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An Indirect Utility Model of Multiple Car Ownership and Use

Author

Listed:
  • Jan Rouwendal

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • John Pommer

    (Connekt, Delft)

Abstract

The number of households with two or more cars is steadily increasing over time. The reason is that ownership of a single car imposes restrictions on car use when there are multiple license holders in a household. If such restrictions are severe, the benefits of multiple-car ownership may exceed the additional costs involved. In this paper, we develop a model that is based on the idea that limited substitutability between car use of different drivers is the driving force behind multiple-car ownership. We formulate a model structure in which households can own and use multiple cars. This approach is used to generalize an existing model for ownership and use of a single car two multiple car ownership and use. The extended model is estimated on Dutch data concerning households with one or two cars. An application to the effects of shifting the burden of car taxes from fixed to variable costs is provided.

Suggested Citation

  • Jan Rouwendal & John Pommer, 2004. "An Indirect Utility Model of Multiple Car Ownership and Use," Tinbergen Institute Discussion Papers 04-085/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20040085
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    Cited by:

    1. Zhu, Shanjiang & Du, Longyuan & Zhang, Lei, 2013. "Rationing and pricing strategies for congestion mitigation: Behavioral theory, econometric model, and application in Beijing," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 210-224.
    2. Fosgerau, Mogens & Jensen, Thomas C., 2013. "A green reform is not always green," MPRA Paper 42264, University Library of Munich, Germany.

    More about this item

    Keywords

    automobile demand; multiple car ownership; demand for car kilometers;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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