Information Technology and Transportation: Substitutes or Complements?
AbstractThe increased availability and prevalence of Information and Communications Technology (ICT) provides opportunities to use such products as substitutes for transportation. Common examples of this substitution are telecommuting, video conferences, and online classes. However, despite the intuitive appeal of a substitution relationship existing between ICT and transportation, prior research has indicated that the relationship between ICT and transportation is quite complex; at times ICT substitutes for travel and at other times ICT and travel complement each other. Therefore, using a Quadratic Almost Ideal Demand System (QUAIDS) model and data from the US Consumer Expenditure Survey and the Consumer Price Index, I analyzed the effect of ICT expenditures on transportation demand. The analysis indicates that ICT may serve as a substitute for air travel, but primarily serves as a complement for private transportation. Overall the data supports a complementary relationship between ICT and transportation, which indicates that an increase in technology may increase rather than decrease the negative externalities associated with transportation.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 46548.
Date of creation: 23 Apr 2013
Date of revision:
Transportation; Consumer Expenditures; Information Technology;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-27 (All new papers)
- NEP-ICT-2013-04-27 (Information & Communication Technologies)
- NEP-TRE-2013-04-27 (Transport Economics)
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