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Inferring price elasticities of car use and moral costs of driving without a licence

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  • Jørgensen, Finn
  • Dargay, Joyce

Abstract

The article develops a model which makes it possible to infer drivers' perceived extra costs per km of driving without a license and the moral costs of doing so. Furthermore, it gives estimates of the ratios between responses to car license suspension in different time perspectives. The calculations are carried out using data over car holders' willingness to pay for not losing their driving license for 12Â months and 24Â months, their yearly driving distance and variable car usage costs. The elasticity ratios estimated here are compared with previous studies of short-term and long-term elasticities of car usage with respect to car usage costs.

Suggested Citation

  • Jørgensen, Finn & Dargay, Joyce, 2007. "Inferring price elasticities of car use and moral costs of driving without a licence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(1), pages 49-55, January.
    • Handle: RePEc:eee:transa:v:41:y:2007:i:1:p:49-55
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    References listed on IDEAS

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    1. Finn Jøgensen & Tore Wentzel-Larsen, 2002. "Car drivers' willingness to pay for not losing their driving licence," Transportation, Springer, vol. 29(3), pages 271-286, August.
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    Cited by:

    1. Odeck, James & Bråthen, Svein, 2008. "Travel demand elasticities and users attitudes: A case study of Norwegian toll projects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(1), pages 77-94, January.

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