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Car Traffic Elasticities A Spatial Panel Data Analysis of French Regions

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  • Alain Pirotte
  • Jean-Loup Madre

Abstract

This paper revisits the elasticities of car traffic using a panel dataset of the twenty-one French regions over the period 1973-99 considering spatial interdependences. Two spatial specifications including random or fixed effects are retained. These models have been estimated using the Maximum Likelihood Estimator (MLE) as an iterative two-stage procedure. We find that significant spatial interdependences characterise the regional car traffic per vehicle. Following the spatial specifications, direct elasticities with respect to kilometres driven for the price of motor fuels fall in the range 0.14 to 0.09. The other elasticities vary respectively from 0.30 to 0.57 for household income per capita, and from 0.54 to 0.28 for the number of cars per capita, confirming that there are more and more cars, but that each car is less and less used. © 2011 LSE and the University of Bath

Suggested Citation

  • Alain Pirotte & Jean-Loup Madre, 2011. "Car Traffic Elasticities A Spatial Panel Data Analysis of French Regions," Journal of Transport Economics and Policy, University of Bath, vol. 45(3), pages 341-365, September.
    • Handle: RePEc:tpe:jtecpo:v:45:y:2011:i:3:p:341-365
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    Cited by:

    1. Sotirios Thanos & Maria Kamargianni & Andreas Schäfer, 2018. "Car Travel Demand: Spillovers and Asymmetric Price Effects in a Spatial Setting," Transportation Science, INFORMS, vol. 52(3), pages 621-636, June.
    2. Elhorst, J. Paul & Madre, Jean-Loup & Pirotte, Alain, 2020. "Car traffic, habit persistence, cross-sectional dependence, and spatial heterogeneity: New insights using French departmental data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 614-632.
    3. Marco Baudino, 2020. "Environmental Engel curves in Italy: A spatial econometric investigation," Papers in Regional Science, Wiley Blackwell, vol. 99(4), pages 999-1018, August.
    4. Filippini, Massimo & Heimsch, Fabian, 2016. "The regional impact of a CO2 tax on gasoline demand: A spatial econometric approach," Resource and Energy Economics, Elsevier, vol. 46(C), pages 85-100.

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