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Car Ownership in Relation to Income Distribution and Consumers' Spending Decisions

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  • François Lescaroux

Abstract

This paper proposes a formal model of per capita private car ownership based on very simple and general assumptions on income distribution and consumers' spending decisions. The author justifies a theoretical S-shaped curve describing changes in ownership as a function of average per capita income, income's dispersion, and the 'cost/utility' ratio of owning a car. He applies the model to a panel of sixty-four countries and explains past variations in their ownership rates. Then, projections are performed to the year 2030. These suggest that important technical and sociological evolutions will be needed to 'meet the challenges of sustainability'. © 2010 LSE and the University of Bath

Suggested Citation

  • François Lescaroux, 2010. "Car Ownership in Relation to Income Distribution and Consumers' Spending Decisions," Journal of Transport Economics and Policy, University of Bath, vol. 44(2), pages 207-230, May.
    • Handle: RePEc:tpe:jtecpo:v:44:y:2010:i:2:p:207-230
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    Cited by:

    1. Singh, Shivendu Shekhar & Sarkar, Basudatta, 2022. "Transport accessibility and affordability as the determinant of non-motorized commuting in rural India," Transport Policy, Elsevier, vol. 118(C), pages 101-111.
    2. Valenzuela-Levi, Nicolás, 2023. "Income inequality and rule-systems within public transport: A study of Medellín (Colombia) and Santiago (Chile)," Journal of Transport Geography, Elsevier, vol. 112(C).
    3. Combs, Tabitha S. & Rodríguez, Daniel A., 2014. "Joint impacts of Bus Rapid Transit and urban form on vehicle ownership: New evidence from a quasi-longitudinal analysis in Bogotá, Colombia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 272-285.
    4. Lebrand,Mathilde Sylvie Maria & Theophile,Ewane, 2022. "Rising Incomes, Transport Demand, and Sector Decarbonization," Policy Research Working Paper Series 10010, The World Bank.
    5. Valenzuela-Levi, Nicolás, 2021. "The rich and mobility: A new look into the impacts of income inequality on household transport expenditures," Transport Policy, Elsevier, vol. 100(C), pages 161-171.
    6. Lescaroux, François, 2011. "Dynamics of final sectoral energy demand and aggregate energy intensity," Energy Policy, Elsevier, vol. 39(1), pages 66-82, January.

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