Impact of fuel price on vehicle miles traveled (VMT): do the poor respond in the same way as the rich?

In this article, the authors consider the variation of fuel price elasticity of vehicle miles travelled (VMT) across income levels. They seek to understand the effects of fuel price on VMT and the underlying choices and constraints faced by various income groups. The study also considers the rebound effect, in which improved fuel efficiency leads to an increase in VMT and offsets the negative effects of fuel price on VMT. This rebound effect is compared to relative magnitude of VMT fuel price elasticity in this study. Using data from the 2009 National Household Travel Survey for different household income groups, the authors estimate a system of structural equations with VMT and fuel efficiency as endogenous variables. Their findings show greater fuel price efficiency for higher income households (-0.41 to -0.35 for the two highest income groups compared with -0.24 for the lowest income group). In addition, only the lowest income households revealed significance for the rebound effect. They conclude that fuel price can be used as a tool to affect VMT, and that more studies are needed to examine possible negative consequences faced by low income households after fuel price increases.

• Record URL:
  • https://doi.org/10.1007/s11116-013-9478-1
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/00494488
• Authors:
  • Wang, Tingting
  • Chen, Cynthia
• Publication Date: 2014-1

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 91-105
• Serial:
  • Transportation
  • Volume: 41
  • Issue Number: 1
  • Publisher: Springer
  • ISSN: 0049-4488
  • EISSN: 1572-9435
  • Serial URL: http://link.springer.com/journal/11116

Subject/Index Terms

• TRT Terms: Elasticity (Economics); Fuels; Low income groups; Prices; Upper income groups; Vehicle miles of travel
• Identifier Terms: National Household Travel Survey
• Subject Areas: Economics; Finance; Highways; Planning and Forecasting; Society; I10: Economics and Administration; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01519780
• Record Type: Publication
• Files: TRIS
• Created Date: Mar 26 2014 10:11AM