IDEAS home Printed from https://ideas.repec.org/a/tpe/jtecpo/2016502132--150.html
   My bibliography  Save this article

Is Vehicle Depreciation a Component of Marginal Travel Cost? A Literature Review and Empirical Analysis

Author

Listed:
  • Derrick Hang
  • Daniel McFadden
  • Kenneth Train
  • Ken Wise

Abstract

A review of 116 travel cost models finds that, of the studies that report their practice, about half include depreciation in their calculation of vehicle costs and half do not, with none giving a justification for either approach. We examine empirically whether depreciation is related to households' decisions of how much to drive. Using a sample of over 200,000 US households, we find that, relative to fuel costs, depreciation has a small effect on the amount that households drive. This finding is consistent with households' considering depreciation as primarily a fixed rather than marginal cost.

Suggested Citation

  • Derrick Hang & Daniel McFadden & Kenneth Train & Ken Wise, 2016. "Is Vehicle Depreciation a Component of Marginal Travel Cost? A Literature Review and Empirical Analysis," Journal of Transport Economics and Policy, University of Bath, vol. 50(2), pages 132-13-150.
    • Handle: RePEc:tpe:jtecpo:2016:50:2:132--150
    as

    Download full text from publisher

    File URL: https://www.jstor.org/stable/jtranseconpoli.50.2.0132
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Yousif Elsamani & Yuya Kajikawa, 2024. "Envisioning the Future of Mobility: A Well-Being-Oriented Approach," Sustainability, MDPI, vol. 16(18), pages 1-22, September.

    More about this item

    Statistics

    Access and download statistics

    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:tpe:jtecpo:2016:50:2:132--150. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Christopher F. Baum (email available below). General contact details of provider: http://www.bath.ac.uk/e-journals/jtep .

    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.