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An econometric model of vehicle use in the household sector

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  • Hensher, David A.

Abstract

Vehicle-use modelling at the household level has taken on new importance with the pressures on governments to encourage more efficient utilisation of increasingly scarce nonreplenishible liquid fuels. The fundamental energy equation recognizes two direct influences on consumption--the fuel efficiency of the vehicle and the amount of use. Until recently, the interrelationship between vehicle choice and vehicle utilisation at the household level was acknowledged but ignored. The availability of reliable vehicle-use data at the household level now enables a more serious effort at amending the imbalance of research effort where the reliance has been predominantly on vehicle choice modelling and gross (exogenous) assumptions on utilisation as a basis for predicting fuel consumption. This paper proposes an econometric method for identifying the influences on household vehicle use. It differs from previous empirical work in that vehicle kilometers, fuel cost per kilometer and vehicle fuel efficiency are endogenous, with utilisation of each vehicle endogeneously dependent on the utilisation of each and every household vehicle. The data are drawn from wave 1 of a four-wave panel of 1436 households in the Sydney metropolitan area. The empirical findings expose a set of influences on use hitherto not considered. The model specification provides an appropriate module for integration with household-based discrete choice models of vehicle choice.

Suggested Citation

  • Hensher, David A., 1985. "An econometric model of vehicle use in the household sector," Transportation Research Part B: Methodological, Elsevier, vol. 19(4), pages 303-313, August.
  • Handle: RePEc:eee:transb:v:19:y:1985:i:4:p:303-313
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    Cited by:

    1. Lovelace, R. & Beck, S.B.M. & Watson, M. & Wild, A., 2011. "Assessing the energy implications of replacing car trips with bicycle trips in Sheffield, UK," Energy Policy, Elsevier, vol. 39(4), pages 2075-2087, April.
    2. Steg, Linda & Geurs, Karst & Ras, Michiel, 2001. "The effects of motivational factors on car use: a multidisciplinary modelling approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(9), pages 789-806, November.
    3. Golob, Thomas F. & Kim, Seyoung & Ren, Weiping, 1994. "A Structural Model of Vehicle Use in Two-Vehicle Households," University of California Transportation Center, Working Papers qt9wp6c79q, University of California Transportation Center.
    4. Bruno De Borger & Jan Rouwendal, 2014. "Car User Taxes, Quality Characteristics, and Fuel Efficiency Household Behaviour and Market Adjustment," Journal of Transport Economics and Policy, University of Bath, vol. 48(3), pages 345-366, September.
    5. Golob, Thomas F. & Kim, Seyoung & Ren, Weiping, 1996. "How households use different types of vehicles: A structural driver allocation and usage model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 30(2), pages 103-118, March.

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