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The Impact of Residential Density on Vehicle Usage and Fuel Consumption: Evidence from National Samples

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  • Kim, Jinwon
  • Brownstone, David

Abstract

This paper investigates the impact of residential density on household vehicle usage and fuel consumption. We estimate a simultaneous equations system to account for the potential residential self-selection problem. While most previous studies focus on a specific region, this paper uses national samples from the 2001 National Household Travel Survey. The estimation results indicate that residential density has a statistically significant but economically modest influence on vehicle usage, which is similar to that in previous studies. However, the joint effect of the contextual density measure (density in the context of its surrounding area) and residential density on vehicle usage is quantitatively larger than the sole effect of residential density. Moving a household from a suburban to an urban area reduces household annual mileage by 18%. We also find that a lower neighborhood residential density induces consumer choices toward less fuel-efficient vehicles, which confirms the finding in Brownstone and Golob (2009).

Suggested Citation

  • Kim, Jinwon & Brownstone, David, 2013. "The Impact of Residential Density on Vehicle Usage and Fuel Consumption: Evidence from National Samples," MPRA Paper 47785, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:47785
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    References listed on IDEAS

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    1. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
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    More about this item

    Keywords

    Household vehicle choice; Simultaneous equations systems; Residential density;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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