehicle miles traveled, with the effect more pronounced in single than multiple vehicle households and among drivers with the lowest driving intensity.

Suggested Citation

  • Carlena Cochi Ficano & Patrick Thompson, 2014. "Estimating Rebound Effects in Personal Automotive Transport: Gas Price and the Presence of Hybrids," The American Economist, Sage Publications, vol. 59(2), pages 167-175, November.
    • Handle: RePEc:sae:amerec:v:59:y:2014:i:2:p:167-175
    DOI: 10.1177/056943451405900207
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    References listed on IDEAS

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    Cited by:

    1. Dimitropoulos, Alexandros & Oueslati, Walid & Sintek, Christina, 2018. "The rebound effect in road transport: A meta-analysis of empirical studies," Energy Economics, Elsevier, vol. 75(C), pages 163-179.

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