IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v152y2021icp115-126.html
   My bibliography  Save this article

Effects of pricing and infrastructure on car ownership: A pseudo-panel-based dynamic model

Author

Listed:
  • Song, Siqi
  • Diao, Mi
  • Feng, Chen-Chieh

Abstract

This study investigates households’ car ownership decisions in response to changes in vehicle quota control and transport infrastructure in Singapore. Unlike previous cross-sectional studies, we calibrate a dynamic car ownership model with a pseudo panel constructed from repeated cross-sectional travel surveys, controlling for the persistence of car ownership and unobserved heterogeneity. We find that the tightening of vehicle quota control and improved rail transit accessibility have reduced households’ desire to purchase cars. The long-run effect of these two policies is larger than their short-run effect due to the existence of true state dependence. The impact of expressway-network expansion is insignificant.

Suggested Citation

  • Song, Siqi & Diao, Mi & Feng, Chen-Chieh, 2021. "Effects of pricing and infrastructure on car ownership: A pseudo-panel-based dynamic model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 115-126.
    • Handle: RePEc:eee:transa:v:152:y:2021:i:c:p:115-126
    DOI: 10.1016/j.tra.2021.08.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856421002056
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2021.08.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dargay, Joyce M., 2002. "Determinants of car ownership in rural and urban areas: a pseudo-panel analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(5), pages 351-366, September.
    2. Verbeek, Marno & Nijman, Theo, 1992. "Can Cohort Data Be Treated as Genuine Panel Data?," Empirical Economics, Springer, vol. 17(1), pages 9-23.
    3. Chi-Hong (Patrick) Tsai & Corinne Mulley & Geoffrey Clifton, 2014. "A Review of Pseudo Panel Data Approach in Estimating Short-run and Long-run Public Transport Demand Elasticities," Transport Reviews, Taylor & Francis Journals, vol. 34(1), pages 102-121, January.
    4. Koh, Winston T. H., 2003. "Control of vehicle ownership and market competition: theory and Singapore's experience with the vehicle quota system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(9), pages 749-770, November.
    5. Diao, Mi, 2019. "Towards sustainable urban transport in Singapore: Policy instruments and mobility trends," Transport Policy, Elsevier, vol. 81(C), pages 320-330.
    6. Abu Oakil & Dick Ettema & Theo Arentze & Harry Timmermans, 2014. "Changing household car ownership level and life cycle events: an action in anticipation or an action on occurrence," Transportation, Springer, vol. 41(4), pages 889-904, July.
    7. Reid Ewing & Robert Cervero, 2010. "Travel and the Built Environment," Journal of the American Planning Association, Taylor & Francis Journals, vol. 76(3), pages 265-294.
    8. Eriksson, Louise & Garvill, Jörgen & Nordlund, Annika M., 2008. "Acceptability of single and combined transport policy measures: The importance of environmental and policy specific beliefs," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(8), pages 1117-1128, October.
    9. Siqi Song & Chen-Chieh Feng & Mi Diao, 2020. "Vehicle quota control, transport infrastructure investment and vehicle travel: A pseudo panel analysis," Urban Studies, Urban Studies Journal Limited, vol. 57(12), pages 2527-2546, September.
    10. Chu, Sing-Fat & Koh, Winston T. H. & Tse, Yiu Kuen, 2004. "Expectations formation and forecasting of vehicle demand: an empirical study of the vehicle quota auctions in Singapore," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(5), pages 367-381, June.
    11. Zhu, Yi & Diao, Mi, 2016. "The impacts of urban mass rapid transit lines on the density and mobility of high-income households: A case study of Singapore," Transport Policy, Elsevier, vol. 51(C), pages 70-80.
    12. Chu, Singfat, 2012. "Allocation flexibility and price efficiency within Singapore’s Vehicle Quota System," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1541-1550.
    13. Song, Siqi & Diao, Mi & Feng, Chen-Chieh, 2016. "Individual transport emissions and the built environment: A structural equation modelling approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 206-219.
    14. Xinyu Cao & Patricia L Mokhtarian & Susan L Handy, 2007. "Cross-Sectional and Quasi-Panel Explorations of the Connection between the Built Environment and Auto Ownership," Environment and Planning A, , vol. 39(4), pages 830-847, April.
    15. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    16. Weis, Claude & Axhausen, Kay W., 2009. "Induced travel demand: Evidence from a pseudo panel data based structural equations model," Research in Transportation Economics, Elsevier, vol. 25(1), pages 8-18.
    17. Dissanayake, Dilum & Morikawa, Takayuki, 2010. "Investigating household vehicle ownership, mode choice and trip sharing decisions using a combined revealed preference/stated preference Nested Logit model: case study in Bangkok Metropolitan Region," Journal of Transport Geography, Elsevier, vol. 18(3), pages 402-410.
    18. Bhat, Chandra R. & Guo, Jessica Y., 2007. "A comprehensive analysis of built environment characteristics on household residential choice and auto ownership levels," Transportation Research Part B: Methodological, Elsevier, vol. 41(5), pages 506-526, June.
    19. Van Acker, Veronique & Witlox, Frank, 2010. "Car ownership as a mediating variable in car travel behaviour research using a structural equation modelling approach to identify its dual relationship," Journal of Transport Geography, Elsevier, vol. 18(1), pages 65-74.
    20. Agarwal, Sumit & Koo, Kang Mo, 2016. "Impact of electronic road pricing (ERP) changes on transport modal choice," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 1-11.
    21. Dargay, Joyce M, 2001. "The effect of income on car ownership: evidence of asymmetry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(9), pages 807-821, November.
    22. Nolan, Anne, 2010. "A dynamic analysis of household car ownership," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(6), pages 446-455, July.
    23. Verbeek, M.J.C.M. & Nijman, T.E., 1992. "Can cohort data be treated as genuine panel data?," Other publications TiSEM d4eada8f-b91c-4fe7-a58c-7, Tilburg University, School of Economics and Management.
    24. Dargay, Joyce, 2007. "The effect of prices and income on car travel in the UK," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(10), pages 949-960, December.
    25. Potoglou, Dimitris & Kanaroglou, Pavlos S., 2008. "Modelling car ownership in urban areas: a case study of Hamilton, Canada," Journal of Transport Geography, Elsevier, vol. 16(1), pages 42-54.
    26. Sabreena Anowar & Naveen Eluru & Luis F. Miranda-Moreno, 2014. "Alternative Modeling Approaches Used for Examining Automobile Ownership: A Comprehensive Review," Transport Reviews, Taylor & Francis Journals, vol. 34(4), pages 441-473, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Te Ma & Mahdi Aghaabbasi & Mujahid Ali & Rosilawati Zainol & Amin Jan & Abdeliazim Mustafa Mohamed & Abdullah Mohamed, 2022. "Nonlinear Relationships between Vehicle Ownership and Household Travel Characteristics and Built Environment Attributes in the US Using the XGBT Algorithm," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    2. Xue, Yixi & Zhang, Yi & Wang, Zhuoli & Tian, Shuo & Xiong, Qian & Li, Lydia Qianqian, 2023. "Effects of incentive policies on the purchase intention of electric vehicles in China: Psychosocial value and family ownership," Energy Policy, Elsevier, vol. 181(C).
    3. Zhou, Fan & Yang, Ziying & Wu, Di & Zheng, Zuduo, 2024. "Shifting towards luxury cars: The price and environmental effects of Beijing’s vehicle lottery system and an alternative policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 181(C).
    4. Zhiqiang Xu & Mahdi Aghaabbasi & Mujahid Ali & Elżbieta Macioszek, 2022. "Targeting Sustainable Transportation Development: The Support Vector Machine and the Bayesian Optimization Algorithm for Classifying Household Vehicle Ownership," Sustainability, MDPI, vol. 14(17), pages 1-17, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Siqi Song & Chen-Chieh Feng & Mi Diao, 2020. "Vehicle quota control, transport infrastructure investment and vehicle travel: A pseudo panel analysis," Urban Studies, Urban Studies Journal Limited, vol. 57(12), pages 2527-2546, September.
    2. Zhao, Pengjun & Bai, Yu, 2019. "The gap between and determinants of growth in car ownership in urban and rural areas of China: A longitudinal data case study," Journal of Transport Geography, Elsevier, vol. 79(C), pages 1-1.
    3. Jou, Rong-Chang & Huang, Wen-Hsiu & Wu, Yuan-Chan & Chao, Ming-Che, 2012. "The asymmetric income effect on household vehicle ownership in Taiwan: A threshold cointegration approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(4), pages 696-706.
    4. Abu Toasin Oakil & Dorien Manting & Hans Nijland, 2018. "The role of individual characteristics in car ownership shortly after relationship dissolution," Transportation, Springer, vol. 45(6), pages 1871-1882, November.
    5. Oakil, Abu Toasin Md & Manting, Dorien & Nijland, Hans, 2016. "Determinants of car ownership among young households in the Netherlands: The role of urbanisation and demographic and economic characteristics," Journal of Transport Geography, Elsevier, vol. 51(C), pages 229-235.
    6. Wang, Xiaoquan & Yin, Chaoying & Zhang, Junyi & Shao, Chunfu & Wang, Shengyou, 2021. "Nonlinear effects of residential and workplace built environment on car dependence," Journal of Transport Geography, Elsevier, vol. 96(C).
    7. Chi-Hong (Patrick) Tsai & Corinne Mulley & Geoffrey Clifton, 2014. "A Review of Pseudo Panel Data Approach in Estimating Short-run and Long-run Public Transport Demand Elasticities," Transport Reviews, Taylor & Francis Journals, vol. 34(1), pages 102-121, January.
    8. Robert Kudłak & Wojciech Kisiała & Bartłomiej Kołsut, 2023. "Determinanty posiadania samochodu w Polsce: wyniki modelowania w ujęciu przestrzennym w latach 2005 i 2019," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 2, pages 152-173.
    9. Zhao, Pengjun & Zhang, Yixue, 2018. "Travel behaviour and life course: Examining changes in car use after residential relocation in Beijing," Journal of Transport Geography, Elsevier, vol. 73(C), pages 41-53.
    10. Sabreena Anowar & Naveen Eluru & Luis F. Miranda-Moreno, 2014. "Alternative Modeling Approaches Used for Examining Automobile Ownership: A Comprehensive Review," Transport Reviews, Taylor & Francis Journals, vol. 34(4), pages 441-473, July.
    11. Ding, Chuan & Wang, Donggen & Liu, Chao & Zhang, Yi & Yang, Jiawen, 2017. "Exploring the influence of built environment on travel mode choice considering the mediating effects of car ownership and travel distance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 65-80.
    12. Chetan Doddamani & M. Manoj, 2023. "Analysis of the influences of built environment measures on household car and motorcycle ownership decisions in Hubli-Dharwad cities," Transportation, Springer, vol. 50(1), pages 205-243, February.
    13. Kasraian, Dena & Maat, Kees & van Wee, Bert, 2018. "Urban developments and daily travel distances: Fixed, random and hybrid effects models using a Dutch pseudo-panel over three decades," Journal of Transport Geography, Elsevier, vol. 72(C), pages 228-236.
    14. Laviolette, Jérôme & Morency, Catherine & Waygood, E.O.D., 2022. "A kilometer or a mile? Does buffer size matter when it comes to car ownership?," Journal of Transport Geography, Elsevier, vol. 104(C).
    15. Shen, Qing & Chen, Peng & Pan, Haixiao, 2016. "Factors affecting car ownership and mode choice in rail transit-supported suburbs of a large Chinese city," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 31-44.
    16. Jukka Heinonen & Michał Czepkiewicz & Áróra Árnadóttir & Juudit Ottelin, 2021. "Drivers of Car Ownership in a Car-Oriented City: A Mixed-Method Study," Sustainability, MDPI, vol. 13(2), pages 1-26, January.
    17. Jason Cao & Xiaoshu Cao, 2014. "The Impacts of LRT, Neighbourhood Characteristics, and Self-selection on Auto Ownership: Evidence from Minneapolis-St. Paul," Urban Studies, Urban Studies Journal Limited, vol. 51(10), pages 2068-2087, August.
    18. Ao, Yibin & Yang, Dujuan & Chen, Chuan & Wang, Yan, 2019. "Exploring the effects of the rural built environment on household car ownership after controlling for preference and attitude: Evidence from Sichuan, China," Journal of Transport Geography, Elsevier, vol. 74(C), pages 24-36.
    19. Mitra, Suman K. & Saphores, Jean-Daniel M., 2017. "Carless in California: Green choice or misery?," Journal of Transport Geography, Elsevier, vol. 65(C), pages 1-12.
    20. Evelyn Blumenberg & Anne Brown & Andrew Schouten, 2020. "Car-deficit households: determinants and implications for household travel in the U.S," Transportation, Springer, vol. 47(3), pages 1103-1125, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:152:y:2021:i:c:p:115-126. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.