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Rebound Effect or Induced Demand? Analyzing the Compound Dual Effects on VMT in the U.S

Author

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  • Jihye Byun

    () (The Cho Chun Shik Graduate School of Green Transportation, Korea Advanced Institute of Science and Technology, Daejeon 34141, Korea)

  • Sungjin Park

    () (Department of Urban Design and Planning, Hongik University, Seoul 04066, Korea)

  • Kitae Jang

    () (The Cho Chun Shik Graduate School of Green Transportation, Korea Advanced Institute of Science and Technology, Daejeon 34141, Korea)

Abstract

This research explored the dual influence of fuel efficiency and roadway capacity on vehicle distance traveled. The empirical study was conducted by applying a generalized least square (GLS) analysis to the U.S. state-level panel data of fuel efficiency, roadway lane-miles, and vehicle miles traveled (VMT) for over three decades (1980–2010). The analysis confirmed the co-existence of rebound effect and induced demand on driving distances over the decades—improved fuel efficiency and expanded roadway capacity caused additional vehicle distance traveled, partially offsetting the benefits of the measures taken. Furthermore, the results showed that the magnitude of each effect would be unjustifiably overestimated if this dual influence was not taken into consideration.

Suggested Citation

  • Jihye Byun & Sungjin Park & Kitae Jang, 2017. "Rebound Effect or Induced Demand? Analyzing the Compound Dual Effects on VMT in the U.S," Sustainability, MDPI, Open Access Journal, vol. 9(2), pages 1-10, February.
  • Handle: RePEc:gam:jsusta:v:9:y:2017:i:2:p:219-:d:89511
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    rebound effect; induced demand; feedback effect; fuel efficiency; road lane-mile; vehicle mile traveled;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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