Differences in the effects of fuel price and income on private car use in Sweden 1999-2008

Download

The objective of this paper is to analyse how the use of privately owned cars in Sweden varies across a number of background parameters including fuel price, disposable income, car purchase cost index, children over 18, employment and the car owners’ distance to work. These factors are analysed separately for men and women, individuals living in urban, rural and sparsely populated areas as well as disposable income quartiles. In particular the adaptation of car use of low income car owners in rural and sparsely populated areas to fuel cost and disposable income variations is analysed. Register data of the whole population in Sweden taken from the Swedish tax authorities for 1999-2008 as well as kilometre readings from the National Vehicle Inspection is used. This allows tracking individual changes in car use over ten years as well as to contrast car use in rural and sparsely populated areas to car use in urban areas. Car use is modelled with a dynamic panel data specification, permitting proper methods to deal with endogeneity problems. Small geographical differences in the sensitivity to variations in disposable income are found. For fuel cost on the other hand, there is a tendency towards higher price sensitivity in rural areas especially in the two lowest income quartiles. In sparsely populated areas, there is no higher sensitivity of fuel price compared to urban areas. The income elasticity of car use is fairly small and decreases with increasing disposable income. This latter finding is compatible with the hypothesis of car driving saturation in the rich countries around the world. The car travel elasticity with respect to fuel price is estimated to be between -0.2 and -0.4 in the short run. Here the pattern is as expected with decreasing fuel-price elasticity with increasing income.

MEET US


25-26
Apr

Cost Benefit Analysis (CBA) workshop in Stockholm

An open seminar and workshop in Stockholm will be held on 25-26 April 2018. The workshop deals with the use of CBA as a basis for decision-making in the public sector. The workshop is organized by, among others, Professor Jan-Eric Nilsson, VTI.

LATEST NEWS


2018-02-19

Modal shift for an environmental lift?

Investigations in Sweden and other countries suggest a shift of goods transport from road to rail and waterborne transport to reach environmental and climate objectives. VTI is leading a new project to investigate how the modal shift can contribute and what...


2018-02-13

Automation and digitalisation are making rail competitive

Road transport is developing rapidly and its productivity has increased sharply. Rail transport, however, has not developed at the same rate. Automation and digitalisation are essential if rail freight in Europe is to survive.


2018-02-08

New research is creating a driverless logistics chain

The research project Born to Drive has come up with a system that allows new cars to move, without a driver, from the production line out to the parking area prior to being transported elsewhere. The vision is to automate the entire logistics chain from...


2018-02-05

VTI testing automation in EU project

VTI is leading a series of tests in a major EU project on automated driving. The first driving tests were carried out n a test track in Slovenia in December. The project will focus in part on acceptance among different groups in society, in part on...


2018-02-02

Freight transportation on road and rail analysed

Freight transport accounts for a large proportion of the emissions, noise and congestion produced by road traffic. Transporting freight in larger but fewer lorries could reduce the problem. At the same time it might entail freight being diverted from more...


2017-11-30

Millions for research into maritime transport and the environment

Maritime transport is a major source of emissions of harmful air pollutants and carbon dioxide. In a new project, a research team from the Swedish National Road and Transport Research Institute (VTI) and the University of Gothenburg has received SEK 6.4...