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The impact of urban form on vehicle fuel consumption in Mexican metropolitan areas

Author

Listed:
  • David R. Heres

    (Associate Professor, Center for Research and Teaching in Economics (CIDE), and Researcher, Banco de Mexico)

  • Rafael Dávila-Bugarín

    (Director, Market Conditions, Mexican Federal Institute of Telecommunications (IFT))

Abstract

In this study we analyze the impact that two measures of the urban form – residential density and the land use diversity index – have on gasoline consumption in households located in metropolitan areas of Mexico. The econometric specification implemented is a modified two-part model that fits the distribution of gasoline consumption, while mitigating the endogeneity bias resulting from residential self-selection. The results from the instrumental variables specification, suggest that after controlling for household characteristics increasing residential density in the vicinity of the household location could increase gasoline consumption while increasing residential density at the metropolitan scale may reduce gasoline consumption. Interestingly, the land use diversity index does not seem to affect gasoline consumption. Put together, these findings are indicative of the potential risk of not taking advantage of high residential densities to, together with other strategies, reduce gasoline consumption in metropolitan areas in Mexico.

Suggested Citation

  • David R. Heres & Rafael Dávila-Bugarín, 2020. "The impact of urban form on vehicle fuel consumption in Mexican metropolitan areas," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 97(01), pages 241-263.
    • Handle: RePEc:ekz:ekonoz:2020110
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    compact development; gasoline consumption; land use diversity index; residential density; travel behavior; two-part model;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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