Highlights We estimate a general model for the demand for kilometres in multiple car households. We find substantial differences with formulations that neglect the possibility of substitution. We find that car efficiency and substitution are strongly correlated.

    Abstract In this paper we study the demand for car kilometres in two-car households, focusing on the substitution between cars of different fuel efficiency in response to fuel price changes. We use a large sample of detailed Danish data on two-car households to estimate – for each car owned by the household – own and cross-price effects of increases in fuel costs per kilometre. The empirical results show that failure to capture substitution between cars within the household can result in substantial misspecification biases. Ignoring substitution, the basic model yielded fuel price elasticities of −0.98 and −1.41 for the primary and secondary cars, respectively. Accounting for substitution effects, these figures reduce to, respectively, −0.32 and −0.45. Consistent with substitution behaviour, we find that the fuel price elasticity of fuel demand exceeds the elasticity of kilometre demands with respect to the fuel price; the difference strongly increases at the highest deciles of the distribution of kilometre demand. Extending the model to account for driver heterogeneity and the role of car characteristics confirmed the relevance of substitution between cars within the household. We found strong evidence of substitution from the secondary to the primary car, especially if the latter is a more recent car with more horsepower. In general, the results of this paper emphasise the importance of behavioural differences related to the position of the most fuel efficient car in the household, suggesting that households’ fuel efficiency choices are related to their price sensitivity.


    Zugriff

    Zugriff prüfen

    Verfügbarkeit in meiner Bibliothek prüfen

    Bestellung bei Subito €


    Exportieren, teilen und zitieren



    Titel :

    Substitution between cars within the household


    Beteiligte:
    De Borger, Bruno (Autor:in) / Mulalic, Ismir (Autor:in) / Rouwendal, Jan (Autor:in)


    Erscheinungsdatum :

    2016-01-05


    Format / Umfang :

    22 pages




    Medientyp :

    Aufsatz (Zeitschrift)


    Format :

    Elektronische Ressource


    Sprache :

    Englisch




    Household Mobility Tool Ownership: Modeling Interactions between Cars and Season Tickets

    Scott, Darren M. / Axhausen, Kay W. | Online Contents | 2006



    Pay-within cars in Philadelphia

    Engineering Index Backfile | 1909


    Rapid prototyping within Volvo cars

    Gustafsson, I. / Hanicke, H. | Tema Archiv | 1999


    Rapid Prototyping within Volvo Cars

    Gustafsson, I. / Hanicke, H. / International Council for Powertrain Engineering and Management | British Library Conference Proceedings | 1999