Induced motor vehicle travel from improved fuel efficiency and road expansion

This paper investigates the impact of improved fuel efficiency and road network expansion on motor vehicle travel using a system dynamic panel data estimator and panel data at the state level for the 2001–2008 period. Our model accounts for endogenous changes in fuel efficiency, congestion, fuel cost per mile, and vehicle stock. Our regression results suggest that the short run rebound effect is 0.0276 while the long run rebound effect is 0.11. The short run effect of road capacity per capita is 0.066 while the long run effect is 0.26.

[1]  Paul Schimek,et al.  Growth in motor vehicle ownership and use : evidence from the Nationwide Personal Transportation Survey , 1999 .

[2]  M. Arellano,et al.  Another look at the instrumental variable estimation of error-components models , 1995 .

[3]  P. Gordon,et al.  Gender Differences in Metropolitan Travel Behaviour , 1989 .

[4]  Badi H. Baltagi,et al.  Pooled estimators vs. their heterogeneous counterparts in the context of dynamic demand for gasoline , 1997 .

[5]  Soumodip Sarkar,et al.  Gasoline Tax as a Corrective Tax: Estimates for the United States, 1970-1991 , 1996 .

[6]  B. Baltagi,et al.  Econometric Analysis of Panel Data , 2020, Springer Texts in Business and Economics.

[7]  Jerry A. Hausman,et al.  Panel Data and Unobservable Individual Effects , 1981 .

[8]  Clifton T. Jones.  Another Look at U.S. Passenger Vehicle Use and the 'Rebound' Effect from Improved Fuel Efficiency , 1993 .

[9]  K. Small,et al.  Induced demand and rebound effects in road transport , 2010 .

[10]  S. Sorrell,et al.  The rebound effect: Microeconomic definitions, limitations and extensions , 2008 .

[11]  R. Noland.  Relationships between highway capacity and induced vehicle travel , 2001 .

[12]  Lawrence C. Barr,et al.  Testing for the Significance of Induced Highway Travel Demand in Metropolitan Areas , 2000 .

[13]  Paul Schimek.  Household motor vehicle ownership and use : How much does residential density matter ? , 1996 .

[14]  S. Hanson,et al.  GENDER DIFFERENCES IN WORK-TRIP LENGTH: EXPLANATIONS AND IMPLICATIONS , 1985 .

[15]  Steve Sorrell,et al.  The Rebound Effect: Microeconomic Definitions, Extensions and Limitations , 2006 .

[16]  L. Fulton,et al.  A STATISTICAL ANALYSIS OF INDUCED TRAVEL EFFECTS IN THE U.S. MID-ATLANTIC REGION , 2000 .

[17]  David L. Greene,et al.  Vehicle Use and Fuel Economy: How Big is the "Rebound" Effect? , 1992 .

[18]  Badi H. Baltagi,et al.  Gasoline demand in the OECD: An application of pooling and testing procedures , 1983 .

[19]  Stacy Cagle Davis,et al.  Transportation energy data book , 2008 .

[20]  David L. Greene,et al.  Fuel Economy Rebound Effect for U.S. Household Vehicles , 1999, Controlling Automobile Air Pollution.

[21]  David A. Hensher,et al.  Dimensions of Automobile Demand: A Longitudinal Study of Household Automobile Ownership and Use , 1992 .

[22]  R. Blundell,et al.  Initial Conditions and Moment Restrictions in Dynamic Panel Data Models , 1998 .

[23]  Jörg Peters,et al.  Identifying the Rebound - Evidence from a German Household Panel , 2007 .

[24]  Sarah E. West.  Distributional Effects of Alternative Vehicle Pollution Control Policies , 2004 .

[25]  K. Small,et al.  Fuel Efficiency and Motor Vehicle Travel: The Declining Rebound Effect , 2007, Controlling Automobile Air Pollution.

[26]  F. Tarp,et al.  Understanding Victimization: The Case of Mozambique , 2007 .

[27]  David L. Greene,et al.  Rebound 2007: Analysis of U.S. light-duty vehicle travel statistics , 2012 .

[28]  Qingmu Su,et al.  Travel demand in the US urban areas: A system dynamic panel data approach , 2010 .

[29]  P. Goldberg,et al.  The Effects of the Corporate Average Fuel Efficiency Standards , 1996 .

[30]  J. Dargay.  The effect of prices and income on cartravel in the UK , 2007 .

[31]  M. Cropper,et al.  The Impact of Urban Spatial Structure on Travel Demand in the United States , 2003 .

[32]  D. Greene,et al.  Energy efficiency and consumption — the rebound effect — a survey , 2000 .

[33]  M. Arellano,et al.  Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations , 1991 .

[34]  M. Hansen,et al.  Road supply and traffic in California urban areas , 1997 .

[35]  Qingmu Su.  The effect of population density, road network density, and congestion on household gasoline consumption in U.S. urban areas , 2011 .